Feuding NVES factions to meet in Canberra today
Australia’s new automotive fuel-efficiency standard to be debated as deadline draws nearThe fractious factions fighting over Australia’s new CO2 reduction legislation will meet in one room in Canberra today (February 20).
The department of transport will host the consultative meeting this afternoon as the deadline nears for submissions in response to the federal government’s New Vehicle Efficiency Standard (NVES).
The objective of the NVES is to accelerate the move to low- and zero-emissions vehicles and away from traditional CO2-emitting vehicles that are contributing to the climate crisis.
It sets steadily decreasing CO2 limits for new vehicles and awards auto brands credits for achieving them or issues fines for excessive emissions.
Automotive associations, green groups, social welfare groups and individual car companies are all expected to attend the meeting.
Invites have been extended to the Federal Chamber of Automotive Industries (FCAI), the Australian Automotive Dealer Association (AADA) and the Motor Trades Association of Australia (MTAA).
Also on the invite list are the Electric Vehicle Council (EVC) and the Climate Council.
Individual car companies understood to be invited include leading manufacturers Toyota, Mazda, Ford, Kia and Hyundai.
Among them, Toyota, Kia and Ford are expected to be there. Others either can’t make it or have declined to comment when contacted by carsales.
As we’ve previously reported, the government’s impact analysis lists three options for an NVES, which it wants up and running by January 1, 2025.
Option A is the slowest and steadiest start to the process, while option C is the most radical and drastic.
The government favours option B, which falls roughly in the middle.
The FCAI and AADA have both expressed concerns about option B. The two automotive lobby groups are trying to defend a new vehicle industry built on the sales of high-emission diesel utes and SUVs.
The Climate Council has publicly backed the sale of only zero-emissions new vehicles by 2035.
Among the car companies, Hyundai has been the most vocal, backing Option B, albeit with the addition of super credits and a reduction in fines.
The MTAA is also taking a more middle of the road position, as outlined by CEO Matt Hobbs in his comment piece for carsales.
“We have only two weeks before we have to submit to government our proposals for a very complex policy,” Hobbs told carsales this morning.
“I welcome the department getting us all in a room and trying to find a pathway forward – green groups, dealer reps, repairers and car companies. The MTAA is going in good faith on behalf of its members.”
The EVC is also supporting Option B: “This process is a very normal one,” said CEO Behyad Jafari.
“The government has basically said what their policy is and if there needs to be some small adjustments within this policy ballpark they are also happy to hear that because they want people to beat those targets.”
If the normal format for such meetings is followed, each attendee should be given a few minutes to present their position.
It seems unlikely the three-hour meeting will result in a resolution of the differing views.
However, ahead of the March 4 the deadline for submissions, there has been little indication the government will waver much from its preference for Option B.
NVES legislation is expected to pass through parliament by July.
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