Submission in response to the Proposed Model Fuel Efficiency Standard for Light Vehicles

The Australian Government has been undertaking consultation in relation to its Proposed Model Fuel Efficiency Standard for Light Vehicles (Proposed Model), July 2017.

AGL supports the Proposed Model, which is based on achieving a new light vehicle average equivalent to Target A (105 gCO2/km on the current test cycle) in 2025.

All sectors of the Australian economy have an important role to play in meeting Australia’s emission reduction targets and its long-term commitments under the Paris Agreement.

Any costs associated with decarbonisation should be shared equitably across the Australia economy. Any failure to address emissions from the transport sector will increase the burden for other sectors, including the energy sector which has already committed to a significant transition program.

AGL believes that the ‘strong’ standard contained in the Proposed Model is the most appropriate way forward. Our considered view reflects the following matters, which we elaborate in our submission:

  1. The economic imperative of decarbonisation and the need for sectoral equity;
  2. The projected net economic benefit of "strong" action as prescribed in the Proposed Model;
  3. International experience underscores the outperformance of light vehicle efficiency regulation against economic forecasts; and
  4. The anticipated broader economic benefits of increased EV uptake.

A copy of our submission is available here