There have been significant gains made in the design of electric vehicles in the past decade, driven primarily by innovations from the European market.

Vehicle emissions for vehicles in the European market have also been substantially reduced.

Figures from the Australian Bureau of Statistics show that the rate of fuel consumption averaged for all motor vehicles on Australian roads is 13.8 litres per 100 km – one of the worst performances for national average fuel consumption of Organisation for Economic Co-operation and Development (OECD) countries, apart from the United States and Canada.

Not surprisingly, this performance correlates to the price of petrol; Australia has the fourth-lowest level of petrol taxation (and consequently the fourth-lowest petrol prices) in the OECD.

Transport prospects

Over the past decade, Australia has ignored many opportunities to improve national energy efficiency standards in transport fleet. In creating measures that reduce the country’s transport greenhouse gas emissions, Australia can move to reduce its reliance on imported fossil fuels for transportation.

The Federal Government has initiated consultation to implement carbon dioxide emissions standards for new light vehicles, starting in 2015.

The discussion paper Light vehicle carbon dioxide emission standards for Australia asked industry and the community to help shape the new standards in November 2011.

The Sustainable Energy Association of Australia (SEA) is encouraging not only its members to participate in this process, but all those interested in a more sustainable future for Australia.

The SEA believes that the Federal Government must take stronger measures on national average fuel consumption numbers for new passenger vehicles, and introduce rolling three-year targets on maximum fuel consumption. Successive Federal Governments have ‘dragged their feet’ on setting mandated energy efficiency targets for the national vehicle fleet.

In Australia, vehicle fuel efficiency standards and housing energy efficiency standards are both a symptom of inadequate measures on sustainability. Australians are paying for inefficient cars and housing that make energy and fuel bills higher, driving inflation and impacting on the household budget and mortgage affordability.

Resistance to change from the automotive industry has commonly involved the assertion that increased fuel efficiency in vehicles will come at a higher vehicle cost. However, carbon dioxide emissions from the average new car sold in Europe in 2010 dropped to the milestone figure of 140 g CO²/km, while retail prices of motor vehicles have fallen every year in real terms.

Moving into gear

Both regulatory measures and market signals are needed to improve energy efficiency and reduce greenhouse gas emissions in Australian vehicles.

Both state and federal governments can make ‘green’ vehicles more affordable, available and attractive by:

  • Reducing vehicle taxes – including stamp duty – and reforming company taxation frameworks to direct purchasing toward fuel-efficient, low-emission, new and used electric vehicles for both transport and commercial uses
  • Offering businesses financial incentives to only select from the most fuel-efficient fit-for-purpose vehicles
  • Improving consumer awareness through information, education, and advertising that focuses on life-cycle costs and promotes manufacturers making the greatest effort to deliver real change
  • Tightening fuel quality standards in Australia to ensure that we have cleaner burning fuels and that higher efficiency vehicles are not compromised by lower Australian fuel standards.