05 February 2025
Farmers for Climate Action (FCA) appreciates the opportunity for continued consultation on the New Vehicle Efficiency Standards, and we are pleased to provide a submission on the proposed New Vehicle Efficiency Standard: Australian Design Rule 81.
Key Points
- FCA strongly supports the Government’s commitment to introducing New Vehicle Efficiency Standards (NVES) for Australia as a critical component of a broader transport emissions reduction strategy. .
- On 31 January 2024, FCA submitted an open letter, signed by more than 800 farmers and supporters, to Minister Catherine King and Minister Bowen. The letter called on the Australian Government to establish strong fuel efficiency standards in order to bring more choice and affordability of electric vehicles (including farm utes) to our market.
- We refer to our previous submission on the New Vehicle Efficiency Standards – Cleaner, Cheaper to run Cars for Australia, and reiterate that strong fuel efficiency standards will deliver Australian farmers a better range of fuel-efficient cars, including electric vehicles, at lower prices. We strongly affirm that the lower running costs of EVs will help regional Australians to save money.
- FCA considers that the Australian Design Rule 81 is essential to ensure the timely implementation and operation of vehicle efficiency standards.
- The government should consider policy treatments such as financial compensation for primary producers where the cost of vehicles they have access to increases due to NVES.
About Farmers for Climate Action
Representing over 8,400 farmers and backed by 80,000 supporters nationwide, FCA seeks deep emissions reductions this decade to protect our farmers and our food supply. FCA is made up of farmers, agricultural leaders, and rural Australians who are advocating for strong economy-wide climate policies.
Australian Design Rule 81
FCA considers the enhanced quality of vehicle choice an important benefit for regional Australians. The vehicle efficiency standards will enable farmers and regional Australians to access the same variety of utes, 4WDs, and family cars as those living in the US, New Zealand and other countries, whether these are diesel, petrol, or electric vehicles. In our submission on the New Vehicle Efficiency Standard, FCA strongly endorsed the ‘Option B’ pathway proposed by the government for implementing the NVES. We welcomed this approach, as it does not affect any vehicles currently on Australian roads. This pathway aligns with the roadmap implemented by other developed economies and provides a phased lead-in time which will allow manufacturers, consumers, and operators to adapt to changing standards. The proposed introduction of Australian Design Rule 81/03 to specify requirements of testing of vehicles and proper labelling will ensure that vehicle efficiency standards can be implemented in a timely manner. FCA also notes that improved emissions testing will provide consumers with better information about the emissions profile of their vehicles. The introduction timeframe is reasonable, and should not unduly burden manufacturers who already have to comply with existing labelling requirements in Australia and testing in other jurisdictions, such as the European Union.
FCA is aware of concerns that the introduction of fuel efficiency standards may impact primary producers by reducing the range of commercial vehicles they have access to, and potentially increase the cost of vehicles for farmers. While FCA does not consider that these challenges will arise, we continue to encourage the government to consider policy treatments such as financial recompense. This, alongside implementation timeframes, will protect primary producers from undue transition costs in the event that the sector observes a cost burden on farmers occurring from the NVES, as well as advance the positive future of Australian agriculture in the context of the Net Zero Agriculture and Land Sector Plan.
To further mitigate concerns, the experience of other markets that have introduced vehicle efficiency standards indicate that the cost of Australian cars will not increase. Manufacturers are already producing efficient low and zero-emission vehicles overseas. Requiring these vehicles to also be exported to Australia with the proper labelling and testing should not represent a significant change or burden on manufacturer costs and business models.
Farmers see the introduction of vehicle efficiency standards as a powerful instrument to motivate global vehicle manufacturers to introduce cleaner and more affordable cars to the Australian market. The design rules under consultation are in line with these goals and will ensure the timely introduction of vehicle emissions testing and standards in Australia.
Please do not hesitate to contact myself or Paul Stark, Policy and Farmer Engagement Officer, on the contact details below should you have any questions regarding this submission.
Yours sincerely,
Natalie Collard
Email: [email protected]
Phone: 1800 491 633
Web: farmersforclimateaction.org.au
Post: FCA C/- Melbourne Connect Co-Working, Lvl 2 700 Swanston Street, Carlton VIC 3053