Australia legislates a New Vehicle Efficiency Standard!
On May 17th the Australian Government passed it's New Vehicle Efficiency Standard (NVES) through both houses of parliament, making it law. From January 1st 2025, all vehicle importers must achieve a fleetwide average emissions intensity of 141 gCO2/km for passenger vehicles, and 210 gCO2/km for light commercial vehicles.
If an importer's fleet average is above the target set for that year, a penalty of $100 per gram over the target, per vehicle, will be imposed. Likewise, if the fleet average is below the target, they will earn credits to the same value. Importers who are liable may buy credits from over-achieving importers.
The emissions targets are progressively reduced year after year:
| Year | Passenger Vehicles | Light Commercials |
| 2025 | 141 gCO2/km | 210 gCO2/km |
| 2026 | 117 gCO2/km | 180 gCO2/km |
| 2027 | 92 gCO2/km | 150 gCO2/km |
| 2028 | 68 gCO2/km | 122 gCO2/km |
| 2029 | 58 gCO2/km | 110 gCO2/km |
While the AEVA is pleased to see the legislation passed, it remains disappointed that the targets were further relaxed for light commercial vehciles (Australia's most popular family cars) and that there is no zero-emission target beyond 2029. It is widely acknowleged that the only way to achieve emissions intensities which approach 0 gCO2/km is through full electrification.
Full details about the NVES can be found on the Commonwealth Government's website:
AEVA's position has been revised since the legislation passed, and can be found under the AEVA Policies menu.