New Vehicle Efficiency Standard
Senator VAN: My question is to the Minister representing the Minister for Climate Change and Energy, Senator Wong. The Paris Agreement's central aim is to strengthen the global response to the threat of climate change. It is imperative that Australia's commitments and policies align with these goals. A watered-down new vehicle emissions standard will have significant implications for Australia's ability to meet these targets. Today we read that Minister King and Minister Bowen will be unveiling a softened new vehicle efficiency standard. The original standard had a goal of 60 per cent reduction of new-car emissions by 2029. Is the minister able to specify the revised emission reduction target for new vehicles by the year 2030?
Senator WONG: Thank you, Senator, and I appreciate the question. You are certainly correct in outlining the way in which a trajectory to net zero requires a contribution from all parts of the economy—and I, if I may, congratulate you on actually dealing with the reality of the policy challenge that the country faces and the economic transition the country faces, which is in stark contrast to what occurred under the previous government over nine years. It is true that, when there is less abatement from one sector, it does require more abatement from another sector. Having said that, the ministers have obviously had to take into account the engagement with industry and stakeholder representatives in making the decision about some revisions or amendments to the policy which was proposed.
I understand, although I wasn't able to see it, that the ministers did announce that prior to question time and that that included recategorising some four-wheel drives from passenger to light commercial vehicle; smoothing the emissions trajectory for light commercial vehicles, which reflects the adjustments announced by the United States to its vehicle standards—smoothing the transition for utes, vans and others; adjusting emissions limits; and staging implementation in partnership with industry. The standard will commence in January 2025, but manufacturers will not begin earning credits or penalties until after 1 July 2025.
You asked a very good question about the data as to projected abatement as a consequence of this decision compared to the previous standard. I don't have that information in the brief that's been provided to me, but it's a reasonable question. I'll take advice on it. (Time expired)
The PRESIDENT: Senator Van, first supplementary?
Senator VAN: The minister might need to take advice on this question as well. How do the adjustments to the NVES compare to the old one? How does the new one compare to the old one? You may want to take that on notice.
Senator WONG: I can go through what was publicly said about some of the changes. As I said, there was a lot of discussion about four-wheel drives. There was a recategorisation of a limited number of four-wheel drives from passenger car to light commercial vehicle. This includes models such as the LandCruiser and the Nissan Patrol. This acknowledges that some offroad wagons use similar ladder-frame chassis and have towing capacity of three tonnes, comparable to dual-cab utes. There's a smoothing of the emissions trajectory for light commercial vehicles. As you might recall, I think it was yesterday that I was asked by Senator McKenzie about the changes to the US's EPA vehicle standard. The change reflects that. There was an adjustment to the weight based relative emissions limits, which is known as the break point, which recognises that heavier vehicles emit more, and there was staged implementation.
The cumulative abatement, I am advised in the fact sheet, is 20 million tonnes to 2030 and 80 million to 2035. (Time expired)
The PRESIDENT: Senator Van, second supplementary?
Senator VAN: Considering the urgency of addressing climate change and the role of diplomatic leadership in fostering international collaboration, how does the government anticipate the adjustments to the MVES will reflect Australia's diplomatic relations specifically concerning our Pacific island neighbours and other nations that are exceedingly susceptible to the impacts of climate change?
Senator WONG: It is true that climate change is the first priority of Pacific island nations. I had the opportunity today to meet with the Deputy Prime Minister of Vanuatu, and that was a point he again made. You're right to identify it as an issue.
There's no change to our overall target. What we're looking at is how each sector can contribute to the targets we have announced and to targets that we will be announcing down the track in accordance with the Paris Agreement. What I would say is this model will deliver $95 billion in fuel savings to Australians by 2050. It will deliver more choice of low- and zero-emissions vehicles. It will deliver cumulative abatement of, as I said, 20 million tons to 2030, 80 million tons to 2035 and 321 million tonnes by 2050. It will reduce emissions intensity for new Australian— (Time expired)
