Action to cut emissions
A mix of technology, taxation and infrastructure development must be primary elements for Australia’s government when planning the road to net-zero emissions from the light-vehicle sector.
The recommendation forms part of the submission of the Federal Chamber of Automotive Industries (FCAI) in response to the transport and infrastructure net-zero consultation roadmap.
According to FCAI chief executive Tony Weber, policy must look beyond just the fleet’s electrification to include features such as low-carbon liquid fuels, implementing an equitable road-user charge (RUC), ongoing expansion of recharging infrastructure and eliminating inefficient taxes, such as the one for luxury cars.
“The introduction of the new-vehicle efficiency standard provides industry with certainty regarding the expectations and ambitious targets of the government,” says Weber, pictured.
“However, this is not a ‘set and forget’ direction. There’s a need to continue to focus on the broader enabling environment and how can we reduce emissions in the existing fleet while the transition occurs.
“Policy that drives the supply of vehicles will struggle unless consumers become a part of the solution to achieve net-zero emissions through effective and efficient levels of support and encouragement.
Weber adds progressive taxation reform would be an integral part of the journey to net zero.
“Scrapping luxury car tax, which is a tax on new vehicle technology, and extending the fringe-benefits tax exemption for plug-in hybrids could support EV adoption, are important measures to consider.
“An efficient and equitable RUC framework can be considered as a replacement for a range of outdated and inefficient tax measures, while maintaining sustainable funding for roads and transport infrastructure.”
The development of public and private EV recharging infrastructure remains a major priority for consumers, and Weber acknowledges the activity of commonwealth, state and territory governments.
“They understand the importance of the development and performance management of recharging infrastructure. Significant investments are being made. This is a good start but more needs to be done.
“There are big challenges ahead, particularly the roll-out of infrastructure to regional and rural Australia. This is a complex piece of work that must be done in parallel with the capability and capacity of the electricity distribution network.”
While electrification is seen as the most obvious method of reducing emissions, the FCAI believes all relevant technologies must be considered as offering solutions to new and existing vehicles in the fleet.
“Australia has more than 21 million registered vehicles, which will take time to transition. It may be possible to leverage low-carbon liquid fuel solutions across transport, and we should be considering policy outcomes that encourage production and supply opportunities.
“Multiple pathways will be required during the next decade and beyond to achieve the net-zero emissions objectives of governments and industry.
“With this in mind, the FCAI and its members will continue to engage constructively with all levels of government and industry partners to achieve a low-emissions future while providing the best outcomes for consumers.”
To access a full version of the FCAI’s submission, click here.
