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Government Discusses Penalties on Carbon Emissions to push Electric Vehicles

Posted 24 Aug '22

Penalties On Carbon Emissions

Last week Chris Bowen (the climate change energy minister), officially announced plans to increase EV sales by imposing carbon penalties, in hopes to reduce vehicle emissions.

The announced plan consists of implementing emission penalties on new emission vehicles, to boost the growth of the EV market.
As of now, Australia does not have developed fuel efficiency standards, and Bowen has said that it is time to start seriously discussing the outlines of the standards and how they may improve the flow of EV's to the market.

As of this article, Australia is the only country within the Organisation for Economic Co-Operation and Development (OECD) that has not implemented fuel efficiency standards.

"while standards must be designed specifically for Australia, standards that lack ambition will leave us at the back of the global queue for cheaper, cleaner vehicles. we do need to aim for as close to best practice as is achievable.”

What is a fuel efficiency standard? Fuel efficiency refers to the exchange of fuel energy into the movement of the vehicle. The standards are set in place for the manufacturers to reduce the emissions used by a vehicle, to incentivise them to create more fuel efficient vehicles.

Bowen also mentioned that because of the absence of standards, EV manufacturers have prioritised markets with standards already in place, causing delays in Australia.

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