National Farmers’ Federation president David Jochinke was pleased the Federal Government had listened to producers’ concerns and delayed timelines for the New Vehicle Efficiency Standard legislation, as well as easing the targets set for utes and some four-wheel drives.
“Farmers support emissions reduction but not in a way that compromises the tools of the trade farmers use every day,” Mr Jochinke said.
“[These] amendments are welcome, and shows the government has recognised the concerns raised by stakeholders.”
Utes and large SUVs will not have to be as ‘green’ as expected under changes to the New Vehicle Efficiency Standard, which one automaker said would put Australia in the "middle of the pack" on a global basis.
Federal Transport Minister Catherine King and Federal Energy Minister Chris Bowen revealed the government's final plans for new vehicle rules on March 26, alongside representatives from automakers including Toyota, Tesla and Hyundai.
The revised policy will still seek to reduce emissions from passenger cars by 61 per cent in 2029, but has relaxed proposed emission cuts for light commercial vehicles, such as utes, by 35 per cent.
It will also move some large four-wheel drive vehicles — such as the Toyota LandCruiser, Ford Everest and Isuzu MU-X — into the commercial category, giving them lower emission reduction targets.
Penalties and credits under the standard will also not apply until July 2025, six months after the law comes into effect.
Tesla Australia senior energy policy adviser Sam McLean said the policy presented a solid compromise between traditional car brands, electric vehicle makers, environmental concerns and consumer demand.
"This is a very moderate standard that takes Australia from being really in last place in this transition to the middle of the pack," he said.
"In doing so, it will save motorists thousands of dollars on petrol."
Mr Jochinke said concerns remained over the potential impacts the policy could have on producers.
“While slower roll out times are welcome, we remain concerned there will be a lack of realistic lower emissions vehicles available to producers, and subsequently higher prices for these vehicles,” he said.
“The NFF will be keeping both eyes on the road as this progresses to understand the impacts on fleet and make sure it doesn’t see price increases for farmers.
“Should this legislation come to pass, we expect the policy to be reviewed as it rolls out to ensure the new timeframes remain feasible and the market keeps in step.”
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