Australia emission standards will have limited impact

Significance

Although raising fuel efficiency standards as a means of reducing emissions has been a high-profile issue for the government, last-minute concessions to the automotive sector will leave Australia with some of the weakest such laws among advanced economies and mean another blow to Labor’s efforts to combat climate change.

Impacts

• The government may struggle to win the support needed to get the legislation through the Senate, where it lacks a majority.
• Labor is losing parliamentary support due to its perceived willingness to make concessions on climate policy issues.
• The weakened standards could delay the transition to hybrid and electric vehicles that is needed to reduce transport emissions.
• With Australia no longer producing cars domestically, it remains dependent on manufacturers’ choices regarding which models to import.