Update on Transport Developments and Fuel Efficiency

The Australian government is introducing the new Vehicle Efficiency Standard Act to boost the efficiency of new vehicles, including electric ones. The act commenced on 1 January 2025, with a compliance period starting 1 July 2025. To support this, the government is replacing the old New European Driving Cycle standard with the Worldwide Harmonised Light Vehicles Test Procedure (WLTP). Amendments are being made to the Australian Design Rule ADR 81 to include the new testing framework. The government is also developing IT systems and processes, including a unit registry with the Clean Energy Regulator. Other key transport decarbonisation milestones include introducing Euro six noxious emission standards for heavy vehicles from 1 November 2024 and for light vehicles from 1 December 2025. The Acoustic Vehicle Alerting System standard will commence on 1 November 2025 for new model vehicles and 1 November 2026 for all vehicles. The government has observed a positive impact on the market, with sales of fuel-efficient vehicles increasing significantly. Notably, electric vehicle sales have risen from 0.8% in 2021 to 9.6% in 2024, and the number of available electric vehicle models has grown from 45 in 2022 to around 160 by the end of 2024.