EVs: Raising standards, cutting costs
16.06.2023 - 07:20
In a new report for the Electric Vehicle Council, Mandala unpacks how an effective new vehicle efficiency standard can reduce vehicle emissions and save consumers money. Our analysis found that a well-designed NVES could deliver up to $13.6 billion in savings for Australians over the next decade, and also avoid up to 31 million tonnes of carbon dioxide emissions.
This study examines the potential impact of introducing a new vehicle efficiency standard in Australia
Australia needs a strong new vehicle efficiency standard (NVES) to catch up to its global peers and cut costs for motorists Implementing a strong NVES will reduce fuel and maintenance costs for consumers, as well as deliver substantial environmental benefits.
While the NVES would have a relatively modest impact on vehicle prices, this would be more than offset by cost savings over the life of the vehicle – making cars cheaper overall for consumers.
More than 85% of vehicles sold worldwide are covered by a NVES. Australia is currently one of the few developed nations, along with Russia, without a NVES.
The European Union (EU) has the strongest standard, requiring all new vehicles sold by 2035 to be zero-emissions vehicles.
Currently, the EU sells over 200 models of electric vehicles (EV) compared to just over 50 in Australia.
Meanwhile, new internal combustion engine (ICE) vehicles in Australia emit up to 1.5 times more carbon dioxide than those in Europe – leaving a significant market gap between Australia and our global peers.
A strong standard will improve the efficiency of new vehicles and increase the supply of electric vehicles.
To assess the impact of the NVES on consumers, this study considers (a) the emissions intensity of new vehicles; (b) the supply of electric vehicles; and (c) the impact on vehicle prices.
Read our latest posts
Decarbonising Australia’s road freight network
Mandala’s latest research, prepared for Energy Futures Foundation, sets out a policy roadmap for decarbonising Australia’s road freight network which could help to drive economic, environmental and social benefits. Emissions in the transport sector grew 0.3 Mt CO2-e in 2025. Emissions in all other sectors fell. Australia has a critical window to decarbonise its road freight network, but the current policy settings have Australia on the wrong track. A policy suite that targets cost, infrastructure and regulatory barriers could add an additional 1.5 million battery electric trucks to the road by 2050 and be cost neutral for the budget. Setting up the right policies now could deliver $138 billion in economic growth over the next 25 years, create 900 thousand jobs by 2050 and reduce emissions by 181 Mt CO2-e – equivalent to 41% of Australia’s 2025 annual emissions. These policies would also save 3,300 lives and reduce externality costs associated with heavy vehicles by $18.5 billion by 2050.
27 Mar, 2026
How EV adoption insulates Australia against oil supply shocks
Mandala’s latest research finds that the adoption of electric vehicles is helping to insulate Australians from the oil supply shocks. This analysis looks at the contribution of Australia’s electric vehicle fleet to our petrol reserves, as well as the savings in fuel costs for Australian households.
16 Mar, 2026
Shaping the Australian banking system for a changing economy
Mandala’s latest research, prepared for the Commonwealth Bank of Australia, finds that Australian banking has been transformed beyond recognition by technology, globalisation, and regulatory change. However, policy has not kept pace. Major banks now face a shrinking revenue base while providing a growing suite of collective goods including regional branches, ATM networks, and payment infrastructure, that comparable financial institutions are not required to provide. The report finds that declining profitability and an uneven regulatory playing field amid rising geopolitical uncertainty place Australia's financial resilience at risk. It recommends three principles for policymakers to shape Australia’s banking system to best serve our national interest. First, consider system-wide impacts of policy settings. Second, apply the same obligations to firms conducting the same activities with the same risk. Third, assess how overseas firms operating in critical parts of the financial system would behave in a crisis.
15 Mar, 2026
The Fragmentation Tax
Australian retailers operate across a patchwork of inconsistent state and territory regulations that, left unchecked, will cost the economy $26 billion and households $9.4 billion over the next decade. Commissioned by the Australian Retail Council, this Mandala report finds that regulatory fragmentation in retail - Australia's second-largest employer, generating $649 billion in economic activity annually - is compounding the country's productivity crisis at the worst possible time. The report identifies specific issues in transport and logistics, and packaging and waste as priority areas for reform, where harmonisation alone would inject up to $1.65 billion into the economy over 10 years. It recommends the Federal Government use its National Competition Policy framework to drive reform - including a $260 million increase to the National Productivity Fund, a new National Harmonisation Council, and a mandate that Regulatory Impact Statements explicitly quantify fragmentation risks.
23 Feb, 2026