EVs: Raising standards, cutting costs
Report

EVs: Raising standards, cutting costs

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16.06.2023 - 07:20

Net ZeroElectric

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.

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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.

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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.

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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 the full report here.

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