Australia unveiled a decision on Tuesday to ease proposed carbon emission regulations for popular pick-up trucks, a move primarily influenced by pressure from the automotive lobby concerned about potential price hikes and restricted consumer choices, according to Reuters.
The initially proposed vehicle efficiency standards aimed to penalize automakers importing high-emission models while incentivizing those bringing in cleaner vehicles. However, this initiative caused a division within the Federal Chamber of Automotive Industries (FCAI), prompting EV manufacturers Tesla and Polestar to withdraw from the group earlier this month in protest against the push for stricter emission standards.
Australian Energy Minister Chris Bowen announced that certain popular pick-up trucks, colloquially known as “utes” and widely utilized by builders and farmers, would now be categorized as light commercial vehicles, thereby exempting them from rigorous fuel economy regulations.
This relaxation of rules mirrors a recent action by the United States, where the Biden administration scaled back its target for US electric vehicle adoption from 67 percent by 2032 to 35 percent following industry and autoworker opposition.
Previously, the FCAI had criticized the Australian government for its attempt to impose “extremely aggressive targets and severe penalties with very short notice.”
Australia, along with Russia, stands as the sole developed nation without existing or planned fuel efficiency standards. Since assuming office in 2022, the Anthony Albanese-led government has pursued stricter emission regulations.
Scheduled to commence on January 1, 2025, the emissions scheme will postpone penalties until July, with the government intending to introduce the legislation in parliament this Wednesday.
