MIA Cautiously Welcomes The Climate Change Commission’s Report

Motor Industry Association Chief Executive David Crawford says the Climate Change Commission’s report, released today, makes some good suggestions on a package of regulatory tools aimed at accelerating the uptake of low emissions vehicles. These include a clean car standard, incentives (feebate) and various tax/accounting measures (Fringe Benefit Tax reductions and depreciation treatment) and developing low carbon fuel markets.

The Commission has altered its views on the rate of electric vehicle uptake from that contained in its draft report. However, the MIA is worried the report it still too reliant on the uptake of electric vehicles.

Mr Crawford says the new vehicle sector would love to sell as many electric vehicles as they want us to. But this side of 2030 it is highly unlikely we will be able to get enough electric vehicles to reach half of light vehicle imports by 2029.

Bulk procurement of electric vehicles is a welcomed recommendation. However, as the world scrambles to buy electric vehicles, the Government’s ability to buy in bulk is likely to remain constrained for some years to come.

The Commission’s proposal to ban internal combustion engines as soon as 2030 and no later than 2035 is also in our view overly ambitious.

The MIA supports their recommendation to develop a low carbon fuel market such as hydrogen, synthetic fuels and biofuels. This will be more effective in quickly reducing the transport sector’s CO2 emissions.

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