This chronology outlines developments in the regulatory
framework for fuel quality, in-service emissions and fuel efficiency standards
in Australia, principally over the last two decades to 2021. Prior to this,
fuel quality was ‘largely unregulated’.[1] Standards Australia had developed AS 1876–1976
Petrol (Gasoline) for motor vehicles and AS
3570–1988 Automotive diesel fuel; however, these standards had no
legislative basis and did not address significant emissions management issues.
Similarly, Australian Design Rules (ADRs) addressing vehicle emissions were
not—at that time—legislative instruments.[2]
The transport sector contributed 18.1% of Australia’s
greenhouse gas (GHG) emissions in 2021[3],
mostly through road transport.[4] As at 31 January 2021, there were 20.1 million registered motor
vehicles in Australia.[5] Emissions from the whole sector have risen by over 50% since 1990, due to
factors such as population growth, larger vehicles, increased freight movements
and more flights.[6]
In addition to releasing GHG due to the combustion of fossil
fuels, vehicles with internal combustion engines (ICEs) emit other noxious
substances which contribute to harmful air pollution. By adopting more
stringent vehicle emission standards countries could ‘achieve up to a 99
percent reduction’ in the emitted pollutants that can cause ischemic heart
disease, lung cancer, stroke, and asthma.[7] While not all air pollution is attributable to transport, data compiled for the Global Burden of Disease Study indicated that in 2019 an estimated 1,910 deaths (63% higher than national road
deaths) and 41,400 disability-adjusted life-years (DALYs) were attributable to
air pollution in Australia.[8] Recent studies have indicated reducing transport sector air pollution could
save billions of dollars in avoided health costs.[9]
Australia’s regulatory framework for fuel quality and
vehicle emission standards has been in place for several decades. However,
Australian standards have consistently trailed behind other advanced economies
such as the European Union (EU), Japan and the United States of America (USA). For
example, in 2020 Australia ranked 85th in the ‘Top 100’ world rankings for
petrol quality (based on the mandated standard for sulfur content) and had the second-lowest
ranking of all OECD countries, after Colombia.[10] Similarly, while nearly 90% of new light-duty and 80% of new heavy-duty global vehicle
sales are covered by fuel economy (carbon dioxide emission) standards,[11] Australia does not have an equivalent standard.
Three interrelated factors are relevant to the consideration
of fuel quality and vehicle emissions standards in Australia.
The lag in Australia’s regulated
fuel quality and vehicle emission standards, and absence of vehicle efficiency
standards, is reportedly delaying the introduction of ‘cleaner’ ICE vehicles
and electric vehicles (EVs).[28] At the same time, manufacturers are directing more efficient ICE vehicles and
EVs towards countries with supportive policies for ambitious carbon dioxide reduction.
such policies include:
Many consumer- and environment-focused stakeholder groups
and policy analysts have called for more ambitious and comprehensive actions to
decarbonise Australia’s economy, including in the transport sector.[30] Australian fuel refiners have argued that Australia’s fuel standards are
designed for ‘Australian conditions’, noting different market and climatic
conditions and differences in permitted fuel additives compared to northern
hemisphere jurisdictions.[31] Refiners have also pointed out that the average sulfur content in petrol is
already below the regulated standard (although above EU standards).[32]
Milestones |
Details |
Source documents |
June–August
1989 |
Australia’s national legislative framework for motor vehicle
standards established
The MVS Act aims to:
- achieve uniform vehicle standards to apply
to new vehicles when they begin to be used in transport in Australia and
- regulate the first supply to the market of used imported vehicles.[36]
Subsection
(b) was added by an amendment in 2001.[37] |
Motor Vehicle Standards Act 1989 (MVS Act)
Motor Vehicle Standards Regulations 1989 |
May
1996 |
National In-service Emission Study released
The
study finds that:
- exhaust pollution levels from cars
increase with age and kilometres travelled
- modern cars that rely heavily on ‘active’
systems to control pollution levels (catalytic converters, on-board computers
and sensors, etc) tend to deteriorate at a greater rate than older
pre-catalyst vehicles, whose emissions levels were more dependent on
intrinsic design features
- evaporative emissions levels were
found to be many times the maximum permitted ADR levels in a substantial
number of vehicles
- substantial reductions in pollution
levels can be achieved through good maintenance practice.[38]
|
Federal
Office of Road Safety, Motor vehicle pollution in Australia—report on the
National In-Service Vehicle Emissions Study, May 1996 |
1998 |
Worldwide Fuel Charter established
The
charter was established to ‘increase understanding of the fuel quality needs
of motor vehicle and engine technologies and to promote fuel quality harmonisation
worldwide in accordance with those needs’.[39]
The
charter sets out fuel quality standards for unleaded petrol and diesel for
different categories, based emission control and fuel efficiency requirements
in different markets.
Charter
members include vehicle manufacturers and automobile associations. |
Worldwide Fuel Charter Committee, Worldwide Fuel Charter, Fifth Edition, September 2013 |
May
1999 |
Federal Government makes commitment to improving the quality of
petrol and diesel fuels in Australia
The
commitments, as part of A New Tax System – Measures for a Better Environment,
include reducing sulfur content levels in diesel fuel, changes in the sulfur
content and octane composition of petrol, and introducing more stringent
vehicle emission standards. |
J
Howard (Prime Minister), Changes to the Goods and services tax (GST), media release, May 1999
Revised Explanatory Memorandum, Fuel Quality Standards Bill 2000,
September 2000 |
December
2000–January 2002 |
Australia’s legislative framework for fuel quality standards
established
The FQS Act aims to:
- regulate the quality of fuel supplied in
Australia in order to:
- reduce the level of
pollutants and emissions arising from the use of fuel that may cause
environmental and health problems; and
- facilitate the
adoption of better engine technology and emission control technology; and
- allow the more
effective operation of engines; and
- ensure that, where appropriate, information about fuel is
provided when the fuel is supplied.[40]
Subsection
(b) was added by an amendment in 2003.[41] |
Fuel Quality Standards Act 2000 (FQS Act)
Fuel Quality Standards Regulations 2001 |
December
2001 |
National Environment Protection Measure to reduce diesel exhaust
emissions introduced
The
National Environment Protection Council introduces a measure to reduce
exhaust emissions from diesel vehicles through increased compliance with
in-service emissions standards
The
measure responds to the National Environment Protection (Ambient Air
Quality) Measure,
which provides national air quality standards for six criteria
pollutants—with diesel vehicles a major source of two of these (PM10 and
nitrogen dioxide). |
National Environment Protection (Diesel Vehicle
Emissions) Measure 2001 |
August
2001—July 2004 |
Initial Fuel Quality Determinations made
The Petrol Determination set the maximum sulfur content as 500 mg/kg
for regular unleaded petrol and 150 mg/kg for premium unleaded petrol
from commencement, with a maximum sulfur content of 150 mg/kg for all
grades from 1 January 2005. An amendment in July 2004 reduced the maximum sulfur content for
premium unleaded fuel from 150 mg/kg to 50 mg/kg from 1 January
2008.
The Automotive Diesel Determination set the maximum sulfur content as 500 mg/kg
from commencement, with a reduction to 50 mg/kg from 1 January
2006. An amendment in July 2004 required a further reduction to 10 mg/kg
from 1 January 2009.
The Biodiesel Determination set the maximum sulfur content as 50 mg/kg
from commencement, with a reduction to 10 mg/kg from
1 Feb 2006. |
Fuel Standard (Petrol) Determination 2001
Fuel Standard (Automotive Diesel) Determination 2001
(both
commencing 1 January 2002)
Fuel Standard (Biodiesel) Determination 2003
(commencing
19 September 2003)
Fuel Standard (Autogas) Determination 2003
(commencing
1 March 2004)
Fuel Quality Standards Amendment Determination 2004
(No. 1)
(commencing
11 August 2004)
|
April
2005 |
First
statutory review of the FQS Act released
The review
finds ‘the legislative scheme is appropriately framed, enabling an effective
and efficient means for meeting the objects of the Act’.[42] |
Fuel
Quality Standards Act Review Panel, Economic Associates (Australia) Pty Ltd
and SWB Consulting Pty Ltd, Independent Statutory Review of the Fuel Quality
Standards Act 2000, April 2005 |
July
2008 |
Review of Australia’s Automotive Industry released
The
review recommends the inclusion of road transport in the (then proposed)
emissions trading scheme, or a ‘second best’ policy of introducing mandatory
greenhouse gas emissions targets for new vehicles.
The
review also recommends the government support industry to develop and
commercialise technologies aimed at improving vehicle fuel efficiency and
emissions. |
S
Bracks, Review of Australia’s Automotive Industry Final
Report, July
2008 |
March
2009 |
Second National In-service Emissions Study released
The
study highlights that a large proportion of emissions are generated by a
small proportion of the vehicle fleet (larger SUVs and light commercial
vehicles). |
Orbital
Australia Pty Ltd, Second National In-Service Emissions Study (NISE2)
Light Duty Petrol Vehicle Emissions Testing—Final Report, 2009 |
March
2009 |
Report finds prima facie case for introducing mandatory
CO2 emission standards
The report
prepared by the Australian Transport Council (ATC) and Environment Protection
and Heritage Council (EPHC) also finds ‘there is merit in examining the use
of fiscal and purchasing measures to encourage demand for low emission
vehicles’.[43] |
Australian
Transport Council and the Environment Protection and Heritage Council, Vehicle Fuel Efficiency Working Group Final Report, March 2009 (amended April 2009) |
July
2009 |
National Strategy on Energy Efficiency released
The
Council of Australian Governments (COAG) incorporates agreed measures from
the ATC/EPHC Vehicle Fuel Efficiency Working Group Final Report.
Agreed
measures include:
- undertaking a regulatory impact
analysis for introducing CO2 emission standards for light vehicles
- including fuel consumption and CO2 data in vehicle advertising (Code of Practice or through mandatory
provisions)
- the Green Car Innovation Fund to
support investment in environmentally friendly and technology-neutral
automotive technologies
- voluntary environmental performance
benchmarking programs for heavy vehicle and passenger fleets.
The
National Strategy is supported by the National Partnership Agreement on Energy Efficiency. |
COAG, National Strategy on Energy Efficiency, July 2009 |
November
2009 |
Report provides a benchmark for CO2 emissions for new
passenger and light vehicles
The
National Transport Commission report finds:
- in 2008 the national average of carbon
emissions from new passenger and light commercial vehicles was 222 g/km
- if Australians purchased new vehicles
with best-in-class emissions during 2008, the national average would be 34%
lower (146 g/km)
- in 2007 Australia’s carbon emissions
from new passenger vehicles and light commercial vehicles were 41% and 27%
higher respectively than the EU’s.[44]
|
National
Transport Commission, Carbon Emissions from New Australian
Vehicles—Information Paper, November 2009 |
July
2010 |
Government commits to introduction of new mandatory CO2 emission standards for all new light vehicles from 2015
The
Government proposes to introduce a mandatory standard with a national
fleet-wide target of average CO2 emissions and each motor vehicle
company contributing to this target. |
J
Gillard, ‘Emission standards for cars’, media release, 24 July 2010 |
November
2010 |
Regulation Impact Statement for light vehicle emissions standards
released
The
Regulatory Impact Statement (RIS) recommends that:
- Euro 5 vehicle emissions standards be
phased in from mid-2013, with full compliance by mid-2015
- Euro 6 vehicle emissions standards be
adopted via a similar phased approach, to cover new models from mid-2017 and
all models by mid-2018.[45]
|
Department
of Infrastructure and Transport, Final Regulation Impact Statement for Review of Euro
5/6 Light Vehicle Emissions Standards, November 2010 |
2011 |
Discussion paper on light vehicle CO2 emission
standards released
The
discussion paper presents possible approaches for the emissions target(s) to
be established and the most appropriate regulatory framework for implementing
the standards.
The
paper notes a large body of evidence that improvements in light vehicle fuel
efficiency ‘can be made at low overall cost or net financial benefit to
motorists (from lower fuel costs) and society, even before the value of
emissions reductions is taken into account’.[46] |
Department
of Infrastructure and Transport, Light vehicle CO2 emission standards for
Australia—Key issues—Discussion Paper, 2011 |
16
August 2012 |
New Fuel Quality Determination and Information Standard for
Ethanol E85 made
Commencing
on 1 November 2012, the Fuel Quality Standard sets out the parameters
for Ethanol E85 fuel, while the Information Standard sets out the
information requirements that must be displayed at service stations and other
places of supply. |
Fuel Quality Standard (Ethanol E85) Determination
2012
Fuel Quality Information Standard (Ethanol E85)
Determination 2012
|
June
2013 |
Orbital Review of sulfur limits in petrol released
The
review questions whether reducing fuel sulfur could yield significant
improvements in the operability of existing and new Euro 5/6 engines or
vehicles but notes that ‘to facilitate the adoption of a wider choice of
emerging emission control technologies, a reduction in fuel [sulfur] levels
to 10 ppm would be required’.[47] |
Orbital
Australia Pty Ltd, Review of Sulphur Limits in Petrol, June 2013 |
March
2014 |
Productivity Commission recommends accelerating efforts to
harmonise vehicle standards
A
Productivity Commission report recommends accelerated harmonisation of the
Australian Design Rules with United Nations Economic Commission for Europe
Regulations and the mutual recognition of other appropriate vehicle standards.
See
recommendation 5.5. |
Productivity
Commission, Australia’s Automotive Manufacturing Industry, March 2014 |
June
2014 |
Climate Change Authority recommends introduction of an emissions
intensity standard
The
Authority proposes:
- a target to reduce the emissions
intensity of the Australian light vehicle fleet from its 2013 level of 192 gCO2/km
to 105 gCO2/km by 2025
- requiring suppliers of new light
vehicles to provide more efficient vehicles to the Australian market over
time.[48]
|
Climate
Change Authority, Light Vehicle Emissions Standards for
Australia—Research Report, June 2014 |
August
2014 |
Government response to PC report supports accelerated harmonisation
The
Government’s response states that it supports the recommendation, that
harmonisation was being accelerated and that ‘Australian specific content in
the Australian Design Rules will be removed where it cannot be justified’.[49] |
Australian
Government, Government’s Response to the Recommendations
contained in the Productivity Commission’s Report ‘Australia’s Automotive
Manufacturing Industry’, August 2014 |
September
2014 |
Options Discussion Paper in relation to review of MVS Act released
The
paper points to the need for the Act to ‘support the Government’s policy of
international and domestic harmonisation of standards’ and ‘take account of
wider community costs’ (including environmental performance).[50] The paper
outlines eight reform options, and briefly discusses different approaches to
harmonisation. |
Department
of Infrastructure and Regional Development, 2014
Review of the Motor Vehicle Standards Act 1989, September 2014 |
October
2014 |
Hart Review of Fuel Quality Standards released
The
Hart Review provides a comparative assessment of Australian fuel quality
standards (at that time) with standards for the same fuels in the EU, USA,
Japan and South Korea, and makes recommendations to align key parameters,
including:
- petrol (sulfur (10 ppm max),
aromatics (35 vol% max))
- E85 (sulfur (10 ppm max))
See
Tables VII.1 –VII.9 in the report. |
Hart
Energy, International Fuel Quality Standards and their
Implications for Australian Standards, Final Report, 27 October 2014 |
June
2015 |
Issues Paper in relation to review of FQS Act released
The
paper states ‘the overarching feature is that emissions standards around the
world are becoming more stringent, which generally means higher quality fuel
is needed for the emissions standards to be met’.[51]
The
paper states that increasing demand for petrol and diesel was being met
through imported fuels and outlined seven reform options. |
Marsden
Jacob Associates and Pacific Environment Limited, Independent
Review of the Fuel Quality Standards Act 2000—Issues Paper, June 2015 |
October
2015 |
Ministerial Forum on Vehicle Emissions formed
The forum is established to ‘coordinate
a whole-of-government approach to addressing emissions from road vehicles’.[52] |
Department
of Infrastructure, Transport, Regional Development and Communications, ‘Ministerial Forum on Vehicle Emissions’, DITRD&C website, accessed 17 June 2021 |
December
2015 |
National Clean Air Agreement established
The
National Clean Air Agreement:
… sets a framework to help governments identify and prioritise actions
to address air quality issues that would benefit from national collaboration
and that deliver health, environmental and economic outcomes for Australians.[53]
Priority
areas listed in the 2015–17 and 2018–20 Work Plans include the review of the FQS Act, and
management of non-road diesel engine emissions. |
Department
of Agriculture, Water and the Environment (DAWE), ‘National Clean Air Agreement’, DAWE website, accessed 17 June 2021 |
December
2015 |
Senate Economics References Committee report mentions age of
trucking fleet
The
report briefly touches on emissions issues associated with trucks, with a
submission by the Truck Industry Council highlighting that:
Around 30% of the truck fleet, or some 175,000 trucks were
manufactured before 1996 and, as a result, predate any Australian exhaust
emission laws or regulations.[54] |
Senate
Economics References Committee, Report on the Future of Australia’s Automotive
Industry,
December 2015
Truck
Industry Council, Submission to Senate Economics References Committee, Inquiry
into the Future of Australia’s Automotive Industry, 11 May 2015 |
February
2016 |
Draft Report of the Review of the FQS Act released
The
report considered four regulatory options, along with four fuel quality
scenarios, finding ‘the historical health benefits appear to substantially
exceed the costs that resulted from the introduction of the Act’.[55]
However, the report recommended (recommendation 6)
that:
Given uncertainties regarding the costs and benefits of
harmonising fuel quality standards in Australia with international best
practice, no decision should be made to harmonise standards
including in particular the sulfur content of unleaded petrol and premium
unleaded petrol, until
further investigation has been undertaken into the costs and benefits of
improving the quality of these fuels and the fuel security implications of
doing so.[56] (emphasis added)
|
Marsden
Jacob Associates and Pacific Environment Limited, Review of the Fuel Quality Standards Act 2000—Draft
Report,
February 2016 |
February
2016 |
Vehicle Emissions Discussion Paper released
The
paper summarises key issues associated with light and heavy vehicle
emissions, the need for more stringent standards for noxious air pollutant
emissions (the ‘Euro’ standards), a standards regime for fuel efficiency (CO2)
and fuel quality standards.
The
paper seeks feedback on measures that could be adopted to reduce the impacts
of emissions from road vehicles. Eighty submissions are received, with
‘submissions reflect[ing] strong community support for taking action on
vehicle emissions’.[57] |
Department
of Infrastructure and Regional Development, Vehicle Emissions Discussion Paper, February 2016 |
April
2016 |
Final report of the Review of the FQS Act released
The
report finds that ‘fuel quality regulation appears to be best served through
government regulation’ and recommends implementation of option 2, which
involved retention of the FQS Act with amendments to the Act and
Regulations.[58]
The
recommendations include amending section 21 to facilitate greater
coordination of fuel quality standards and vehicle emissions standards.[59]
The
report retains the recommendation from the earlier draft report to postpone a
decision on harmonisation of fuel quality standards.[60] |
Marsden Jacob Associates and Pacific
Environment Limited, Review of the Fuel Quality Standards Act 2000—Final
Report,
April 2016 |
December
2016 |
Draft RIS on vehicle emissions released
The
Draft RIS considers a number of reform options, including (1) business as
usual, (2) fleet purchasing policies, (3) voluntary standards and (4–6
(individually and in combination)) mandating Euro 6 for light vehicles and
Euro VI for heavy vehicles under the MVS Act.[61]
The
Draft RIS finds that the greatest net benefit over the period 2016 to 2040 is
provided by Option 6—mandating Euro 6/VI for both light and heavy
vehicles under the MVS Act, with a phase-in period of 2019–20,
allowing for the updating of Australian Design Rules. |
Department
of Infrastructure and Regional Development, Vehicle emissions standards for cleaner air—Draft
Regulation Impact Statement, December 2016 |
December
2016 |
Draft RIS on improving efficiency of light vehicles released
The
Draft RIS considers a number of reform options, including (1) business as
usual, (2) fleet purchasing requirements, (3) a voluntary standard, and (4) a
legislated standard.
The
Draft RIS found options (1) and (2) were unlikely to deliver significant
improvements in fuel efficiency, above and beyond business as usual, while
option (3) was similarly unlikely to be effective.
The
Draft RIS examined three different fleet average efficiency targets for the
year 2025, with a phase in from 2020, finding that the introduction of an
efficiency target would result in a reduction in fuel costs to the economy of
$10.8–$27.5 billion, and result in a cumulative reduction in greenhouse gas
emissions of 25–65 million tonnes by 2030. The Draft RIS found that
additional production costs of supplying vehicles incorporating emission
control technologies would be more than offset by fuel savings. |
Ministerial Forum on Vehicle Emissions
and the Department of Infrastructure and Regional Development, Improving the efficiency of new light vehicles—Draft
Regulation Impact Statement, December 2016 |
December
2016 |
Fuel quality Discussion Paper released
The paper proposes five policy approaches for
updating existing fuel quality standards:
- business as usual
- revision of
standards in line with Hart Review and to harmonise with EU standards
- as per B, with
retention of unleaded petrol (91 RON) with a lower sulfur level
- more stringent
revision of standards to harmonise with the Worldwide Fuel Charter
- staged introduction
of world standards from 2020, with retention of unleaded petrol
(91 RON), a lower sulfur standard and a new octane standard for premium
unleaded (98 RON). Other parameters as per Option B.
Over
70 submissions are received.[62] |
Ministerial
Forum on Vehicle Emissions and the Department of the Environment and Energy, Better fuel for cleaner air—Discussion Paper, December 2016 |
October
2017 |
Domestic manufacturing of light passenger vehicles ceases
Major
car manufacturers Toyota and Holden follow Ford in ceasing light passenger
vehicle manufacturing in Australia. |
Department
of Industry Innovation and Science, Australian Automotive Industry—Transition following
the end of Australian motor vehicle production, January 2020 |
January
2018 |
Draft RIS for fuel quality standards released
The
‘early assessment’ Draft RIS considers Options A, B and C (as per the December
2016 fuel quality Discussion Paper) and Option F, which was put forward by
the Australian Institute of Petroleum (AIP), the peak body for Australia’s downstream
petroleum industry, during consultations.
The
AIP, on behalf of its members, made an in-principle offer to supply petrol
with reduced sulfur content (10 mg/kg), consistent with EU standards, by
2027. |
Ministerial
Forum on Vehicle Emissions and the Department of the Environment and Energy, Better fuel for cleaner air—Draft Regulation Impact
Statement, January
2018 |
January
2018 |
RIS for Review of the MVS Act released
The
RIS considers three options:
- maintain the status
quo
- repeal the MVS
Act
- reform the MVS
Act.
Option 3
is identified as the preferred option, providing ‘a balance between reducing
regulatory intervention and meeting the public policy objectives of community
safety and consumer protection’ and the ‘most effective means to continue the
promotion of technologies that will benefit the Australian community’.[63]
The
RIS also recommends accelerating harmonisation of vehicle emission standards
with international standards and streamlining certification requirements. |
Department
of Infrastructure and Regional Development, Regulation Impact Statement—Review of the Motor
Vehicle Standards Act 1989, January 2018 |
7
February 2018 |
Government introduces the Road Vehicle Standards Bill 2018
The
Bill seeks to establish a new legislative framework to regulate the
importation and supply to market of road vehicles and the provision of some
road vehicle components. |
Australian
Parliament, Road Vehicle Standards Bill 2018 homepage
Emily
Hanna, ‘Road Vehicle Standards Bill 2018 [and associated
Bills]’, Bills
Digest, 108, 2017–18, (Canberra, Parliamentary Library, 2018) |
August
2018 |
RIS for fuel quality standards released
The
RIS recommends a combination of Options C and F, that is, to:
- reduce sulfur in petrol to 10 ppm
from 1 July 2027
- retain regular unleaded petrol
- reduce the pool average of aromatics
in petrol from 42% to 35% v/v from 1 January 2022
- review the aromatics limit in petrol
by 2022 to set a reduced limit by 2027, or establish an alternative solution
- consult further with industry on the
remaining parameters in the fuel standards covered by the RIS, to finalise
these prior to 1 October 2019.[64]
|
Department
of the Environment and Energy, Better fuel for cleaner air—Regulation Impact
Statement,
August 2018 |
December
2018 |
A new Road Vehicle Standards Act enacted
The
Act progressively replaces the MVS Act, with full effect from 1 July
2021.[65] |
Road Vehicle Standards Act 2018 |
10
February 2019 |
New Fuel Quality Standards (Petrol) Determination made, with low‑sulfur
petrol to be mandatory from 1 July 2027
The
new Determination replaced the sunsetting Fuel Standard (Petrol) Determination 2001 and introduces:
- a reduction in the maximum pool
average for aromatics, being 45% v/v max with a 42% v/v max
pool average from commencement and then 45% v/v max with a 35% v/v max
pool average from 1 January 2022
- a reduction in the maximum amount of
sulfur, being 150 mg/kg for 91 RON grade petrol and 50 mg/kg
for 95 RON grade petrol from commencement and then 10 mg/kg for all
grades from 1 July 2027.
|
Fuel Quality Standards (Petrol) Determination 2019
(commencing
1 October 2019)
|
18
March 2019 |
New Fuel Quality Standards (Automotive Diesel) Determination
made
Replacing
the sunsetting Fuel Standard (Automotive) Diesel Determination 2001, the new standard sets out the
specifications for chemical and physical parameters of fuel supplied as
automotive diesel, including renewable and synthetic diesel. |
Fuel Quality Standards (Automotive Diesel)
Determination 2019
(commencing
1 October 2019) |
June
2019 |
Emissions intensity of Australian passenger vehicles found to be
45% higher than equivalent European vehicles
A
study by the National Transport Commission (NTC) finds that ‘the national
average carbon dioxide emissions intensity from new passenger and light
commercial vehicles was 180.9 g/km’.[66] Further, government buyers purchased vehicles with higher average emissions
intensity than business and private buyers.
The
study finds the emissions intensity of Australian passenger vehicles has
declined by 28% since 2002.[67]
The
report identifies the following barriers to reducing emissions intensity:
- consumer preferences for heavier
vehicles with larger and more powerful engines
- lack of government incentives for
lower emissions vehicles
- low fuel prices.
|
National
Transport Commission, Carbon Dioxide Emissions Intensity for New
Australian Light Vehicles 2018—Information Paper, June 2019 |
18
September 2019 |
A further suite of revised Fuel Quality Standards made
The
standards replace sunsetting determinations or information standards and make
minor amendments to specifications for the chemical and physical parameters
of supplied fuel.
The
Determination for Ethanol E85 introduces a reduction in maximum sulfur
content from 52 mg/kg on commencement to 10 mg/kg from 1 July
2027.
All
commence on 1 October 2019. |
Fuel Quality Standards (Autogas) Determination 2019
Fuel Quality Standards (Biodiesel) Determination
2019
Fuel Quality Standards (Ethanol E85)
Determination 2019
Fuel Quality Information Standard (Ethanol E85)
2019
|
October
2019 |
New Fuel Quality Standards Regulations 2019 introduced
The
Regulations ‘revoke and replace the [sunsetting] Regulations with minor
differences to update the language, simplify administrative arrangements and
remove redundant provisions’.[68] |
Fuel Quality Standards Regulations 2019 |
28
October 2019 |
Sixth Edition of the Worldwide Fuel Charter released
The
sixth edition adds a new ‘category 6’ for unleaded petrol in markets
with stringent emission control and fuel efficiency targets, consistent with
carbon dioxide emission reduction targets announced in markets such as the
EU, USA and China. |
Worldwide
Fuel Charter Committee, Worldwide Fuel Charter, Sixth Edition, 28 October 2019
|
June
2020 |
NTC report on carbon dioxide emissions intensity of light
vehicles released
The
NTC’s report finds ‘if people who purchased new vehicles in 2019 had chosen
the best-in-class for emissions performance, Australia’s average carbon
emissions intensity would have dropped 63% to 67 g/km’.[69]
The
report compares the emissions intensity of Australian new passenger vehicles
with other countries using data for 2017:
- Australia: 169.8 g/km
- Europe (provisional): 120.4 g/km
- Japan: 114.6 g/km
- United States of America: 145.8 g/km.[70]
|
National
Transport Commission, Carbon Dioxide Emissions Intensity for New
Australian Light Vehicles 2019, June 2020 |
July
2020 |
Industry-led voluntary vehicle CO2 emissions
reduction standard announced
The Federal Chamber of Automotive Industries (FCAI), the peak body for the automotive
industry, announces the voluntary standard.
Under
the Standard, CO2 brand targets and assessment of performance are
calculated on a sales-weighted average mass per unit basis (where a unit is
one vehicle sold), with results also divided into two vehicle categories: MA
(passenger cars and light SUVs) and MC+NA (heavy SUVs and light commercial
vehicles).
The
Standard sets a 10-year industry target of reducing emissions from:
- MA category vehicles by an average of
4.0% per annum
- MC+NA category vehicles by an average
of 3.0% per annum.
This
is expected to mean that on average, MA vehicles will have CO2 emissions under 100 g/km and MC+NA vehicles will have CO2 emissions under 145 g/km by 2030.
The
Standard provides for CO2 emissions to be reported in line with
existing manufacturer reporting requirements in the EU and allows the
carry-forward of credits (2020 to 2030) and debits (from 2024 only). |
FCAI, Federal Chamber of Automotive Industries announces
voluntary CO2 Emissions Standard, media release, 24 July 2020
FCAI, CO2 Standard: Rules for Calculating Brand
Targets and Assessing Brand Compliance, 12 March 2020
FCAI, CO2 Standard: Rules for Reporting Brand
Targets and Brand Achievement, 19 June 2020 |
October
2020 |
Draft RIS for heavy vehicle emissions standards concludes
significant health benefits would outweigh the capital costs of adopting more
stringent Euro VI noxious emissions standards
The
RIS proposes that the new standard be applied to all newly approved heavy
vehicle models manufactured from 1 July 2027 and for all new heavy
vehicles manufactured from 1 July 2028. The RIS seeks information as to
whether stakeholders consider earlier introduction might be possible. |
Department
of Infrastructure, Transport, Regional Development and Communication, Heavy Vehicle Emission Standards for Clearer
Air—Draft Regulation Impact Statement, October 2020 |
October
2020 |
Draft RIS for light vehicle emissions standards concludes there
would be significant benefits from mandating more stringent Euro 6 noxious
emission standards
The
RIS proposes to implement the new standard at Euro 6d (skipping through
the initial transitional and first mandatory stage (Euro 6b) to the
second mandatory stage (Euro 6d) that applies in the EU), with the
standard applying to new light vehicle models from 1 July 2027 and all
new light vehicles from 1 July 2028—aligning the change with the new
fuel quality standards.[71] The RIS seeks feedback on possible earlier adoption of Euro 6d. |
Department
of Infrastructure, Transport, Regional Development and Communications, Light Vehicle Emission Standards for Cleaner
Air—Draft Regulation Impact Statement, October 2020 |
5
February 2021 |
Future Fuels Strategy Discussion Paper released
The
paper ‘sets out the Australian Government’s direction and practical actions
that will enable the private sector to commercially deploy low emissions road
transport technologies at scale’.[72]
Priority
areas include supporting EV charging and hydrogen refuelling infrastructure
and integrating battery electric vehicles into the electricity grid. |
Department
of Industry, Science, Energy and Resources, Future Fuels
Strategy—Discussion Paper, February 2021
Michael
McCormack and Angus Taylor, ‘Supporting future fuel technologies and consumer
choice’, media
release, 5 February 2021 |
March
2021 |
Baseline report under voluntary CO2 emissions
standard shows Australian vehicles emit significantly more CO2 than European vehicles
The
report states:
The MA [passenger vehicles and light commercial vehicles]
outcome for 2020 was 150 gCO2/km and MC+NA [heavy SUVs and
light commercial vehicles] outcome for 2020 was 218 gCO2/km.[73]
Three
challenges for reducing CO2 emissions from the Australian
passenger and light commercial vehicle fleet are identified:
- the composition of the fleet, with
consumers favouring heavier SUVs and light commercial vehicles
- the 5–10 year model development
cycle, meaning that reduction in emissions will take time
- poor quality fuel, which limits the
introduction of more advanced fuel-efficient vehicle technologies.
|
FCAI, Australian vehicle industry releases first CO2 emissions results,
media release, 25 March 2021
|
17
May 2021 |
Government announces grants for fuel refineries to bring forward
introduction of ultra-low sulfur fuel to 2024
As
part of the 2021–22 Budget, the Government announced it would provide ‘up to
$302 million in support for major refinery infrastructure upgrades to
help refiners bring forward the production of better-quality fuels from 2027
to 2024’.[74]
The
Government’s announcement states:
The Government will also accelerate the industry-wide review of
the petrol and diesel standard to 2021, including a consideration of
aromatics levels. This aims to create a Euro-6 equivalent petrol and diesel
standard that are appropriate for Australia.
The
measure is part of a package aimed principally at securing domestic refining
capacity. |
Scott
Morrison (Prime Minister) and Angus Taylor (Minister for Energy and Emissions
Reduction), Locking in Australia’s fuel security, media release, 17 May 2021
Australian
Government, Budget Measures Budget Paper No. 2 2021–22, ‘Oil Stocks and Refining Capacity in
Australia’, 141
A Macdonald Smith, ‘Investors cheer the government package to end
refining losses’, Australian
Financial Review, 17 May 2021 |
August
2021 |
NTC’s annual report on CO2 emissions intensity
reports on plug-in hybrid electric vehicles (PHEVs) for the first time
The
report states that the 2020 average emissions intensity for:
- passenger cars and light SUVs was
149.5 g/km
- heavy SUVs and light commercial
vehicles was 216.7 g/km.
In
contrast, the average emissions intensity for PHEVs was 51 g/km. |
NTC, Carbon Dioxide Emissions Intensity for New
Australian Light Vehicles 2020, August 2021
Note: this report applies a new methodology in accordance with
data collected by FCAI under the voluntary industry standard. |
26
October 2021 |
Australia’s Long-Term Emissions Reduction Plan released
The
plan, announced on the eve of the 26th United Nations Climate Change
Conference of the Parties (COP26), sets out how Australia will achieve net
zero emissions by 2050. The plan documents existing or proposed strategies,
including the (at that time) forthcoming Future Fuels Strategy.
Modelling
underpinning the plan predicts the share of vehicles with zero direct
emissions will grow from less than 1% to around 90%, ‘resulting in road
transport emissions falling by more than 70% by 2050 as the number of
vehicles and total passenger kilometres grows’.[75]
The
plan does not mention fuel quality or vehicle emissions standards. |
DISER, Australia’s Long-Term Emissions Reduction Plan—A whole-of-economy Plan
to achieve net zero emissions by 2050, October 2021
DISER, Australia’s Long-Term Emissions Reduction Plan:
Modelling and Analysis, November 2021
Angus
Taylor, ‘Modelling and analysis for long-term emissions
reduction plan’,
media release, 12 November 2021 |
2
November 2021 |
Australia endorses The Breakthrough Agenda at COP26 World Leaders Summit
The
Glasgow Breakthroughs, the first set of common targets under a global policy
framework, include the aim to make ‘zero emission vehicles the new normal –
accessible, affordable and sustainable in all regions by 2030’.
Progress
towards the targets will be monitored via an ongoing annual Global Checkpoint
Process. |
Marise
Payne (Foreign Minister) and Angus Taylor, ‘Australia welcomes positive outcomes at COP26’, media release, 14 November 2021
‘Glasgow Breakthroughs’, United Nations Framework Convention
on Climate Change |
9
November 2021 |
Future Fuels and Vehicles Strategy: Powering Choice released
Initiatives
under the strategy are predicted to result in a reduction in emissions by
over 8 Mt CO2e by 2035 and create the environment for there to be
1.7 million electric vehicles on the road by 2030.[76]
A
section titled ‘Other Australian Government activities’ refers to bringing
forward improvements to fuel quality (sulfur) from 2027 to 2024, and ongoing
consideration of whether the government should mandate the Euro 6/VI
noxious emissions standards.[77] |
DISER, Future Fuels and Vehicle Strategy: Powering Choice, November 2021 |
Thank you to Sophie Power (former Senior Researcher in the
Parliamentary Library) whose comments enhanced an earlier draft of this
Chronology.