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FEDERAL CHAMBER OF AUTOMOTIVE INDUSTRIES Tm Reardon: Director Government Policy Global Fuel Economy Initiative 2 March 2011.

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Presentation on theme: "FEDERAL CHAMBER OF AUTOMOTIVE INDUSTRIES Tm Reardon: Director Government Policy Global Fuel Economy Initiative 2 March 2011."— Presentation transcript:

1 FEDERAL CHAMBER OF AUTOMOTIVE INDUSTRIES Tm Reardon: Director Government Policy Global Fuel Economy Initiative 2 March 2011

2 B AD D ATA = B AD P OLICY

3 G OOD D ATA = G OOD P OLICY S OURCE : SAPERE R ESEARCH G ROUP

4 F LAWED I NTERNATIONAL C OMPARISONS

5 I NTERNATIONAL C OMPARISONS 2009 CO2 Outcomes: UK= 149 Grams of CO2/km Australia 219 Grams of CO2/km Adjusted for: Market Segment: 199 Grams CO2 Fuel Type: 175 Grams of CO2 Vehicle Size: 156 Grams of CO2 Other factors: Auto Transmissions Fuel Quality

6 A USTRALIAN P OLICY F RAMEWORK 24 July 2010, Election Commitment: Mandatory CO2 Target. 27 January 2011, PM announced: Abolition of the CCR. Capping of the LPG Vehicle Scheme. Abolition of the GCIF. 24 February 2011, PM announced: A carbon price from 1 July Transportation fuels incorporated.

7 Reducing CO 2 Emissions from Motor Vehicles Vehicle CO 2 Emissions Standard Green Car Innovation Fund Fuel Excise Luxury Car Tax Congestion Pricing Fringe Benefits Tax M OTOR V EHICLE CO 2 E MISSIONS : P OLICY E LEMENTS Carbon Price ( ETS, Carbon tax )

8 B ELT OR B RACES Carbon Price Vs Carbon Standard: A carbon price can efficiently determine the least cost method of emissions abatement. Secondary emission strategies, such as Mandatory Standards, assume that a reduction of one tonne of C0 2 from a passenger motor vehicle is more important than a reduction of one tonne of C0 2 from any other sector of the economy.

9 N EW V EHICLE F UEL E FFICIENCY 1.History of PMV CO2 Emissions 2.Forecast CO2 Emissions 3.CO2 Price and/or CO2 Standard 4.Design Options for a Standard 5.Taxation Issues

10 NAFC/NACE T ARGETS 1983 = 9.5 Litres/100km 1990 = 9.0 Litres/100km 2000 = 8.2 Litres/100km 20?? = 6.8 Litres/100km 2010 = 222 Grams of CO2

11 F UEL C ONSUMPTION T ARGETS AND R ESULTS (P ETROL P ASSENGER O NLY

12 N ATIONAL A VERAGE F UEL C ONSUMPTION 2010 T ARGET 2010 Target = 222 grams of CO2 All Fuel Types. All vehicles under 3.5 tonne outcome = grams of CO2.

13 H ISTORICAL F UEL C ONSUMPTION AND CO2 E MISSIONS

14 C HANGE IN NACE: S EGMENT C HANGE V S V EHICLE T ECHNOLOGY ( INCLUDING F UEL )

15 M ARKET S EGMENTS BY M ARKET SHARE

16 V EHICLE T YPE BY M ARKET SHARE

17 F UEL T YPES BY M ARKET SHARE

18 T ARGET A CHIEVED, W HAT N EXT ? July 2010: Mandatory NACE Target 2015 = 190 grams of CO = 155 grams of CO2

19 T ECHNOLOGY D ERIVED E MISSIONS S AVINGS

20 M ARKET S EGMENT C HANGES

21 E FFICIENCY G AINS V M ASS I NCREASES Technology improvements: Lightweighting Aerodynamics Reduced mechanical friction Low friction tyres Weight gains Safety Emissions Noise Quality Comfort

22 P ROJECTED CO2 E MISSIONS : NACE

23 CO2 T ARGETS : E CONOMY W IDE T ARGETS Australian Government target of 5% to 25% reduction in CO2 emissions by 2020 based on 2000 levels = 260 g/CO 2 25% reduction 2020 = 195 g/CO2

24 CO2 E MISSIONS C OMPARISON : E UROPE AND A USTRALIA

25 F LEXIBILITIES Credits for: 1.Low emission vehicles 2.Eco-technologies 3.Alternative fuels Phase-In from 2015 Averaging and Pooling Make Good Provision (Banking/Borrowing)

26 O PTIONS FOR B URDEN S HARING 1.Industry Target. 2.Vehicle based approach: Standard set which vehicle must achieve in order to enter the Australian market. 3.Corporate Average: Each brand provided a target CACE: All brands to achieve 195 grams. Uniform Percentage Reduction. Parameter based target.

27 U NIFORM P ERCENTAGE R EDUCTION

28 C ORPORATE S PECIFIC M ASS T ARGET

29 29 Reducing CO2 emissions – – integrated approach An integrated approach Delivering majority of new car CO2 reductions Sustainable production Reducing congestion Influencing demand in a harmonised way

30 FBT: K ILOMETRES TRAVELED

31 FBT: R EVENUE E STIMATES

32 L UXURY C AR T AX : I NCREASING I NCIDENCE

33 A USTRALIA ’ S T OP S ELLING L UXURY C ARS RankModel GroupSales 1 Toyota Prado15,423 2 Toyota Landcruiser Wagon7,273 3 Holden Commodore6,749 4 Mercedes-Benz C-Class6,658 5 Mitsubishi Pajero5,065 6 BMW 3 Series4,943 7 BMW X53,105 8 Toyota Kluger2,731 9 Audi A42, Mercedes-Benz M-Class2,589

34 C ORPORATE S PECIFIC M ASS T ARGET

35 CO2 S TANDARD : S UMMARY 1.Developed Co-operatively with Industry. 2.Based on reliable data. 3.Recognition of Non-test cycle technologies: Alternative Fuels. GSI, TPM, Air-con gases, Etc. Incentives for emerging technologies. 4.Realistic target consistent with economy wide objectives.

36 FEDERAL CHAMBER OF AUTOMOTIVE INDUSTRIES Global Fuel Economy Initiative 2 March 2011


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