Australia: new vehicle efficiency standards to come into effect January 1, 2025

On May 16, 2024, Australia's Parliament passed the New Vehicle Efficiency Standard Act 2024, setting the first CO2 emission standards for vehicles registered in the country.

This act sets two CO2 emissions standards for light- to medium-duty vehicles, starting on January 1, 2025: 141 g CO2/km for type 1 vehicles and 210 g CO2/km for type 2 vehicles. These targets reduce in stages to reach 58 g CO2/km and 110 g CO2/km for type 1 and type 2 vehicles by 2029 (see figure below). The limits are determined using the New European Driving Cycle test procedure.

Type 1 vehicles are passenger cars, forward-control vehicles, or light off-road passenger vehicles, including most sport utility vehicles (SUVs). Type 2 vehicles are light and medium-duty g