New Vehicle Efficiency Standard Bill Passes into Parliament

Today, the New Vehicle Efficiency Standard (NVES) Bill 2024 has passed through the Parliament, signalling a pivotal moment in the Governments’ shift towards sustainability and significant changes for the automotive industry.  

Matt Hobbs, Chief Executive of the Motor Trades Association of Australia (MTAA), emphasises the balanced progression this legislation represents. 

"Today’s passage of the NVES Bill signifies an important moment for the Australian automotive industry”. “This legislation, a result of collaborative efforts between the Albanese Government and the automotive sector, marks a significant step forward in our collective journey towards decarbonisation." 

MTA NSW has been instrumental in steering discussions to ensure that the transition to more efficient and environmentally friendly vehicles is balanced, practical, and considerate of all industry stakeholders. The new standard, which sets progressively stricter CO2 emission limits for new cars sold in Australia starting in 2025, reflects a compromise that balances environmental imperatives with industry viability. 

"Our proactive engagement has helped shape a regulatory framework that supports the growth and sustainability of the automotive sector while aligning with national environmental goals," reflects Collin Jennings, Head of Advocacy & Government Relations at MTA NSW.  

The collaboration of industry associations has advocated for critical adjustments in the NVES, including flexible credit pooling and enhanced infrastructure development assistance, ensuring that the industry's voice remains influential in shaping future regulations. 

The NVES targets will introduce significant challenges, particularly for some brands struggling to meet stringent emissions benchmarks. “It's undeniable that the targets outlined in the Bill will present substantial challenges," acknowledges Hobbs. He also highlights the importance of ongoing monitoring and reviews to ensure that the legislation adapts to global market trends and technological advancements. 

Despite these challenges, the legislation also brings opportunities. Recent Federal Budget provisions for transition support demonstrate the government's commitment to assisting the sector. 
As the automotive landscape evolves, particularly with the rise of electric vehicles, MTA NSW remains committed to its collaborative approach with the government.  Commitments made by the Federal Government in the budget will provide some assistance to the industry as the transition continues. 

With the NVES Bill now a reality, MTA NSW stands ready to guide its members through the complexities of compliance and to leverage the opportunities it presents, ensuring a resilient and dynamic future for the Australian automotive industry.