Crafting a Sensible Path: MTA NSW's Vision for Vehicle Emissions

MTA NSW is working hand in hand with the Motor Trades Association of Australia (MTAA) representing the automotive industry in the development of the New Vehicle Efficiency Standard (NVES), to steer the government toward a more balanced and sensible approach.

Our goal is clear: to ensure that the transition towards more efficient and environmentally friendly vehicles is smooth, practical, and considerate of all industry stakeholders. MTA NSW is actively engaging with government bodies and MTA organisations nationwide, advocating for a regulatory framework that not only meets environmental goals but also supports the viability and growth of the automotive sector.

Starting in 2025, the new NVES will set average CO2 emission limits (per kilometre) for car manufacturers in Australia, reducing each year until 2029. Manufacturers can meet these targets by:
- Selling more efficient vehicles
- Buying credits from other manufacturers
- Paying a penalty

This shift to an emissions standard is a major change for the auto industry in Australia, as manufacturers bring in more fuel-efficient and electric vehicles to meet the new requirements. As highlighted in our submission, this will create some challenges and potential problems with the current plan.
Major areas of our advocacy that were focused upon in this submission include:
- Pooling of Credits: To introduce flexibility in meeting emissions targets
- Infrastructure Development Assistance: Supporting the industry in building the necessary framework for a greener future.
- Strengthening the Franchising Code: Ensuring fair play and support for all parties in the automotive franchise ecosystem.
- Consumer Law Protections: Safeguarding the interests of the industry under the Australian Consumer Law.
- Skills and Training Support Packages: Empowering the workforce to thrive in a rapidly evolving sector.
- Funding for Charging Grants: Facilitating the establishment of a comprehensive charging infrastructure.
- Clarity on Road User Charging: Providing certainty and fairness in the transition to electric vehicles.

We at MTA NSW believe a sustainable future for the automotive industry requires innovation and strong environmental practices. We are committed to continuing our active engagement with the government to ensure the industry's voice is heard and promote environmentally and economically sustainable solutions.

We encourage you to engage with the process by reading the full submission. Your insights, feedback, and active participation are invaluable as we navigate these changes together.

For a deeper understanding and to join us in this critical journey, read the full NVES submission. 

If you have any questions about the NVES or the submission, please contact our Head of Government Relations Collin Jennings via email at [email protected] or phone at (02) 9016 9016.