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Australia Plans Fuel-Efficiency Standards to Encourage Electric Vehicle Use

  • Australia one of few major economies without fuel standards
  • New rules will be introduced as part of national EV strategy
Vehicles travel along a freeway in Brisbane, Australia.

Vehicles travel along a freeway in Brisbane, Australia.

Photographer: Ian Waldie/Bloomberg

Australia will introduce its first fuel-efficiency standards by the end of the year, as part of the government’s plans to encourage the use of electric vehicles and cut carbon emissions.

The nation is one of the last developed economies without fuel-efficiency standards that govern the amount of pollution a car is allowed to emit. Since coming to office in May, the center-left Labor government has moved to toughen Australia’s action on climate change, introducing the country’s first emission reduction targets in 2022 and passing legislation to place caps on major polluters.