Public and industry comment is being sought on a discussion paper that outlines measures to increase the fuel efficiency of Australia’s car fleet.

The Australian Transport Council and the Environment Protection and Heritage Council – Vehicle Fuel Efficiency Working Group have released a discussion in response to a COAG request to investigate vehicle fuel efficiency measures aligned with international best practice.

Instead of advocating the adoption of any particular measure, the discussion paper evaluates eight potential measures to improve fuel efficiency and urges interested parties to provide their views.

The measures include:

• CO2 emission targets for new light vehicles (voluntary or mandatory);

• differential registration and stamp duty charges for new light vehicles based on CO2 emissions;

• direct financial incentives for low emission vehicles;

• fleet purchasing frameworks which incorporate CO2 reduction objectives;

• inclusion of fuel consumption and CO2 data in new vehicle advertisements;

• international standards/labelling requirements for non-engine components which impact on CO2 emissions;

• an environmental rating scheme for heavy vehicles; and

• a technology demonstration scheme for Australian commercial road transport fleets linked to CO2 outcomes.

The transport sector is the third largest and one of the fastest growing sources of carbon pollution in Australia, with more than 14 million registered vehicles on our roads.

The Australian Government’s Carbon Pollution Reduction Scheme will be the primary mechanism for reducing CO2 emissions on an economy-wide basis.

Reforms to address fuel efficiency will need to be complementary to the scheme to help reduce travel costs and carbon emissions for Australian motorists.

Public comment closes on 7 November 2008. The discussion paper is available at: www.environment.gov.au/settlements/transport