CO2 Emissions and Climate Change

The Australian automotive industry is committed to making a strong contribution to national efforts to reduce the impact of global climate change.

The industry has adopted a target to reduce average CO₂ emissions from new light vehicles from levels around 252 grams of CO₂ per km in 2002 to an average 222 grams of CO₂ per km by 2010, an overall reduction of 12 per cent.

The industry has made rapid progress achieving this target and in 2008, average emissions were 222.4 grams CO₂ per km. That is down from 226.2 grams CO₂ per km in 2007 and 230.3 grams of CO₂ per km in 2006.

The extent of the reduction in average new vehicle emissions achieved in recent years reflects a number of changing factors including improvements in engine technology, particularly in diesel, and a change in consumer purchasing behaviour toward smaller cars.

While the industry is well on track to achieve the target rate of emissions before 2010 and continued progress will be dependent upon a range of factors, including further changes in the composition of vehicle sales by market segment; ongoing uptake of alternative fuels; and introduction of more advanced engine and fuel systems.

More broadly the Australian Government has announced the introduction of an Carbon Pollution Reduction Scheme (CPRS) in Australia with the aim of lowering greenhouse gas emissions and making a significant contribution to global efforts to address the impacts of climate change.

In Australia, road transport emissions account for 12.6 per cent of national greenhouse gas emissions, with passenger cars accounting for around 7.8 per cent of total national emissions, while light commercial vehicles and heavy trucks account for 4.8 per cent.

Thus while the transport sector is far from the largest source of CO₂ emissions, it is significant and it is envisaged that the transport sector will be involved in the development of a national CPRS. Accordingly, the FCAI will work with the Australian Government and other stakeholders to establish the implications of a national CPRS and to consider how the competitive impacts on the Australian automotive industry can best be addressed.