FUEL QUALITY & EMISSIONS

 

Fuel Quality and Vehicle Emissions

The Australian automotive industry is committed to continuing to make a strong contribution to national efforts to reduce the impact of global climate change and to improve air quality.

Vehicle pollutant emission standards, CO2 emissions and fuel quality standards are interrelated and must be considered as a single system to deliver the environmental and health benefits from reductions in light vehicle CO2 emissions and vehicle pollutant emissions.

Modern vehicles are very complex with a range of sophisticated mechanical and electrical components and electronic modules that are integrated to deliver the performance, safety and emissions expected by customers and government.

The widespread availability of EN standard fuels is a key enabler for globally consistent vehicle emissions standards and proposed Australian CO2 targets. As such, Australian fuel standards and availability must be first defined before vehicle emission standards and CO2 targets can be properly contemplated.

The FCAI/industry supports the introduction of a mandated 2030 CO2 standard that is realistic, achievable and relevant to the Australian market conditions, and contributes to the Government’s economy-wide post-2020 GHG reduction targets.

There are a range of major government actions that need to be undertaken between 2017 and 2022 to provide widespread availability of fuel meeting the EN standards, the start of an accelerated CO2 reduction and implementation Euro 6 for new models.

Fuel Quality Standards

CO2 standards or targets need to be considered together with fuel quality standards and pollutant emission standards as they are all interrelated. This position is shared by many governments, research organisations and the global automotive industry.

The anticipated environmental and health benefits of adopting Euro 6 pollutant emission standards for light vehicles will not be realised until such time as petrol meeting the European standard EN228 (i.e. 95 RON, 10 ppm sulphur, 35% v/v max aromatics, etc.) and diesel meeting European standard EN590 (as well as other applicable fuel standards, e.g. biodiesel and ethanol blends) is widely available in Australia.

Consideration of the introduction timing of Euro 6 and CO2 targets for new vehicles cannot be undertaken until a detailed consideration of changes to Australian fuel quality standards has been completed. Of central concern is how the Government is planning to transition to the European fuel standards (EN228 for Petrol and EN590 for Diesel) to support the introduction of both Euro 6 and CO2 targets.

The timeframe for the required fuel to be available to the market will then determine the timeline for new vehicle models and the timeline for the introduction of regulatory standards. Moving ahead with new emission regulations without resolving fuel quality questions could increase the cost of new vehicles and adversely affect the operability of new emission technologies without delivering the anticipated environment and health benefits.

View the FCAI response to the discussion paper here

See the FCAI's recent public statements about this subject matter in the News section of this site. 

 

CO2 Standards

CO2 standards or targets need to be considered together with pollutant emission standards and fuel quality standards as they are all interrelated. This position is shared by many governments, research organisations and the global automotive industry.

The FCAI/industry supports introduction of a mandated 2030 CO2 standard that is realistic, achievable and relevant to the Australian market conditions and contributes to the Government’s overall post-2020 GHG reduction targets.

Consideration of the introduction timing of CO2 targets and Euro 6 for new vehicles cannot be undertaken until a detailed consideration of changes to Australian fuel quality standards has been completed. Of central concern is how the Government is planning to transition to the European fuel standards (EN228 for Petrol and EN590 for Diesel) to support the introduction of both Euro 6 and CO2 targets.

View the FCAI response to the Draft Regulatory Impact Statement here.

 

Pollutant Emission Standards

Adoption of Euro 6 standards in Australia will be most efficiently achieved by applying United Nations Regulation 83 (UN R83). The FCAI therefore welcomes the advice from DIRD that Australia intends to apply UN R83.

Taking into consideration the steps required to introduce Euro 6 into Australia leads to an earliest implementation timing of 2022 for “new models”. However, this timing is contingent on widespread availability of petrol meeting the European standard EN228 (i.e. 95 RON, 10 ppm sulphur, 35% v/v max aromatics, etc.) and diesel meeting European standard EN590 (as well as other applicable fuel standards, e.g. biodiesel and ethanol blends).

As there are multiple stages of Euro 6, and significant changes from Euro 5 through to Euro 6d, there needs to be a staged implementation. The “new models” date cannot be before petrol meeting EN228 and diesel meeting EN590 is widely available and the “all vehicles” introduction date must be at least 4 years later.

The costs to move from Euro 5 to Euro 6d, in the draft RIS are underestimated and need to be reviewed. Moving from Euro 5 to Euro 6d will result in an increased cost per vehicle in the range of $500 to $1500 per vehicle; resulting in a total increased annual cost across sales of all new light vehicles of (approx.) $800 million to $1 billion per annum.

View the FCAI response to the Draft Regulatory Impact Statement here.