Climate Policy Engagement Analysis
Climate Policy Engagement Overview: The Federal Chamber of Automotive Industries (FCAI) had mostly negative engagement with Australian climate policy for light-duty vehicles in 2022-24. The FCAI has consistently advocated to weaken Australia’s proposed federal fuel efficiency standards for light-duty vehicles and has generally opposed ICE-phase out policies. The FCAI also advocated for incentives to promote the use of ICE-powered hybrid, battery-electric, and hydrogen-powered vehicles.
Top-line Messaging on Climate Policy: The Federal Chamber of Automotive Industries (FCAI) expressed support for an Australian net-zero 2050 carbon emissions target in a November 2022 consultation response. While FCAI uses the Paris Agreement as a benchmark for its emissions reduction targets, InfluenceMap has found no evidence of the group advocating for the climate deal. The FCAI appears to have supported government regulation for climate change with exceptions in a November 2022 consultation response.
Engagement with Climate-Related Regulations: FCAI appears to have led advocacy efforts in Australia against adopting ambitious federal fuel efficiency (CO2) standards for light-duty vehicles in 2022-24. In a March 2024 consultation response, the FCAI opposed the Australian government’s proposed CO2 standards and advocated to severely weaken the rule's stringency, pushing to increase 2029 targets of 58g/CO2 for passenger vehicles up to 84g, and increasing the proposed 81g/CO2 for light-commercial vehicles to 131g. FCAI also advocated for the first two years of the standard to be “reporting-only”, to include off-cycle, AC, and multiplier credits in the standard, and opposed the inclusion of SUVs in the passenger vehicle categories.
In a May 2023 response to Australia's Fuel Efficiency Standard consultation, the FCAI advocated for numerous exceptions that would weaken the policy’s stringency, including the need for a “cautious start” and the use of multiplier, off-cycle, and air conditioning credits. Previous to this, in 2022, the FCAI proposed CO2 standards aligned with its voluntary standards, set at 100g/km CO2 for light-duty and 145g/km CO2 for heavy-duty SUVs and light-duty commercial vehicles by 2030, CO2 standards significantly less stringent than have applied cars in the European Union since 2020. The FCAI appeared to push for rules in line with such voluntary standards directly with policymakers, including in an April 2022 presentation from the FCAI to the Department of Infrastructure. Additionally, in a November 2022 consultation response to Australia’s National EV Strategy (NEVS), FCAI similarly urged the government to adopt a fuel efficiency standard that follows “the structure of the FCAI voluntary CO2 standard”, with numerous major exceptions. An August 2022 Sydney Morning Herald report also noted that FCAI had employed “a lobbying and public relations strategy … to a level that would leave Australia’s car industry with some of the weakest carbon emission rules in the world” by advocating for the adoption of its voluntary vehicle CO2 standard as the national standard.
A June 2022 FCAI press release also stated support for an increased Australian federal GHG emissions reduction target of 43% by 2030.
Positioning on Energy Transition: In numerous communications throughout 2022-24, FCAI has supported a longer-term role for ICE-powered vehicles in Australia (including hybrids) over the rapid electrification of transportation, including on its website in 2022. FCAI has consistently emphasized the need for technology-neutral climate regulations that permit the longer-term use of ICE-powered vehicles, including in statements by FCAI CEO Tony Weber in a April 2023 press release. An August 2022 Sydney Morning Herald article also noted that FCAI “had launched a wide-ranging secret campaign that would delay Australia’s transition to electric vehicles” and encourage a longer-term role for ICE-powered cars, including hybrids. FCAI CEO, Tony Weber, also noted in an April 2022 press release that “the pathway to reducing emissions in the medium term will rely on a range of low emission technologies that include plug-in hybrid, hybrid and even highly efficient internal combustion engines.”
Regarding ICE-phase out policies, the FCAI also appeared unsupportive of an Australian 2030 100% BEV mandate according to a September 2022 presentation, found via FOI request. A July 2022 FCAI press release noted that the group had committed to 25 key principles with other automotive groups that included “opposing the introduction of bans” in Australia. At the state level, FCAI’s CEO, Tony Weber, opposed a zero-emission vehicle sales mandate of 50% by 2030 and 100% by 2036 in Queensland in a March 2022 press release. In a July 2022 interview with Go Auto, FCAI’s CEO also appeared unsupportive of an Australian Capital Territory 2035 ICE phase-out proposal.
Regarding incentives, on a November 2022 National EV Strategy (NEVS) consultation response, FCAI supported numerous incentive policies to promote both low (ICE-powered) and zero-emission vehicles (ZLEV), including a ZLEV government fleet target and purchase incentives. In a September 2022 presentation, found via FOI request, FCAI appeared to support incentives for electric and hydrogen public charging points and electric vehicle purchases. At the state level, FCAI expressed support for a Queensland EV purchase grant in an April 2023 press release.