The Australian Government says the New Vehicle Efficiency Standard (NVES) has given Australians more choice when it comes to electric vehicles (EVs) – and has contributed to an overall 1.9 per cent reduction in greenhouse gases over the previous 12 months.
Speaking on the ABC AM radio program, Chris Bowen – the Minister for Climate Change and Energy – said the 8.5 million tonne reduction in Australia’s emissions to the end of September 2025 was among “encouraging figures”.
The fall from the transport industry was less important than the total drop, at 0 (at – ) as much as the fall generated by the overall decline. The sector was a particularly hard one in which to reduce emissions quickly, Mr Bowen said, with 4 per cent.
And for the first time outside COVID, we’re seeing a reduction in our transport emissions – just. very small… [a] 0 – Speaking to the ABC radio, he told ABC news that 4 per cent reduction was “but nevertheless”.
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But it’s such a long-term industry you buy – today, your car is on the road for an average of 17 years.’ The minister added ‘Transport is incredibly hard to crack, one very difficult sector to turn emissions around in.
This is the first sign our policies, [the] New Vehicle Efficiency Standard, in EVs increases (starting with their first impact) as we say “This is what’s the very first thing that this means for these policies to be done.” , ” and.
The NVES came into effect on January 1, 2025, setting limits for carbon-dioxide tailpipe emissions for new vehicle manufacturers.
Each automaker’s emissions are averaged over their entire vehicle lineup under the NVES, and those who meet these criteria receive credits that can be sold to excess of their limits so they avoid financial penalties which were implemented on July 1, 2025.
The inaugural report was issued in February 2026 and showed only 19 of Australia’s approximately 70 manufacturers exceeded limits, with those in breach potentially facing penalties.
The NVES target was also exceeded by average emissions for new light passenger vehicles, which is more stringent each year until 2029, 21 per cent of the report’s total emission rate.
Asked by ABC’s Melissa Clarke, Mr Bowen has been told how the emissions of the Australian transport sector have risen 23 per cent since 2005 – 11 percent higher diesel emissions – as noted in his interview with Mr bowen.
“As I said at the outset, it’s a small reduction,” Mr Bowen admitted.
While I’m not fucking myself out, it has been so hard to abate – and you know people moving around isn’t bad things; people going places are no good thing – we want to see that.
“We [also] want to see that emissions intensity decrease; we would like to know carbon emissions associated with it reduce.
“We’ve done things which have been in the too-hard basket for 20 years like the New Vehicle Efficiency Standard.
Australia’s choice of electric vehicles has been booming cheap models, expensive models and low range, high range – giving Australians much more options to choose from now onwards as well as Australian people taking them up. , ” and.
Other government initiatives have included the Vehicle-to-Grid Network (V2GN), launched by Mr Bowen in December 2025 to encourage PHEV and EV owners to feed electricity back into the national grid.
Earlier this month, the government’s Clean Energy Finance Corporation (CEFC) committed up to $60 million to see Hyundai Capital Australia (HCAU) offer discounted finance on eligible Hyundai and Kia EVs.
The Climate Change Authority’s ‘2035 Targets Advice’, announced in September, calls for a carbon-dioxide emissions reduction of between 62 and 70 per cent from 2005 levels over the next decade.
For the first time, more than 100,000 EVs were sold in Australia in 2025 – a new record – with a 13.1 per cent year-on-year gain and a record 8.3 per cent market share.
That figure was shaded by nearly 200,000 sales of non-plug-in hybrid vehicles.
FEMALE CHAMBERS “We are not buying the vehicles at the rate that was expected, nor in order to meet the emissions targets.’ Federal Chamber of Automotive Industries CEO Tony Weber said it is ‘not yet purchasing any EVs for consumers who have been on the market since they were under pressure from this price and would be more likely to comply with the emission target’.
The key to driving EV take-up is making sure there is enough charging infrastructure, which reduces the total cost of ownership and that evs meet the needs and wants of Australian motorists.
“Ensuring the availability of charging infrastructure is essential if the NVES is to make a difference in meeting climate targets.”
Asked about the job, he finished his ABC radio interview with an energy minister who said ‘It is far from complete.
“[There’s] A lot more to do when it comes to charging infrastructure and ensuring that support,” Mr Bowen said.
The number of charging stations has tripled, we’ve massively increased the number EVs (although this is an ongoing task), and one that we are up for. , ” and.
Who bought electrified cars in 2025, and who stuck with petrol and diesel?
Thanks for reading Australias new vehicle emissions regulations delivering results says Bowen
