A study that points out the increased costs associated with lowering CO2 levels in new cars demonstrates the complexity of the vehicle emissions debate and highlights the need for high quality 95 RON petrol, according to the FCAI.

The analysis by the Centre for International Economics found that lowering CO2 levels in new cars would increase the cost of petrol.

However, the Chief Executive of FCAI Tony Weber said the Federal Government’s own paper, publicly released in June last year, stated unequivocally how important a high-grade, low sulphur fuel was to achieving the advanced market vehicle emissions standard.

“The relationship between fuel quality and emissions is globally acknowledged,” Mr Weber said.
“The motor industry has consistently stated that advanced market pollutant standards – Euro 6 and beyond – will come at a cost to the consumer because the cleaner engines require premium grade, low sulphur petrol to operate most effectively.”

The industry has been working with the government’s Ministerial Forum on Vehicle Emissions to play its part in reducing both Greenhouse Gas (GHG) and other pollutants in line with the government’s 2030 Greenhouse Gas reduction targets.

But Mr Weber said that the contribution of new vehicles to GHG needs to be placed in context.

“While the current in-service fleet of passenger cars, SUVs and light commercials contribute around 10 per cent of Australia’s annual GHG emissions, new vehicle sales impact less than 1 per cent per year,” he said.
“This is a complex discussion in which all the cards have to be placed on the table and careful assessments made, including what incentives consumers are offered to transition to a vehicle with reduced emissions and lower fuel consumption, whether that is electric, fuel cell or hybrid.”