Leaders reconsider car limits

Federal and state leaders have called for a fresh study on whether to introduce mandatory carbon emission standards for new cars or retain the existing system where car makers set voluntary standards. The Council of Australian Governments also decided yesterday to ask the Treasury secretary, Ken Henry, to report on ways of providing financial incentives for motorists to buy low-emission cars through reduced stamp duties or lower registration charges for better-performing vehicles. The moves by the Prime Minister, Kevin Rudd, and his state counterparts are designed to tackle climate change by improving fuel efficiency and reducing emissions of greenhouse gases from new cars and light commercial vehicles sold in Australia. In their communique, the leaders said carbon emission standards and other measures could reduce fuel consumption by 30% over the medium term, making a significant contribution to reducing emissions. The leaders would make a final decision after the statement was completed, which is expected to take the rest of this year, and consultation with industry and the community. The decision is a reprieve for vehicle manufacturers who had been concerned that the meeting would endorse mandatory standards rather than leave open the option of continuing with a voluntary regime. (July 3, 2009)