Car makers to be exposed for missing tough emissions rules

2 hours ago 22

A list of the car brands that fell short of strict CO2 emissions targets for new vehicles – and are in line for hefty penalties – will be released next year.


Alex Misoyannis
Car makers to be exposed for missing tough emissions rules

The car brands that met the first phase of the Australian Government's tough CO2 emissions rules for new vehicles – and those that didn't – without outside help will be revealed by federal regulators.

Manufacturers in the latter camp may be on the hook for fines in excess of $5000 per vehicle sold, if they are unable to offset their 'dirtiest' models by selling more electric cars in 2026 – or purchasing 'credits' from other brands.

The Federal Government has confirmed it will publish details of how each car maker performed under the first six months of the New Vehicle Efficiency Standard (NVES) early in 2026.

It will detail brands that sold enough low-emissions cars to meet the targets, and will therefore earn emissions credits – or 'units' – they can use to offset successive years in which they don't meet the rules.

Car makers to be exposed for missing tough emissions rules

They can also sell units – at a price they determine – to other car makers that didn't meet the standards.

The data – known as the 'interim emissions value' – will also reveal which manufacturers didn't meet the targets, and will need to earn or buy units in 2026 and 2027 to make up for their 2025 performance.

The 'name and shame' list is due to be released in February 2026, after information from the first period of the NVES policy – from July 1, 2025, to December 31, 2025 – is collated.

"It is anticipated that regulated entities [car brands] will be advised of their [performance] ... in early February 2026," a Department of Infrastructure, Transport, Regional Development, Communications, Sport and the Arts spokesperson told Drive.

Car makers to be exposed for missing tough emissions rules

"The regulator will publish the results publicly via their website shortly thereafter."

Introduced in 2025, the New Vehicle Efficiency Standard does not mandate the type of vehicles that can be sold by car manufacturers, nor does it ban any type of model, or apply to cars already on the road.

Car makers can continue to sell vehicles which don't meet their CO2 targets – adjusted by vehicle type and weight – but they must offset them with enough low-emissions models to avoid fines.

The penalties are charged to car makers, but a number of top brands have acknowledged they will need to pass some – or all – of the cost onto customers as price rises in showrooms.

Car makers to be exposed for missing tough emissions rules

Among them are Hyundai, Ford, and Nissan, each of which has admitted to increasing prices due, in part, to the legislation.

In the first, 2025 phase of the rules, each Toyota RAV4 Cruiser Hybrid AWD sold would earn credits equivalent to offsetting another vehicle's $3900 penalty – or $1950 if that fine is paid on time – while an Isuzu D-Max X-Terrain ute is up to $900 in the black.

By 2029, as the rules grow more stringent, the same vehicles – assuming these older models were to remain on sale – would rack up fines of up to $4400 and $9700, respectively.

Each vehicle is counted under the NVES at the point it receives 'compliance' for road use – and is entered onto the Federal Government's system, usually upon arrival in Australia – rather than when it is sold.

Alex Misoyannis

Alex Misoyannis has been writing about cars since 2017, when he started his own website, Redline. He contributed for Drive in 2018, before joining CarAdvice in 2019, becoming a regular contributing journalist within the news team in 2020. Cars have played a central role throughout Alex’s life, from flicking through car magazines at a young age, to growing up around performance vehicles in a car-loving family. Highly Commended - Young Writer of the Year 2024 (Under 30) Rising Star Journalist, 2024 Winner Scoop of The Year - 2024 Winner

Read more about Alex MisoyannisLinkIcon

Read Entire Article
| | | |