Australia to introduce fuel efficiency standards to boost electric car

SYDNEY Reuters - The Australian government is going to introduce vehicle fuel efficiency standards in order to lift the supply of electric cars, improve affordability for motorists and drive down emissions, local media reported on Friday.

The absence of a mandatory fuel efficiency standard is hurting the adoption of electric cars in Australia, according to a report by the Australian newspaper, Chris Bowen, a federal energy minister.

Bowen will say at an electric vehicle summit in Canberra that it is time to have an orderly and sensible discussion about fuel efficiency standards that could help improve the supply of electric vehicles in the Australian market.

Bowen's office didn't respond immediately to a request for comment.

The report said that he will publish a discussion paper for electric vehicle strategy within a few weeks, seeking feedback from industry, unions and consumer bodies.

Only 2% of cars sold in Australia are electric, almost five times lower than the global average because of high selling costs of vehicles.

The Labor government raised its 2030 target for cutting carbon emissions by 43% from 2005 levels, bringing the country closer to the Paris climate accord commitments of other developed economies.