The Albanian government has watered down its proposed emissions regulations for new cars and SUVs after facing angry backlash from car buyers.
Concessions will be made for less stringent CO2 limits for large SUVs and heavy-duty four-wheel drive vehicles, including vans and vans.
After unveiling a proposed fuel efficiency standard in early February, the government has faced significant criticism over the policy, which its opponents say will result in higher prices for new cars while reducing consumer choice.
Rather than banning certain models, the standard will impose fleet-wide emissions caps for passenger cars (PV) and light commercial vehicles (LCVs), bringing Australia in line with other developed economies that have similar schemes.
On Tuesday, Energy Minister Chris Bowen and Transport Minister Catherine King confirmed the standard would be changed so that new light commercial vehicles would instead be subject to less stringent emissions reduction targets.
The Albanian government has watered down its proposed emissions regulations for new cars and SUVs after angry reactions from car buyers.
Under updated rules approved by Cabinet on Monday evening, average emissions from new light commercial vehicles will need to be reduced by 50 percent by 2029 if manufacturers want to avoid fines.
The original government proposal previously required a 60 percent reduction.
The original emission reduction of 60 percent still applies to new passenger cars.
In addition, a number of large, high-emission SUVs initially categorized as PVs will be recategorized as LCVs if they have a towing capacity of more than three tonnes and a chassis similar to utes.
The change will see models such as the Nissan Patrol, Toyota’s Prado and Landcruiser, Ford Everest, Mitsubishi Pajero and Isuzu MUX reclassified as light commercial vehicles.
Under the original proposal, these cars would have been subject to much stricter pollution limits, meaning they were at risk of being phased out before a low-emissions alternative was available.
Manufacturers of new cars and large SUVs will have to cut emissions by 50 percent by 2029 – a 10 percent drop from proposed policies
With the emissions cap being lowered every year, the standard will essentially act as a carbon price, forcing automakers to sell more zero- or low-emission vehicles, or cut back on sales of high-emission models such as cars and SUVs, to avoid being hit with fines.
Also changed is the start of the credit trading system, which will allow manufacturers to buy or sell credits if they reach or breach the standard respectively, and will be postponed by six months to July 1.
Penalties for violating the scheme will be laid down by law, and an evaluation of the scheme’s operation will start in 2026.
After Prime Minister Anthony Albanese invited business leaders to a dinner in late February, his office reportedly became involved in negotiations over the standard.
