Interview with Sally Sara, ABC Radio National AM

SALLY SARA: The Federal Government has struck a deal with the Greens to pass emission laws for new vehicles. In exchange the Government has agreed to reforms to the Petroleum Rent Resource Tax and shelved a contentious power to fast track new offshore gas developments. Labor and the Greens gagged debate in the Lower House on fuel efficiency standards, a move which has angered the Coalition and some members of the crossbench.

Chris Bowen is the Minister for Climate Change and Energy. Minister, can you guarantee that the fuel efficiency standards won't increase the cost of new vehicles?

CHRIS BOWEN: Absolutely, and that hasn't been the experience in any other country in the world where it's happened, and it wouldn't be the experience here. This is a big deal, Sally, this has been in the too hard basket for 20 years for Australia. Governments of both persuasions have tried it.

Yesterday the Albanese Government got it done, and what this means is better choices for Australian motorists, better cars, more efficient cars, cheaper to run cars and lower emissions.

SALLY SARA: When we look at the issue particularly of electric vehicles in Australia, sales of electric vehicles have dropped in Australia. What evidence do you have that that will change?

CHRIS BOWEN: Well, Sally, how could you say that because it's not correct. I mean electric vehicle sales were 2 per cent when we came to office, they're edging close to 10 per cent now. Oh, we have a long way to go.

SALLY SARA: The latest figures have dropped from 8 per cent to 6.8.

CHRIS BOWEN: Well, you're going to see a little bit of movement around month to month, but the trend is up, and when I talk to Australians, many, many Australians say to me they want their next car to be electric or hybrid, and they are looking at the options, and there's a myth around that electric car sales are plateauing around the world or falling around the world, it's just not true.

Australians know this is the direction of travel, and car companies are making those decisions, many of them phasing out internal combustion engines over the next decade and a half or so. And Australia and Russia, the only two major economies in the world without fuel efficiency standards have been dumping grounds for cars that car companies can't send to other countries because of fuel efficiency standards.

We're going to save a lot of emissions between now and 2035 by making this change. It's been in the too hard basket for too long. It was a big day yesterday to finally see this pass the Parliament.

SALLY SARA: Light commercials and SUVs are a very important part of the car market here in Australia. How confident are you that there will be enough models to meet that demand given that our market is different from some other parts of the world?

CHRIS BOWEN: Well, of course our market's different, every market is different, and yes, SUVs and utes are very important parts of the Australian market. SUVs and utes, of course, are very important in the United States and other countries, and there will be enough supply, because car companies will want to keep selling those, but they'll also want to comply with the law about how they have to improve efficiency.

And this is not just about EVs and hybrids, Sally, I mean the United States fleet is 20 per cent more efficient than Australia's, and the European fleet is 40 per cent more efficient than Australia's, and that's not just about EVs and hybrids, it's also about more efficient diesel and petrol cars.  

Not every car is the same, including amongst petrol cars, some are much more efficient, even within the same model, and we have some of the least efficient models, even comparing model for model in Australia, because our standards just haven't existed, just there has been no fuel efficiency standard in Australia. It's about time that was fixed, and yesterday it was fixed.

SALLY SARA: On another part of this package, Australian energy producers say it's disappointing that the Government has deferred offshore regulatory reforms while the Future Gas Strategy that was released last week identified those reforms as immediate action. How do you respond to the industry's comments?

CHRIS BOWEN: Well, obviously, we have a different view. Now these reforms are linked to the EPBC reforms, Minister Plibersek is doing that in three tranches, it makes sense for Minister King to link her reforms to Minister Plibersek's in that sort of methodical way, and the Future Gas Strategy, I know there's been a lot of commentary about it, but what it did is point out that gas has got a role to play in our system for quite a while to go because it's essential for firming up renewables. The Bass Strait is depleting in its use, it's very important in industry, green hydrogen is coming forward, and we have big investments in green hydrogen in the budget, but it's not here yet.

But that is what the Future Gas Strategy outlines in some detail, and this has been very appropriately handled by the Government to link those reforms in a very – pretty, methodical and clear way.

SALLY SARA: Independent MP, Helen Haines says, gagging debate on the fuel efficiency standards in the Lower House was truly a low point for the Albanese Government. Why did you do it?

CHRIS BOWEN: To get it through 'cause we've been talking about it for 20 years, and there were three consultation papers last year with thousands of submissions put in. We know the MPs had declared their support or opposition, the Liberal and National Parties against fuel efficiency standards, the crossbench to their credit are by and large for fuel efficiency standards.

We had an opportunity to get it through the Parliament. It has to start on the 1st January next year. You know, this gives the industry now time to prepare, it provides the industry certainty, and this has been, as I've said, 20 years in the making, and the time for talk is over, the time now is to get it done.

SALLY SARA: Minister, thank you.

CHRIS BOWEN: Good on you, Sally.