Australia’s largest and most representative business network has acknowledged the government’s reconsidered approach to the introduction of a New Vehicle Emissions Standard.

“The government has listened to some of the concerns raised by the business community about its ambitious approach to vehicle emissions reduction,” ACCI chief executive officer Andrew McKellar said.

“Business supports the introduction of a New Vehicle Emissions Standard (NVES), but the method of its implementation is critical.”

Changes to the earlier NVES standards announced by the government today will address some earlier business concerns.

“Recategorising 4-wheel drives as light commercial vehicles will extend access for tradespeople and regional Australians to these vehicles for a period,” Mr McKellar said.

“Few large 4-wheel drives, utes and light commercial vehicles available in Australia will meet 2025 CO2 targets, let alone the far lower 2029 targets,” Mr McKellar said.

“These vehicles are essential tools for tradespeople and those working in agriculture, tourism, utilities and emergency services.”

Under the current approach to the NVES, some of Australia’s most popular vehicles, including the Ford Ranger, Isuzu D-Max, and Toyota Hilux and Landcruiser, will steadily disappear from the market over the next five years.

There are currently no alternative low- and zero-emissions vehicles in the Australian market that provide the same performance as utes and large 4-wheel drives.

“While the revised approach has given manufacturers a little more time to prepare for the NVES, ultimately the result will still be the same, with some of the most popular vehicles pushed out of the Australian market, leaving less choice of vehicles, not more,” Mr McKellar said.

“In principle, the government should be pursuing a ’least cost, economy wide’ approach to carbon abatement. The NVES does not achieve this.”