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Joint Media Release
Federal Minister for the Environment and Heritage
The Hon Dr David Kemp, MP

Federal Minister for Industry, Tourism and Resources
The Hon Ian Macfarlane, MP

15 April 2003

Australian Cars will Deliver Better Efficiency and Greenhouse Savings

The Australian automotive industry will introduce a Voluntary Code of Practice to improve the fuel efficiency of passenger vehicles by 18 percent by 2010, the Minister for the Environment and Heritage, Dr David Kemp, and the Minister for Industry, Tourism and Resources, Ian Macfarlane, announced today.

The voluntary code of practice establishes a fuel efficiency target for new passenger vehicles (known as a National Average Fuel Consumption Target) of 6.8 litres per 100 kilometres travelled.

In addition, the voluntary code of practice for the first time will aim to reduce fuel consumption in a broader range of light vehicles, such as all-terrain-vehicles (4WD) and light commercial vehicles. The voluntary code of practice indicates targets for these vehicles will be finalised by mid-2004.

"The Australian transport sector accounts for almost one fifth of Australia's total greenhouse gas emissions and the new voluntary code of practice will lead to a reduction of up to two million tonnes of greenhouse gases by 2010," said Dr Kemp.

"Improvements in fuel efficiency are a win for the environment and also a win for the household budget."

Minister Macfarlane commended the Australian automotive industry for its commitment to reducing Australia's greenhouse gas emissions.

"By achieving this target, the Australian automotive industry will make a significant contribution to reducing greenhouse gas emissions from the transport sector. The new targets will also encourage the uptake of technologies to improve vehicle fuel efficiency," said Mr Macfarlane.

The automotive industry is an important sector of the Australian economy. In December last year, the Howard Government announced a $4.2 billion assistance package for the automotive industry with an emphasis on innovation and R&D.

The package will deliver more than $1 billion to car and component R&D and includes a $150 million fund earmarked specifically for vehicle manufacturers investing in new and innovative technologies.

"Given the links to greenhouse gas emissions, fuel efficiency is a key area of interest for innovation and R&D in the automotive industry," said Mr Macfarlane.

Media Contacts:
Kirsty Boazman, Minister Macfarlane's office, 02 6277 7580 or 0412 171 444
Catherine Job, Minister Kemp's office, 02 6277 7604 or 0408 648 400

Commonwealth of Australia