Who is the Regulator

PAGE LAST UPDATED: 27 Jun 2025

As the New Vehicle Efficiency Standard (NVES) Regulator it's our job to keep the car industry on the road to success for both the consumer and our environment.
We work to:
- empower industry
- safeguard integrity and
- drive transparency
to reduce car emissions and deliver a more fuel efficient future for Australia.
Compared to car markets in most other countries, Australia has a small supply of lowemission cars available for consumers to choose from.
Before the NVES, our transport sector was projected to be the largest contributor of emissions by 2030.
In 2024, the cars driven by Australians contributed up to 15% of Australia's total carbon emissions.
After collaborating with governments, industry, and regulated entities (such as car manufacturers and suppliers) and striving to align with international emissions standards, the NVES came into effect on 1 January 2025.
So how does the NVES work?
The NVES works by incentivising regulated entities to supply more low emissions cars into the Australian market, whether they are petrol, diesel, hybrid, electric or other emerging fuel types.
This helps:
- Build a more sustainable and vibrant car market
- Provide a wider choice of cars for consumers, and
- Improves air quality for all Australians.
As the NVES Regulator we implement the NVES by:
- calculating the total carbon dioxide (or CO2) emissions of new cars supplied from 1 July 2025.
- We then compare that to the emissions target set for that year.
- Each year the target is lowered, meaning suppliers are incentivised to offer more low emissions cars to the Australian market.
Suppliers can choose how they meet or beat their emissions target, giving them flexibility in their approach.
Consumers will still be able to buy the car brands they know and love, but they'll have a broader selection of cars to choose from this includes utes and vans.
We will continue to work with regulated entities to improve fuel-efficiency and low-emissions cars in the Australian car market.
Find out more at nvesregulator.gov.au

As the New Vehicle Efficiency Standard (NVES) Regulator, our role is to deliver a more fuel-efficient future for Australia. We work to drive transparency, build trust, safeguard integrity and empower industry in line with the New Vehicle Efficiency Standard Act 2024(Opens in a new tab/window) (NVES Act). Ms Karen Najjar, Assistant Secretary of the NVES branch, is responsible for overseeing the operations of the regulator and works to ensure we are trusted, credible and engage with our stakeholders.

The NVES Regulator is a dedicated regulatory unit within the Department of Infrastructure, Transport, Regional Development, Communications, Sport and the Arts(Opens in a new tab/window) (the department).

The NVES Act sets carbon dioxide (CO₂) emissions targets (emissions targets) from 1 July 2025 for new light passenger cars such as sedans and sport utility vehicles (SUVs) and light commercial vehicles, such as utility vehicles (utes) and vans, entering the Australian market.

It works with regulated entities (such as car manufacturers and suppliers who hold a vehicle type approval) to understand their obligations and duties under the NVES Act. This helps them to meet lower emissions targets by supplying more low emissions cars to the Australian market, whether they are petrol, diesel, hybrid, electric or other emerging fuel types. The NVES Act aims to:

reduce CO₂ emissions from vehicles
build a more sustainable and vibrant car market
provide Australian consumers more choice of low-emissions vehicles
improve Australia’s fuel security
save Australians money at the bowser and in yearly maintenance
improve air quality for all Australians.

Compared with other countries, Australia has fewer fuel-efficient and low-emission cars available. In fact, vehicles driven by Australians contributed up to 15% of the nation's total carbon emissions in 2024. Before the NVES, the transport sector was projected to become Australia’s largest source of emissions by 2030.

To address this, the department consulted extensively across a range of stakeholders, including international, state and local governments, non-government organisations, industry and the public. This collaboration helped align the NVES with international standards and the needs of Australians. The NVES Act was then introduced on 1 January 2025.

Regulated entities can choose how they meet or beat their emissions targets, allowing flexibility to suit their business strategies. Importantly, consumers will continue to have access to familiar car brands, along with an expanded range of models, including popular vehicles like utes and vans.

We will continue working closely with industry to improve fuel efficiency across Australia's car market.

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