As we move towards a more sustainable future, the Australian Government has introduced the New Vehicle Efficiency Standard (NVES) to encourage more lower emissions vehicles on Australian roads. The NVES came into effect on 1 January 2025.
Established under the New Vehicle Efficiency Standard Act 2024(Opens in a new tab/window) (NVES Act) it sets carbon dioxide (CO2) emissions targets (emissions targets) for new passenger cars and light commercial vehicles, such as utility vehicles (utes) and vans, entering the Australian market from 1 July 2025. The NVES applies to all new passenger and light commercial vehicles up to 4.5 tonnes gross vehicle mass (GVM).
Regulated entities (such as car manufacturers and suppliers that hold a vehicle type approval) must comply with set emissions targets for all new vehicles they bring into Australia, which they must meet or beat.
Over time, the emissions target is lowered. To continue to meet or beat the target, entities must provide more choices of fuel-efficient, low or zero emissions vehicles across their fleet.
Entities can still sell any vehicle type they choose, including sport utility vehicles (SUVs), sedans, four-wheel drives (4WDs), utes and vans, but they’ll need to sell more efficient models to offset any less efficient models.
