Australia is introducing new standards to target vehicle emissions, aiming to increase the adoption of electric cars and catch up with other developed economies.

Last year, only 3.8% of cars sold in Australia were electric, lagging behind Britain and Europe where electric cars accounted for 15% and 17% of sales, respectively.

The national electric vehicle strategy includes a fuel efficiency standard that will specify the amount of carbon dioxide a car will produce when running, according to Energy Minister Chris Bowen.

Final details will be determined in the coming months. Transport is the third biggest contributor of carbon emissions in Australia, and the strategy is expected to reduce the country’s emissions by 3 million tonnes of carbon by 2030 and over 10 million tonnes by 2035.

The Electric Vehicle Council praised the initiative but warned that Australia must adopt strong standards or “remain the world’s dumping ground for dated, high-emission vehicles,” said CEO Behyad Jafari.

A fuel efficiency standard could save motorists up to AUD 519 ($349) per year, as new cars in Australia on average consume 40% more fuel than the European Union and 20% more than the US. There are currently around 83,000 EVs on Australian roads and over 4,900 public chargers located at fewer than 2,400 sites as of December 2022.

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