There have been significant gains in the design of vehicles in the past decade, driven primarily by innovations from the European market. Vehicle safety has changed substantially in the last 10 years, following the adoption of new safety standards in Europe (European New Car Assessment Programme, or Euro NCAP), and vehicle emissions for cars in the European market have also been substantially reduced.

The Australian Bureau of Statistics latest measure of the rate of fuel consumption averaged for all motor vehicles on Australian roads was 13.8 litres per 100 kilometres, one of the worst performances for national average fuel consumption of OECD countries, apart from the USA and Canada. Not surprisingly, that performance correlates to the price of petrol – Australia has the fourth lowest level of petrol taxation (and consequently the fourth lowest petrol prices) in the OECD.

Over the past decade, Australia has ignored many opportunities to improve national energy efficiency standards in our transport fleet. In creating measures that reduce Australia's transport greenhouse gas emissions, Australia can also move to reduce our reliance on imported fossil fuels for transportation.

The federal government has initiated consultation to implement carbon dioxide emissions standards for new light vehicles, starting in 2015 – ­ consultation that arose directly though the actions of the Australian Greens as part of their participation in the Multi-Party Climate Change Committee.

The discussion paper Light vehicle CO2 emission standards for Australia asks industry and the community to help shape the new standards, with comments due 30 November 2011.

The Sustainable Energy Association of Australia (SEA) is encouraging not only its members to participate in this process, but all those interested in a more sustainable future for Australia.

SEA believes that the federal government must take stronger measures on national average fuel consumption numbers for new passenger vehicles and introduce rolling three-year targets on maximum fuel consumption. Successive federal governments have dragged their feet on setting mandated energy efficiency targets for the national vehicle fleet.

Separate targets should impact on transport/commercial vehicles. Measures such as this will reduce running costs of Australian vehicles on imported fuels and reduce inflationary pressure on transported goods.

It costs less to be sustainable

In Australia, vehicle fuel efficiency standards and housing energy efficiency standards are both a symptom of inadequate measures on sustainability. The Aussie battler is paying for inefficient cars and housing that make energy and fuel bills higher, driving inflation and impacting on the household budget and mortgage affordability.

Resistance to change from the automotive industry has commonly led to assertions that increased fuel efficiency in vehicles will come at a higher vehicle cost. Meanwhile, CO2 emissions from the average new car sold in Europe last year dropped to the milestone figure of 140g CO2/km, while retail prices of motor vehicles have fallen every year in real terms.

SEA also believes we need both regulatory measures and market signals to improve energy efficiency and reduce greenhouse gas emissions in Australian vehicles. The federal government must implement a raft of measures, not only mandating levels of fuel efficiency of the national vehicle fleet, but also looking to appropriate taxation relief and rebates for fuel-efficient cars and commercial vehicles.

Top gear

Consumer behaviour is a critical part of reducing fuel consumption as well as contributing to road safety. Speed kills ­ and consumes more fuel in doing so. Some motoring television programs like Top Gear promote the myth that accelerating quickly to a cruising speed uses less petrol; ­ this is simply not the case, with rapid acceleration consuming more fuel than a slower, more controlled acceleration.

Cleaner air: ­ it’s not just about climate change!

Cleaner-running vehicles are not just about increasing fuel efficiency, and lowering carbon dioxide emissions, but also about other polluting gases like carbon monoxide – particulates that impact on human health. A new study from the University of Western Australia and Telethon Institute of Child Health Research has highlighted, in particular, the effects of vehicle-sourced pollutants on the growth of unborn babies, and adds to older studies that show impacts on the developing lungs of infants and children.

Both state and federal governments can make green vehicles more affordable, available and attractive by:

 –  reducing vehicle taxes including stamp duty and reforming company taxation frameworks to direct purchasing toward fuel-efficient, low-emission, new and used green vehicles for both transport and commercial uses;

– Offering business financial incentives such as accelerated depreciation on the fleet purchase of new green vehicles and, matched with a requirement for fleet managers, including commercial fleet, to only select from the most fuel-efficient fit-for-purpose vehicles;

 – Conversely, applying greater taxation-based and other regulatory penalties on energy-inefficient new and used vehicles;

 – Improving consumer awareness through information, education, and advertising that focuses on life-cycle costs and promotes manufacturers making the greatest effort to deliver real change; and

– Tightening fuel quality standards in Australia to catch up with the implementation schedule Euro Standard to ensure we have cleaner burning fuels, and that higher efficiency vehicles are not compromised by lower Australian fuel standards.

Professor Ray Wills is chief executive of the Sustainable Energy Association of Australia (SEA) and an adjunct professor with the University of Western Australia.