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flag Australia imposes fines on car manufacturers for exceeding CO2 emission targets to boost efficiency.

flag The Australian Government's New Vehicle Efficiency Standard (NVES), introduced in 2022, aims to reduce CO2 emissions in the local car market by penalizing manufacturers for exceeding emissions targets. flag It applies to all new vehicles under 4.5 tonnes, with fines of $100 per g/km of CO2 if targets are breached. flag Emission limits will decrease each year until 2029. flag Manufacturers can avoid fines by selling more low-emission vehicles or passing costs onto consumers, potentially raising vehicle prices. flag The NVES does not generate government revenue.

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