BYD leads Australia’s NVES program with 6.2 million carbon credits in six months, as Chinese EV makers boost clean vehicle supply amid low overall EV adoption.

BYD has earned over 6.2 million carbon credits under Australia’s New Vehicle Efficiency Standard (NVES) in its first six months, becoming the top recipient. The Chinese automaker and other Chinese brands like Chery, Great Wall Motor, and Geely generated surplus credits by selling low-emission electric and plug-in hybrid vehicles. In the first reporting period, 40 of 59 regulated brands met emissions targets, while major manufacturers including Mazda, Nissan, Subaru, Hyundai, and GM incurred liabilities totaling millions in penalties. A net surplus of 15.9 million credits was created, with the NVES driving increased EV supply and market transformation. However, EV adoption remains low at about 12%, prompting calls for stronger demand-side policies. Penalties, calculated at $50 per gram of CO2 over the limit, must be settled by 2027, with stricter targets set for 2029.