Multiple major car brands are facing large fines in Australia, six months after new emissions standards were implemented.
What's happening?
According to The Guardian, 19 car companies are facing fines after their vehicles failed to meet new emissions standards in the country.
Mazda, Nissan, Honda, Subaru, Hyundai, General Motors, Porsche, Ferrari, and Jaguar are among the brands that could face fines if their efficiency numbers fail to improve.
Australian regulations require brands to meet a specific average emissions per kilometer target.
Emissions from less efficient vehicles can be offset by EVs or more efficient models, and companies that beat the targets receive credits that can be bought or sold to help avoid fines due in 2029.
Credits can be reduced or accumulated depending on how companies perform against standards. For example, Mazda currently owes around $25 million in fines, while Nissan owes over $10 million.
Manufacturers can reduce those penalties by making more efficient cars or by purchasing credits from companies like Tesla, Ford, and Toyota, all of which came in under the target mark.
They might also face increased penalties if their efficiency doesn't improve in the coming years.
Why is this important?
Passenger vehicles like cars remain a major source of atmospheric carbon pollution and contribute directly to our warming planet.
These regulations are among the primary ways Australia is reducing its emissions, but they have attracted some criticism.
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Save $1,000 this year 💸 Opponents claimed that the new regulations would result in "supply shortages, soaring prices and market disruption," according to Julie Delvecchio, Chief Executive of the Electric Vehicle Council.
"Instead, the first performance report shows strong industry performance, healthy competition and a clear acceleration in cleaner vehicles coming to Australia," she said.
"The data confirms what we said all along: clear, predictable standards drive innovation and investment. They don't break markets, they modernise them," Delvecchio added.
Australia's regulations stood in stark contrast to those of the United States, which rolled back myriad regulations over the past year.
What's being done about this?
Delvecchio maintained that the early results from the new regulations showed that they are highly effective and served as a boon for the EV market.
She asserted that the outcome was a sign to strengthen regulations even further, in an effort to prevent companies from continuing to collect credits from cars that meet the lower standard.
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