Regulatory ● ● ● ● consistency Regulatory consistency is Regulatory consistency Regulatory consistency Regulatory consistency is Regulatory consistency would be important for vehicle emission should be achievable, would be difficult to achievable but is not difficult to achieve, because of and operability efficiency to be but consultation has achieve, across assured. differing incentives (discussed achieved. confirmed that Australian Government above). harmonisation has thus and State and Territory Key considerations include far not been achieved governments. domestic harmonisation with between domestic Motor Vehicle Standards Act regulations. and international 1989 Establishing clear links harmonisation with fuel and between different regulatory frameworks emissions standards. could facilitate consistency. Risk ● ● ● ● How do risks to stakeholders compare under the regulatory Government needs to Government needs to Elevated risks emerge for Elevated risks emerge for alternatives? balance the risks to all balance the risks to all stakeholders with reduced stakeholders with reduced stakeholders. stakeholders. However, market power. market power. Mutual Recognition Government would face Government would face high risks ● legislation could high risks of societal of societal backlash if air quality present risks. criticism if fuel quality standards decline or if Refinery industry doesn’t align with contaminants in fuel affect engine stakeholders could argue ● international trends. operability. that they have elevated risks because standards Refinery industry ● ● are likely to be stakeholders could strengthened into the argue that they have Major refiners and Major refiners and importers future. elevated risks because importers could utilise their could utilise their market power standards are likely to market power and and information asymmetries to be strengthened into information asymmetries to reduce risk. the future. reduce risk.
Regulatory consistency Regulatory consistency is important for vehicle emission and operability efficiency to be achieved. Key considerations include domestic harmonisation with Motor Vehicle Standards Act 1989 and international harmonisation with fuel and emissions standards. ● Regulatory consistency should be achievable, but consultation has confirmed that harmonisation has thus far not been achieved between domestic regulations. Establishing clear links between different regulatory frameworks could facilitate consistency. ● Regulatory consistency would be difficult to achieve, across Australian Government and State and Territory governments. ● Regulatory consistency is achievable but is not assured. ● Regulatory consistency would be difficult to achieve, because of differing incentives (discussed above). Risk How do risks to stakeholders compare under the regulatory alternatives? ● Government needs to balance the risks to all stakeholders. ● Refinery industry stakeholders could argue that they have elevated risks because standards are likely to be strengthened into the future. ● Government needs to balance the risks to all stakeholders. However, Mutual Recognition legislation could present risks. ● Refinery industry stakeholders could argue that they have elevated risks because standards are likely to be strengthened into the future. ● Elevated risks emerge for stakeholders with reduced market power. Government would face high risks of societal criticism if fuel quality doesn’t align with international trends. ● Major refiners and importers could utilise their market power and information asymmetries to reduce risk. ● Elevated risks emerge for stakeholders with reduced market power. Government would face high risks of societal backlash if air quality standards decline or if contaminants in fuel affect engine operability. ● Major refiners and importers could utilise their market power and information asymmetries to reduce risk.
act-review-final-report.docx