Australian Carmakers to Be Named Under NVES Emissions Rules From 2026

From 2026, Australian car buyers will be able to see exactly which automakers are falling short of the country’s new emissions rules. Under the New Vehicles Efficiency Standard, brands that exceed their permitted carbon dioxide limits will be publicly identified, marking the first time Australia has adopted a name-and-shame approach to vehicle emissions compliance.

The NVES officially came into effect on January 1, 2025, setting fleet-wide CO2 limits across each manufacturer’s vehicle lineup. Financial penalties will begin applying from July 1, 2025, but public disclosure adds another layer of pressure, particularly for brands that rely heavily on high-emissions utes and SUVs.

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The first assessment period runs across the 2025 calendar year, with regulators tracking how each brand performs against the new benchmarks.

How the compliance timeline works

Rather than issuing immediate fines, the NVES system gives manufacturers time to balance out higher-emitting models with cleaner vehicles sold later. The Clean Energy Regulator will publish interim emissions values in February 2026, offering an early snapshot of which brands are over or under target.

Automakers that exceed limits for light passenger vehicles can still make adjustments. Lower-emission sales in 2026 and 2027 can be used to offset excess emissions from 2025. The final deadline to settle these balances is December 31, 2027.

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Only after that date will penalties be locked in, with official fines issued in 2028 based on each brand’s final emissions value. While the delayed enforcement softens the initial blow, public reporting is expected to influence brand perception much sooner.

Industry pushback and real-world impacts

The NVES has been controversial since its proposal, particularly because it uses a two-tier structure that separates emissions limits for smaller vehicles and larger ones. This matters in a market dominated by utes, with the Ford Ranger and Toyota HiLux leading Australian sales charts for a decade.

Toyota, Australia’s top-selling brand since 2008, has argued that hybrid vehicles should be given greater recognition within the NVES framework. That debate intensified after Europe softened its own zero-emissions mandate, lowering its 2035 target from 100% to 90% zero-emission vehicles and allowing hybrids to remain on sale.

Some brands have already adjusted. Nissan has acknowledged that the arrival of the Ariya electric SUV in Australia was accelerated by NVES requirements. Ford has cited the standard as one factor behind a $5000 price rise for the Mustang in 2025, with further increases planned for 2026.

Ford also reshaped its local lineup by dropping the 2.0-litre bi-turbo diesel engine from Ranger and Everest, an engine already removed in the UK due to emissions rules. From mid-2026, a single-turbo version will take its place as the entry-level option.

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As the NVES tightens, its influence is becoming harder to ignore, shaping what Australians can buy, how much they pay, and which brands are seen as keeping pace with a lower-emissions future.