Australia’s New Vehicle Efficiency Standard (NVES) is now in force and applies only to electric vehicles (EV). Polestar has confirmed it will sell the carbon credits it accumulates to brands struggling with electric vehicle adoption.
Under the NVES, all manufacturers operating in Australia are required to meet average fleet-wide carbon dioxide emissions targets each year. These targets become stricter every year and any mark that fails to meet them is subject to a fine.
However, if a brand exceeds its fleet-wide target – which is particularly easy for brands with a lot of plug-in hybrids and pure electric vehicles – it receives “credits” that can either be used to meet tougher targets the following year or sold to other brands to help them achieve their goals.
Polestar, a Geely-owned brand that offers an all-electric range globally, is expected to be one of several brands whose loans will be in demand since the NVES came into effect.
Now Polestar Australia managing director Scott Maynard has confirmed to the media: “We have been interested in our loans and will be selling them” – without disclosing who is interested.
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“(It’s) still a confidential commercial discussion that wouldn’t allow us to name anyone, but I think it would be right for us to (sell credits),” he said.
There are some brands with little or no electrification, such as: B. Isuzu Ute Australia, which could benefit from these loans, as well as brands that offer electric vehicles but have so far struggled to sell them in significant numbers, such as: B. Ford and Subaru.
For 2026, all passenger car ranges must not exceed a fleet-wide average of 117 g/km of carbon dioxide emissions, while light commercial vehicles and heavy SUVs are limited to 180 g/km. For comparison, a Toyota RAV4 Hybrid emits around 109g/km, while a turbodiesel Isuzu D-Max emits 185g/km.
“If there are brands that are choosing not to develop clean or low-emission technology, that are choosing not to invest in that research and development, and there are brands out there that have committed to that and are doing that, I think it’s fair and reasonable to expect those who haven’t invested to pass on the money that they’ve benefited from (internal combustion engines) to those who are investing (in low-emission technology) at enormous cost,” Maynard said.
“And I think it’s actually a good thing that the government isn’t collecting that, but instead allowing it to be transferred, because that encourages continued investment and shows a degree of authenticity to the program.”
Australian automotive associations, particularly the Federal Chamber of Automotive Industries (FCAI), have been critical of NVES, suggesting it could lead to “lower-than-expected adoption of low-emission technologies” and make “new cars more expensive”.
Polestar has long rejected these claims, instead embracing NVES and opting to leave the FCAI in early 2024 alongside pure electric car brand Tesla in protest.
“There are many brands in Australia that sell vehicles that Australians enjoy driving and have stated that their model portfolio is designed to enable them to comply with the standards and that they do not have to pass these costs on to motorists,” Maynard said.
“The brands that are out there advertising that they have to (pass on the cost) are simply being pushed into a non-competitive position and are no longer burdening Australian motorists because they have a choice.”
Polestar has previously stated that the objectives of the NVES result in the loans providing little financial value.
“I don’t think it (the value of the credits) will be that high just because the standards – particularly in the industry here – are low enough that most brands can easily slip under,” Mr Maynard told Australian media in July 2025.
“There was a big word cloud of concern about NVES, but now it’s here and the job is to step up and get it done. I think it’s quite achievable for most brands operating in this country.”
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