Sydney: Australia's Labour government plans to spend A$394 million (Dh1.28 billion) over the next four years to replace old vehicles with energy-efficient models.

The government also plans to introduce mandatory emission standards for cars from 2015, the ruling Labor party said in an e-mailed statement.

Prime Minister Julia Gillard yesterday announced a programme that will from January 1 offer A$2,000 (Dh6,512) rebates to people who trade in cars manufactured before 1995 for low-emission, fuel-efficient vehicles, according to the statement.

"The amount of carbon we anticipate saving through this measure by getting the 200,000 old cars off the road in favour of more efficient vehicles is one million tonnes," Gillard said at a news conference in Brisbane broadcast on Sky News.

Cars that have received government designation as fuel-efficient and low-polluting include Toyota Motor's hybrid Camry and Corolla, Ford Motor's Falcon EcoBoost, and the Cruze, made by General Motors' Australian unit Holden.

Carbon-trading boost

Gillard, who is facing an election on August 21, replaced Kevin Rudd as leader on June 24 after a slump in support to election-losing levels sparked by his move in April to shelve carbon trading, the mainstay of his 2007 election campaign. Gillard came under fire from climate-change activists yesterday after saying she will delay charging companies for pollution until 2012.

"Australians own a lot of old motorcars and these old cars guzzle a lot of petrol and spew a lot of pollution," Gillard said. "I want to help Australians update their motor vehicles."

The government will fund rebates by redirecting funds from three programmes set up to increase use of solar power, carbon capture and renewable energy, Gillard said.

The second measure, which will impose mandatory carbon dioxide emission standards on new light vehicles, is expected to save consumers about A$1.8 billion in fuel costs by 2024, the Labour Party said in a separate e-mailed statement. Emission levels, which will apply to new four-wheeled vehicles weighing 3.5 metric tonnes or less, will be set after consultation with automakers, it said.