On 5 June 2026 Australia's Department of Climate Change, Energy, the Environment and Water (DCCEEW) announced that, at the Energy and Climate Change Ministerial Council (ECMC) meeting held on 8 May, ministers agreed to progress new energy efficiency requirements for electric motors, pool pumps and air conditioners below 65 kW under the Greenhouse and Energy Minimum Standards (GEMS) programme.

New rules for electric motors

Electric motors are the focus of this round of changes. The Ministerial Council approved the recommendations in the Decision Regulation Impact Statement (DRIS) for three-phase electric motors, agreeing to raise the minimum energy performance standards (MEPS) for three-phase squirrel-cage induction motors sold in Australia and New Zealand and to broaden the power range of regulated motors. Under the DRIS, the new rules will be phased in: the first stage raises the existing efficiency thresholds across the board and brings more motor sizes into scope, while the second stage would impose stricter IE4 (super premium efficiency) requirements on 2-pole, 4-pole and 6-pole medium and large motors from 75 kW to 200 kW inclusive, aligning Australian and New Zealand rules with EU ecodesign requirements. Australia's current motor MEPS, adjusted in 2019, align with IE2, so the upgrade is substantial.

Officials note that three-phase motors and their drive systems account for an estimated 38 percent of electricity use in Australia and 34 percent in New Zealand. Raising motor efficiency will significantly reduce electricity consumption in the commercial and industrial sectors, helping businesses cut power bills and reduce greenhouse gas emissions.

Pool pumps and air conditioners

For pool pumps and air conditioners, the relevant rules will be updated in line with the results of earlier public consultation, with the emphasis on correcting energy efficiency calculation methods so that they reflect actual product performance more accurately. The updated calculation method will give consumers more reliable comparison information and help them make better-informed purchasing decisions. A consultation draft of the new regulatory instruments for these products is expected in the 2026-27 financial year, and industry is encouraged to keep participating in subsequent consultations.

Export advisory

Australia and New Zealand are important export markets for Chinese motors, pool pumps and air conditioners, and both countries operate registration-based regulation under which products must be registered as compliant before they can be sold. Exporters are advised to track the release of the consultation drafts closely and to assess whether current products can meet the proposed higher MEPS requirements, in particular whether medium and large motors reach IE4 efficiency levels. They should also watch how changes to the energy efficiency calculation methods for pool pumps and air conditioners affect energy labels and registration, and begin developing and certifying high-efficiency products early in order to secure market access.

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