The federal government will water down proposed carbon emissions laws for vehicles, as it seeks to appease auto makers who feared it would push up the price of some cars by thousands of dollars.

And seeking to combat claims it is imposing a "ute tax" on the industry, the government will raise the ceiling on emissions limits for all light commercial vehicles.

"We shouldn't be under any illusions there still remains a very big challenge in achieving these ambitious numbers ... but the reality is we just simply need to get on with it now," Mr Callachor said.

In a pointed rebuke of the campaigning by the Opposition, Mr Callachor also rejected suggestions the scheme amounted to a "ute tax".

The motor industry has advocated for emissions laws to be imposed on them for years, with Australia and Russia the only major economies without an efficiency standard.

That softening accounts for the fact that the government is seeking to catch up to the United States vehicle emissions scheme by 2028, but without using any of the bonus credits car makers can claim overseas.

The original article contains 681 words, the summary contains 182 words. Saved 73%. I'm a bot and I'm open source!