Tesla chair Robyn Denholm has backed the call, arguing standards which don't align with the US or Europe's won't "cut it" if Australia is to avoid becoming the long-term dumping ground for older vehicles.

Mr Bowen has confirmed the Albanese government will consider fuel emissions standards as it develops a national plan to speed up the sluggish uptake of electric vehicles.

Electric vehicles make up just two per cent of new car sales in Australia, with Mr Bowen blaming a decade-long policy vacuum under the Coalition for the cost and supply barriers which are preventing motorists from making the switch.

Mr Bowen has rejected suggestions that mandatory emissions standards are a "carbon tax" on cars - a claim former prime minister Scott Morrison made when Bill Shorten proposed them at the 2019 election.

Labor didn't include fuel standards as part of this year's federal election pitch, a decision Mr Bowen denied was an attempt to avoid another scare campaign.

"We made clear we'd develop an electric vehicle strategy in office and that's exactly what we're doing," Mr Bowen said.

Mr Bowen's announcement at the National Electric Vehicle Summit was warmly received by high-profile attendees including Ms Denholm and tech billionaire Mike Cannon-Brookes.

But opposition treasury spokesman and former energy minister Angus Taylor has slammed the idea, claiming independent research had shown it would jack up the price of a Hilux by $5000.

"They [Labor] had promised they wouldn't pursue this. Now they're back onto it," he told 2GB radio.

The push for fuel standards in Australia has gathered momentum in recent months, with advocates arguing it was crucial to increase the supply of EVs into the country and to avoid Australia becoming a "dumping ground" for older cars.

Australia and the Russia are the only nations in the 38-member OECD which either don't have or aren't planning to introduce mandatory standards for the efficiency of new cars.

Standards wouldn't prevent manufacturers from sending fossil-fuel powered cars to Australia, however they would need to be balanced out with stock of zero-emissions vehicles.

The government hasn't committed to introducing fuel standards, and will use a discussion paper to be released next month to canvass views.

But Mr Bowen said it should aim for standards which were as "close to best practice as is achievable", suggesting Australia would continue to be left behind if its regime was weaker than overseas markets.

"'From the outset I will say that while standards must be designed specifically for Australia, standards that lack ambition will still leave us at the back of the global queue for cheaper, cleaner vehicles. We need to aim for as close to best practice as is achievable," he said in a keynote speech to the summit in Canberra on Friday.

The European Union has set its fuel standard for light vehicles at 95 grams of CO2 per kilometre.

Under its system, manufacturers have to pay a penalty if the average emissions across their entire fleet exceeds an emissions target.

Mr Bowen wouldn't be drawn on what penalties car makers might face in Australia when pressed by reporters after the speech, insisting he was committed to genuine consultation.

Asked to explain why the standards weren't a carbon tax on cars, he said: "Because it isn't."

Mr Cannon-Brookes, who helped organise the summit, said any new standards must have "teeth".

"We currently have a voluntary standards regime, and I joke that it's like marking your own homework," Mr Cannon-Brookes told the summit.

ACT independent senator David Pocock, who also spoke at the summit, described fuel emissions standards as a "crucial and urgent" measure to drive more EVS into the Australian market.

"Given our current policy settings, it's no wonder Australia has among the worst uptake of EVs and the most limited choice," he said.

"My message to the government is simple - be bold. This is a time for ambition. On this, and so many issues related to climate and the environment."