To Achieve Albanese’s Climate Goals, EVs Must Represent 85% of New Car Sales: Here’s What You Need to Know

The number of electric vehicles (EVs) available in Australia is set to rise dramatically in the next year. The government is stepping up, pledging $40 million to improve public charging stations. They’re also planning to update vehicle efficiency standards by 2026.

Alison Reeve from the Grattan Institute explains that these standards push manufacturers to balance their fleets. If they produce gas-guzzling trucks, they must make enough hybrids or electric models or purchase credits from others. The good news? The market share of EVs has already more than doubled since 2022, growing from about 4% to a projected 10% by 2024.

Reeve believes that as long as we work out charging logistics, we can make EV adoption easier, especially for those without off-street parking. This move aims to help renters and people living in apartment complexes.

Francis Vierboom from Rewiring Australia suggests an interesting idea: extending the Cheaper Home Batteries program to include electric vehicles. With vehicle-to-grid technology, cars could serve as mobile solar batteries. He argues that leveraging this potential could make EV subsidies even more effective.

According to the Climate Change Authority, by 2035, 85% of light vehicles sold will likely be fully electric. They predict over 5 million EVs will replace petrol and diesel cars. This shift could occur as early as this decade, making EVs more affordable than traditional vehicles.

One key incentive for EV adoption has been the exemption from fringe benefits tax for novated leases. However, this has attracted some criticism. Reports indicate that it could cost the government over $23 billion in the next ten years, sparking debate among policymakers. Shadow treasurer Ted O’Brien and Productivity Commission chairwoman Danielle Wood have called for changes to this policy.

New research shows that maintaining this tax exemption could reduce carbon emissions by 50% by 2035, which underscores the importance of supporting EV growth.

Recently, Australia’s treasurers agreed to implement a usage charge for EV drivers on highways and streets. However, they emphasized that the plan will not hinder EV sales.

As we look toward a future with cleaner transportation, it’s clear that policy changes and technological advancements will play essential roles in shaping our automotive landscape. For more in-depth coverage on climate change and environmental policies, consider checking out updates from trusted sources like the Climate Change Authority.

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