The National Electric Vehicle Strategy has been launched to facilitate and encourage the take up of EVs in Australia with an eye to improve vehicle affordability and building out charging infrastructure.
This Federal Government initiative would look at three key areas – increasing supply of affordable EVs and infrastructure and incentivizing EV purchases.
The goal is to decarbonize Australia’s transport system and passenger vehicles will be the priority.
The Government says setting an Australian Fuel Efficiency Standard is needed to achieve a reduction in greenhouse gases.
By setting these strict fuel efficiency standards, the desired outcome would be car manufacturers wanting to sell more EVs, hybrids and more fuel efficient vehicles to keep themselves under the imposed limit.
EV sales accounted for just 3.8 per cent of national car sales in 2022.
But reports indicate Australians are willing to make the switch to an electric vehicle when there is improved cost, choice and easier access to chargers.
There is a huge demand for electric vehicles in Australia but what’s lacking is the supply with car companies prioritising other larger markets where stricter fuel efficiency standards already exist.
This new EV strategy will offer easier and cheaper access to electric vehicles and look at building out the infrastructure across the country to ensure drivers can easily charge their vehicles in rural, regional and metro areas.
Included in the list of new initiatives is creating a nationwide network of chargers along with facilities in existing multi-residential buildings.
To encourage sales of EVs, the strategy will also look at amending fringe benefits tax and import duty on vehicles and creating state and territory incentives and subsidies.
By 2030, transport is expected to be the largest source of emissions in Australia.
EVs powered by renewable energy resources will move the needle towards achieving the government’s economy wide emissions reduction target of 43 per cent below 2005 levels by 2030 and net zero emissions by 2050.
There is even a suggestion that Australia can create manufacturing opportunities that could boost EV supply including making components and batteries.
Here is the vision to increase the uptake of EVs and reduce emissions:
SUPPLY – Increase supply of affordable and accessible EVs
New and existing initiatives:
– Developing Australia’s first Fuel Efficiency Standard for new light vehicles (new)
– Preparing for a recycling, reuse and stewardship initiative for EV and other large format batteries (new)
– State and territory EV fleet targets, incentives, and commitments – like the Queensland Government’s target for 50% of new passenger vehicle sales to be zero emissions by 2030 and 100% by 2036*
– Net Zero Australian Public Service by 2030, including 75% low emissions vehicles for Commonwealth fleet new passenger vehicle purchases and leases by 2025
– The Australian Made Battery Plan, National Reconstruction Fund, and Critical Minerals Strategy
SYSTEMS AND INFRASTRUCTURE – Establish the resources, systems
and infrastructure to enable rapid EV uptake
New and existing initiatives:
– Developing a national mapping tool to support optimal investment in – and deployment of EV charging infrastructure (new)
– Tools and guidance to enable EV uptake for residents of existing multi-residential buildings (new)
– Funding to support world-leading EV guidance, demonstrations, and training for emergency service workers (new)
– National network of 117 EV chargers on major highways at an average interval of 150 km, delivered in partnership with NRMA
– State and territory EV infrastructure and charging investments – like the WA Government’s $22.9 million investment to install almost 100 charging stations at 49 locations*
– $500 million Driving the Nation Fund
– New Energy Apprenticeships and New Energy Skills Program
– Commonwealth, state and territory collaboration to ready the electricity grid for EV
DEMAND – Encourage increase in EV demand
– Electric Car Discount amendments to fringe benefit tax and import duty
– State and territory EV purchasing incentives and subsidies – like the ACT
Government’s zero interest loans for up to $15,000*
– $20.5 million CEFC green car loans