The Government released Australia’s first National Electric Vehicle Strategy on 19 April, a document designed to ensure Australians have both more choices of electric vehicles (EV) and to encourage increased EV use.
Yarra Glen’s Glenergy vice president Trent Evans is positive about the recent development.
“[I’m] glad it’s finally happening, it’s been an embarrassment that Australia hasn’t had one for so many years,” he said.
Climate Change and Energy Minister Chris Bowen said Australian governments, car makers, motoring clubs, climate groups, businesses and unions were all on board with getting cleaner and cheaper cars to Australia.
“This strategy delivers on our commitment to provide greater choice for Australians to drive cars that are cleaner and cheaper to run,” he said.
A fuel efficiency standard will be introduced as part of the strategy and the government will work with both the industry and the community to finalise details in the coming months.
Fuel efficiency standards outline how much pollution – or specifically, carbon dioxide – a car will produce when it’s running.
More efficient vehicles will produce fewer emissions, meaning environmental impact is lower and cheaper for motorists to run.
“Because we don’t have any emission standards, we’ve become a dumping ground for combustion engine cars,” Mr Evans said.
Australia and Russia are among the only developed countries that currently don’t have fuel efficiency standards.
Minister for Infrastructure, Transport, Regional Development and Local Government Catherine King said the government would introduce fuel efficiency standards that work for Australia’s market.
“More than 85 per cent of all cars sold in the world are subject to fuel efficiency standards. It’s time Australians were offered the same choice,” she said.
The absence of this fuel standard has meant Australian households and businesses have fewer choices of car models and are paying more in fuel costs to run their cars because manufacturers prioritise sending more efficient vehicles to countries with standards in place.
On average, new cars in Australia use 40 per cent more fuel than the European Union, 20 per cent more than the United States, and 15 per cent more than New Zealand.
Australia is behind other countries in EV sales, with our uptake of EVs around four times lower than the global average.
The strategy also looks at reducing barriers to electric vehicle uptake, whether it be demand, supply or infrastructure.
Mr Bowen said the strategy will provide the coordination and leadership to drive down costs and improve infrastructure so that more affordable and accessible electric vehicles will be on the market.
“The government has already cut taxes on EVs through the Electric Car Discount, saving up to $11,000 a year on a $50,000 electric vehicle,” he said.
Mr Evan concedes the vehicles can be expensive but said that in the long term, they are more cost effective.
“In the next 12 months we are going to see cheaper options available,” he said.
“The service costs are a lot cheaper for EV and when you factor that into the life of the car, the total cost over time goes down.”
He would also like to see the road tax in Victoria removed for now, as an incentive for people.
Currently in Victoria, EVs and hydrogen vehicles (HEVs) pay 2.6 cents per kilometre, other states will also introduce this tax but not until 2027.
“You’re trying to get people to take up EVs, and then you’re going to slug them a road tax,” he said.
The transport sector is projected to be Australia’s largest source of emissions by 2030 if there are no interventions made.
“The day that climate change is no longer political and then it’s bipartisan, the better Australia will be, we have to reduce our carbon footprint,” Mr Evans said.
Consultation on the design of fuel efficiency standards has begun and is available through www.cleanercars.gov.au
Following the consultation, the government will release its proposed Fuel efficiency standard by the end of 2023.
The National Electric Vehicle Strategy is available at https://www.dcceew.gov.au/energy/transport
