The Federal Government’s National Electric Vehicle Strategy brings into focus Australia’s road transport future, but more work is needed to chart a course for the nation’s electrification goals, writes EcoGeneration editor Gavin Dennett.
The Federal Government has unveiled its first ever National Electric Vehicle Strategy, which lays down a blueprint for Australia’s nationwide transition to EVs.
The strategy is designed to increase mass uptake of electric vehicles and sets out three key objectives:
- To increase the supply of affordable and accessible EVs.
- To establish the resources, systems and infrastructure to enable rapid EV uptake.
- To encourage increased EV demand throughout Australia.
According to the government, Australia’s appetite for electric vehicles is high, but consumers have been hamstrung by supply and a lack of national policy to encourage manufacturers to increase the volume of cars sent here from overseas. However, the strategy delivers a national framework that is designed to get more EVs on the road.
With just 3.8 per cent of new car sales in Australia comprising EVs – compared to nine per cent worldwide – Australia is lagging the developed world. With the nation’s transport network on track to be Australia’s largest emitting sector by the end of this decade, affirmative action is imperative.
Fuel efficiency standard
At the heart of the National Electric Vehicle Strategy is a fuel efficiency standard to encourage car manufacturers to supply more EVs to Australia, improve consumer choice and make it easier and cheaper to access popular EV models. The new standard is yet to be designed, in consultation with industry, but the government has suggested expected restrictions on how much carbon dioxide cars can emit could save motorists $519 a year in fuel costs. The new fuel efficiency standard is expected to come into effect by the end of 2023.
Minister for Climate Change and Energy Chris Bowen says Australia and Russia were the only two developed nations in the world without fuel efficiency standards, meaning manufacturers have sent high-polluting vehicles here because they can’t be sold elsewhere. On average, new cars in Australia use 40 per cent more fuel than Europe, 20 per cent more than the US, and 15 per cent more than New Zealand.
More than 85 per cent of all cars sold worldwide are subject to fuel efficiency standards and now Australia has the chance to catch up.
“Fuel efficiency standards would require more affordable electric vehicles to be sent to Australia,” said Minister Bowen at the announcement of the strategy.
“In other countries, there’s a much bigger range of electric vehicles available for people. We want people of all walks of life, regardless of their income, to have the chance to consider buying an electric vehicle.”
With the strategy currently being short on details of impending fuel efficiency standards, the Climate Council has laid out five design priorities to ensure they:
- Set Australia on a strong pathway to a zero-emissions fleet, with a target of all new vehicles sold being zero emissions by 2035 at the latest.
- Align with other car markets such as New Zealand, US and Europe as a minimum so Australia moves up the queue for cleaner, cheaper vehicles.
- Deliver genuine reductions in emissions from new cars sold in Australia, avoiding credits and loopholes that undermine their effectiveness.
- Are mandatory and legislated, meaning vehicle manufacturers won’t be able to opt out.
- Start as soon as possible because every new vehicle sold today will likely be on the road for at least the next 10 years.
“Australians want cleaner and cheaper vehicles,” says Dr Jennifer Rayner, the Climate Council’s head of advocacy. “Households are currently spending almost $100 a week on fuel bills, which adds to cost-of-living pressures.
“Because Australia doesn’t have fuel efficiency standards, we have become a dumping ground for expensive, polluting, petrol-guzzling vehicles. This is forcing too many Australians to fork out for cars that hurt household budgets, our health and our environment.
“Strong fuel efficiency standards are the key to unlocking supply of the cleanest and cheapest-to-run cars for Australia, including electric ones. The government and industry will be driving with a flat tyre trying to deliver the rest of the National Electric Vehicle Strategy if we don’t get these in place soon.”
The strategy will also support the integration of EVs into work and homes, including initiatives to support battery recycling, infrastructure planning, apartment building design and world-leading training for emergency services workers. This framework will guide governments to work together to provide systems and infrastructure needed to support this early-stage transition.
Targets needed for EV uptake
Not only is the National Electric Vehicle Strategy short on details about what the fuel efficiency standards will be, it does not include new targets for EV uptake in Australia, with further consultation to be conducted during the next 12 months.
The Climate Council says the strategy’s focus on improving the availability of charging infrastructure and incentivising uptake of the cleanest vehicles is welcome, but fuel efficiency standards should be accompanied by other policies that support and enable the uptake of lower and zero-emissions vehicles.
The climate-change organisation says the Federal Government should go further by reviewing current tax incentives which skew purchases towards heavier and high-emitting vehicles, and supporting people on low incomes to swap older, heavy polluting cars for ones that are cleaner and cheaper to run.
“The Federal Government needs to put the pedal to the metal in delivering strong fuel efficiency standards,” says Dr Rayner. “There are around one million new cars sold in Australia each year so we need to act fast to give drivers more choice and see them start saving.”
Despite the National Electric Vehicle Strategy containing long-term planning omissions that will need to be prioritised on Australia’s path to net zero, Solar Citizens – an independent, community-based organisation that campaigns for renewable energy and clean transport – is hailing the blueprint as it stands as a win for collaboration between government, industry and the community.
“After more than 500 submissions to the consultation process – with the vast majority calling for a fuel efficiency standard – it’s heartening the government has finally got the message it needs,” says Solar Citizens’ clean transport campaigner Ajaya Haikerwal.
“There’s clearly a willingness from the community and industry to fix fuel efficiency standards and get it right as soon as possible to bring more clean car choices for all Australians.
“Australia is already at the back of the global queue when it comes to access to electric vehicles, and we’ve become a dumping ground for crappy, inefficient vehicles that aren’t accepted in other countries.
“We need to join the same queue as the rest of the world, but there’s no point joining at the back or we will simply end up in the same predicament we’ve been in for the past decade. What we have needed for a long time is a world-class standard that is at least as ambitious as Europe or New Zealand – without loopholes or dodgy super credits that create perverse climate outcomes – that give all Australians a fair go and reduce spending on petrol.”
Solar Citizens analysis shows that if the fuel efficiency standard matches the European Union, Australians could save at least $11 billion in fuel over five years, including $4 billion for regional Australia.
“Our ‘Recharging Australia’ report demonstrates the cost-of-living relief this policy will bring – a whopping $11 billion invested back into the Australian community rather than leaving our shores forever and lining the pockets of foreign-owned oil companies,” says Haikerwal.
“We keep hearing the same message from regional communities – give us the vehicles we want at a fair price point and we’re ready to make the switch.”
Upgrading energy infrastructure
A rapid increase in Australia’s uptake of electric vehicles will place additional strain on the grid, meaning substantial planning for energy infrastructure improvements is required as part of a long-term strategy.
“The Federal Government’s electric vehicle strategy, which includes a new fuel efficiency standard and battery recycling, is very welcome news, but we need to remember our country’s electricity grid and charging infrastructure is currently not sufficiently equipped to handle a significant uptake of electric vehicles,” says Dr Roger Dargaville, deputy director of the Monash Energy Institute at Monash University.
“We are lagging many other countries in terms of charging infrastructure so a lot of work is required to build the required charging networks. If we rely solely on our traditional energy generation systems and fossil fuel energy, we will not reap the full benefits of increased EV adoption.
“We need investment in the required infrastructure to support EV uptake, including not only charging infrastructure but the development of a smart grid that can handle increased demand for electricity with high penetration of renewables and the creation of policies that incentivise private investment in EV charging stations.”
Dr Dargaville says the Federal Government must prioritise sustainable EV supply chains and support local EV manufacturing.
“The government must ensure the production and disposal of EVs are environmentally friendly, with measures in place to reduce the carbon footprint and minimise waste generated during the process,” he says. “It must also consider the potential benefits of supporting a local EV manufacturing capacity. If we rely too heavily on imports, it could affect the cost and availability of EVs in Australia.”
The Electric Vehicle Council will be working with the Federal Government to help establish Australia’s fuel efficiency standard and other policy framework to encourage widespread uptake of EVs.
“We will be working closely with the government as it designs a fuel efficiency standard for passenger and light commercial vehicles,” says Electric Vehicle Council CEO Behyad Jafari. “Australia has a bright and clean electric future just around the corner, but only if we get the policy settings right today.”