Just 3.8% of its cars sold in Australia last year were electric, well behind other developed economies such as Britain and Europe where electric cars made up 15% and 17% of sales, respectively.
The new national electric vehicle strategy will introduce a fuel efficiency standard that will outline how much pollution – or specifically, carbon dioxide – a car will produce when running, energy minister Chris Bowen said in a news conference.
“Fuel-efficient and electric vehicles are cleaner and cheaper to run – today’s announcement is a win-win for motorists,” Bowen said in a statement.
Details would be finalised in the coming months, he added.
“Fuel efficiency standards would require more affordable electric vehicles to be sent to Australia,” he said.
Apart from Russia, Australia was the only developed country to either not have or be developing fuel efficiency standards, which encourage manufacturers to supply more electric and no-emission vehicles.
On average, new cars in Australia use 40% more fuel than the EU and 20% more than the US, with studies showing the introduction of a fuel efficiency standard could save motorists A$519 (US$349) per year, Bowen said.
Transport is the third largest source of carbon emissions in Australia – one of the world’s biggest emitters on a per capita basis. The initiative will help cut the country’s emissions by at least 3 million tonnes of carbon by 2030, and over 10 million tonnes by 2035, Bowen said.
The Electric Vehicle Council (EVC) welcomed the move but said Australia must bring in strong standards that keep pace with the modern world.
“If we squib it on the detail, Australia will remain the world’s dumping ground for dated, high-emission vehicles,” EVC chief executive Behyad Jafari said.
Australia’s centre-left Labor government last year flagged it had plans to introduce new regulations targeting vehicle carbon emissions to increase sales of electric cars.
Prime Minister Anthony Albanese, who won power last year on a promise of climate policy reforms, cut taxes for electric vehicles and raised Australia’s 2030 target for cutting carbon emissions to a 43% reduction from 2005 levels.