Bank Australia to ditch fossil fuel auto loans in favor of electric vehicle future | Electric vehicles

An Australian bank will stop offering loans for new fossil fuel cars from 2025, which it says will encourage more people to buy electric vehicles.

Client-owned Bank Australia will announce the self-imposed ban at a national electric vehicle summit in Canberra on Friday, saying it is a responsible move to ensure its lending practices do not not lock our customers into higher carbon emissions and ever-increasing operating costs. .

The bank’s impact manager, Sasha Courville, said the bank, which has 185,000 customers, will continue to fund loans for used cars with internal combustion engines, as it recognizes that not everyone wouldn’t be able to afford an electric vehicle in three years.

But she said the announcement would send a message that “if you’re considering buying a new car, you should seriously consider an electric vehicle, both for its climate impact and lifetime cost savings. “.

“We chose 2025 because the shift to electric vehicles needs to happen quickly and we believe it is possible with the right supporting policies in place to bring a wider range of more affordable electric vehicles to Australia,” he said. she declared.

Climate Change Minister Chris Bowen will tell the summit that the Albanian government has written to states and territories urging them to work together on a national strategy for electric vehicles, including considering the introduction of fuel efficiency standards for vehicles to promote the adoption of cleaner cars.

Fuel efficiency standards set an emissions target for automakers averaged across all the cars they sell, measured in grams of CO2 released per kilometer travelled. The targets are gradually reduced to zero, when they effectively become a ban on new fossil-fuel cars. They are in place in approximately 80% of the global light vehicle market.

Excerpts from Bowen’s speech released to media ahead of the event said the strategy would aim to improve affordability and choice by expanding the local market for electric vehicles. Just 2% of new cars sold in Australia last year were low-emission vehicles, compared to 9% globally.

In the excerpt, Bowen failed to meet promising mandatory energy efficiency standards, but said it was time to have “an orderly, sensible discussion” about whether they could help improve the supply of electric vehicles and to reduce both emissions and the cost of running a car. He said Australia was the only OECD country other than Russia not to have introduced carbon dioxide standards for vehicles or not to have them under development.

“The lack of such standards in Australia is cited as one of the factors affecting the supply and cost of electric vehicles. Why? Because even though Australia is not showing leadership, manufacturers are giving priority to markets that do,” Bowen’s speaking notes said.

“This means that consumers have no choice available internationally, and as the world moves towards more efficient and cleaner vehicles, we risk becoming a dumping ground for older technologies that cannot be sold in other markets.

The summit was organized by Boundless, a new not-for-profit focused on climate solutions created by tech billionaire Mike Cannon-Brookes, along with the Electric Vehicle Council, the Smart Energy Council and the Australia Institute. Its main focus will be on how to design energy efficiency standards.

According to a recent report by the Australia Institute, strict standards would have saved the country $5.9 billion if they had been introduced six years ago when they were recommended by a ministerial forum.

The Greens called on the government to commit to implementing them. Deputy party leader Mehreen Faruqi said the country needs “appropriate discounts for electric vehicles” of up to $10,000 and support for local manufacturing.

Under the Greens policy, new petrol and diesel cars would be banned from 2030. new electric vehicles and our vehicle manufacturing industry,” Faruqi said.

Bowen and Transport Minister Catherine King said they would release an electric vehicle strategy discussion paper shortly.