Govt reveals EV strategy discussion paper

THE federal government has today released an 18-page National Electric Vehicle Strategy Consultation Paper it says outlines the design of Australia’s national electric vehicle strategy.

At its heart, the five-part document proposes that: EVs should be made more affordable; that the uptake of electric vehicles should be expedited, and motorists offered greater choice; that transport-related emissions must be cut; that motorists should be treated more fairly at the bowser or EV charging station; and that local manufacturing of EVs and associated technologies should be better supported.

Released by the Albanese government today, the National Electric Vehicle Strategy Consultation Paper applies a far-reaching definition to electric vehicles and includes plug-in hybrid and hydrogen fuel cell vehicles within its scope.

The paper says the strategy is an opportunity to “build on the actions that are well underway across Australia” and that Australia “can align its goals nationally and consistently with our international commitments”.

Further, the paper outlines objectives for encouraging the rapid increase in demand for EVs by increasing the supply of affordable and accessible EVs to meet demand across all new vehicle segments, and establishing the systems and infrastructure required to meet such demand.

The paper also reiterated the benefits of the government’s existing Driving the Nation Fund and its commitment to a 75 per cent lowered of CO2 emissions by government fleet vehicles by 2025, as well as several other pre-established actions and an undertaking to replicate subsidies and tax incentives observed in other markets.

Despite its many assurances, the Paper noted Australia faces a range of “unique challenges” where the uptake of EVs in rural areas – and in agriculture and mining sectors – is concerned, noting that cleaner fuels and hydrogen will be a necessary part of the country’s overall emissions solution.

“There are unique challenges for EV uptake in rural and regional Australia. This is due to larger distances and limited access to EV charging and hydrogen refuelling infrastructure,” the paper said.

“However, rural and regional Australians could benefit from greater access to EVs given the longer travel distances and higher fuel costs. Investments in EV charging and hydrogen refuelling infrastructure networks are essential. This will mean rural and regional Australians can share in benefits as technology and vehicle model options increase.

“Infrastructure will also support industries in those areas, such as agriculture and mining.

Improved fuel quality standards will give manufacturers certainty that their cleanest and most efficient engines can run on Australian fuels and help consumers reduce their emissions as we transition.

“Introducing the latest and best practice Euro 6d noxious emissions standards for light vehicles would also help us reach our goals. Combining fuel quality, light vehicle noxious emissions standards and vehicle fuel efficiency standards would help Australia have a cleaner fleet by the 2030s.”

Over 80 per cent of the global car market has vehicle fuel efficiency standards, including Brazil, Canada, China, the European Union, India, Japan, Mexico, New Zealand, Saudi Arabia, South Korean and the United States.

The paper said the implementation of such standard would “send signal to manufacturers to increase supply and sales of EVs and low emissions vehicles” to Australian consumers and said the absence of such standards is a “key reason why EV models are not supplied to the Australian market”.

In a statement, Minister for Climate Change and Energy, Chris Bowen, said: “The time has come for Australian households and businesses to reap the benefits of cheaper, low emissions transport that is fit for the 21st century. This consultation paper provides a chance for all Australians to have their say on a National Electric Vehicle Strategy to increase the supply and uptake of electric vehicles”.

“Excluding COVID-19’s impact, transport is Australia’s second largest source of national emissions. Most transport emissions are from road vehicles. Reducing these emissions will be critical to achieving Australia’s emissions reduction target of 43 per cent on 2005 levels by 2030 and reaching net zero emissions by 2050.

“Today, Australians are being sold some of the highest emitting cars in the world. On average, new passenger vehicles in Australia have around 20 per cent higher emissions than the United States, and around 40 per cent higher emissions than in Europe. We need to catch up to the rest of the world when it comes to transport emissions,”

Mr Bowen said Australia needed to work toward a higher rate of EV adoption while admitting policy settings had failed new car buyers wishing to purchase a new-energy vehicle.

“In 2021, EVs were just under two per cent of new light vehicle sales in Australia, compared with nine per cent globally. In the United States and Canada, new EVs had a market share over five per cent. In the past year in New Zealand, EVs have gone from 2.5 per cent of new registrations to over 11 per cent,” he said.

“Current policy settings have failed to secure supply of affordable EVs for Australians.

State and territory governments around Australia have implemented policies to encourage EV take-up, but coordination and alignment at the national level has been lacking.

“The Albanese Government is delivering on its election commitment to develop Australia’s first National Electric Vehicle Strategy to unlock the nation’s EV potential and reduce transport emissions.”

Australia has committed to meeting the 2015 Paris Agreement of keeping global warming at a rate of less than two degrees Celsius.

The Australian government has legislated a national emissions reduction target of 43 per cent by the end of this decade and new zero by 2050 and has also signed the 2021 Glasgow Breakthrough on Road Transport which states that zero-emissions vehicles need to be accessible, affordable and sustainable in all regions by 2035.

“This paper advances our genuine consultation with the states and territories, industry, unions and consumers,” said Mr Bowen.

“We are also seeking views on implementing vehicle fuel efficiency standards in Australia. Australia is in company with Russia as one of the only major economies without vehicle fuel efficiency standards in place or under development.

“These policies are helping other countries reduce transport emissions, save motorists money at the bowser, and enhance consumer choices. They also preserve access to the range of vehicles people need for work and leisure.”

The Minister for Infrastructure, Transport, Regional Development and Local Government, Catherine King, said consultation is now open to shape Australia’s first National EV Strategy and that the consultation process is an important part of ensuring people’s views are heard.

“Part of the consultation is about the government seeking stakeholder views on vehicle fuel efficiency standards, including their application, design and implementation,” said Ms King.

“Our cars are less efficient on average than Europe and the US. Now is the time for Australia to join the rest of the world and electrify our road transport.

“That is why our government if taking this critical step to ensure Australian households and businesses reap the benefits of transport that is fit for the 21^st century – being both cheaper to run and lower emitting.”

The Federal Chamber of Automotive Industries (FCAI) said it welcomed the release of the National Electric Vehicle Strategy Consultation Paper saying it will be making a submission that provides “constructive and practical insights on how to accelerate the roll-out of zero- and low-emissions vehicles in Australia”.

“The pathway to achieving the best outcome for Australia is complex and the discussion paper raises many of these issues,” said FCAI Chief Executive Tony Weber.

“There are many key issues that need to be examined in this review. These include vehicle price, model availability, battery supply and the provision of further consumer support through the development of charging infrastructure and purchase incentives.

“This paper is an encouraging starting point. Automotive manufacturers look forward to working with Government to create an ambitious yet achievable policy framework for both car makers and Australian consumers.”

Mr Weber’s sentiment was echoed by the Electric Vehicle Council (EVC) which commended the release of the Paper.

“It is a breath of fresh air to see a federal government take this issue so seriously, acting on a national policy within the first months of its administration,” said EVC CEO Behyad Jafari.

“The discussion paper is correct to focus on demand and supply as the necessary first steps toward building a dynamic domestic EV sector. Australia can absolutely be an EV powerhouse, employing Australians to build products right across the EV supply chain. But we won’t realise those opportunities while our standard lag the world.”

Mr Jafari said Australia joins Russia as the only OECD nation to not currently have mandatory standards on the efficiency of new vehicles and said such a standard is a vital next step toward addressing transport-related CO2 emissions.

“The most urgent next step from this process is a strong fuel efficiency standard that reflects best practice,” added Mr Jafari.

“The unfortunate truth is that until now, Australia has lagged the world on electric vehicle policy. Russia is the only other developed nation without a decent fuel efficiency standard. We have been at the back of the global queue for new vehicles. But with the right policy settings we can get this right and accelerate progress.”

The consultation paper is now available here. Submissions can be made from now until 31 October 2022.