Key recommendations for the National Electric Vehicle Strategy

A critical consideration as part of the National Electric Vehicle Strategy is the introduction of an ambitious and robust fuel efficiency standard, which is aligned with similar schemes in the US, EU, and New Zealand. An ambitious fuel efficiency standard would encourage manufacturers to introduce more zero-emissions (BEV) vehicles – and PHEVs – into the Australian market. This policy is a prerequisite for increasing the diversity of choice of vehicle-categories and models, as well as the quantity of electric vehicles for Australian businesses and households, in both our regions and cities.

The National Electric Vehicle Centre of Excellence supports the Federal Government in introducing an ambitious and robust fuel efficiency standard by the 1st January, 2024 – at the latest – to accelerate the supply and diversity of EVs to Australia.

We recommend the following six initiatives, including a fuel efficiency standard, are incorporated into the Federal Government’s National Electric Vehicle Strategy:

1. Establish clear targets

• Targets provide certainty to industry and consumers about the government’s commitment to decarbonise the transport sector, and to capture the benefits of this transition.

• Targets in the National Electric Vehicle Strategy should include:

  • Catching up with and matching the UK, EU, US & NZ policies’ emissions targets to attract supply of EVs to Australia. All of these countries will require a manufacturer’s average new sales to be below 100g CO2-e/km by 2025.

  • 1 million electric vehicles (cars) on the road in Australia by 2027

  • At least 60% electric vehicle (car) sales by 2030 • 30% electric heavy vehicle (truck and bus) sales by 2030

  • Multi-bay, reliable, fast charging locations every 70 kilometres on arterial roads and every 5 km in urban areas by 2027

  • 1 domestic electric vehicle manufacturer using Australian batteries by 2030.

2. Introduce an ambitious and robust fuel efficiency standard for new light vehicles

• This policy is necessary for increasing the efficiency of all new cars sold in Australia, and ensuring our market is prioritised for the introduction of affordable and efficient EV models.

3. Provide temporary incentives to reduce upfront costs of EVs of all shapes and sizes

• Incentives will remain critical for accelerating the adoption of electric cars, buses, and trucks, and, in turn, supporting the development of a second-hand EV market to provide equitable access to EVs for all Australian households and businesses.

• This could include a federal government commitment to procure only BEVs for its fleets – where fit-for-purpose – or else PHEVs, or else HEVs, in a cascading priority. It should then replace all EVs in fleets within two years in order to stimulate the second-hand market and provide lower cost EVs to those businesses and consumers who cannot afford a new EV.

• It could also offer subsidised electric vehicles leases / subscriptions, and subsidised mobilityas-a-service subscriptions, such as fixed-price, unlimited annual/monthly/weekly public transport plans, as long as it is ensured that the subsidies do not produce unintended consequences by providing windfall profits to the vehicle supply chain, without affecting enduser per-km costs.

4. Support the roll-out of a national charging infrastructure network and its integration into the electricity grid

• Unlocking investment in reliable charging infrastructure to support electric cars, buses, trucks and other vehicles that is deployed nationally, with a particular focus on regional areas and suburbs with high-density, multi-storey buildings. Discourage the use of non-renewable energy.

• Enabling the integration of charging infrastructure into the electricity grid to minimise costs, and capture the major energy sector benefits that can be delivered through the widespread adoption of EVs.

5. Accelerate the adoption of electric trucks, buses, two-wheelers, and other vehicles.

• Revise Australian Design Rules on vehicle width and mass for electric heavy vehicles to enable increased supply of models.

• Introduce targeted incentive programs to increase electric heavy vehicle adoption in both urban and regional locations.

• Provide support, such as zero-interest loans, to accelerate the uptake of electric two-wheelers, and other vehicles, including equipment used in agriculture, construction and mining.

6. Create a national EV industry development plan

• Targeted funding and policies to stimulate investment and innovation across the full EV value chain in Australia, including critical mineral extraction, processing and refining, component and vehicle manufacturing, as well as second life re-purposing and recycling

• Supporting research and development into locally implementing the electrification of trains, shipping and planes (which may not necessarily be designed and built in Australia).

• Cease subsidies of ICE vehicles and fuels.

  
  

All stakeholders have a role to play

A strong National Electric Vehicle Strategy will help to ensure all stakeholders can support the transition to electric vehicles, and as a result, the decarbonisation of Australia’s transport sector.

If the Federal Government puts the right policy settings in place, The Australian Institute of Energy (ACT Branch) commits to support Australia’s transition to an electric vehicle future.

Australia is presented with a once in a lifetime opportunity to benefit from the transition to electric vehicles, but it is critical the Federal Government acts quickly to ensure we capture these opportunities.