Canberra to ban new petrol and diesel cars by 2035

The Australian Capital Territory government is set to ban the sale of new petrol and diesel cars in Canberra by 2035, as part of its strategy to slash transport-based CO2 emissions.

It’s understood the new rules will affect internal combustion engine (ICE) powered cars, motorcycles, small trucks and possibly utes, following comments by ACT Minister for Emissions Reduction, Shane Rattenbury.

It would make Canberra the first major Australian city to ban the sale of petrol and diesel cars, aligning with an edict by the European Union to halt sales of new combustion-engined vehicle by 2035.

Public policy thinktank, the Grattan Institute, has already proposed that an Australia-wide ban on new petrol and diesel cars by 2035will be required for Australian to meet its global net zero CO2 emissions target by 2050.

According to reports by major news outlets, including The Guardian, the sales ban on new combustion-powered ‘light vehicles’ will be outlined later in this week, when the ACT government officially releases policy details on its Zero Emissions Vehicle Strategy.

The new regulations being readied by the ACT government will also reportedly force car-makers to significantly wind down petrol- and diesel-powered vehicle sales in Canberra by 2030, with details of the strategy outlining a zero-emissions vehicle sales target of 90 per cent by that date.

Rattenbury told News Limited media outlets the new rules would impact cars, motorcycles and small trucks.

“Our intent is that from 2035, you will not be able to put new [fossil-fuelled light vehicles] on the road,” he explained.

“But the government does not intend to take your car off the road if you’re driving around in an all-petrol vehicle at the start of the year.”

Around 60 per cent of the ACT’s CO2 emissions are transport-related and while the reports are being welcomed in some quarters, others are less enthusiastic.

Australian Automotive Dealer Association (AADA) CEO James Voortman issued a press release today pre-empting the ACT’s official Zero Emissions Vehicle Strategy launch.

“Disappointingly, there has been no consultation on this major change and automotive businesses in the ACT are left scratching their heads and asking what the future holds for them,” he said.

“It is unclear how the ACT will enforce this ban and prevent consumers from simply purchasing an ICE [internal combustion engine] vehicle across the border and re-registering it here as a used car.

“We have serious concerns that this policy will have adverse consequences for the automotive industry, the people they employ and consumers in the ACT,” he said.

It’s understood the ACT may incentivise motorists to trade in their ICE vehicles for electric vehicles through rebates or tax benefits. The ACT already has some of the most generous incentives for buyers of EVs, including a stamp duty exemption and two years’ free registration.

It’s likely that other major Australian states, territories and/or cities will follow Canberra’s and Europe’s ICE vehicle ban in the years to come.