Half of new car sales to go electric under Labor

The Labor Government has proposed a national target of 50 per cent electrification of Australia’s new car sales by 2030 under its election policy.

New details show the Bill Shorten-led party wants to lower the cost of driving a car by $500 annually. The changes will purportedly avoid a carbon tax or a carbon pricing mechanism, according to Shorten.

Unveiling the policy on Monday ahead of an anticipated election in the coming weeks, Labor would effectively adopt a watered-down version of offsetting internal combustion engines with improving electric technology.

For fleet passenger car purchasers, Labor plans to bring the 50 per cent target forward five years, to 2025, incentivising purchases by offering up-front deductions and depreciation entitlements.

Labor’s targets are part of plans to reduce Australia’s fleet average to 105g/km CO2. However, the party hasn’t committed to a firm timeline for this.

“Cleaner cars and transport aren’t just good for the environment, they are cheaper to run,” Mr Shorten said.

“But Australia lags behind our competitor countries, whether it’s in electric vehicle take-up, or vehicle fuel efficiency.

“We have 10-times lower electric vehicle take-up than the global average, and we’re at risk of being left behind.”

Whereas other nations such as the UK and China want to outlaw the sale of petrol-driven vehicles by 2040, the Labor policy acknowledges Australia’s unique driving environment and the long distances typically covered by motorists, along with our inferior, high-sulphate fuel.

The Greens Party has criticised the Labor policy as being “weak”.

“Not only does the target lack ambition, but the policy lacks mechanisms that would get us even close to 50 per cent electric vehicles by 2030,” said senator Janet Rice, Australian Greens transport and infrastructure spokesperson.

“Labor’s 105g CO2/km light vehicle emissions policy won’t play a part unless it is introduced immediately and ramped up over time.”

Instead, the Greens policy calls for 100 per cent electrification by 2030, and a vehicle emissions standard of 105g/km CO2 by 2022. It also promises to remove import tariffs and other taxes (GST, stamp duty and registration) on electric vehicles.

The Liberal party has not been forthcoming on a strict vehicle emissions policy, though that could change with Tuesday's Federal budget.

After almost five years of submissions to Australia’s Paris climate commitments, a government spokesman recently told the Guardian the government “is not going to rush into a regulatory solution”.

At present, transport accounts for roughly 20 per cent of Australia’s greenhouse gas emissions – the second biggest source.