Industry reacts to Canberra’s 2035 petrol and diesel car ban

The Australian Capital Territory (ACT) government has taken a lead out of Europe’s book and detailed its plans to phase out the sale of ‘light internal combustion vehicles’ as soon as 2035 as part of its updated zero-emission vehicle (ZEV) strategy.

First reported earlier this week, the announcement is the first of its kind outside of Europe and the UK, which will ban the sale of new ICE vehicles even sooner, in 2030, and could signal the beginning of the end for sales of new vehicles that aren’t battery-powered across Australia, given the ACT is home to the federal government.

Indeed, the chief executive of Australia’s Electric Vehicle Council (EVC), Behyad Jafari, is now calling for a nationwide ban on new ICE vehicle sales.

“The ACT government is making the tough reform decisions now to ease an inevitable transition that’s only a decade away,” he said.

“By setting long-term targets in line with climate science, Canberrans will benefit from cheaper electric vehicles that cost a fraction to run.

“The ACT has made itself a beacon for other governments. There is no excuse to take the lazy approach of further taxing EVs now and promising to do better later.

“The ACT government is ensuring Canberrans aren’t dumped with old fossil-fuel guzzlers as the rest of the world goes electric. This is a sensible strategy and it should be replicated across Australia.”

In stark contrast, the Australian Automotive Dealer Association, which represents the nation’s car dealers, expressed concern over the proposed ACT ban, although it agreed with calls from the EVC and the Federal Chamber of Automotive Industries (FCAI) for a federal emissions standard.

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

“The big risk is that people hold onto their older, more polluting cars for longer which will do nothing for reducing emissions.

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

“Rather than a crude ban on ICE’s, the best way to lower emissions is to put a technology-agnostic CO2 standard in place, so that manufacturers have a clear understanding of what they need to achieve and are given the freedom to deploy any technology to achieve that goal.”

The chances of a national ICE vehicle ban or EV strategy are still relatively low for the time being as the different states and territories continue to rollout their own ZEV strategies.

Regardless, the ACT’s move inevitably sets an extreme precedent for the other states, as well as the federal government with which it says it will continue to work with in the hope of expanding the national EV charging network and improve vehicle emission standards.

One of the key outcomes the ACT strategy outlines is for ZEVs to account for 80-90 per cent of all new-car sales by 2030, a cornerstone of which will be the exclusion of ICE from ride-share and taxi fleets.

The government was quick to acknowledge affordability as one of the ‘critical barriers’ for consumers when considering an electric or hydrogen fuel-cell vehicle and simultaneously announced it would extend its incentives program which at this stage consist of stamp duty waivers, free vehicle registration and no-interest loans of up to $15,000.

Stamp duty waivers will also be extended to second-hand ZEV buyers in the ACT as of August 1, a move forecasted to save an average of around $1600 per vehicle.

Beyond the purchase incentives, the new strategy also aims to continue strengthen battery-electric vehicle charging infrastructure, including $2000 grants for the installation of chargers at apartment buildings and the install of at least 180 new public chargers by 2025.

“With technology rapidly evolving, now is the time for the ACT to join other jurisdictions around the world in supporting a transition to ZEVs. The transition is happening rapidly – manufacturers have made that clear,” said the ACT’s Chief Minister and Minister for Climate Action, Andrew Barr.

“It’s important now for Australian jurisdictions to start preparing for a future private vehicle market that is predominantly ZEV.

“The ACT is actively monitoring developments around Australia and internationally, with the goal of incentivising lower emissions and will investigate the potential for future reforms.”

The updated strategy is already making waves across various industries with the ACT Emergency Services Agency entering into a zero-emissions supply agreement with Volvo Group Australia.

Believed to be a nation-first, the agreement sees Volvo Group Australia nominated as the ATCESA’s preferred supplier of heavy zero-emissions vehicles going forward – something both parties deem a “landmark” development.

“Collaborations like the one we have just announced with the ACTESA are vital to help decarbonise our world and I applaud the agency for its commitment to being a part of this journey with us,” Volvo Group Australia president and CEO Martin Merrick said in a statement.

“Every day around the world lives depend on our vehicles, and we look forward to that trust evolving towards an emissions free environment to improve the lives of many more.”

ACTESA commissioner Georgina Whelan said making the transition to a sustainable fleet aligns with the organisation’s commitment to ensure the safety of the community, staff and volunteers.

“Emergency service support vehicles with zero-emissions capability are not currently available on the market, the fulfilment of this contract will position the ESA as a leader in Australia for zero-emissions operational support vehicles,” she said.

“The world around us is rapidly changing, both in terms of technology, workplace diversity and the environment and it is exciting that we are leading this change.”

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