Australian Government Rules Out Electric Vehicle Subsidies From ‘Future Fuel Strategy’

The Australian government has released a ‘Future Fuel Strategy’ paper, which states that the government will not provide subsidies to spur faster growth of cleaner cars (electric vehicles). It does not include policies that can make buying electric vehicles (EVs) affordable, as some other countries have announced.

Rather, the government proposed to invest in electric vehicles (EVs) recharging and hydrogen refueling stations, backing purchases by commercial fleets, to make sure battery EVs do not wrench the country’s power grid.

However, that paper also shows the government’s emissions projections in December forecast that battery EVs would make up 26 percent of new car sales by 2030.

Additionally, the projection report says that over the decade to 2030, there would be a 6 percent increase in transport emissions. Ironically, at a time when the government should be committed to cutting emissions, along with scientists and some global leaders.

However, in that offered ‘future fuels strategy’ the government said it was backing its plans with nearly A$100 million ($76 million) in previously announced funding.

Energy Minister of Australia, Angus Taylor said in a statement, “Importantly, this discussion paper shows that closing this gap through subsidies for new technology vehicles is not value-for-money for taxpayers and is an expensive form of (carbon) abatement.”

“We are optimistic about how quickly the technology cost will reduce for other electric vehicles compared to traditional cars, making it an easier choice for consumers,” Taylor added.

Interestingly, the paper stated, subsidies that filled the gap between EVs and conventional cars could cost up to A$747, per tonne of carbon dioxide equivalent reduced, compared with A$16 per tonne through Australia’s Emissions Reductions Fund, depending on the vehicle type and use.

“As the sunniest and one of the windiest countries on the planet and a global leader in the uptake of rooftop solar, Australia should be harnessing this clean power to drive an EV revolution,” Climate Council researcher Tim Baxter said. However, the discussion on the plan is due in April 2021.