Prime Minister Scott Morrison has revealed the Federal Government’s plan for an electric vehicle (EV) future.

Speaking at Toyota’s Hydrogen Centre in Altona, Melbourne, the Prime Minister announced the Future Fuels Strategy, which includes a variety of initiatives to encourage the uptake of EVs.

The strategy includes new funding of $178 million for the Future Fuels Fund (pushing it to $250 million), to be used for new EV and hydrogen refuelling infrastructure, as well as proposing partnering with the private sector and delivering thousands of charging stations to Australian homes. The strategy will, the Government estimates, create more than 2600 jobs, and is expected to result in more than $500 million of combined private and public co-investment.

Furthermore, the Government will work with states and territories to address barriers to low-emission vehicle uptake and work to ensure the electricity grid can handle the moment when EVs are much more common and millions are being charged at more or less the same time at households across the country.

Through the government’s approach, it estimates that:

• emissions will be reduced by over 8 million tonnes by 2035
• charging infrastructure will be deployed in over 400 businesses, 50,000 households and over 1,000 new public access fast charging stations
• convenient access to public fast charging will be enabled for up to 84 per cent of the population (over 21 million people)
• over 2,600 new jobs will be created
• health costs of around $200 million will be avoided out to 2035
• electricity network upgrade costs of $224 million will be avoided by 2030
• the environment will be created for there to be 1.7 million electric vehicles on the road by 2030.

What the strategy does not include are subsidies or tax incentives, sales targets, or minimum fuel emission standards. Rather, the Government’s approach is – as is its wider strategy to reach zero emissions by 2050 – one which relies on technology and industry.

“Our plan for securing Australia’s economic recovery very much has our pathway to net zero emission by 2050 at its heart,” the Prime Minister said at the announcement. “And that plan is driven by technology, not taxes. It’s driven by backing Australian’s choices, not putting mandates on them and telling them what to do.”

In a statement, Angus Taylor, Minister for Industry, Energy and Emissions Reduction said the strategy is about helping motorists embrace the increasing range of technologies available to keep them moving in an informed and fair way.

“The Future Fuels and Vehicles Strategy sets out the Government’s technology- led approach to reducing transport emissions while ensuring Australians can drive their preferred type of vehicle – be that petrol, diesel, hydrogen or electric powered,” he said.

“Our technology-led approach is already helping to enhance consumer and industry confidence. In the last eight months there has been a 20 per cent increase in the number of low emissions vehicle models available in Australia.

“We are continuing to invest in the right infrastructure, while ensuring both those in the cities and regions can access this $250 million Fund.

“Like we saw with our world-leading rooftop solar uptake, we know that when new technologies reach price parity, Australians rapidly adopt them. We will take these lessons from solar integration into our reform work to ensure our grid is ‘EV ready’ to keep the lights on and bills affordable for everyone.

“Voluntary adoption of electric vehicles is the right pathway for reducing transport emissions over the long term. Stringent standards, bans or regressive taxes will limit choice and increase the upfront costs of cars for Australians.”

On its Future Fuels and Vehicle Strategy webpage, the government states that it will look to drive down the cost of technologies through industry partnerships.

“In our partnership with industry, the government will work with the private sector to drive costs down for hybrid, electric, hydrogen and bio-fuelled vehicles,” the website reads. “Industry is best placed to accelerate the technology development needed to reach price parity, but the government will continue to co-fund innovative R&D (for example, for new technologies like hydrogen) and roll out the necessary supporting infrastructure.”

The Strategy has been met with a mixed reaction by automotive industry bodies, the majority of whom note that it is, at least, a step forward.

“Having a national plan is just the start of moves in the right direction if we are to keep up with the rest of the world,” said Rod Camm, MTA Queensland Group CEO.

“New charging stations are helpful, however that will not incentivise the uptake of EVs until there are sufficient quantities for market forces to take over and put pressure on price. Any future focused strategy needs to address three things: the price gap between EVs and non-EVs, encouraging a wider range of electric vehicles, including mobility solutions through national policy and more needs to be known about charging options and range.

“Manufacturers will continue to bring their range of petrol vehicles to Australia while they are selling well and concentrate on having EVs available in other countries with more effective national emission policies.

“The next phase of the strategy should holistically consider a range of aspects related to zero emissions vehicles, including targets, taxation considerations, consumer charging preferences, future infrastructure locations and electricity grid impacts, and incentives to encourage electric vehicle take-up including concepts like a “cash-back” scheme.”

For its part, the Electric Vehicle Council (EVC) – the national body representing the electric vehicle industry in Australia – declared some disappointment.

In a statement, the Council said that by ignoring subsidies, tax incentives, or sales targets, the government’s Future Fuels Strategy ‘ignores the most important and effective measures to improve electric vehicle uptake’.

“There’s no sugar coating it, Future Fuels is a fizzer,” said Behyad Jafari, CEO of the EVC.

“Future Fuels is certainly an advance on the government’s rhetoric of the last election. The strategy has identified some of the correct benefits and pathways, but it does little to realise them.

“I welcome the progress we’ve seen, but it’s far too little too late. For a strategy that has apparently taken years to write, it leaves much to be desired. Electric vehicles present a monumental opportunity for Australia not only in reducing pollution, but creating an innovative industry in manufacturing, technology, and services.

“The sector will continue to urge the government to take appropriate actions that get more vehicles to Australia and on our roads. It’s a shame this government doesn’t have the same ambition for Australians that the electric vehicle industry does.”

Source: Motor Trader e-Magazine (November 2021) 

10 November 2021