As part of its plan to phase out fossil fuel vehicles by 2035, the ACT Government’s new Zero Emissions Vehicles Strategy 2022–30, published today, reveals a series of policy measures that Chief Minister Andrew Barr says will make it easier and cheaper for Canberrans to access ZEVs, both new and second-hand.
The government intends that by 2030, 80 to 90 per cent of new vehicles sold will be ZEVs, and internal combustion vehicles will not be sold in the ACT from 2035, so the ACT can meet its target of zero net emissions by 2045.
The package seeks to tackle commonly identified barriers, such as affordability, concerns about range, and supply of vehicles, Shane Rattenbury, ACT Minister for Water, Energy and Emissions Reduction, said.
“I understand there’s always scepticism, and there will always be some people who don’t believe it’s possible until it’s inevitable,” Mr Barr said. “It’s inevitable. It’s happening.”
Some of the measures could be considered ‘carrots’. Stamp duty waivers, free vehicle registration, and $15,000 no-interest loans through the Sustainable Household Scheme for new vehicles will continue to 2024.
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These measures, introduced last year, are “the most generous package of incentives for ZEVs in Australia”, Mr Barr said – and the number of ZEVs in the ACT has more than doubled since 2020. Independent commentators (such as the NRMA, Clean Technica, and the Electric Vehicle Council) have approved.
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Used zero emissions vehicles will be exempt from stamp duty, too, cutting the cost of an average vehicle by around $1,600. Second-hand ZEVs can be as little as $20,000, Mr Rattenbury said; removing the stamp duty ($1,200 to $1,600) further improves the financial option.
The fixed registration system will be reformed to no longer penalise ZEVs, often heavier than fossil fuel vehicles because of their batteries.
Earlier this year, the government introduced an advisory service to help businesses purchase ZEVs.
However, new fossil fuel-powered vehicles will be excluded from taxi and ride-share fleets by 2030.
The ACT will have at least 180 public charging stations by 2025, while body corporates can receive $2,000 grants to install EV chargers in multi-unit buildings.
The ACT Government will also work with governments in other jurisdictions to roll out charging infrastructure, such as NSW’s $131 million fast charging network under their Electric Vehicle Strategy. NSW, Victoria, and South Australia have committed to no longer sell fossil fuel-powered vehicles by 2040.
“Things will only get better in the coming months and years,” Mr Barr predicted. “All this was before the Federal Government changed. Now there are policies at the federal level to further reinforce energy network security.”
That change of government means the ACT Government can be more ambitious, Mr Barr believes.
“For the first time in a decade, there is an alignment of policy between federal government and the states and territories. We could not be sending a clearer message to the market about what’s necessary…
“All of a sudden, we move from being the dumping ground for old polluting technology to being a market where people know there is interest and support for this policy change.”
These incentives, Mr Barr said, will make it easier for Canberrans to make the transition to ZEVs.
“They will have plenty of time to know what’s coming.”
One challenge is the supply side, Mr Barr noted; 130 different ZEV models are available in Europe, but only 30 in Australia.
“With this strategy, we will beat a path to the doors of all of the vehicle manufacturers, so we will supply ZEVs into the Australian market with a view that Canberra will be an excellent place for them to allocate additional supply,” Mr Barr said.
According to Gizmodo, the cheapest electric vehicles in Australia are the MG ZS EV Excite ($46,990) and Essence ($49,990) and the BYD Atto 3 ($44,381; extended range model $47,381).
But some market analysts (such as Bloomberg NEF) predict price parity with fossil fuel-powered vehicles in 2027, Mr Barr noted. Some new vehicle manufacturers are getting into the market below $40,000, he said, while the second-hand market will be in the teens and $20,000 range for the next few years. Beyond that, it will get cheaper.
“Once technology reaches a certain level of penetration, historically between 5 and 10 per cent, it quickly becomes ubiquitous, the scale of manufacturing picks up, and the price starts to fall,” Mr Barr said.
Despite claims that electric vehicles would ruin the weekend, and not be able to tow caravans or boats, many already have significant range, up to 500km before they need to charge, and can handle big loads with ease. Some owners have taken their ZEVs on road trips of up to 1,500km, The Driven reported.
“I’ve certainly taken my vehicle to Sydney, down the coast, various places,” Mr Rattenbury said. “You can meet Canberrans who have driven all over Australia in their electric vehicles.”
But some Canberrans are concerned that a city of ZEVs, all charging at once, will overload the electricity grid. Mr Barr acknowledged that was a legitimate issue to raise, but said work was being done at both territory and national levels.
In the ACT, for instance, the government is creating the 250-megawatt Big Canberra Battery, while the federal government’s $20 billion Rewiring the Nation project is designed to rebuild and modernise the electricity grid.
“There will need to be, and there will be, more investment in our energy network – more batteries, more storage opportunities, at a grand scale for jurisdictions, at a community level through government institutions like schools, TAFEs, universities, and through community batteries, plus what people decide to do with their own household level,” Mr Barr said.
Others worry that the shortage of lithium for EV batteries is an obstacle; prices rose 13-fold this year, according to Mining Technology, and Forbes reported last year that the electric car revolution could stall.
But scientists are investigating alternatives: salt, seawater, magnesium, glass, dual carbon, sodium, zinc, even hemp.
“Batteries are becoming lighter and more powerful, providing more range for vehicles,” Mr Barr said.
Some new EV models need significantly less energy to propel them than internal combustion engine vehicles.
“They are more streamlined and need less power to move more quickly. A combination of technology will lead to more energy efficiency in vehicle types. There is every incentive for the vehicle manufacturers and for consumers to get more kilometres out of the battery charge that continues to get better in each new generation of electric vehicle.”
In short, Mr Barr did not think reliance on lithium was a concern.
“Technology continues to advance. There was a time when an electric vehicle looked like a science experiment and didn’t have much range. Now, they are amongst the sexiest cars on the road, and have ranges well beyond internal combustion engines.
“Internal combustion engine vehicles will be as quaint in 2035 and beyond as black-and-white television is, or analogue mobile phones. Technology will just continue to advance. It will be a little bit like saying, ‘I want to buy my latest song on cassette, or reel-to-reel tape’.
“Technology moves on. The world is making this decision. Vehicle manufacturers are making these decisions in jurisdictions where vehicles are manufactured. Australia doesn’t make cars, so we are going to be the beneficiaries of decisions made elsewhere in the world.”
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