Australia’s first national electric vehicle strategy released

The strategy (56-page / 7.9MB PDF), released for consultation on 19 April 2023, outlines three key objectives: to increase the supply of affordable and accessible electric vehicles (EVs); establish resources, systems, and infrastructure to enable rapid EV uptake; and encourage increased EV demand. It offers a national, consistent and comprehensive framework which looks at supply, demand, and infrastructure needs for cleaner and cheaper vehicles.

To enable the transition to EVs, state and territory governments have agreed to collaborate with the Australian government on six key areas, including the development of national fuel efficiency standards and the sharing of data on vehicle use and infrastructure. The different agencies will also work together with the aim of making EVs more affordable, to provide charging infrastructure in remote and regional areas, and to aggregate the procurement of EVs for government – including in respect of electric non-light vehicles – as well as in prioritising education and awareness.

The government recognises that fuel efficiency standards will only apply to new cars, and consumers will be able to choose the vehicles they want to drive. Currently, Australia does not require low-emissions vehicles to be sent to the country, as there are no fuel efficiency standards in place. The lack of standards means that car manufacturers are racing to meet the more stringent standards set in the US, Europe, China, and even New Zealand, with those countries receiving more efficient vehicles. As a result, Australians currently have limited access to low-emissions vehicles under AUS$60,000 (US$39,800), with only eight models available, compared to 26 models in the UK.

The strategy's objective is to avoid becoming a destination for outdated, high-emission vehicles from around the globe and ensure Australia keeps up with the rest of the world. Changes to emissions standards won't start until the end of 2023, and the government intends to work with industry and the community to finalise details in the coming months. Consultation seeking input on how fuel efficiency standards should be created for Australia is open until 31 May 2023. The strategy delivers on the government's commitment to providing greater choice for Australians to drive cars that are cleaner and cheaper to run, with the introduction of fuel efficiency standards likely to accelerate the uptake of EVs.

At present, Australia lags far behind other countries in EV sales, with its uptake of EVs around four times lower than the global average. The strategy includes measures to encourage increased demand for EVs, such as public awareness campaigns, with the aim of providing coordination and leadership to drive down costs and improve infrastructure to get more affordable and accessible EVs on the market.

While the national electric vehicle strategy is a positive development towards Australia's shift to electric vehicles, a significant amount of work still needs to be done before EVs become ubiquitous. The strategy outlines ambitious goals to increase the supply of affordable and accessible EVs, establish the necessary infrastructure, and stimulate demand. The government's intention to introduce fuel efficiency standards to reduce emissions and catch up with global EV trends is a step in the right direction, but more action will be required to achieve widespread adoption.

Co-written by Yuliya Chis of Pinsent Masons.