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Bank Australia announces it will BAN loans for petrol, diesel cars from 2025 to fight climate change

An Australian bank will stop approving personal loans for new petrol and diesel cars from 2025 as the federal government marks tough new fuel efficiency standards.

Electric vehicles have a minuscule 1.6 percent market share this year, even when Tesla sales are included, with starting prices of $47,000 and a lack of charging stations that put off many would-be motorists.

But customer-owned Bank Australia wants to change that, in an effort to reduce carbon emissions associated with climate change.

Chief Impact Officer Sasha Courville told the National Electric Vehicle Summit in Canberra on Friday that the bank’s new policies are “an important step in decarbonising the Australian economy.”

“By ending car loans for new fossil fuel vehicles, we are sending a signal to the Australian market about the rapid acceleration in the transition from combustion engines to electric vehicles that we expect to see in the coming years,” she said.

Bank Australia announces it will BAN loans for petrol diesel

An Australian bank will stop approving personal loans for new petrol and diesel cars from 2025 as the federal government marks tough new fuel efficiency standards. Sasha Courville, Bank Australia’s chief impact officer, told the National Electric Vehicle Summit in Canberra on Friday that the bank’s new policies were “an important step in decarbonizing the Australian economy” (pictured is a new Ford Ranger ute )

“We chose 2025 because the move to electric vehicles needs to happen quickly, and we believe that with the right supportive policies, it is possible to bring a wider range of more affordable electric vehicles to Australia.”

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Bank Australia made the announcement when Chris Bowen, Minister for Climate Change and Energy, and Catherine King, Minister for Transport, jointly announced that new fuel efficiency standards would be introduced as part of a national electric vehicle strategy.

“Apart from Russia, Australia is the only OECD country that does not have fuel efficiency standards or is under development,” their joint press release said.

Under Labor’s plan, a low-emissions target would apply to 75 percent of the Commonwealth government’s vehicle fleet, including purchases and leases, by 2025.

“Until now, Australian households and businesses have had little choice when it comes to low-emission and fuel-efficient vehicles, and they’ve paid for it,” Bowen said.

Ministers also pledged to have electric vehicle charging stations at average intervals of every 150km on major roads, along with a national hydrogen highway refueling network.

Ms Courville said Bank Australia would continue to grant loans for second-hand petrol and diesel cars from 2025 as it banned financing new fossil fuel vehicles.

Electric vehicles have a minuscule 1.6 percent market share this year, even when Tesla sales (California charging stations, pictured) were included, with higher prices and a lack of charging stations turning off many would-be motorists.

Electric vehicles have a minuscule 1.6 percent market share this year, even when Tesla sales (California charging stations, pictured) were included, with higher prices and a lack of charging stations turning off many would-be motorists.

Electric vehicles have a minuscule 1.6 percent market share this year, even when Tesla sales (California charging stations, pictured) were included, with higher prices and a lack of charging stations turning off many would-be motorists.

“Importantly, Bank Australia will continue to support customers who do not yet have access to an electric vehicle,” she said.

“While we will be phasing out car loans for new fossil fuel cars from 2025, we are well aware that we need to support people who cannot yet afford an electric vehicle as the market grows.

“We will continue to provide loans for used fossil fuel vehicles until there is a viable and thriving electric vehicle market.”

Only 5,149 all-electric vehicles were sold in Australia last year of the 1,049,831 that left showrooms. That Federal Chamber of Automotive Industries data does not include Tesla cars.

However, in the year to July, 10,289 EVs were sold out of 622,319 vehicles, with this 1.6 percent market share now including Tesla.

Tony Weber, CEO of the Federal Chamber of Automotive Industries, described the government’s policy as ‘an important step on our path to supplying low-emission vehicles to Australian customers’.

“This is a good day,” he said.

The China-made MG ZS is Australia's cheapest electric car with prices starting at $46,990 for the Excite model (Pictured is a UK market model)

The China-made MG ZS is Australia's cheapest electric car with prices starting at $46,990 for the Excite model (Pictured is a UK market model)

The China-made MG ZS is Australia’s cheapest electric car with prices starting at $46,990 for the Excite model (Pictured is a UK market model)

“It is also critical to ensure that all Australians are included rather than excluded because of where they live and what they can afford, and to ensure that ambition matches reality.”

The China-made MG ZS is Australia’s cheapest electric car, with prices starting at $46,990 for the Excite model – one of just eight EVs available in Australia for under $60,000, compared to 26 in the UK.

The Nissan Leaf costs start at $55,240 driving, while the Tesla Model 3 starts at $65,500 before the costs hit the road.

Australia’s best-selling cars all run on petrol or diesel, with the Toyota HiLux and Ford Ranger taking first and second place in August.

The third-placed Toyota RAV4 is the only one in the top 10 available as a petrol-electric hybrid.

Ford will start selling the US F-150 pickup trucks at its dealerships from mid-next year, but the all-electric Lightning version sold in the US will not be available in Australia.

Australia has a net-zero target by 2050, with Prime Minister Anthony Albanese’s Labor government this month getting the backing of the Greens to set a 43 percent reduction in carbon emissions by 2030.

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