Australians are world-leaders when it comes to installing rooftop solar panels. But to hit net-zero greenhouse emissions by 2050, which federal and state governments want to achieve, we need more than solar power.

We also need to reduce emissions from other sources, like driving. Our new report, Towards net zero, has some ideas.

Transport is a major source of emissions – 18 per cent of Australia’s total. And the lion’s share of those emissions is from cars, vans and utes.

There are two ways to reduce those emissions: change the technology or drive less.

But driving less is not an attractive option for most Australians, most of the time. Our cities are sprawling and public transport doesn’t always run where or when we need it.

So that means we need a big shift in vehicle technology to get to net zero. The end game is clear: by 2050, virtually all cars need to have zero tailpipe emissions.

Our cars last 20 years or so. And some last much longer – cars from the 80s and 90s can still be bought today. Many petrol and diesel cars sold in the next two decades will remain on the road in 2050 and beyond.

Electric vehicles are already on our roads. But they make up barely one per cent of sales in Australia, compared to three per cent in New Zealand, 11 per cent in the UK and 75 per cent in Norway.

We need more of them. Soon.

Major economies such as the UK, Canada and California have already recognised that no new petrol or diesel vehicles should be sold after about 2035 if they want to reach net-zero emissions by 2050.

Australia should follow suit.

The most efficient way for Australia to phase out petrol and diesel cars is through a ‘fleet emissions standard’.

This would require each manufacturer to balance sales of high- and low-emitting models to achieve a target fleet-wide emissions level.

The target would get stricter, so that by 2035 only zero-emissions models would meet the standard.

Short term, manufacturers would sell more fuel-efficient cars, saving motorists money. Longer term, manufacturers would sell more electric cars to meet the standard.

This fleet emissions standard would encourage manufacturers to send the newest, best-performing models to Australia.

But a fleet emissions standard on its own won’t be enough.

Potential buyers worry about the cost of electric cars, a lack of charging places and the myth they’re actually worse for the environment.

Electric cars will become cheaper over time as production scales up.

But governments could help by scrapping stamp duty, the luxury car tax and import duties that make these cars more expensive.

The Berejiklian government has already promised to waive stamp duty for most zero-emissions vehicles from September 1. This will knock about $2000 off the price of a Hyundai Kona Electric.

The Morrison government should follow suit and remove import duties, which add five per cent to the cost of cars from countries that don’t have a free-trade agreement with Australia.

When there are more electric cars on the road, companies will build more charging points.

Governments should also change the building code so new buildings with off-street parking come with the necessary cabling already installed.

And motorists should rest easy that choosing an electric car really is a lower-emissions option.

Even if the car is charged using coal-generated electricity, the grid is rapidly decarbonising.

So long as the grid stays on that track, an electric car will create less emissions over its life than an equivalent petrol or diesel model.

Gladys Berejiklian and Scott Morrison have set the goal: net-zero emissions. It’s time for them to help Australians meet it.

Alison Reeve

Energy and Climate Deputy Program Director
Alison Reeve is the Climate Change and Energy Deputy Program Director at Grattan Institute. She has two decades of experience in climate change, clean energy policy, and technology, in the private, public, academic, and not-for-profit sectors.

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