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Warning on EV target
Herald Sun, Melbourne  by Mark Dunn
29 May 2023
General News - Page 12 - 521 words - ID 1859548956 - Photo: No - Type: News Item - Size: 276.00cm2

Victorian motorists 'will need support'

As the Andrews government considers a ban on all new petrol vehicle sales from 2035, the transport industry and automotive associations are calling for a major expansion of subsidies and greater consultation.

The cut-off date for all new Victorian sales of conventionalengine vehicles and a move to battery electric has been proposed by a panel appointed by Climate Action Minister Lily D'Ambrosio.

If adopted by the government, it would double the current EV target for 50 per cent of all new light vehicle sales in Victoria by 2030, while petrol, diesel and hybrid cars purchased before future cut-off points would remain legal on the roads and saleable.

Australian governments would need to provide a combined $3.2bn in subsidies, amounting to $10,000 for each new car buyer to support affordability, to meet EV targets and attract manufacturer supply quantities by the mid 2030s, with significant additional funding for charging infrastructure, Victorian Automotive Chamber of Commerce chief Geoff Gwilym said.

"You can only get to those targets if you've got the right incentives for buyers," he said.

The Andrews government currently offers a $3000 subsidy for EVs under $68,740.

Mr Gwilym said price parity between conventional and EV cars was at least 10 years away, and government policies needed to ensure low-income earners were not left to select from outdated "bangers" and diminishing options in older petrol cars.

"What we don't want is the states starting to disincentivise the market by putting carbon levies on older cars," he said.

"That would be a cruel blow to lower and even middle-income Australians who'd struggle to afford an electric vehicle." Mr Gwilym said that with just 1 per cent of the global car market, Australia was well down the queue when it came to supplies.

"You can only set ambitious targets if you are in charge of the supply chains," he said.

Mr Gwilym said it took Norway, with a population of 5.4 million, 12 years and $4.2bn in government support to now see 88 per cent of all new car sales being EVs.

"We're moving in the right direction, we're on the journeybut if you're setting targets, you've got to have realistic mechanisms to get there," he said.

While the 2035 target report calls for EV changes for all vehicles, Victorian Transport Association chief Peter Anderson said the state's heavy vehicle industry - which accounted for 30 per cent of transport emissions had not been consulted.

Given the impact on payload capacities and cost, large truck batteries would either make heavy transport uneconomical or drive the price of goods significantly higher.

"The industry wants to change, it wants its social licence - but we can't convert our trucks to alternate fuels," Mr Anderson said.

"Creating targets isn't anything more than a facade, especially when it's unachievable." While the RACV would not comment on target timelines, energy services manager Greg Edye said the organisation supported "incentives to accelerate the uptake of zero and lowemission vehicles that deliver improved affordability and consumer choice".

Transport is Victoria's second-largest source of emissions, accounting for about 25 per cent of the state's carbon.

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