Government to provide incentives for Australians who will purchase low emissions vehicles

The Australian government announced on Tuesday that Australians who purchase low emissions vehicles will receive incentives as part of the country’s goal to reduce carbon emissions. The new programme is funded with $50 million through the Clean Energy Finance Corporation, or CEFC.

The government aims to urge corporate, government fleet buyers, and not-for-profit organisations, to buy vehicles with lower emissions to meet and beat the country’s 2020 CO2 reduction target.

The programme will be targeting an estimated 450,000 fleet vehicles. If successful, it is expected to help the government work towards the 26 to 28 per cent emissions reduction under its 2030 target, according to Environment Minister Greg Hunt.

Experts consider light vehicles as the major contributor to the total greenhouse gas emissions in the country. Therefore, the Department of Environment believes that increasing the number of more efficient fleets can reduce emissions as well as operating costs.

The potential growth of low emissions vehicles on Australia’s roads would also help to achieve productivity and environmental gains, according to Hunt.

However, improving fuel efficiency may promote higher costs for car buyers, according to ClimateWorks. However, their analysis shows that an average car owner would recover the additional costs from buying low emissions vehicles within three years through fuel savings.

There could also be broader economic benefits from the new programme, Hunt said. With the increased adoption of low emissions vehicles, the country would save an estimated $7.9 billion every year over 10 years from its reduced fuel use, according to ClimateWorks.

The $50 million funding package from the CEFC will be given through the Eclipx Group. The Group is one of the largest independent fleet leasing companies in Australia.

Corporate, government and not-for-profit fleet buyers of Eclipx will receive access to “favourable loan interest rates” to choose eligible light commercial and low emissions passenger vehicles.

Eclipx customers will be eligible for the CEFC finance if the vehicles meet the provided CO2 emissions threshold. The emissions rate must be lower by 20 per cent to the most recent averages for new passenger and light commercial vehicles in Australia.

Contact the writer at feedback@ibtimes.com.au or tell us what you think below