Labor looks to Norway to drive electric car sales

Bill Shorten wants to copy Norway where taxpayers pay $3400 annual subsidy for each electric car.

Opposition Leader Bill Shorten in Canberra yesterday. Picture: Kym Smith

Bill Shorten wants Australia to match the electric vehicle penetration of Norway, where taxpayers fork out a $3400 annual subsidy for every EV on the road, but has refused to say when Labor would introduce tough new ­vehicle standards to drive his transport revolution.

The Opposition Leader, who has set a target of 50 per cent of new car sales to be electric by 2030, yesterday declared Labor would transform the nation’s car market to drive the uptake of more fuel-­efficient vehicles in the same way the market for rooftop solar had changed over the past decade.

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Delivering on the pledge will mean pushing electric car sales from the current 2500 a year to about 600,000 within a decade.

Mr Shorten unveiled a $100 million commitment towards the rollout of 200 fast-charging stations across the country, a 50 per cent electric target for government vehicle purchases, and new tax incentives for fleet buyers to purchase EVs rather than internal combustion engines.

“What we’re going to do is create a market, a market for vehicles which are more fuel efficient, which are more friendly to the ­environment,” Mr Shorten said.

“It’ll take time. But remember back in 2007, only about 7000 households had solar rooftop.”

 

Mr Shorten has promised a new vehicle emissions standard of 105gCO2 per kilometre to help meet his promised 45 per cent carbon emissions cut, but Labor is putting off providing further details until after the election.

Four of the five top-selling vehicles in Australia last year — the Toyota Hilux (186-277gCO2/km), Ford Ranger (169-265gCO2/km), Mazda 3 (129-153gCO2/km) and Hyundai i30 (119-176gCO2/km) — all produce emissions well above Labor’s threshold. Only the Toyota Corolla (96-159gCO2/km) comes close to Labor’s 105gCO2/km limit.

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The Australian Automobile Association, which represents eight million drivers through state motoring organisations, said voters deserved more detail on the plan before they cast their ballots.

The top-selling vehicles in Australia last year were the Toyota Hilux, Ford Ranger, Toyota Corolla and Mazda 3.

“A poorly designed standard will drive up the cost of cars, the cost of petrol, and significantly curtail the availability of popular vehicle makes and classes, which is why the AAA expects both sides of politics to clearly articulate their vehicle emissions targets and timelines ahead of the election,” AAA chief executive Michael Bradley said.

Carmakers also warned car buyers would be hit hard if the new standard was rushed in too soon. “The 105g/km target would be extremely difficult by 2030,” Federal Chamber of Automotive Industries CEO Tony Weber said. “If you push too hard, you are unlikely to get there without restricting consumer choice.”

The Labor policy points to Norway — where EVs already make up half of new car sales — as an example for Australia to follow, citing a PwC study showing “if Australia achieved an EV take-up rate similar to that of Norway by 2030 it would inject $2.9 billion into the economy and lift net ­employment by 13,400”.

However, Labor has stopped well short of providing Norway-like incentives to encourage EV sales.

The same PwC study, undertaken for the Electric Vehicle Council, sets out the subsidies offered by Norwegian taxpayers to boost EV uptake, noting “indirect incentives are estimated at approximately $3400 per year for a battery electric vehicle owner”.

Scott Morrison, who has pledged an EV strategy under a re-elected Coalition government, demanded to know how Labor would meet its ambitious target and said EV drivers already enjoyed a significant benefit by avoiding the 41c-a-litre fuel excise.