Recently the Federal Government announced its emission reduction target for 2035, which is to reduce emissions by 62-70 per cent below 2005 levels by 2035.
At a high level, and specifically looking at the transport sector, the announcements highlighted the Government’s view that:
- The New Vehicle Efficiency Standard is expected to play the large role in decarbonising light duty transport during the next decade.
- The review of the NVES, legislated to commence in 2026, will be important to assess pathways forward. This is consistent with other large policies like the Safeguard Mechanism.
- $40 million in funding will be allocated towards accelerating the rollout of kerbside and fast charging solutions to support EV Uptake.
- This is in addition to the $1.1 billion in funding announced to encourage the production of Sustainable Aviation Fuel and renewable diesel.
The Climate Change Authority also has indicated that in order to achieve the 62-70 per cent target, half of the light duty vehicles sold between now and 2035 need to be zero emission vehicles. This equates to about six million vehicles during the next 10 years. With battery electric vehicle sales currently consisting of approximately eight per cent of new sales, this represents a significant increase and will require a rapid change in consumer acceptance and purchasing behaviour.
The sectoral plans provide some additional detail, and in the transport and infrastructure sector the priority actions for Government will be to:
- Invest in enabling low and zero emissions transport infrastructure
- Electrify and increase transport’s energy performance
- Switch to low carbon alternatives to power transport where electrification is not feasible
- Innovate to expand cost competitive transport technology options
- Scale up efforts to reduce embodied emissions in transport infrastructure.
The first three of those actions will be important to members but at this time no additional policies or funding has been announced beyond what is referenced above.
Copies of the Climate Change Authority’s advice to Government can be found through the links below, including links to the Transport and Infrastructure Net Zero Roadmap and Action Plan.
2035 Targets Advice Report: https://www.climatechangeauthority.gov.au/2035-emissions-reduction-targets-advice
Transport and Infrastructure: https://www.infrastructure.gov.au/department/media/publications/transport-and-infrastructure-net-zero-roadmap-and-action-plan
All sectoral plans: https://www.dcceew.gov.au/about/news/setting-2035-target-path-net-zero#toc_2
FCAI’s media statement is here: https://www.fcai.com.au/fcai-response-to-2035-climate-target-announcement/