The Australian Government is providing incentives for Australians to purchase low emissions vehicles, as part of a new $50 million programme funded through the Clean Energy Finance Corporation.
The programme is targeting corporate and government fleet buyers, as well as not-for-profit organisations. With an estimated 450,000 fleet vehicles on the road today, this represents a major share of the cars and vehicles on Australia’s roads.
More efficient fleets can reduce emissions as well as reduce operating costs, achieving productivity and environmental gains.
Light vehicles are a major contributor to Australia’s total greenhouse gas emissions.
This work will build on the success to date in helping to meet and beat Australia’s 2020 greenhouse gas emissions reduction target and in working towards our 26 to 28 per cent 2030 target.
While improving fuel efficiency can mean higher upfront costs for car buyers, analysis by ClimateWorks indicates the average car owner would recover these additional costs within three years through fuel savings – well within the average length of vehicle ownership of about five years.
The broader economic benefits are also tangible. Within 10 years, Australia could save up to $7.9 billion per year through reduced fuel use from the increased adoption of low emissions vehicles, according to ClimateWorks.
The $50 million CEFC funding package is being provided through the Eclipx Group – one of Australia’s largest independent fleet leasing companies.
It will provide Eclipx’s corporate, government and not-for-profit fleet buyers with access to favourable loan interest rates when choosing eligible low emissions passenger and light commercial vehicles.
In order to be eligible for the CEFC finance, Eclipx customers must ensure the vehicles meet a CO2 emissions threshold that is 20 per cent below the most recently published Australian averages for new passenger and light commercial vehicles.
Because of the number of vehicles within their operations, Australian fleet buyers and lessees can play a key role in increasing the proportion of low emissions vehicles on our roads, as well as the adoption of new solutions such as electric and fuel cell vehicles.