Federal or State?

31 December 2021

Fork in the low emissions road

Victorians have two elections to contemplate next year, and the environment will be key to who controls power.

The incumbent federal and state governments have begun outlining their environmental credentials, but there’s a problem – they don’t line up.

Daniel Andrews has pledged to halve Victoria’s greenhouse gas emissions by 2030 – in part by increasing new zero emissions vehicle (ZEV) sales to 50 percent.

This move goes further than anything offered at a federal level.

There are fewer than 7000 ZEVs currently registered in Victoria, although subsidies should increase that number.

But I am not a supporter of distorting markets through subsidies, as this can unfairly benefit one business over another. 

Victorian motorists can now receive a $3000 subsidy when buying ZEVs.

Applicable to cars only, motorists can access the subsidy once and businesses twice.

Scott Morrison on the other hand has vowed motorists will have freedom of choice regarding EV uptake, ruling out banning petrol and diesel vehicles or using big subsidies to encourage people to make the switch.

The Prime Minister has committed to a technological approach instead.

The Low Emissions Technology Commercialisation Fund is part of the Federal Government’s overall plan to achieve net zero emissions by 2050 – not 2030.

This fund will bolster the automotive industry as it transitions to a lower emissions future and will throw support behind local innovators to create the solutions needed to bring about net zero emissions.

We will all be a lot better off if both governments realise their promises.

Words: VACC CEO, Geoff Gwilym.

Share your thoughts! E: As featured in the Herald Sun 31 December 2021.

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