Report on Australia’s Electric Vehicle Transition and Alignment with Sustainable Development Goals

Executive Summary

This report analyzes the state of Australia’s transition to electric vehicles (EVs) in the context of its national emissions targets and its commitments to the United Nations Sustainable Development Goals (SDGs). While EV uptake is accelerating, with sales reaching 12% of new cars in the first half of the year, Australia lags significantly behind international counterparts. Transport is projected to become Australia’s largest source of emissions by 2030, posing a direct threat to achieving SDG 13 (Climate Action). A proposed phase-out of new internal combustion engine (ICE) vehicle sales by 2035 is identified as a critical policy lever to accelerate this transition. A successful phase-out requires a comprehensive framework addressing infrastructure, equity, and industrial strategy, aligning with SDG 7 (Affordable and Clean Energy), SDG 9 (Industry, Innovation, and Infrastructure), and SDG 10 (Reduced Inequalities).

Analysis of Current EV Transition and Climate Impact

Current Status of EV Adoption

Australia’s progress in adopting electric vehicles shows positive momentum but remains insufficient when measured against global leaders and climate imperatives.

• Sales Growth: Over 72,000 battery electric and plug-in hybrid vehicles were sold in the first half of the year, representing 12% of new car sales.
• Total Fleet Penetration: EVs constitute only 2% of the 21.7 million vehicles currently on Australian roads.
• International Comparison: Australia’s adoption rates are considerably lower than those in countries such as Norway (98.3% of new cars), Nepal (76%), and China (51%).

Emissions Contribution and Alignment with SDG 13 (Climate Action)

The transport sector is a significant and growing contributor to Australia’s greenhouse gas emissions, making its decarbonization essential for meeting national and global climate targets.

• Transport currently accounts for 22% of Australia’s total emissions and is the fastest-growing source.
• Without rapid decarbonization, transport is projected to be the nation’s largest source of emissions by 2030.
• Achieving Australia’s 2035 emissions reduction target of 62-70% necessitates an EV market share of at least 50% for new cars within the next decade, a direct action under SDG 13.

Policy Proposal: A 2035 Phase-Out of ICE Vehicles

Rationale and International Precedents

A legislated ban on the sale of new petrol and diesel cars by 2035, as proposed by the Electric Vehicle Council, is presented as a necessary measure to provide market certainty and accelerate the transition. This policy aligns Australia with major international partners who have implemented similar targets to advance SDG 7 (Affordable and Clean Energy) and SDG 11 (Sustainable Cities and Communities).

• United Kingdom: Mandates 80% of new cars be zero-emission by 2030, rising to 100% by 2035.
• European Union: Legally requires all new cars and vans sold after 2035 to be zero-emission, despite compromises on e-fuels.

Challenges and Strategic Considerations

Implementing a 2035 phase-out requires navigating political resistance and ensuring the transition is equitable and supported by robust infrastructure, addressing key aspects of multiple SDGs.

1. Political and Industry Opposition: Resistance is anticipated from legacy automotive industry groups and political opponents, similar to the pushback against the New Vehicle Efficiency Standard.
2. Ensuring an Equitable Transition (SDG 10): A ban must include safeguards to protect vulnerable populations. Key measures include financial support for lower-income households, trade-in schemes, and policies to maintain an affordable used-vehicle market.
3. Infrastructure and Innovation (SDG 9): The transition is contingent on an aggressive expansion of charging infrastructure, particularly in rural, regional, and remote areas to ensure universal access.
4. Preventing Policy Backsliding: The EU experience demonstrates the need for strong safeguards, clear interim targets, and mechanisms to prevent loopholes that could weaken the policy’s effectiveness in achieving climate goals.

Recommendations for a Comprehensive Policy Framework

To ensure a successful and equitable transition that fully supports Australia’s SDG commitments, a 2035 phase-out must be part of a broader, integrated strategy. The following components are recommended:

1. Legislate Robust Targets: The ban must be legislated, not aspirational, with clear interim targets for EV uptake to provide certainty for manufacturers and consumers.
2. Invest in Infrastructure and Industry (SDG 9): Aggressively scale up the national charging network and provide incentives for local manufacturing and workforce reskilling to build a sustainable domestic EV industry.
3. Implement Fair Pricing and Incentives (SDG 12): Introduce a cost-neutral “feebate” scheme, where levies on high-emission vehicles fund rebates for low-emission vehicles, promoting Responsible Consumption and Production. This should be paired with reforms to road pricing and registration.
4. Prioritize Equity (SDG 10): Design policies with a specific focus on supporting lower-income and regional households to ensure a just transition.
5. Eliminate Fossil Fuel Subsidies: The policy should be complemented by the removal of subsidies and incentives for fossil fuel vehicles, reinforcing the commitment to SDG 7 and SDG 13.

Sustainable Development Goals (SDGs) Analysis

1. Which SDGs are addressed or connected to the issues highlighted in the article?

• SDG 7: Affordable and Clean Energy

  The article’s central theme of transitioning from petrol and diesel cars to electric vehicles (EVs) is directly linked to promoting clean energy in the transport sector. EVs run on electricity, which can be generated from renewable sources, thus contributing to a cleaner energy system.

• SDG 9: Industry, Innovation, and Infrastructure

  The discussion revolves around the transformation of the automotive industry, the innovation required for EV technology, and the critical need for supporting infrastructure. The article explicitly states, “The charging infrastructure rollout would have to be scaled up aggressively,” highlighting the infrastructure component of this goal.

• SDG 11: Sustainable Cities and Communities

  Transport is a major source of urban pollution and emissions. By advocating for a shift to EVs, the article addresses the need to reduce the environmental impact of transportation in cities and communities. The text notes that transport accounts for 22% of Australia’s total emissions, a significant portion of which affects populated areas.

• SDG 12: Responsible Consumption and Production

  The proposed ban on the sale of new petrol and diesel cars is a direct policy measure to alter national consumption patterns. The article discusses changing how vehicles are produced and consumed, moving away from fossil fuel-dependent models towards more sustainable, zero-emission alternatives. It also mentions creating a “‘feebate’ scheme, where levies on buyers of new high-emissions vehicles are used to offer rebates for zero or low-emission vehicles.”

• SDG 13: Climate Action

  This is the most prominent SDG in the article. The primary motivation for accelerating the EV transition is to combat climate change by reducing greenhouse gas emissions. The article states that transport is “projected to be Australia’s largest emissions source by 2030” and that cutting emissions is necessary to meet the government’s “new target” of a 62% to 70% reduction by 2035.

2. What specific targets under those SDGs can be identified based on the article’s content?

1. Target 7.3: By 2030, double the global rate of improvement in energy efficiency.

   The shift from internal combustion engine (ICE) vehicles to more energy-efficient EVs directly contributes to this target. The article implicitly supports improving energy efficiency in the transport sector by phasing out less efficient fossil fuel-powered cars.

2. Target 9.4: By 2030, upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use efficiency and greater adoption of clean and environmentally sound technologies and industrial processes.

   The article directly addresses this target by calling for the automotive industry to transition to EV manufacturing and demanding a massive scale-up of “charging infrastructure rollout… with particular focus on filling in gaps in rural, regional and remote areas.”

3. Target 11.6: By 2030, reduce the adverse per capita environmental impact of cities, including by paying special attention to air quality and municipal and other waste management.

   The push to ban petrol and diesel cars aims to reduce transport emissions, which are a major contributor to poor air quality in cities. The article notes that transport is the “fastest-growing source” of emissions in Australia, and reducing these emissions would directly lessen the environmental impact on urban populations.

4. Target 12.c: Rationalize inefficient fossil-fuel subsidies that encourage wasteful consumption.

   The article advocates for a wider strategy that focuses on “ending subsidies and incentives for fossil fuel vehicles,” which aligns perfectly with this target to remove financial mechanisms that support unsustainable consumption.

5. Target 13.2: Integrate climate change measures into national policies, strategies and planning.

   The entire article is a discussion about a specific national policy—a proposed ban on new petrol and diesel car sales by 2035—as a critical measure to achieve Australia’s national emissions reduction targets. This demonstrates the integration of climate action into national transport and industrial strategy.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

• Percentage of new vehicle sales that are electric or hybrid

  The article provides specific data points that serve as direct indicators of progress. It states that in the first half of the year, battery electric and plug-in hybrid vehicles accounted for “about 12% of all new cars” in Australia. It also provides comparative figures for other countries like Norway (98.3%), Nepal (76%), and China (51%).

• Total greenhouse gas emissions from the transport sector

  The article mentions that “transport accounts for 22% of Australia’s total emissions” and is the “fastest-growing source.” Tracking this percentage over time would be a key indicator of whether the transition to EVs is successfully reducing the sector’s climate impact.

• National emissions reduction targets

  The government’s target to cut “emissions 62% to 70% by 2035” is a high-level indicator. The article links the EV transition directly to this goal, suggesting that achieving an EV market share of “at least 50% in the next decade” is necessary to meet this broader target.

• Availability and distribution of charging infrastructure

  While no specific numbers are given, the article implies that the number and accessibility of charging stations is a critical indicator. It calls for the “charging infrastructure rollout” to be “scaled up aggressively,” especially in “rural, regional and remote areas.” Progress would be measured by the growth in the number of public chargers.

• Policies and financial incentives for vehicle emissions

  The article discusses several policy-based indicators, such as the implementation of a “new vehicle efficiency standard,” the removal of “subsidies and incentives for fossil fuel vehicles,” and the creation of a “‘feebate’ scheme.” The existence and strength of these policies are measurable indicators of government commitment.

4. Table of SDGs, Targets, and Indicators

Source: theguardian.com