Electric vehicles (“EVs”) are still too expensive for the average buyer. Although EVs are poised to ultimately replace internal combustion vehicles as countries around the world strive to reduce carbon emissions, improve air quality and achieve climate goals, the initial purchase costs put them out of the reach of most households. To make them more affordable and boost EV adoption, authorities in several countries have been offering subsidies, incentives and tax credits for certain electric vehicle purchases.
Australia, however, has chosen to go a different route after the federal government recently announced that it was ruling out subsidies for private EV purchases. According to the 40-page Future Fuels Strategy, published last week, the government may subsidize businesses that replace their fleets with electric vehicles. The publication outlines the Australian Federal Government’s automotive policy platform, stating that it will focus on three issues: enabling consumer choice, stimulating industry development and reducing emissions in the road transportation sector.
The strategy report states that rather than privately owned EVs, fleets are the more effective path for pushing the adoption of new vehicle technology. By incentivizing fleets, the publication states, Australians can become familiarized with “new technologies.” For instance, the publication states, most Australians had their first experience with a hybrid vehicle via a taxi or company vehicle. Once consumers became aware of these vehicles and their benefits, private purchasers began buying them in droves.
Additionally, subsidizing fleet purchases would also help to stimulate the fledgling second-hand EV market. On average, businesses tend to replace their vehicles more frequently than private buyers, and by making EVs more affordable for fleets, the federal government will inevitably be beefing up the supply of second-hand electric vehicles at lower prices, the publication states.
Using taxpayer-funded subsidies to boost EV adoption by private buyers would be inefficient and “an inefficient way to reduce emissions,” the report continues. It adds that the primary focus will instead be on promoting the adoption of commercial EV fleets; expanding the current charging infrastructure; increasing battery integration; supporting the manufacturing side of things;and improving public education about EVs, climate change and clean, renewable energy.
Tony Weber, chief executive of the Federal Chamber of Automotive Industries (“FCAI”), calls the 40-page report a “step in the right direction.” The report also has the support of the Australian Automobile Association, the peak body for motoring clubs such as the NRMA and RACV, which represent more than 7 million motorists.
Meanwhile in North America, Clean Power Capital Corp. (CSE: MOVE) (FWB: 2K6A) (OTC: MOTNF) has opted to specialize in identifying and then financing companies within the renewable energy sector, such as hydrogen fuel cells.
NOTE TO INVESTORS: The latest news and updates relating to Clean Power Capital Corp. (CSE: MOVE) (FWB: 2K6A) (OTC: MOTNF) are available in the company’s newsroom at https://ibn.fm/MOTNF
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