By Johnny Sharp

As we have seen from the US government’s approach to climate and emissions targets, not everyone in the developed world is convinced by the need to decarbonise transport or pursue net zero policies. But in Australia, recent news suggests that its transport sector is making a significant contribution to tackling global warming, and there are plenty of lessons for the UK to learn from such developments down under.

Earlier this year, the Australian government announced an 8.5 million-tonne drop in Australia’s emissions over the year to September 2025. The figures constituted a 1.9% reduction year on year, which may not sound huge, but as part of a 27.4% reduction since they signed the Paris Agreement in 2005, it keeps them on track to meet their 2030 targets. Most encouragingly, they have begun to reverse trends on the transport front with the first reduction in emissions since the pandemic. 

Higher EV uptake

One of the most striking stats from Australia is that new EV sales have more than tripled in three years, constituting 13.1% of new car sales in 2025. Transport remains Australia’s fastest-growing sector for climate pollution and was expected to be the top source of emissions by 2030, but the government is addressing that with new vehicle efficiency standards, putting an emissions cap in place for car manufacturers for all vehicles they sell in a given year. So any higher-emitting cars will have to be offset with lower or zero-emission vehicles. 

So rather than an outright ban on sales of new ICE vehicles, as the UK has put in place for 2035, the Australian Government has taken a gradual ‘squeeze’ approach. In 2025, it introduced the New Vehicle Efficiency Standard, which puts progressively lower limits on carbon dioxide emissions for new vehicles each year, effectively ensuring petrol and diesel models are slowly phased out and the motor industry has to promote sales of EVs. 

EVs are also included in the fringe benefits tax exemption rule, making electric vehicles more affordable for fleets. The exemption will be eased for more expensive models from next year but remains another incentive for industry to go electric.

Individual states are also rising to the challenge of expanding infrastructure to meet the rising demand in EV ownership. In April, New South Wales’ state government revealed ambitious plans to roll out extensive charging networks backed by $100m in funding, focusing on regional connectivity and urban accessibility. 

“NSW is pushing on the right barriers to unlock EV uptake,” said Julie Delvecchio, CEO of Australia's national body for the EV industry, EV Council. “Filling regional charging gaps, expanding support for heavy vehicle fleets and investing in workforce training are practical steps that will get more Australians into EVs sooner.”

Global tensions and changing attitudes

What recent events have shown us, however, is how much affordability makes a difference to EV take-up. Since March, spikes in petrol prices driven by ongoing geopolitical tensions in the Middle East have pushed more Australians to seek alternatives, causing EV loan applications to jump by 90% in the month since the conflict between the US/Israel and Iran began, and searches to surge more than fourfold. There have been signs that the development is also more than just a monthly spike, with EV demand having surged 270% year-on-year.

Australian fintech lender MoneyMe has also found that demand for hybrid vehicles is rising fast, with a 44% rise year-on-year. Meanwhile, data from carsales.com.au has shown that attitudes are changing, with 55% of those surveyed in April saying they would consider buying an EV – a sharp rise compared to the 35% saying the same in November 2025.

All of which seems to illustrate that frequently-voiced factors preventing EV adoption  – from range anxiety to safety to uncertainty over government policy – seem to matter less once affordability concerns ease. Australian renewable energy website Energy Matters summarised the issue as: “The New Vehicle Efficiency Standard is raising the cost of higher-emission models. Fuel prices are increasing the cost of running them. At the same time, electric and hybrid options are becoming more accessible and more practical across a wider range of use cases.”

Australia’s Minister for Climate and Energy, Chris Bowen is naturally proud of developments, stating: “Our commonsense approach, which includes… cheaper, cleaner energy and more choice of cheaper to run cars, is working to drive down emissions across the economy.”

Whether he can claim all the credit is debatable, but lessons can certainly be learned.

• To read the government’s Climate adaptation strategy for transport policy paper, click here
  
  
• To read CIHT’s report on reducing emissions by 63% in a decade, click here

Image title: Car driving through Australian Outback Credit: Shutterstock