“By ceasing car loans for new fossil fuel vehicles, we are sending a signal to the Australian market about the rapid acceleration in the transition from internal combustion to electric vehicles we expect to see in the next few years,” Bank Australia Chief Impact Officer Sasha Courville said at a recent summit, according to a press release
. “We’ve chosen 2025 because the change to electric vehicles needs to happen quickly, and we believe it can with the right supporting policies in place to bring a greater range of more affordable electric vehicles to Australia.”
Noting that many consumers are not yet able to afford an electric car, Courville specified that Bank Australia would “continue to offer loans for second hand fossil fuel vehicles until there is a viable and thriving market for electric vehicles.”
Roughly 7% of Australia’s total energy consumption came from renewable sources as of 2019 and 2020, according to data
from the Australian Department of Climate Change, Energy, the Environment and Water. Beyond renewables, oil, coal, and gas respectively account for 37%, 28%, and 27% of energy use. Australian policymakers, including Prime Minister Anthony Albanese, have endorsed
higher rates of electric vehicle adoption, with the Labor Party vowing earlier this year to construct a national network of charging stations.