https://www.bankaust.com.au/about-us/why-us/ev-transition-ending-fossil-fuel-car-loans-2025
We’re stepping up to help protect the climate and future generations by actively supporting the shift towards a decarbonised economy. Here are five reasons we stopped providing car loans for new fossil fuel cars…
1. Cars are key to climate transition
Private passenger cars account for 42% of Australia’s transport emissions, and transport is the fastest-growing source of emissions in Australia. Electric vehicles are a ready-to-deploy technology so they can be one of the fastest contributors to Australia meeting its climate goals.
2. We need to reach net zero by 2035
To have the best chance of keeping average temperature increase to below 1.5 degrees – to help future generations avoid the worst of catastrophic climate change – 2050 is too late. We need to act urgently. That’s why we have the most ambitious net zero target of any Australian bank. And to reach that 2035 target, we have to pull every lever available. Assisting the transition to electric vehicles is a strategic one to focus on right now.
3. It’s the responsible thing to do
We’ve been thinking about the carbon impact of car loans since 2004 when we launched our first carbon offset car loan.
The responsible thing for us to do is to ensure that our vehicle lending doesn’t lock our customers in to higher carbon emissions and increasingly expensive running costs in the years ahead.
And, of course, we have a responsibility to do all we can to protect the planet for generations to come.
4. It’s a signal to the market
We chose 2025 because the change to electric vehicles needs to happen quickly. And we believe it can happen, as soon as supporting policies and market forces help to bring a greater range of more affordable electric vehicles to Australia. This will include a range of new models at lower prices than are currently available in Australia, and second-hand EVs.
Taking a leadership position on this now will provide momentum to the rapid acceleration in EV transition.
5. Our customers support climate action
Our customers tell us taking action on climate change is a top priority, and for many of them it’s a key reason why they choose to bank with Bank Australia. Being customer-owned means we can balance profit and purpose, and we don’t have to chase immediate financial profit at any cost – which in this case could represent a safe and healthy future for us all.
Real climate action needs to be bold
Our 2035 net zero carbon emissions target is the most ambitious of any bank in Australia. Because to protect our communities and the environment – and give future generations a planet to live on – urgent action is required. Stepping up now to support the transition to electric vehicles is key to a future where we can all thrive.
