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Reducing carbon emissions

The Australian Government has set ambitious targets to reduce transport emissions and help Australians make the switch to cleaner and cheaper transport.

We plan for a 43% reduction by 2030. This means multiple initiatives to decarbonise our transport network.

There are opportunities for investor-led growth in multiple sectors:

  • cleaner, greener transport systems.
  • Connected Autonomous Vehicles (CAVS) and Advanced Air Mobility (AAM).

There are opportunities for investors across Australian industry – especially our mining and agriculture sectors. These opportunities include reducing emissions for heavy vehicles.

Australia welcomes investors in all aspects of future transport. This includes technology, vehicles, infrastructure, planning and systems. We can provide:

  • an efficient regulatory environment that supports the adoption of new technologies
  • world-class research and development (R&D). This includes R&D in robotics, autonomous systems and predictive modelling
  • a supportive policy environment, with competitive incentives
  • future-ready communications infrastructure. This includes 5G networks, satellite positioning upgrades, dedicated bandwidth and upgrades to national broadband
  • abundant natural resources to support onshore manufacturing including batteries.

How we can help

Incentives, grants and support

Investors can access financial support from multiple agencies in Australia.

  • The Australian Renewable Energy Agency (ARENA) funds sustainable transport projects. This includes innovation in electric vehicles and hydrogen fuel cells, and R&D.
  • The A$15 billion National Reconstruction Fund will be used to support clean transport projects. Financing options include loans, equity investment and guarantees.
  • The Clean Energy Finance Corporation (CEFC) is a government agency. It provides funding for clean energy projects, including in transport.
  • Tax and financial incentives from federal, state and territory governments encourage the purchase of electric vehicles. These include the Australian Government’s Electric Car Discount. Support helps give investors certainty over future demand.

Australia has created a A$500 million Driving the Nation Fund. This will aid the transition to EVs and hydrogen power. It includes A$39.3 million to help deliver EV chargers on highway routes across Australia. It also includes up to A$80 million to help decarbonise heavy transport.

Supporting future transport in Australia

The Australian Government has created the Office of Future Transport Technology. It will support the safe and legal deployment of future land transport technologies. This includes connected and automated vehicles and cooperative intelligent transport systems (C-ITS).

  • The National Transport Commission is working on legal reforms to allow the safe commercial deployment and operation of automated vehicles on Australia’s roads. The Australian Government plans to implement a national framework by the end of 2026.
  • The Australian Government is developing a Transport and Infrastructure Net Zero Roadmap and Action Plan.
  • Federal, state and territory governments have created the National Energy Transformation Partnership. It will ensure Australia’s electricity system is ready for the rapid adoption of EVs.

The Australian Government strongly supports the uptake of electric vehicles (EVs). In April 2023, we released our first National Electric Vehicle Strategy. The strategy aims to improve the market for EVs with a new Fuel Efficiency Standard.


Future transport and Australia

Carbon emissions

Australia’s transport sector emitted 19% of Australia’s carbon emissions in 2022

EV sales

EV sales rose 269% in H1 2023, year on year. There are an estimated 130,000 EVs in Australia (8.4% of total car sales)

Charging locations

The number of high-power charging locations in Australia increased 57% from June 2022 to June 2023

Australia boasts world-class R&D capabilities. They include expertise in quantum computing, connected automated vehicles (CAVs) and mobility as a service (MaaS). We also have niche expertise in AI predictive modelling for road and rail networks.