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CEFC to accelerate EV uptake in Australia

CEFC to accelerate EV uptake in Australian

The Clean Energy Finance Corporation (CEFC) has committed up to $20.5 million to make green car loans cheaper for Australians through Taurus Motor Finance. 

CEFC’s initiative will support an estimated $100 million of green finance for Australian consumers to purchase electric vehicles (EVs).

Eligible borrowers will receive discounted interest rates on green car loans, compared to the rate for internal combustion engine-powered (ICE) vehicles.

The discounted green car loan offered by Taurus extends to all battery electric vehicles and high-performance plug-in hybrid vehicle models under $90,000, including BYD plug-in electric vehicles through EV Direct.

The investment has the potential to accelerate the uptake of EVs and drive decarbonisation of the emissions-intensive transport sector by tapping into the growing demand in Australia for EVs. CEFC said it will further influence the Australian finance sector by demonstrating the value of green car loans.

CEFC head of debt markets Richard Lovell said, “Australia faces a significant challenge to decarbonise its economy. The transport sector is the third largest source of national greenhouse gas emissions and our efforts to get to net zero emissions by 2050 must include a focus the way we travel.

“As more Australians consider buying an EV to cut their carbon footprint, more affordable finance will provide a powerful incentive to convince them to commit.”

He said that increasing the number of EVs on Australian roads will also foster the development and roll out of the smart charging infrastructure needed to support them.

Australia is well behind many other countries on the roll out of EVs and according to the Electric Vehicle Council, EVs account for just 3.39 per cent of new car sales in Australia.

The Arcadis Global Electric Vehicle Catalyst Index 2021 ranked Australia last or near-last out of 12 countries in all criteria. Australia was the only market assessed as being poor in each category, including availability of EVs and charging infrastructure. The Index estimated that in 2030 Australia will have just 20 EVs per 1000 people in Australia, compared with 100 per 1,000 people in Italy and 120 in California.

Research also shows that Australians are increasingly considering an EV purchase for their next car. Challenges that have slowed the growth of our EV market include fewer models for sale compared to international markets, with some popular models selling out their full annual allocation within hours of becoming available.

“At least half of all car buyers in Australia finance the purchase with a car loan. Working with Taurus to establish a new green car loan has the potential to improve EV availability because it offers Original Equipment Manufacturers the certainty that potential customers can access finance to buy their cars,” Lovell explained.

Taurus founders and co-CEOs David Giffin and Satyajit Pal said  they were delighted to receive support from CEFC to accelerate the transition to a greener and cleaner future for Australian consumers.

“We also appreciate recent legislative action by the Federal Government through the Treasury Laws Amendment (Electric Car Discount) Bill 2022 and are working actively to introduce a Taurus novated lease product. We appreciate the CEFC’s support with our novated lease product.”

Luke Todd, CEO and managing director of EV Direct said, “Cost has been one of the biggest barriers to EV uptake in Australia. For the first time the Australian consumer has a genuine choice between and EV and an ICE vehicle and we are excited to support this green funding initiative.”

As of 30 September 2022, the CEFC had helped finance over 2,300 EVs. The CEFC has also invested more than $54 million in large scale EV projects, including EV charging infrastructure through Jet Charge, replacing diesel mining trucks with battery electric systems with 3ME Technology and helping finance Australia’s first electrified bus fleet with Zenobe.

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