Australia ranks poorly in decarbonisation study

Australia ranks third to last among 19 of the world’s largest economies for decarbonising road transport, including electrification, in a newly published G20 Zero Carbon Policy Scorecard from Bloomberg New Energy Finance.

“With just nine months to go until the critical next round of international climate talks (COP26), the world’s largest economies are far from having the right policy plans in place to meet the green pledges made at the COP21 climate conference in Paris in 2015,” new research from BloombergNEF (BNEF) says.

It evaluates the G20 countries’ decarbonisation policies to measure which governments have implemented regimes to realise the goals of the Paris Agreement, or more substantial decarbonisation.

The report says electrification, especially of road transport, has attracted the most attention in the past five years and will likely play a key role in achieving significant emission reduction in this sector.

“Policies lowering the upfront costs have been the most effective tool for driving early-stage adoption of passenger EVs and are offered in most G20 countries. These will likely remain necessary until EVs reach upfront price parity with internal combustion engine (ICE) vehicles.”

Countries with high EV adoption have also implemented stringent fuel economy targets, the study notes.

BNEF global policy analysis head Victoria Cuming says recent high-level pledges have been impressive.

“But the reality is that countries simply haven’t done enough at home with follow-through policies to meet even the promises made more than five years ago.”

BNEF says much of the progress achieved to date globally in cutting growth rates of CO2 emissions has come in the power sector, which includes Australia’s move to renewable energy such as solar power.

Germany and France scored highest for having the best policy mixes to spur decarbonisation, implementing robust policies which have driven EV sales, but they still have room for improvement, the study finds.

The G20 countries achieved an average economy-wide score of 47%, with Australia listed at 43%.

New Zealand isn’t listed but gets mentioned in carbon price and emission coverage in jurisdictions with market-based mechanisms.

Meanwhile, the Australian Federal Chamber of Automotive Industries (FCAI) believes prime minister Scott Morrison is sending the right signals in acknowledging the likelihood of a commitment to net zero emissions by 2050 through the adoption of science and technology.

“These signs of intent need to be matched by federal and state governments working with key sectors to encourage the take up of new technology and eliminating policy, regulatory and taxation settings that effectively limit appropriate purchasing decisions,” FCAI chief executive Tony Weber says.

The automotive sector had already committed to a 2030 carbon reduction target, he adds.

“The FCAI CO2 Emissions Standard aligns with manufacturers’ traditional position of bringing the best possible products, with the latest safety and drive-train technologies, to the Australian market.

“Australian buyers already have choice across technologies ranging from full electric vehicles, hybrids and efficient internal combustion engines. Often, price and the need for a vehicle to perform a specific purpose – such as farming or construction work – are prime criteria in motorists’ purchasing decisions.”

Under the FCAI CO2 Emissions Standard cars and light SUVs will, on average, have CO2 emissions under 100 grams per kilometre and heavy SUVs and light commercials under 145 grams per kilometre by 2030.

Weber believes manufacturers and customers should drive the uptake of new and emerging technologies such as full electric and hydrogen.

“The FCAI strongly supports governments and industry working together to develop a comprehensive approach to addressing motor vehicle emissions that includes fuel quality standards, the introduction of Euro 6 and the introduction of a challenging but realistic, achievable and market-relevant CO2 standard.”