Australian bank to scrap loans for new diesel and gasoline cars as country looks to increase EV uptake

Cars and buses in Sydney, Australia, on Monday, May 25, 2020. Authorities in the country are looking to set up a National Electric Vehicle Strategy.

As Australia tries to encourage the use of electric vehicles and catch up with other developed countries, an Australian bank plans to stop giving loans for new diesel and gasoline cars.

Bank Australia said in a statement that it would no longer lend to fossil fuel vehicles. The change to electric vehicles needs to happen quickly, so that's why it was chosen.

Courville said the bank believed this could happen with the right policies in place.

Bank Australia will continue to provide loans for used cars even though there won't be any new loans for new combustion engine cars in 25 years.

It said that they will continue to offer loans for second-hand fossil fuel vehicles until there is a market for electric vehicles.

The Australian government provided information about plans to set up a National Electric Vehicle Strategy for the country with a discussion paper due to be released for consultation.

The government said that Australia was behind the curve when it came to electric vehicles.

National leadership is needed to ensure we don't continue to be left behind when it comes to low emission vehicles.

The time is right for an orderly and sensible discussion about whether vehicle fuel efficiency standards could help improve the supply of electric vehicles into the Australian market, to address the cost-of- living impacts of inefficient cars, and to reduce emissions from the transport sector.

Bank Australia is owned by customers. It said in its Statutory Financial Report that total assets had grown to over 6 billion Australian dollars, with a profit after tax of over 40 million Australian dollars.

It is not unique in its approach. New diesel and gasoline cars will not be financed by the bank in 2020.

Major European economies are moving away from road based vehicles that use diesel and gasoline.

The United Kingdom would like to stop the sale of new diesel and gasoline cars and vans by the year 2030. All new cars and vans will have to have zero tailpipe emissions by the year 2035. The European Union is following the same targets as the U.K.

The International Energy Agency says electric vehicle sales hit 6 million in 2011. EV sales increased by 75% in the first three months of the year.