Your choice: what’s my best option when I’m considering buying an electric vehicle in Australia?
Snapshot of the Lifecycle emissions of ICE, PHEV and BEV cars sold in Europe
(NB. modelling to Australian conditions wasn’t included)
When I happened upon the science (thank you, James Purtill) behind electric vehicles (EVs), this got me wondering about what we are all wanting from EVs in the first place? Most likely the reason would be to make an ethical and financial choice and swap for a less polluting and affordable car
In which case, finding out about the science, mitigating the effects of fossil fuel on climate change, and actual costs and convenience (according to a couple of clients this includes recharge points, distance and speed of travel ) are all issues.
Check out our blog for run-down of BEV v PHEV purchases, what we currently know about emissions, the latest in government policy, and an explanation of the acronyms and detail.
Here’s the facts*:
Petrol and diesel internal combustion engines (ICEVs) [blue and orange dots] have significantly higher life cycle emissions than the other types of cars;
A fully battery electric vehicle (BEV) charged on renewables (purple dots) has by far the lowest life cycle emissions, and
Between these two extremes are the plug-in hybrid electric vehicles (PHEVs)** [yellow and light green dots], which can exceed the life cycle emissions of the least polluting ICEVs, when charged from non-renewable sources.
NB. This is European modelling and isn’t specific to Australia
What’s happening in Australia?
The latest industry figures indicate that EVs accounted for a record 9.4% of new car sales up to June 2023, with BEVs the more popular choice.
So buying PHEVs is getting less popular - these now make up only 6% of total sales.
What’s cleaner?
PHEVs were initially marketed as a cleaner alternative to traditional combustion engine vehicles, but concerns have arisen regarding their actual emissions and efficiency. Recent studies have revealed that PHEVs:
consume more fuel than officially declared; and
switch to the combustion engine more frequently than expected in real-world conditions.
This has led to doubts about their environmental benefits and raised questions about whether PHEV’s should actually be classified as EV’s.
How about life-cycle emissions?
The life cycle emissions of different vehicle types vary, with BEVs charged on renewables having the lowest emissions.
However, when charged from non-renewable sources, PHEVs can exceed the emissions of some low-emission combustion engine vehicles.
What’s popular in Australia?
As we mentioned above:
buying PHEVs is becoming less popular making up only 6% of recent total sales in Australia, and
as more BEV models become available and concerns about range anxiety diminish, buyers are preferring BEVs for lower emissions and running costs.
In addition, IEA*** estimates that new EV purchases comprised 8% US, 23% UK and 25% Europe new car sales vs 4% in Australia (2022 annual sales).
April 2023: government announces a a new fuel efficiency standard
The government said it would legislate a fuel efficiency standard to to improve the supply of hybrid and EVs for Australian buyers. It plans to apply mandatory pollution caps to new cars to encourage spend on cleaner cars.
Although we don’t know the detail or timing of standards right now, it is expected that a final plan will go to parliament by the end of 2023.
The onus will then fall on Australia’s car brands to deliver more low-emissions cars to Australian private buyers and fleets – fleets being held back by restricted supply that undermines recent fringe-benefits tax cuts.
At present:
Australia is one of very few countries of similar economic standing without fuel efficiency standards, which punish car manufacturers if new vehicle average CO2 emissions exceed an agreed, imposed limit.
No fuel efficiency standards means car manufacturers can divert higher emissions cars to those countries without low CO2 emissions standards.
The idea is to push multinational car makers to divert greater factory supply of their CO2-reducing EVs to Australia in order to avoid these penalties, which usually come in the form of fines.
Over time, as the fuel efficiency standard is tightened (meaning the maximum amount of CO2 that can be emitted is reduced), car makers must sell higher numbers of lower and zero-emissions vehicles to avoid ratcheted penalties.
“This situation is commonly chalked up as one key reason why car brand executives based here – Tesla and BYD excluded – keep failing to secure sufficient stock of their EVs and hybrids to meet burgeoning demand from buyers keen to slash their fuel bills and CO2 footprint.“ Mike Costello^
Next steps:
Call us for a quick chat or drop us a line to discuss your finances or if you would like to know more about how to get ethical and sustainable.
Resources
You can read more about the science and background studies in this comprehensive write-up by James Purtill (ABC science).
Energy.gov.au details the National Electric Vehicle Strategy for Australia
References
*Lifecycle emissions of ICEVs, PHEVs and BEVs, plotted against vehicle weight.
Credit - J. Buberger et al, Renewable and Sustainable Energy Reviews (2022)
**PHEVs can charge from a power point and fill up at a service station,
*** IEA International Energy Agency
^ Car Expert - Government plans fuel efficiency standards to improve EV supply - Mike Costello, 19 April 2023
The Age - Electric vehicle sales accelerate, but not fast enough - Simon Johanson, 10 July 2023
IEA - Executive summary – Global EV Outlook 2023