An Australian bank recently announced its plan to stop funding loans for new gas and diesel cars in 2025 to support the shift to electric vehicles.
“We think that the responsible thing for us to do next, is to ensure that our vehicle lending doesn’t lock our customers in to higher carbon emissions and increasingly expensive running costs in the years ahead,” Bank Australia Chief Impact Officer Sasha Courville said in a statement on Friday.
“Ultimately, our announcement today is the beginning of a conversation with our customers and a signal to the wider market that if you’re considering buying a new car, you should think seriously about an electric vehicle – both for its impact on the climate and for its lifetime cost savings.”
Despite the increasing sales of electric vehicles in Australia, it is still incomparable to the total sales of all cars sold. In an effort to achieve zero emissions by 2035, Bank Australia said that loans for 2nd hand gas cars will remain “until there is a viable and thriving market for electric vehicles.”
“While we will cease car loans for new fossil fuel cars from 2025, we are deeply aware that we need to support people not yet able to afford an electric vehicle while the market grows,” Courville said.
It is certainly a bold move to adhere to fuel efficiency standards thus promoting green mobility.