Wednesday Mar 29, 2023

Australian Banks To Stop Giving Loans For New Diesel And Gasoline Cars

Australian Banks To Stop Giving Loans For New Diesel And Gasoline Cars

Australia looks to give a new push to electric cars as Australian banks plan to stops giving loans for diesel and gasoline cars as a way to encourage sales of cars that run on alternate fuel.  Australia is trying to encourage the use of electric vehicles and also to catch up with other developed nations. As part of a new announcement, Bank Australia has said that it will scrap loans for new fossil fuel vehicles from the year 2025. Reports have said while there will be no more loans for the new combustion engine vehicles 2025.

 Bank Australia will continue to provide loans for customers for used cars. Australia has already announced plans to set up a national electric vehicle strategy for the country with a discussion paper on the matter due to be released for consultation. At the 2% the country’s uptake of new low emission vehicles was nearly five times lower than the global average.

However, Australia is not the only country with such a plan. The Denmark’s cooperative bank has also announced that it will be halting financing for new diesel and gasoline cars. All of this comes as major European companies and economies are laying out plans to move away from the road based vehicles that use diesel and gasoline to electric vehicles.

Transport is number three on Australia’s carbon emission list. Transport sector is responsible for 18% of all emission and this figure has risen by 48% since 1990 according to the department of climate change, energy, the environment and water.

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