Private passenger cars account for 42% of Australia's transport emissions, making the transition to electric vehicles (EVs) a critical component in addressing climate change. By discontinuing loans for new fossil fuel-powered cars, Bank Australia aims to accelerate the adoption of EVs and support the nation's climate goals.

The bank's decision is also influenced by the financial benefits associated with EV ownership. Electric vehicles typically have lower running costs compared to their fossil fuel counterparts, offering savings on fuel and maintenance over the vehicle's lifetime. This makes EVs an increasingly attractive option for consumers.

Bank Australia's customers have expressed strong support for climate action, with many choosing the bank specifically for its environmental initiatives. By aligning its lending practices with its customers' values, the bank reinforces its commitment to responsible banking and environmental stewardship.

While the bank will continue to offer loans for second-hand fossil fuel vehicles until the EV market becomes more accessible and affordable, this policy shift sends a clear signal to the market about the urgency of transitioning to sustainable transportation options.

For consumers considering a new vehicle purchase, this development highlights the growing support and incentives for choosing electric vehicles, both from financial institutions and the broader market.