The federal government’s new 2035 climate target is clear — if Australia is to reduce national emissions by between 62 and 70 per cent from 2005 levels, the transport sector must rapidly accelerate the transition to electric vehicles.
The Climate Change Authority’s ‘2035 Targets Advice’ warns that half of all new light vehicles sold between now and 2035 must be electric to reach the lower end of the target range. In practical terms, that means more than 20 times the number of electric passenger vehicles currently on the road — around 5 million EVs replacing petrol and diesel cars.
Transport emissions now the key challenge
The transport sector is Australia’s fastest-growing source of emissions and is expected to become the largest by 2030. Electrifying both light and heavy fleets is therefore essential to meeting national targets — and to delivering tangible health and financial benefits for communities and businesses.
Electric Vehicle Council Chief Executive Julie Delvecchio said:
“Increasing EV uptake is the highway to Australia’s 2035 climate target.
To hit the 2035 target, one in every two cars sold within the decade must be electric – that means we need to shift gears and support more Australians to make the switch.”
Ms Delvecchio said it was encouraging to see the federal government recognise the central role of electrified transport in the pathway to net zero.
“It’s great to see Prime Minister Anthony Albanese and Minister Chris Bowen recognise that Australians are taking up EVs at record rates. The federal government has invested in incentives including the Electric Car Discount, the New Vehicle Efficiency Standard, and programs like Driving the Nation to expand public charging.”
More charging needed to match policy ambition
Alongside the new climate target, the government announced an additional $40 million to accelerate the rollout of kerbside and fast-charging infrastructure.
“The government’s new funding in support of the target for EV charging is a good step, because we know that charging is a critical part of driving EV adoption,” Ms Delvecchio said.
However, she noted that achieving such a dramatic scale-up in electric vehicle numbers would require coordinated effort from both government and industry, with particular emphasis on renewed state and territory investment after the removal of several EV purchase incentives.
Beyond passenger cars
For fleets and freight operators, the challenge – and opportunity – extends beyond passenger vehicles.
“We must look beyond passenger cars – decarbonising heavy vehicles is just as critical,” Ms Delvecchio said. “Australia should also invest in emerging technologies like vehicle-to-home and vehicle-to-grid.”
These technologies can enable fleets to play an active role in supporting the electricity grid, helping stabilise demand and providing backup power during peak periods.
Implications for fleet and sustainability managers
For Fleet Managers, Sustainability Managers and Finance Managers, the 2035 target underscores the importance of forward planning. Organisations managing vehicles will need to:
- Review fleet replacement cycles to align with the national trajectory.
- Assess depot and workplace charging capacity.
- Update procurement policies to include emissions criteria.
- Consider early adoption of electric light commercials and medium-duty trucks.
- Monitor total cost of ownership models as battery and charging costs continue to fall.
As Ms Delvecchio concluded:
“Fewer emissions, cleaner air, quieter streets, fuel savings, and a more stable grid – that’s the power of more EVs on our roads. We look forward to working with the government to progress its ambition to encourage EV uptake and getting more everyday Australians to realise the benefits of driving electric.”
With the 2035 target now set, the message is clear — Australia’s road to net zero runs on electricity.
