Australia’s transport emissions have fallen for the second consecutive quarter, strengthening the case that electric vehicle uptake is beginning to shift the emissions profile of the national vehicle fleet.
The latest National Greenhouse Gas Inventory Quarterly Update shows transport emissions fell 0.6 per cent over the year to December 2025, while total national emissions were 2.1 per cent lower than the previous year. (Minister for the Environment and Water)
National Automotive Leasing and Salary Packaging Association CEO Rohan Martin said the result showed the Electric Car Discount was helping more Australians move into EVs through novated leasing.
“The Government’s data shows transport emissions are falling as more Australians reach for the electric charger instead of the fuel bowser by switching to EVs. The Electric Car Discount is helping make that transition possible,” Martin said.
He said the policy was making EVs accessible to everyday workers, including nurses, teachers and tradies, particularly in outer suburban areas where access to lower running costs can make a significant household budget difference.
“This is exactly what the Electric Car Discount was designed to achieve – more EVs on the road, lower transport emissions and lower household running costs, and it’s helping stabilise the grid,” Martin said.
NALSPA said the result should be treated as further evidence that demand-side incentives remain important as Australia works to reduce transport emissions.
The figures were released as the Federal Government confirmed further support for vehicle-to-grid and smart charging pilot programs, aimed at helping EV owners use their vehicles to power homes, reduce bills and support the electricity grid.
Martin said the next step should be allowing EV home chargers to be included in novated leases.
“As the Government invests in vehicle-to-grid technology, the next logical step is to allow Australians to include EV home chargers in their novated leases,” he said.
“That would remove a significant barrier to EV adoption and help more households participate in the clean energy transition.”
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