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Bank Australia plans to stop fossil fuel car loans from 2025 in a bid to support the uptake of electric vehicles in Australia.

As apart of Bank Australia’s commitment to climate action, they have taken special interest in the transition to electric vehicles.

Bank Australia’s website outlines their ongoing commitment to reducing the carbon emissions created by fossil fuel powered vehicles.

“We’ve been thinking about the carbon impact of car loans since 2004 when we launched our first carbon offset car loan, and we’ve offered discounted interest rates for low emission vehicles since 2018.

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.”

EVs currently represent roughly 2.5% of new cars sold in Australia and as infrastructure, affordability and availability continue to increase, its expected for that percentage to rise too.

“The shift away from fossil fuel powered cars to EVs needs to start soon if we’re going to reach net zero by 2035. Our customers are deeply concerned about climate change, and that’s why we’re taking this step from 2025, and announcing this change to our car loans now. This sends a signal to them and to the broader community that we’re committed to doing what we can to reduce emissions,” Bank Australia’s website includes.

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