Australia’s progress toward net-zero emissions depends heavily on electrifying its commercial vehicle fleets. Among all sectors, mining, logistics and manufacturing are the most critical to this shift.
A new report, Electrifying Fleets: Closing the Say-Do Gap, says these three industries are responsible for about 70 per cent of total fleet emissions. Most of these emissions come from light and medium commercial vehicles, which are increasingly suitable for electrification as more fit-for-purpose models enter the market.
A Big Role with Bigger Emissions
Commercial fleets account for nearly half of all new vehicle sales in Australia. Despite this, electric vehicle uptake among business fleets is lagging. At present, EVs make up less than one per cent of the commercial fleet, even though 59 per cent of ASX200 companies have committed to net-zero targets. Only 19 per cent of these companies have a clear plan for switching their fleets to electric vehicles.
This gap between what companies promise and what they implement, often referred to as the “say-do” gap, is especially noticeable in mining. In this sector, fleet operations are central to business activity, yet very few companies have specific fleet transition goals.
Logistics is showing more progress, not only because of its direct emissions but also due to its role in supporting other sectors. Manufacturing plays a smaller part in total emissions but still has a large number of vehicles that could be replaced with electric models in the short term.
The Role of Fleets
Transport contributes about 30 per cent of Australia’s total emissions, with road vehicles being the primary source. Within this group, passenger cars along with light and medium commercial vehicles are responsible for two-thirds of the emissions.
By focusing on the fleets used in mining, logistics and manufacturing, Australia could cut fleet emissions by one-third. In particular, decarbonising logistics could deliver even greater benefits across the economy, given its close ties to many other industries.
Barriers on the Road to Transition
Despite the potential, a range of practical barriers is slowing progress. Fleet managers continue to raise concerns about whether electric vehicles can meet operational needs, particularly in terms of payload and range. There is also uncertainty about the availability of charging infrastructure, especially in remote or industrial areas.
High upfront costs remain a concern for many organisations, along with the unknowns of maintenance expenses and resale value. A lack of aftermarket support and technician training adds to the hesitation. Decision-making within organisations can also be a challenge, with fleet, facilities, finance, and sustainability teams all needing to agree before a transition can move forward.
Unlocking the Transition
The report suggests a number of simple and cost-effective actions that companies can take to start or speed up their shift to electric fleets. One useful step is to use data and telematics to understand how existing vehicles are used and to assess where electric options would fit. Starting with a small number of EVs in pilot programs can help build confidence and highlight benefits.
Working directly with vehicle makers and charging infrastructure providers can lead to solutions that better meet the needs of specific industries. Investing in smart charging systems can also support business operations and create opportunities to feed power back into the grid using vehicle-to-grid technology.
The report also calls for stronger leadership from government. Although there is support for electrifying public fleets, more needs to be done to help commercial users. This includes setting clear targets, providing financial support, and ensuring that infrastructure is planned with the needs of businesses in mind.
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