A significant Australian financial institution has announced that, as part of an aggressive campaign to tackle global warming, it will no longer provide financing for the purchase of new gasoline- or diesel-powered autos.
Bank Australia has announced that it will stop providing finance for newly manufactured fossil fuel autos beginning in the year 2025. However, the bank will continue to provide credit for used gasoline and diesel automobiles.
“We are sending a signal to the Australian market about the rapid acceleration in the transition from internal combustion to electric vehicles we expect to see in the next few years,” Sasha Courville, the chief impact officer of the bank, said.
“By ceasing car loans for new fossil fuel vehicles, we are sending a signal to the Australian market about the rapid acceleration in the transition.”
The proposal was revealed during the National Electric Vehicle Summit in Canberra. The bank defended the program’s introduction in just over two years, stating that urgent action was required to keep global temperature rises below 1.5 degrees.
According to Ms. Courville, “we’ve chosen 2025 because the transition to electric vehicles needs to happen quickly, and we believe it can with the right supporting policies in place to bring a greater range of more affordable electric vehicles to Australia.” “We’ve chosen 2025 because the transition to electric vehicles needs to happen quickly,”
Bankmecu, a bank with its headquarters in Victoria that was formerly known as Bankmecu, has been offering lower interest rates for low-emission autos for the past four years. The bank now has the goal of becoming carbon neutral by the year 2034.
Electric vehicles have struggled to gain traction in the Australian market due to a number of factors, including the availability of charging stations, lengthy waitlists, and high prices in comparison to gasoline-powered vehicles.
Ms. Courville, however, stated that Bank Australia planned to send a statement to the investing community that customers should consider purchasing an electric vehicle but that the bank would still provide financing for second-hand fossil fuel vehicles. This information was provided by Ms. Courville.
Ms. Courville stated that “we are well conscious that we need to support people who are not yet able to purchase an electric vehicle while the market expands.” “We are thoroughly aware that we need to support people while the market grows.”
“Until there is a viable and thriving market for electric vehicles, we will continue to offer loans for used automobiles powered by fossil fuels,”