The Albanese Government is backing Australian-made electric trucks, so cleaner trucks are cheaper to run and cut a major source of emissions.
Through the Clean Energy Finance Corporation (CEFC), a $70 million investment with Volvo Group Australia will accelerate the electrification of the nation's trucking fleet by providing discounted finance for trucking businesses and supporting the long-term residual value of electric trucks.
Volvo offers a full range of electric heavy vehicles and will start manufacturing electric trucks at its Queensland-based facility from 2026, supporting skilled manufacturing jobs and local supply chains. Because electric trucks are cheaper to run and maintain than diesel, over time those lower transport costs can flow through the economy and help ease pressure on prices for households and businesses.
The CEFC's $70 million commitment will be provided as discounted finance and residual-value support to help more operators choose these future Australian-made electric trucks.
Transport currently accounts for around 22 per cent of Australia's total emissions and is projected to become the largest source of emissions by 2030 without continued action.
Australia's economy relies on the freight industry to deliver goods around the nation, and with an estimated 40 per cent increase in road freight activity within the next 15 years, decarbonising this industry is a key part of the Albanese Government plan to reduce emissions.
This $70 million investment will help more trucking businesses to choose electric over diesel with discounted finance to lease electric trucks, support to improve end-of-lease values, and back finance for businesses that install charging facilities at their depots.
The CEFC has commitment more than $200 million in electric vehicle related projects to help decarbonise Australia's transport sector since its inception. As one of the world's largest green banks, the CEFC has worked with third-party capital to deliver more than $600 million in new investment to help decarbonise Australia's transport sector.
Quotes attributable to Minister for Climate Change and Energy, Chris Bowen:
"The Albanese Government is backing battery electric trucks in Australia while driving down costs for heavy electric vehicle and positioning us as a global leader in low emissions transport technology.
"We want to give more Aussie businesses the opportunity to benefit from lower running costs of EV ownership.
"Australia is a country that runs on trucks, and with more and more Australians choosing to shop online, the switch to electric trucks could not come at a better time as we deliver on our climate ambitions."
