Ruqayyah Snyder
Diesel cars are not being completely phased out in Australia, but their popularity is declining. The ACT has committed to banning the sale of new diesel cars in 2035, and the Committee for Sydney has announced plans to ban diesel cars in 2027. Other states and territories are also incentivizing the adoption of electric vehicles without implementing a ban on diesel cars. The transition away from diesel cars is driven by concerns about air pollution and CO2 emissions, as diesel engines produce nitrogen oxide, a harmful combination of nitrogen monoxide and nitrogen dioxide. While diesel cars are losing popularity among passenger car buyers, they remain prevalent in the market for light commercial vehicles, such as utes and vans.
| Characteristics | Values |
|---|---|
| Ban on sale of new diesel cars | ACT and Committee for Sydney have announced plans to ban the sale of new diesel cars by 2035 and 2027, respectively. |
| Ban on buying or owning diesel vehicles | There will be no ban on buying or owning diesel vehicles. People will still be able to purchase second-hand diesel cars. |
| Impact on diesel car manufacturers | The ban will primarily impact European manufacturers, as Australia does not manufacture diesel cars locally. |
| Impact on diesel car sales | Diesel car sales in Australia have been declining, with a decrease in the percentage of new cars sold that use diesel from 8.0% in 2011 to 4.0% in 2023. |
| Alternatives to diesel cars | Electric vehicles (EVs) are the frontrunner to replace diesel cars in Australia, with sales of EVs doubling in the past year. |
| Emission standards for diesel cars | Australia has implemented Euro 6 standards for new diesel light vehicles, reducing permissible nitrogen oxide emissions. Stricter Euro 6d standards will be introduced in December 2025. |
| Government incentives for electric cars | The ACT currently has the most generous government incentives for electric cars in Australia. Other states, such as Western Australia, are also incentivizing the adoption of electric cars. |
| Timeline for ban on diesel cars | The ban on the sale of new diesel cars in the ACT will come into effect in 2035, with a potential for an earlier phase-out. |
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What You'll Learn
Popularity of diesel cars in Australia is declining
Diesel-powered vehicles have been popular in Australia, but their popularity is declining. In 2006, 2.6% of passenger cars sold were diesel, compared to 21% of SUVs. In 2011, the figures rose to 8% for passenger cars. In 2012, 39% of SUVs sold in Australia used diesel. However, in 2023, just over 4% of new cars sold used diesel, while 21.6% of SUV sales had diesel engines.
European makers like Audi, BMW, and Mercedes-Benz, which once promoted their diesel vehicles, have been dropping them from their ranges. This is due to the EU's move towards a total ban on the sale of new diesel and petrol vehicles by 2035. This will reduce the number of options available to Australians who wish to import diesel vehicles, as none are made locally.
In addition, lenders are withdrawing loans for diesel vehicles. Bank Australia, for example, will no longer offer car loans for new diesel vehicles by 2025.
While there is no ban on buying or owning diesel vehicles in Australia, the ACT has committed to banning the sale of new diesel cars in 2035. The Committee for Sydney has announced plans to ban diesel cars in 2027. Other states and territories are also incentivizing the phase-in of electric cars without implementing a ban on diesel cars.
The future of diesel in Australia looks bleak, with sales slowing and impending diesel bans. However, diesel engines will still be used in long-haul truck fleets and agricultural machines.
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ACT to ban sales of diesel cars by 2035
The Australian Capital Territory (ACT) has announced that it will ban the sale of new diesel and petrol cars from 2035. This move is part of a wider Climate Change Strategy to achieve net-zero emissions by 2045. The ACT Government has also set an "ambitious target" for 80-90% of light vehicles sold to be zero-emission vehicles by 2030. This target will make the 2035 deadline more plausible and will bring the territory in line with Europe, which has passed a similar law.
The decision has been praised by supporters of electric vehicles, who argue that it will bring benefits to residents, including cheaper to run cars and cleaner, quieter streets. However, it has also faced criticism from those who believe that there may not be a range of affordable electric cars available by 2035, and that the ban will negatively impact the automotive industry and consumers.
While the ban will not prevent people from driving or owning diesel and petrol cars, it will affect the sale of new vehicles. This means that the Australian fleet in the ACT will gradually transition to electric or hydrogen vehicles over time.
The ACT is the first Australian jurisdiction to place an expiry date on new petrol and diesel car sales, and it is expected that other states and territories will follow suit in the coming years. This move is part of a wider shift towards decarbonisation and a reduction in emissions from transport, with the entire country working towards net-zero emissions by 2050.
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No other states have committed to a timeline
While the Australian Capital Territory (ACT) has committed to banning the sale of new petrol and diesel cars in 2035, no other states or territories have committed to a timeline for banning diesel cars. However, other states and territories are incentivizing the phase-in of electric cars without implementing a ban on petrol and diesel cars. For example, Western Australia aims to have electric vehicles (EVs) comprise a quarter of new car sales by 2026.
The popularity of diesel vehicles in Australia has been declining, and European manufacturers are moving towards a total ban on diesel, which will reduce the supply of diesel vehicles to the Australian market. American and Asian car manufacturers do not focus on diesel passenger vehicles, further limiting the future supply of diesel cars in Australia.
In addition, lenders are withdrawing loans for petrol and diesel cars, and new emissions standards and fuel quality requirements will save the economy billions of dollars in health and fuel costs by 2040. These factors will likely accelerate the decline in diesel car sales and usage in Australia, even without explicit bans from other states or territories.
While diesel cars may not completely disappear, they are expected to become less common in the distant future. Diesel engines will still be used in long-haul truck fleets and agricultural machines, but passenger cars with diesel engines may become a thing of the past. The shift towards electric vehicles and stricter emissions standards is driven by the need to reduce air pollution and combat climate change.
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Euro 6 standards will tighten regulations on diesel engines
The future of diesel cars in Australia is uncertain, with sales of diesel cars slowing and impending diesel bans on the horizon. While there may not be a complete disappearance of diesel cars, their numbers are expected to decline significantly in the coming years. This is due, in part, to the Euro 6 standards, which have tightened regulations on diesel engines, particularly regarding nitrogen oxide (NOx) emissions.
Euro 6 standards, the latest emission standards, aim to reduce the amount of nitrogen oxides emitted by cars with diesel engines. These standards were approved in 2014 and apply to passenger cars registered since September 2015. The permitted amount of emitted nitrogen oxides for diesel engines has been substantially reduced, with the limit set at 80 mg of NOx emissions per kg of body weight. This is a significant decrease from the previous limit of 180 mg per kg under the Euro 5 standards.
The impact of the Euro 6 standards on the diesel car market in Australia is twofold. Firstly, it has led to a reduction in the supply of diesel vehicles from European manufacturers. As the European Union moves towards a total ban on the sale of new diesel cars by 2035, the supply of diesel vehicles from these manufacturers will diminish. This will reduce the options available for Australians looking to import diesel vehicles.
Secondly, the Euro 6 standards have led to the removal of older diesel-engine vehicles from Australian roads. Vehicles that exceed the latest emission limits under the Euro 6 standards are no longer permitted to be driven. This is particularly impactful in Australia, where diesel engines are popular, especially for light commercial vehicles such as utes and vans. However, it is important to note that the Euro 6 standards do not apply to all vehicles, with different standards in place for motorcycles, trucks, and buses.
While the Euro 6 standards have tightened regulations on diesel engines, it is important to consider the broader context of Australia's transition towards electric vehicles (EVs). The ACT has committed to banning the sale of new petrol and diesel cars by 2035, and other states and territories are expected to follow suit. This shift towards EVs is gaining pace, with Australians buying more EVs each year. As such, the Euro 6 standards are just one factor contributing to the phasing out of diesel cars in Australia.
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Electric vehicles are the frontrunner to replace diesel cars
Australia is witnessing a decline in the popularity of diesel cars, with sales dropping from 8% in 2011 to just over 4% in 2023. This trend is also reflected in the global shift towards electric vehicles (EVs) as a more environmentally friendly alternative.
In response to growing concerns about air pollution and climate change, the ACT has committed to banning the sale of new petrol and diesel cars by 2035. The Committee for Sydney has announced even more ambitious plans to ban diesel cars by 2027. While other states and territories in Australia have not yet announced similar timelines, the country is working towards reducing emissions from transport by 2050.
The transition away from diesel cars is further influenced by tightening regulations and standards. The Euro 6 standard, for example, has tightened the regulation around diesel engines, reducing permissible nitrogen oxide (NOx) emissions. As a result, older diesel-engine vehicles that exceed the latest emission limits will be removed from the roads.
In contrast, electric vehicles are gaining traction in Australia. In the past year, Australians have purchased 40,000 new EVs, almost double the number from 2021. Volkswagen Australia has forecasted that sales of electric cars will surpass those of petrol and diesel vehicles by 2028. This trend is supported by the development of electric charging infrastructure across the country and the shift of car manufacturers towards electric power, with companies like Volvo embracing electrification.
With the phase-out of diesel cars and the increasing popularity of EVs, it is evident that electric vehicles are the frontrunner to replace diesel cars in Australia. This transition is driven by a combination of factors, including environmental concerns, tightening emissions regulations, and the growing accessibility and affordability of EVs. As the market adapts to changing consumer preferences and technological advancements, we can expect to see a significant shift towards electric vehicles in the coming years.
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Frequently asked questions
Yes, the ACT will ban the sale of new diesel cars from 2035 onwards, with the Committee for Sydney planning to implement a similar ban in 2027. However, this ban will not affect the buying or owning of diesel vehicles, nor will it prevent the sale of second-hand diesel cars.
Diesel cars are being phased out in Australia due to their contribution to air pollution and CO2 emissions. Diesel engines produce nitrogen oxide, a dangerous combination of nitrogen monoxide and nitrogen dioxide, which has been linked to respiratory illness and cancer. The Australian government estimates that the new emissions standards will save the economy $6.1 billion in health and fuel costs by 2040.
Electric vehicles (EVs) are the clear frontrunner to replace diesel cars in Australia. Australians bought 40,000 new EVs in the past year, almost double the number from 2021. Additionally, car manufacturers like Volvo and Ford have announced plans to transition to electric power.
