Transport sector emissions reduction pledge

As part of Victoria’s Climate Change Strategy, our transport sector pledge reflects that Victoria’s target of net zero by 2050 requires substantial reductions in transport sector emissions. 

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Victoria’s transport sector pledge includes clear actions that reduce emissions now and lay the foundations for a cleaner future.

Our first set of commitments will fast-track Victoria’s shift to net zero emissions transport powered by clean energy, driving down emissions and sparking new industries that will reinvigorate manufacturing and create jobs.

Under the transport pledge:

  • Zero emission vehicles (ZEVs) will make up 50 per cent of all new light vehicle sales by 2030
  • All new public transport bus purchases will be ZEVs from 2025
  • 400 ZEVs will be added to the Victorian Government fleet by 2023
  • Active transport will make up 25 per cent of mode share by 2030.

The transport sector pledge is backed-by $100 million to ensure Victoria is a leader in the uptake of ZEV:

  • $20 million for a Zero Emission Bus Trial to support the transition to 100 per cent zero emissions bus purchases from 2025.
  • A $46 million ZEV subsidy program, the first of its type in Australia, providing grants to people and businesses wanting to buy ZEVs, targeted at the supply of low to medium-priced vehicles.
  • $5 million commercial sector ZEV Innovation Fund to encourage the uptake of ZEV light commercial vehicles in the commercial passenger vehicle, logistics, construction and service-sector industries. 
  • $19 million to establish a ZEV fast-charging network on major highways, at key tourist and community destinations and at high use locations.
  • 400 electric vehicles will be added to the Victorian Government fleet over the next two years.
  • An expert advisory panel will advise the Government on new policies, programs and investments to ensure we meet our 50 per cent target.  

A more efficient transport system

We’re continuing to invest in a transport system that’s designed for simple, safe, connected journeys. One that provides ready access to low-impact travel choices.

This includes:

  • A metropolitan public transport network that is easy to use and that provides simple, connected journeys, with expanded rail capacity, better, more integrated bus services and more seamless payment systems that will encourage more people to use public transport for more of their travel needs
  • Better integrated land use and transport planning that will enable and encourage more people to choose active transport, such as walking and cycling, thereby reducing the need for household car ownership and travel 
  • Planning for and adapting to the emergence of new technologies, such as ride-sharing, on-demand public transport and automated vehicles, that could enable more convenient, flexible and carbon-efficient demand-responsive transport choices, particularly for first-and-last-mile travel needs
  • The establishment of a network of port-rail shuttles and intermodal terminals to enable more freight to be transported by rail.

Zero Emission Vehicles Expert Advisory Panel

The first transport emission reduction pledge introduces a policy target of reaching 50 per cent new light vehicle sales being zero emission vehicles (ZEVs) by 2030.

To begin to reach this goal, the Victorian Government implemented an incentive package to increase uptake of zero emission vehicles in the short term to 2022/23. 

The pledge also committed to establish the Zero Emissions Vehicle Expert Advisory Panel to provide advice on options to reach the 50 percent sales target by 2030.

Advising on new policies, programs and infrastructure required to ensure we meet that zero emissions vehicle’s target by 2030, the panel's work will help us lay the foundations to achieve substantial emissions reductions later this decade and beyond.

The panel will look to understand which mix of policies and strategies are the most feasible, the most effectual and the most cost effective while understanding the economic and jobs benefits of these policies and strategies, particularly those that could be of most benefit to Victoria’s comparative advantages.

The panel will also consider innovative, novel ideas that could work for Victoria and measures that can add and complement our recent $100 million investment in ZEVs. 

The panel will undertake a program of research, analysis and reporting with a final report to be delivered to the Minister for Roads and Road Safety and Minister for Energy, Environment and Climate Change in late 2021.

Input and feedback can be provided to the panel at [email protected].