Australia’s car industry has been placed under the microscope in recent weeks – and the conclusion has put the emphasis firmly on the development of green cars.
The report was undertaken by former Victoria premier Steve Bracks and has recommended a doubling of the $1,000 for liquefied petroleum gas (LPG) tanks to be fitted on to new cars. It is believed this increase in taxpayer funding for green cars would boost their popularity and help to drive down emissions across the country.
The review calls for the federal government to include the road transport industry in its emissions trading scheme. In addition, it has also called on the Green Car Innovation Fund, established by the Australian Government, to be doubled to $1billion.
Mr Bracks believes that including fuel in an emissions trading scheme will produce the most cost effective outcome. He stated that the auto industry should not be exempt in order to send a better signal on the true market value of carbon. He also believes this will affect customer preferences and thus alter technology in design.
