What are Australia’s greenest cars?

Australia’s car industry is gradually moving towards a greener future, with more hybrids and electric vehicles (EVs) hitting our streets each year. So, which car makes and models are the most likely to make the smallest impact on the environment, and how can you buy one?

Based on their Co2 emissions, the Australian government’s Green Vehicle Guide ranks the following cars as the nation’s ten greenest: 

1. Hyundai Ioniq
2. Hyundai Kona
3. Tesla Model 3
4. Tesla Model Y
5. Lexus UX 300e
6. Renault Kangoo ZE
7. Kia Niro
8. BYDF ATTO 3
9. Mercedes-Benz EQA
10. Kia EV6

You may notice that some of Australia’s most popular car brands aren’t on this list. For example, the Federal Chamber of Automotive Industries (FCAI) found that Toyota led the market in terms of sales by brand by a significant margin, selling 231,050 in 2022 compared to the next-nearest competitor, Mazda, with 95,718.

However, while the Toyota Hilux topped car sale numbers for 2022, Toyota’s hybrid and EV options failed to make the green list. In fact, in late 2022 Greenpeace ranked Toyota “dead last” in global green car rankings for the second year in a row.

What types of low and zero emission vehicles are available?

There are three broad categories of green fuel technologies available for use in your car:

Electric Vehicles (EVs)

Electric Vehicles (EVs) replace the petrol-powered engine with an electric one that runs on a powerful battery. These vehicles require regular recharging at a dedicated charging station rather than topping up the tank with gas, but make some of the lowest impacts on the environment.

EVs don’t produce any tailpipe emissions. That said, you may also need to consider the emissions produced by generating electricity to charge the battery, as well as the emissions produced during manufacturing and from tyre, brake and road wear.

Hybrids

Hybrid vehicles combine some of the features of EVs and petrol-powered cars. Non plug-in hybrids (HEVs) run on a petrol engine that is supplemented by a battery, which kicks in when the engine is idling or driving at low speeds, and is recharged by the petrol engine. Plug-in hybrids (PHEVs) can run in petrol only, battery-only, and hybrid modes, and the battery can be recharged either by the petrol engine or by being plugged into a dedicated charging station. 

When a hybrid is running on its petrol engine, it produces tailpipe emissions much like a traditional petrol-powered car. But when running in battery-supported hybrid mode, its exhaust emissions will be lower than similar petrol or diesel vehicles. Emissions are also generated refining and transporting petrol to fuel a hybrid, and to generate electricity to charge a PHEV.

Hydrogen Vehicles

Vehicles that run on hydrogen fuel cells only produce tailpipe water vapour and heat, with no greenhouse emissions. And unlike EVs that can take hours to recharge, hydrogen vehicles can be refuelled in as little as 5 minutes. 

However, producing hydrogen fuel may create some emissions if the hydrogen is made from coal or gas. Hydrogen can also be extracted by electrolysing water.

How to switch to a green vehicle

If 2023 is the year that you plan to go green when it comes to driving, here are the steps you can take: 

Choose a car

Before you rush out and buy the first green vehicle you see, it’s important to compare the different makes and models and consider which option may best suit your needs.

It’s also worth considering that some types of green vehicles may be more difficult to find than traditional petrol or diesel cars. For example, according to the Green Vehicle Guide, there are only two hydrogen fuel cell vehicle models approved for use in Australia from Toyota and Hyundai. These are available for special order only and not for everyday sale and use.

Confirm that infrastructure is available

Refuelling a petrol or diesel car is fairly simple – when the tank gets low, pull into a service station and give it a refill. But keeping a greener vehicle running may be a little trickier for some Australians. 

While HEVs can be refuelled just like petrol cars, PHEVs and EVs require access to a dedicated charger to keep them topped up and ready to go. Not all service stations and car parks have public EV chargers available, though governments around Australia reportedly have plans in place to roll out more charging stations and batteries for EVs in the future, as well as electrolysers and hydrogen refuelling stations. Until then, the most reliable way to charge your green vehicle could be to do so at home.

While charging a car at home could raise your household’s electricity bills, one alternative option to consider could be to invest in solar panels and a solar battery. This could let you use the sun’s energy to fuel your EV, further lowering the ongoing costs. You may also be able to get help covering the upfront installation cost for the battery, solar panels, and charging station with the help of a green personal loan, or even by refinancing your mortgage to a green home loan to access your equity. 

Get financing

It's also important to remember that green vehicles generally have more expensive purchase prices than their petrol-powered counterparts – while you may save on fuel, you may still have to stump up a higher upfront cost.

One option to help you finance a green car purchase it to apply for a green car loan. Available from selected lenders, these car loans offer generally lower interest rates and are limited to the purchase of fuel-efficient vehicles. Be sure to compare green car loans before you apply, as not every offer will be the best choice for your financial situation and credit history.

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