Australian banks refuse to lend money to buy petrol-powered cars

Bank Australia, which has more than 185,000 customers in Australia, has announced that it will stop approving loans for new internal combustion engine (ICE) vehicles, including cars and trucks, saying it does not want customers to continue using products with increasing operating costs and large carbon emissions.

Electric car sales accounted for just 2% of total car sales in Australia last year.

However, Bank Australia is still approving loans for used fossil fuel vehicles, explaining that not everyone can afford a new electric car.

Bank Australia's head of impact Sasha Courville said the announcement to phase out ICE car loans from 2025 was a signal to customers to consider switching to electric vehicles, a change that would have long-term environmental and operating cost implications.

ICE vehicles will no longer be distributed in the Australian capital from 2035.

Electric vehicle sales in Australia reached 20,665 last year, accounting for 2% of the country's total car sales. The Tesla Model 3 was the best-selling model, with more than 12,000 units sold.

The Australian government has taken steps to curb the proliferation of ICE vehicles. Most notably, it announced that new ICE vehicles would be banned from sale in the Australian capital by 2035.