Australia cuts green car funding in wake of floods

Australia has abolished plans to help develop greener cars and encourage consumer uptake of lower emission vehicles.

Prime Minister Julia Gillard has announced that the country’s $1.3 billion Green Car Innovation Fund will be dropped along with the Cleaner Car Rebate Scheme as part of spending cuts to help finance rebuilding Australia’s flood-affected regions.

Australia recently suffered its worst floods in more than thirty years, with large swaths of Queensland particularly badly affected. Preliminary estimates, following consultation with the Queensland Government, indicate that the Government will need to invest $5.6 billion in rebuilding flood-affected regions. Two-thirds of that funding will be delivered through spending cuts, the rest through an emergency tax levy.

The country’s Cleaner Car Rebate Scheme worked much the same as the Scrappage Scheme in the UK or the Cash for Clunkers scheme in the US; consumers were granted AU$2,000 towards a new car in return for scrapping their 15 years-or older-model. It was designed to get old, dirty cars off the road, replacing them with cleaner and safer models while helping support Australia’s auto industry.

The Green Car Innovation Fund provided financial assistance to companies involved in the design, develop and manufacture greener and alternative fuel cars and components in Australia. ...