From left: NZ Climate Minister James Shaw, Australian Climate Minister Chris Bowen, Australian Treasurer Jim Chalmers, and NZ Minister of Finance Grant Robertson signing a memorandum of understanding. Source: Suff.co.nz
Australia and New Zealand have decided to work together on securing supply and local manufacturing of electric vehicles, following a meeting between their respective climate and energy and finance ministers.
The leaders signed a memorandum of understanding outlining areas of enhanced cooperation to support accelerated climate action and economic opportunities that the clean energy transformation offers both countries.
Australia’s climate and energy minister Chris Bowen says the country is working towards solar PV manufacturing, and is interested in EVs too, including cars and last mile delivery vans, as part of its goal to become a renewable energy superpower.
“Whether it’s full electric vehicles or one particular type of electric vehicle like last-mile delivery vans, there’s a lot of interest in manufacturing in Australia,” Bowen told journalists after the meeting.
“And as you know, the economics of manufacturing in the renewable supply chain are different to the old economics and that’s why when we talk about being a renewable energy superpower in the Australian context, we include manufacturing.
“So we’re very forward leaning, whether it’s electric vehicles or components of electric vehicles or batteries, considering we’re home to nine out of the 10 critical minerals necessary for a battery. We want to add more value, do more processing, more manufacturing solar panels.”
New Zealand Climate Change Minister James Shaw says improving access to parts and components was critical for “smaller markets like ours at the very far end” of global supply chains, which was impeding the country’s ability to make a rapid transition.
“If you add our market to the Australian market, that’s an expansion of around a fifth in terms of that of that purchasing power,” he said.
According to RNZ there were little details of any further agreements, as it was the first of what will be annual meetings between the four ministers. The other ministers involved in the Climate and Finance summit were Australian treasurer Jim Chalmers and NZ finance minister Grant Robertson.
Australia can learn from New Zealand on vehicle emission standards. New Zealand introduced its Clean Car Standards in April last year, resulting in a big increase in EV sales.
Polling by the Electric Vehicle Council earlier this year showed that nearly two thirds of New Zealanders believe that their recently introduced fuel efficiency standards are “good policy for New Zealand”, versus just 12 per cent who disagree with the sentiment.
Keyword: “At the very far end:” Australia and New Zealand to co-operate on EV supply and manufacturing