Billions of taxpayer dollars wasted on EVs for minimal carbon abatement

Wednesday 25 February 2026

Climate Change and Energy Minister Chris Bowen is celebrating the tiny 0.4% decline in Australia’s transport emissions in the year to September 2025, which Bowen claims is “proof” that his government’s heavy subsidisation of battery electric vehicles (EVs) is working.

“We are on track to meet our climate targets if we stay the course and continue to lift our efforts”, Bowen said.

Official data from the Department of Climate Change and Energy shows that EVs accounted for a record 13% of all new cars sold in 2025, helped by subsidies. This is misleading.

The full text of this article is available to MacroBusiness subscribers

$1 for your first month, then:

$24.99 / month

$249 / year

Cancel at any time through our billing provider, Stripe

About the author

Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.