Bank Australia has announced it will stop funding loans for new fossil-fuel-powered cars from 2025 onwards, reports The Guardian.
The company argues that denying loans for new fossil-fueled vehicles makes sense. It believes the move means it won't "lock customers into higher carbon emissions and increasingly expensive running costs." Given this year's sky-high fuel prices, that's understandable, even if things are now starting to ease temporarily.
Of course, new cars are expensive, and not everyone is buying in this sector of the market. Thus, the policy will only apply to new vehicles. The bank will still consider loans for pre-owned ICE-powered vehicles for some time to come.