Driving powerful change
The road to electric buses requires a collaborative effort across industries and promises to bring benefits that go beyond protecting the environment.
The Australian government has committed to achieving a net-zero economy by 2050. With less than three decades to go, accomplishing this goal is expected to cost an estimated $2.52 to $3 trillion of investment to transform assets, technology and processes, according to the Commonwealth Bank of Australia’s 2022 Climate Report.
Public transport is one sector en route to an electric transformation. The Victorian and Queensland governments have announced they will not procure new diesel buses from 2025 and the NSW Government has set deadlines to remove all carbon-emitting public buses from the Sydney metropolitan area by 2035.
CBA is seeking to support states on their transition to renewable transport. “Passenger buses represent the second-largest public transport segment in Australia,” says Jake Potgieter, CBA’s managing director of Industrials, Transport and Consumer. “Facilitating the transition away from diesel engines will be critical in helping the states and the country achieve their net-zero emissions aspirations.”
Through CBA’s strong relationships with private and public industry participants, it’s been able to bring together key stakeholders across the zero-emission bus ecosystem – from energy providers to bus manufacturers and government – to share strategies and solutions to overcome the challenges of transition. “This includes an electrical grid upgrade capable of being maintained at peak demand levels, bus depots supplied with sufficient power, storage, floor space and charging capabilities to guarantee continuous bus service. Plus, mechanics and drivers who need to be re-skilled and retrained.”
While the initial outlay for the electrification of the bus network is expensive – an electric bus can cost 30 per cent more than its diesel counterpart – CBA is providing innovative funding solutions that allow capital expenditure spikes to be efficiently managed and potentially accelerate the transition. “Fuel is by far the biggest expense associated with diesel buses and if this cost goes away, the economic benefit is substantial. On current figures from an electric bus trial in the ACT, electric buses save $275,306 over a bus’s life.”
The benefits of a sustainable bus transport system also go beyond the environment. “It can provide social and economic benefits, including increased access to healthcare, education and jobs.”
CBA is looking to the future to help other industries achieve Australia’s net-zero goal. “We’re ready to have the conversation with other stakeholders and interested parties across manufacturers, operators, investors and governments about how we can support them to maximise this transition opportunity.”
Learn more about how CBA is supporting Australia’s transition to a net-zero economy at commbank.com.au/sustainability