Are EVs Better for the Environment?
Electric vehicles (EVs) are often praised as the greener alternative to petrol and diesel cars. But how much of an environmental impact do they actually have?
Lower Emissions on the Road
One of the biggest advantages of EVs is their zero tailpipe emissions. Unlike petrol or diesel cars, EVs don’t produce carbon dioxide (CO2) while driving, which significantly reduces air pollution and greenhouse gases.
However, the overall environmental impact depends on how the electricity that charges the EV is generated. In regions with a high percentage of renewable energy, EVs have a much lower carbon footprint. But if coal and gas still dominate the power grid, emissions from electricity generation must be considered. Renewables account for 39.4 percent of Australia's total electricity supply, but numbers vary on a state-by-state basis. With this number set to rise in the coming decades and an EV will only become more environmentally friendly.
If you're considering an EV, Fleetcare can help you find the right novated lease to suit your budget and sustainability goals.
Manufacturing and Battery Production
EVs have a higher carbon footprint during production compared to conventional cars, largely due to battery manufacturing. Mining raw materials like lithium, cobalt, and nickel for EV batteries requires energy-intensive processes that contribute to emissions.
The good news? Advancements in battery recycling and sustainable sourcing are helping to reduce the impact. Plus, as battery technology improves, EVs are becoming more energy-efficient and environmentally friendly over their lifetime.
Emissions Comparison: EV vs Petrol vs Hybrid
| Feature |
EV (Electric Vehicle) |
Hybrid (HEV/PHEV) |
Petrol/Diesel Car |
| Tailpipe CO₂ Emissions* |
0 g/km
(no exhaust) |
30-100 g/km
(varies by hybrid type) |
150-250 g/km |
| Manufacturing Emissions |
Higher
(battery production impact) |
Moderate
(smaller battery + fuel system) |
Lower
(traditional manufacturing but
high lifecycle emissions) |
| Running Costs & Maintenance |
Lowest
(fewer moving parts, lower costs) |
Moderate
(some fuel costs, less wear than petrol cars) |
Highest
(fuel, engine maintenance,
more wear and tear) |
Longevity and Efficiency
Over time, EVs offset their higher production emissions through lower running emissions. Studies show that even in coal-reliant grids, an EV still emits fewer greenhouse gases over its lifespan compared to a petrol or diesel car. And with the growing shift towards renewable energy, EVs will only get cleaner.
Additionally, EVs are more energy-efficient, converting over 70% of electrical energy into actual movement, whereas traditional combustion engines convert only around 30%. This means less energy waste and more sustainable driving.
With the Australian Government’s Electric Car Discount, eligible EVs come with added potential savings, making them even more cost-effective and affordable.
The Future of EV Sustainability
Governments and manufacturers are pushing for greener innovations, including:
- Better battery recycling programs to reduce waste.
- Expanding renewable energy sources to power EV charging stations.
- More energy-efficient EV designs to maximise driving range with minimal environmental impact.
If you're looking for EV charging solutions, Fleetcare’s fleet management services can help integrate sustainability into your business operations.
Thinking About Making the Switch?
If you’re considering an EV, Fleetcare offers a range of novated lease options with access to fleet discounts, potential tax benefits, and convenient bundled payments. Plus, with the Electric Car Discount, eligible EVs could come with even more savings. Contact our team today and we’ll help find the right EV solution to suit your needs.
EVs are already proving to be a cleaner alternative, and as technology advances, their environmental benefits will only continue to grow.
Disclaimer: Emissions figures are estimates based on industry data from sources including the Australian Government's Green Vehicle Guide, the International Energy Agency (IEA) Actual emissions may vary.