Australia launches "Cleaner Car Rebate"

Australia may soon follow in the footsteps of other international markets with a “cash for clunkers” program dubbed Cleaner Car Rebate, offering a A$2,000 (US$1,803) boost to new car buyers trading in pre-1995 cars. Prime Minister Julia Gillard announced the program as part of her government’s election climate change policy, with a total cost of around A$394 million (US$355.33 million). If the Labor government is re-elected, the program will kick off from January 1 next year. Gillard said the rebate is part of a plan to cut vehicle emissions by one million tons, with mandatory emissions regulations to be introduced for new cars from 2015. The Labor government expects its rebate program and emissions regulations to reduce carbon dioxide emissions by 2.6 million tons, while saving A$1.8 billion (US$1.6 billion) in fuel costs by 2024. (July 25, 2010)