Transportation is now the largest source of greenhouse gas emissions in the ACT by a country mile.

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Recently, we learned that the ACT is now expected to miss its 2025 emissions reduction target.

Transportation clearly needs to be front and centre in any ACT effort to continue to meet its five-yearly targets. There are many levers available including improving public transport services, building active travel infrastructure, and cleaning up the car fleet. We clearly need all of the above.

The ACT is unique in Australia for having a motor vehicle duty scheme since 2008 that bases stamp duty rates on tailpipe emissions and sale price to encourage the purchase of low emissions vehicles.

Vehicles are classified using six categories ranging from "AAA" for zero emissions vehicles to category "D" for the most polluting vehicles.

Despite recent claims that the stamp duty exemption for electric vehicles was "pretty regressive", the ACT government granted buyers of the most fuel efficient vehicles a stamp duty exemption for almost two decades.

Since last month, zero emissions vehicles are no longer exempt from stamp duty. The spread of duty rates previously ranged from zero to 4.5 per cent and now it is 2.5 per cent to 4.5 per cent. In a 2016 critique by taxation academic Dr Anna Mortimer, the differential duty that applied at that time was "found to be ineffective to shift consumers' preference to fuel efficient vehicles".........

© Canberra Times