Over the total carbon emissions life cycle of an electric vehicle (EV) (vehicle production, operation and disposal), EVs create significantly less carbon emissions, noise and air pollution than comparable petrol and diesel vehicles.
EVs produce carbon emissions at different stages of the vehicle’s lifecycle:
- during manufacturing, particularly in the production of the EV battery
- when using electricity to charge the EV (depending on the energy source)
- at end-of-life, through recycling and circular economy processes when the vehicle is no longer in use.
When charged using renewable energy, the environmental and financial costs of powering an EV are even lower, further reducing emissions.
It is estimated that an EV can offset the emissions from its production (its ‘carbon debt’) within around 2 years of use.
Find out more about lifecycle emissions for specific vehicles at the Green Vehicle Guide.
Manufacturing an EV
The first phase of the EV life cycle is the manufacturing phase.
Batteries that power EVs may include:
- lithium
- cobalt
- manganese
- nickel
- graphite.
These 'critical minerals' must be extracted, processed, and converted before they can be manufactured into batteries. EV batteries' chemistry varies. For example, lithium iron phosphate (LFP) batteries don’t contain cobalt or nickel.
Learn more about electric vehicle batteries and motors.
The energy and emissions involved in making a battery electric vehicle (BEV) or plug-in hybrid electric vehicle (PHEV) are typically higher than an equivalent internal combustion engine (ICE) vehicle. This is mainly due to the production of a large battery pack. However, total emissions over the life of a new EV are less than lifetime emissions for equivalent new petrol or diesel vehicles.
Running an EV
The environmental impacts of an EV depend on the type of EV.
Battery electric vehicles (BEV)
BEVs are powered by batteries only and driven by an electric motor. They plug into an external electricity source to charge the batteries. A BEV has no tailpipe (or direct) emissions. Charging an EV with renewable energy can further reduce an EV's environmental impacts.
Plug-in hybrid electric vehicles (PHEV)
PHEVs produce no tailpipe (or direct) emissions when operating in all electric mode. They produce direct emissions when using the internal combustion engine. PHEV batteries can be charged by plugging into an external source of electricity, but in some operating modes the combustion engine also charges the battery.
Like conventional petrol and diesel vehicles, EVs also have environmental impacts from tyres, brakes and road wear.
Learn more about types of EVs.
Reducing carbon emissions
The transport sector is our third largest emitter accounting for around 22.9% of emissions according to the Annual Climate Change Statement 2025.
Shifting to lower emissions vehicles, including EVs, presents an opportunity to reduce these emissions.
Over the lifetime of a vehicle, carbon emissions from EVs are already significantly lower than for comparable petrol or diesel vehicles. This difference will only improve as Australia continues to shift towards renewable energy sources.
Calculate your vehicles emissions from fuel production and combustion based on the vehicles fuel and energy consumption, fuel type, electricity grid and distance travelled on the Green Vehicle Guide's fuel lifecycle emissions calculator.
Powered by a mix of sources
The electricity grid from which EVs are charged draws from a mix of energy sources. An increasing share is coming from renewable energy - wind, solar, and hydro. Already more than 40% of the electricity in Australia’s 2 largest grids is renewable.
Image source: Australian Energy Statistics, Table O Electricity generation by fuel type 2024-25 and 2025 Department of Climate Change, Energy, the Environment and Water (2026)
Image source: Electricity & Energy Sector Plan Department of Climate Change, Energy, the Environment and Water (2025)
EVs charged on the existing Australian grid already produce lower emissions over their lifetime than petrol or diesel cars. Australia has set a legislated target to reduce greenhouse gas emissions to net zero by 2050. As the electricity grid decarbonises further, powering an EV will become cleaner each year.
All of Tasmania and the ACT's electricity supply is already fed by 100% renewable energy. Charging an EV from renewable energy like solar panels produces even lower carbon emissions.
Find out more about how to choose, use and maintain a rooftop solar system on the Solar Consumer Guide.
Air pollution
Another key benefit of EVs is to support you and your community to breathe cleaner, healthier air.
Air pollution is a serious public health issue. In Australia, it is linked to thousands of deaths a year. Conventional petrol and diesel cars produce many pollutants that contribute to poor urban air quality.
Air pollutant emissions emitted by combustion engine motor vehicle exhausts include:
- carbon monoxide (CO)
- nitrogen oxides (NOx)
- particulate matter (PM)
- volatile organic compounds (VOC).
Vulnerable groups such as children, people with asthma or the elderly are particularly affected by this air pollution. You may also be one of many Australians who live, work, or go to school close to major roads.
EV adoption provides another benefit as full battery EVs (BEV) don't produce any pollutant emissions from the tailpipe. Plug-in hybrids (PHEV) don't have any tailpipe emissions either when running entirely on the battery and electric motor.
The New Vehicle Efficiency Standard was introduced in 2025 to encourage more lower emissions vehicles on Australian roads, including EVs. It – aims to deliver around $5 billion in health savings by 2050.
Noise pollution
Tail-pipe emissions are not the only environmental impact to consider for vehicles. Noise pollution is any unwanted, excessive, or disturbing noise. It’s linked to adverse health and behavioural effects on humans and animals.
Road traffic is a significant cause of noise pollution. EVs are much quieter at moderate speeds. Increasing the share of EVs on Australian roads will help reduce noise pollution levels.
To support pedestrian safety, all BEVs, PHEVs, and hydrogen fuel‑cell vehicles entering the Australian market must now meet the national Acoustic Vehicle Alerting System (AVAS) requirements.
This ensures vehicles must emit an approved alert sound at low speeds up to 20 km/h. The legislation is a key safety initiative for people who are blind or have low vision. It will help them to continue navigating Australian streets and carparks safely.
Recycling an EV
An expanding global EV industry presents an opportunity to embed circular economy principles in design, manufacturing and end-of-life management of EVs. This will better enable efficient and high-quality repair, reuse and recycling.