Industry leaders and politicians have criticised the strategy, which leaves Australia priced out of the global competitive market, and making it harder to meet climate targets.
The Federal Government has ruled out subsidising private electric vehicle* ((EV)) purchases.
However, it will consider an incentive system which would encourage businesses to invest in zero-emission fleets.
Under the 'Future Fuels' proposal, the Government will urge businesses to upgrade their fleets with plug-in hybrid and electric vehicles.
It will also invest in charging stations and new infrastructure to integrate battery EVs into the power grid.
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