Over the past five years, Australia has witnessed a steady increase in the adoption of Zero Emission Buses (ZEBs), a trend fuelled by both industry-led sustainability initiatives and government direction under the various state Net Zero and federal Net Zero policies.

Industry-Led Sustainability Shifts
The transportation sector has been a focal point for decarbonisation efforts, given its significant contribution to national emissions even though buses only contribute to 1.8% of overall transport emissions. Bus manufacturers and fleet operators have led the charge (pardon the pun) by investing heavily in electric and hydrogen fuel cell technologies. This includes local design and assembly. These innovations not only reduce emissions but also offer better experience for public transport users and government expectations for cleaner transport options.

Leading Sector
This transformation is clearly illustrated in the accompanying chart, which shows ZEB sales climbing from just 0.2% of buses sold in 2020 to 11% in 2024. Its risen to 18% ytd in 2025 (July) . Leading other Automotive sectors in the transition to Zero Emission Technology. This growth has occurred even as total bus sales fluctuated, indicating that ZEBs are capturing a larger share of the market. The dotted red trend line in the chart underscores the consistent upward momentum in ZEB adoption.

The challenge of Infrastructure to keep pace
Australia’s commitment to achieving net zero emissions by 2050 has been a powerful catalyst for the growth of Zero Emission Bus (ZEB) adoption.

However, as ZEB sales continue to rise there is a growing recognition that policy momentum must be matched by infrastructure readiness. The Bus Industry Confederation (BIC)’s Zero Emission Bus Policy highlights this critical need, stressing that investment in ZEBs must be accompanied by:

• Robust charging and refuelling infrastructure across urban and regional networks.
• Grid capacity upgrades to ensure reliable and sustainable power supply for large-scale electric bus operations.
• Integrated planning between industry, transport agencies, energy providers, and local governments to avoid bottlenecks and delays.

Without sufficient infrastructure and energy planning, the rapid deployment of ZEBs risks outpacing the systems needed to support them. BIC’s policy calls for a coordinated national approach to infrastructure development, including long-term investment strategies and clear accountability frameworks. Key to this is working with the expertise existing within industry to collaborate on infrastructure goals and solutions to achieve those goals.

In short, while government direction has successfully accelerated ZEB uptake, the next phase of Australia’s net zero journey depends on ensuring that the physical and energy infrastructure is ready to meet the demands of a zero-emission future.