Customer-owned Bank Australia will stop petrol and diesel car loans from 2025.

Electric vehicles this year have a minuscule 1.6 per cent market share even when Tesla sales were included, with starting prices of $47,000 and a lack of charging stations turning off many potential motorists.

But the customer-owned Bank Australia wants to change that, in a bid to reduce carbon emissions linked to climate change.

Its chief impact officer Sasha Courville told the National Electric Vehicle Summit in Canberra on Friday the bank’s new policy was ‘an important step in decarbonising the Australian economy’.