Local councils could save money and reduce greenhouse gas emissions by shifting their fleets to electric vehicles, a study by ClimateWorks Australia suggests.

Project officer Claire Connell said more than half of new vehicles sold in Australia in 2017 were purchased by the government and corporate fleets so it was a significant opportunity.

Sydney Lord Mayor Clover Moore's council has embraced electric cars in their fleet. Credit:Jessica Hromas

"Local governments specifically have an explicit obligation to manage their assets in the best interests of their constituents," Ms Connell said. "A number have significant emissions reductions targets in place."

The research follows the federal opposition's announcement of its electric vehicle policy last week. Labor's plans include spending $100 million to support the rollout of charging stations around the country and a target for electric vehicles to make up half of all new car sales by 2030. A Labor government would also commit to an electric vehicle target of 50 per cent of new purchases and leases of passenger vehicles for the government fleet.