Australia, Industrial Relations, Transport Industry News

$3 billion Clean Transport Fund ‘vital’ for industry

NatRoad

Industry association NatRoad has gone on the record seeking greater interest and investment from government to the tune of $3 billion to create a Clean Transport Fund.

“Trucking is an essential part of Australia’s economy, yet our industry is under immense pressure,” NatRoad CEO Warren Clark says.

“With an average profit margin of just 2 per cent, a shortage of 26,000 drivers, and the weight of extensive red tape, the proposed roadmap falls short of offering the support needed to help road freight businesses reduce emissions effectively.”

The organisation has encapsulated its thoughts in a policy paper, Stronger Economy, Lower Emissions and in recent submissions on the Transport and Infrastructure Net Zero Roadmap and Low Carbon Liquid Fuels inquiries.

The work acknowledges the danger of transport becoming the highest-emitting sector in terms of pollution by the end of the decade off the back of increased freight demand, and the myriad challenges in moving to cleaner fuels.

NatRoad is also advocating for a Low Carbon Fuel Standard (LCFS) to encourage a range of new fuel types into the market for heavy vehicles, including renewable diesel.

“A Low Carbon Fuel Standard is vital,” Clark says.

“Without it, we won’t have renewable fuels, so long-haul and regional freight, which are difficult to electrify, will remain heavily reliant on diesel.

“An LCFS will reduce the carbon intensity of fuels over time, allowing small trucking businesses to continue operating efficiently whilst reducing emissions.”

NatRoad’s call for the establishment of a $3 billion Clean Transport Fund is aimed at:

  • supporting the rollout of electric trucks
  • recharging infrastructure
  • hydrogen solutions
  • boosting efficiency with better heavy vehicle access, and
  • giving trucking operators better information to make low emission investment decisions.

NatRoad have also called on the government to encourage the big businesses who rely on freight hauling to play their part and take responsibility to help their supply chain to lower emissions.

“Big businesses need to back up their green pledges with genuine purchasing commitments,” Clark says.

“Major transport customers can’t simply bank billion-dollar profits while seeking low-cost transport contracts and claiming to be saving the planet.

“They can do more to offer road freight companies better rates and contract terms to enable low-emission transport solutions.”

While $3 billion sounds like a massive number, Clark says it is just 2.5 per cent of the cost of the current 10-year infrastructure pipeline in the country.

“Transport is on track to become the highest emitting sector, but small trucking businesses are not getting the help they need,” Clark says.

“A $3 billion Clean Transport Fund is a reasonable request, considering the significant public benefits, such as lower emissions and health costs.

“The government’s transport net zero roadmap will be meaningless without serious investment. Emissions are still rising, and without the right policy framework, net zero will push the industry into crisis.

“We need a comprehensive transition strategy that secures the future of our supply chains, strengthens our economy, and lowers emissions.

“The Australian fair go should apply to this transition, protecting jobs and ensuring no one is left behind.”

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