Numerous transport associations have responded to the federal government’s $1.1 billion investment announcement into locally manufacturing low carbon liquid fuels, welcoming the move.
The National Road Transport Association (NatRoad) praised the 10-year Cleaner Fuels program that is aimed to support local investment in producing renewable diesel that is compatible with current engines by 2029.
NatRoad CEO Warren Clark says it welcomes the announcement which is in line with NatRoad’s recommendations as part of its advocacy efforts.
“It’s good to see the federal government is listening to industry and taking action. NatRoad has been working behind the scenes for years now and thanks the government and the departments for making solid progress,” Clark says.
“We have provided multiple submissions recommending low carbon diesel as a key component of the broader plan, and providing monetary support to help kick-start the support and businesses required to reduce heavy vehicle emissions as we transition to net zero.
“This includes NatRoad’s Stronger Economy, Lower Emissions policy paper that included low carbon liquid fuels as one of our critical recommendations to government, and this week we provided a submission to the Productivity Commission’s inquiry into cheaper, cleaner energy solutions that supported policies aimed at increasing supply and lowering prices of low-carbon fuels.”
Clark adds that while NatRoad welcomes this investment, managing the cost of using alternative fuels for road transport operators will be critical to their effectiveness in lowering heavy vehicle emissions.
“We have made it clear in our advocacy that the road transport industry needs a ‘fair go’ transition strategy, with a clear and cost-effective policy framework to ensure road transport operators aren’t forced to absorb higher fuel costs,” Clark says.
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“This is particularly important at a time when margins are incredibly tight, and operators are already dealing with significant uncertainty around costs.”
Clark says the road freight sector is ready to adapt and support the transition to lower carbon-emitting ways of operating, but it is vital that measures are put in place to ensure as many road transport businesses can participate as possible.
“About 98 per cent of the road freight industry consists of small businesses, and we must ensure carbon reduction initiatives aren’t too costly, time consuming or complicated for them to take part,” he says.
“We look forward to continuing to work with the federal government to help bring about a transition to net zero emissions that is fair, cost-effective, and accessible for all the road freight industry,” he added.
The Victorian Transport Association (VTA) also responded to the announcement, with CEO Peter Anderson saying the investment reflects a growing recognition of the transport industry’s role in achieving national emissions reduction targets, while acknowledging the practical challenges of transitioning a complex and essential sector.
“This is a significant and welcome investment that supports the freight industry’s journey toward decarbonisation,” he says.
“Low carbon liquid fuels are essential for heavy vehicles and machinery that cannot yet be easily electrified. Supporting local production of these fuels will help reduce emissions while maintaining the reliability and resilience of our supply chains.
“The VTA has long advocated for a supported and realistic transition, and this announcement shows the government understands that decarbonising freight will take time, investment and collaboration.
“We also urge continued support for freight operators – particularly small and medium businesses – as they adapt to new fuel technologies and infrastructure.”
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