The National Road Transport Association (NatRoad) has called for the introduction of a proposed Low Carbon Fuel Standard (LCFS) to support the “vital” internal combustion engine.
NatRoad CEO Warren Clark says the standard would ensure a pathway to net zero operations without removing the engines from use, with Clark labelling the engines as critical to Australia’s heavy transport landscape.
“An LCFS would provide a pathway for ICE vehicles to continue contributing to the economy as an essential part of the national supply chain while we work to help meet the government’s carbon reduction goals,” Clark says.
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“Gradually decreasing the carbon intensity of the fuels we use, rather than relying solely on the rapid transition to technologies not yet ready for use in all specific freight tasks, like electric or hydrogen-powered trucks, is a realistic and cost-effective way for the road freight sector to help achieve net zero.”
As a key solution for maintaining the efficiency of supply chains while working to zero-emissions, Clark says a mix of technologies are critical to achieving net zero for road freight. With electric vehicles being increasingly suitable for urban freight tasks, where distances are short and the infrastructure easier to develop and implement, Clark says hydrogen holds the potential for heavier freight tasks requiring more range.
However, for this sector, Clark says ICE technology will continue to play a critical role for many years to come.
“We need a solution that recognises this reality and an LCFS allows us to do just that,” he says.
“One of the key benefits of an LCFS is that it allows the market to find the most cost-effective solutions. Rather than governments dictating specific technologies or fuels, the LCFS would provide a framework that can innovate and deliver more choice for individual businesses. This is particularly important in the road freight industry, where flexibility and cost-effectiveness are essential.
“The gradual introduction of an LCFS is also important. We wouldn’t see a sudden shift to 100 per cent renewable diesel overnight. Instead, renewable diesel could be blended with regular diesel, increasing over time, allowing the industry to scale up gradually and avoid price shocks at the pump. This would ensure a smooth transition for operators, and provide certainty to fuel suppliers, enabling long-term planning and investment.”
With the feedstocks used to produce renewable diesel being limited, Clark says a range of diesel, electric and hydrogen technology all have a place in the freight sector.
He says the introduction of an LCFS allows a practical transition pathway for every Australian trucking business, allowing them to reduce emissions without making major vehicle or operational changes.
“Over time, as the proportion of renewable diesel in the blend increases, the carbon intensity of the fuel would drop, helping the entire industry move towards a lower emissions future,” he says.
“The benefits of an LCFS also extends beyond environmental gains. By starting gradually, we can allow the renewable diesel industry to mature, ultimately driving down the cost of low-carbon fuels. This would provide much-needed relief to operators who are already managing a challenging economic environment.
“In a sector as critical as road freight, where the cost of fuel can make or break a business, we need a balanced, flexible, and cost-effective approach to reducing emissions. We want policymakers to recognise the vital role the internal combustion engine will continue to play in Australia’s freight landscape and to put in place a framework that secures its future in a low-emissions economy.
“A Low Carbon Fuel Standard provides that solution, allowing us to continue powering Australia’s economy while contributing to a more sustainable future.”