The Australian Logistics Council (ALC) has called for the Cleaner Fuels Program to focus on practical emissions reductions for Australia’s freight system.
The ALC says the emissions reductions must be able to be delivered in the near term while maintaining productivity, affordability and supply chain reliability.
Freight underpins Australia’s economy and community wellbeing. With transport accounting for around 22 per cent of national greenhouse gas emissions, the ALC says reducing emissions in hard-to-abate road, and rail freight, as well as shipping and aviation essential, but it must be done in a way that keeps goods moving efficiently.
“Freight operators are facing increasing pressure to reduce emissions, but many freight tasks remain difficult to electrify at scale,” ALC chief executive Dr Hermione Parsons says.
“Cleaner fuels that can be used in existing fleets are critical if emissions reductions are to be achieved this decade without disrupting supply chains.”
In a submission to the Australian Department of Infrastructure, Transport, Regional Development, Communications, Sport and the Arts, ALC welcomed the Cleaner Fuels Program’s objective of supporting domestic low-carbon liquid fuel production, while emphasising the need for program settings that reflect the operational realities of freight transport and logistics.
The ALC says Australia’s supply chain logistics task relies heavily on long-distance road transport, freight rail, aviation and maritime services. These sectors operate high-utilisation assets with long service lives, often across regional and remote areas where alternative energy infrastructure remains limited. As a result, the council says low-carbon liquid fuels provide a practical pathway to reduce emissions from existing vehicles without requiring premature asset replacement or changes to operating models.
ALC’s submission supports a technology-neutral approach to decarbonisation, while recognising that fuels are at different stages of commercial readiness. Renewable diesel, including hydrotreated vegetable oil (HVO), is already compatible with heavy transport fleets and can be deployed at scale in the near term, making it well suited to delivering emissions reductions this decade.
“Getting the design right will allow the Cleaner Fuels Program to reduce emissions while keeping freight transport productive and supply chains reliable,” Parsons says.
“This is about delivering practical decarbonisation that supports Australia’s economy, regional communities and long-term fuel security.”