The Australian Logistics Council (ALC) has called on a federal government department to direct funding to decarbonising Australia’s freight and logistics sector.
The ALC has welcomed the government’s focus on hard-to-abate sectors and has lodged a submission to the Department of Industry, Science and Resources on the design of the proposed Net Zero Fund, calling for targeted investment in decarbonising freight and logistics.
The body is calling for the fund to prioritise freight and rail decarbonisation by addressing structural market failures that currently prevent investment in low-emission technologies.
The council’s submission is recommending a tiered funding model that combines grants with concessional loans and guarantees to unlock private capital and accelerate uptake of proven solutions, particularly when it comes to battery electric and hydrogen trucks.
“Freight and logistics are fundamental to Australia’s productivity. Strategic investment in depot electrification, zero-emission locomotives and renewable energy precincts can make low-emission supply chains commercially viable,” ALC CEO Dr Hermione Parsons says.
The submission highlights that decarbonising freight is both a national productivity and competitiveness issue, and says success should be measured by emissions reduced per dollar invested, private capital leveraged and growth in domestic manufacturing and jobs.
“The Net Zero Fund must deliver practical outcomes, not symbolic gestures,” ALC head of government and industry affairs Sheena Fardell says.
“Concessional finance should be calibrated to project risk and technology maturity, so projects move from demonstration to sustained commercial deployment.”
ALC also recommends that the fund complement, not duplicate, the Clean Energy Finance Corporation (CEFC) by focusing on industrial and transport readiness while the CEFC continues to support grid and renewable energy integration.