The global transport industry’s shift to net zero is set to be a long and difficult process, and while uptake of battery electric, hydrogen, and other sustainably fuelled heavy vehicles is slowly but surely moving along, the traditional internal combustion engine still has a key role to play in the sector.
NatRoad CEO Warren Clark has contested the introduction of a Low Carbon Fuel Standard (LCFS) is a key solution in maintaining the efficiency of Australia’s supply chain while working towards the 2050 net zero targets.
“It’s true that achieving net zero for road freight will ultimately require a mix of technologies,” Clark writes.
“Electric vehicles are increasingly suitable for urban-based freight tasks where the distances are short, and the infrastructure [is] easier to develop.
“Hydrogen holds potential for heavier freight tasks, which also need more vehicle range.
“However, for Australia’s longer-distance, remote and heaviest freight tasks the internal combustion engine will continue to play a critical role for years to come. We need a solution that recognises that reality.
“An LCFS allows us to do just that.”
An LCFS has recently been enacted in California through the state’s AB32 Global Warming Solutions Act, and is a rule designed to reduce greenhouse gas emissions and air pollution from transportation.
It creates a sustainable investment target by setting a carbon intensity reduction target for fuel suppliers that increases over time.
This motivated fuel suppliers to introduce solutions such as biodiesel and renewable diesel into the market, which provides the opportunity to reduce emissions without the need for immediate, large-scale infrastructure changes.
Clark says while there is strong potential for an LCFS to influence Australia’s transport emissions in the near future, it will not be an immediate solution.
“The gradual introduction of an LCFS is important. We wouldn’t see a shift to 100 per cent renewable diesel overnight,” he says.
“Instead, renewable diesel could be blended with regular diesel, increasing over time, to allow 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.”
A shift to LCFS would also ensure the future of transport decarbonisation remains in the hands of the transport industry.
“One of the key benefits of an LCFS is it allows the market to find the most cost-effective solutions,” Clark says.
“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 for the road freight industry, where flexibility and cost-effectiveness are essential.”
You can read NatRoad’s full Stronger Economy, Lower Emissions paper which further details the potentially effectiveness of integrating an LCFS into the Australian market here.
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