NatRoad welcomes the Federal Government’s announcement of a $1.1 billion investment in local manufacturing of low carbon liquid fuels as part of the transition to clean energy and net zero.
The 10-year Cleaner Fuels Program supports local investment in the production of renewable diesel to provide fuel that is compatible with current engines by 2029.
NatRoad CEO Warren Clark says the announcement 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,” he 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 says that despite NatRoad welcoming this investment, managing the cost of using alternative fuels for road transport operators will be vital 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,” he says.
“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, however it is crucial 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.”
NatRoad has also developed a Get Fleet Fit roadmap that helps truck operators cut costs, improve fuel efficiency and reduce emissions as part of the net zero transition.