The Transport and Infrastructure Net Zero Roadmap and Action Plan released last week lacks any concrete financial or policy commitment from the Government to enable a faster transition for heavy vehicles, according to HVIA’s assessment.
The Roadmap and Action Plan was released alongside the announcement that the Federal Government has set its 2035 emission reduction target at 62-70 per cent.
This transport sector plan sits alongside five others, including energy/electricity, industry, resources, built environment, and agriculture and land. The proposed timeline for heavy vehicles and transport infrastructure to transition to net zero includes the following:
| 2025-2030 | 2030-2035 | 2035-2050 | |
| Heavy Vehicles | Electrification of buses and smaller trucks, supported by more charging infrastructure. Demonstrated use of LCLFs. | Charging infrastructure scales up. Battery electric and hydrogen fuel-cell adoption accelerates. LCLFs continue to support longer distance, heavier vehicles. | Battery electric and hydrogen fuel-cell mass market adoption and efficiency improvements. LCLFs where battery electric and hydrogen fuel-cell are not feasible. |
| Transport Infrastructure | Increased availability of low emissions and recycled materials with verified emissions profiles. Optimisation of intermodal freight infrastructure. | Low and zero carbon materials are prioritised by industry. Widespread use of low- and zero-carbon materials and modular components. Increased low- and zero-carbon options to transport goods. | Low and zero carbon materials used by default. Circularity of components considered at all project life stages. |
The plan covers a range of different technologies, including electrification, hydrogen, low carbon liquid fuels (LCLFs) and switching to higher productivity vehicles. This last point is something HVIA has been advocating for, so it was pleasing to see it included in the document.
However, the inclusion of HVIA’s point about higher productivity vehicles is one of the few bright points.
Overall, HVIA is concerned at the broad ‘responsibility-shifting’ approach of the plan, as it seems to rely on a multitude of other existing initiatives, plans, guides and strategies – over 20 other existing documents are referenced.
Ultimately, the plan relies on industry progressing the actions, and there is no concrete financial or policy commitment from Government to enable a faster transition for heavy vehicles.
Gaps and Missed Opportunities
Let’s consider the actions proposed. Much of what is contained in the plan isn’t new, and some of the initiatives have not been released to industry, such as the results of the Australian Design Rule (ADR) Harmonisation Review.
Furthermore, the existing documents are chiefly focused on light vehicles, rail, maritime and aviation, with the stated programs for heavy vehicles having emissions reduction as a by-product, rather than a dedicated focus.
For example, the Safer Freight Vehicles package is said to help “[i]ncrease the supply of affordable and accessible EVs”, which, if you squint, it does do, as the ADR Harmonisation Review might, if only we knew what that actually contained.
Particularly disappointing is the lack of an incentive pool being made available for heavy vehicles. This remains a necessary part of the transition according to the recent Productivity Commission Interim Report on net zero – and is a missed opportunity. Most other OECD nations that have shifted the dial in low- and zero-emission heavy vehicle sales have had some kind of tax rebate, or point of sale voucher, to encourage uptake.
There is the usual emphasis on the great saviour of mode-shift, particularly road freight to rail, but there are no new policy or infrastructure development proposals to actually support this happening.
HVIA agrees that inconsistencies between jurisdictions on workforce and training need to be removed, but this section feels like an afterthought. We are concerned that the plan only references Industry Skills Australia as the relevant Jobs and Skills Council, when there is also the Mining and Automotive Skills Alliance, which engages heavily in both the light and heavy vehicle space, as well as other forms of transport in Australia.
Specific Concerns
HVIA is concerned with the focus on renewable diesel being proposed as a viable option to electric and hydrogen. This market is immature, and the price point is prohibitive. With the development of an Australian LCLF industry yet to occur (though we acknowledge the recent funding announcement), it is difficult to understand how operators will be able to access these fuels at a price that makes commercial sense. LCLFs could take as long as other technologies to be widely adopted in the market.
A particular bug-bear for the developing heavy EV sector is that the Minimum Operating Standards for EV Charging Infrastructure has still not been updated to include heavy vehicles on freight routes and caters only for light vehicles. HVIA has been advocating for the standards to better cater for our sector and remains cautiously optimistic that this may change in the future.
And those higher productivity vehicles we recommended? Unfortunately, there is no indication of how the plan supports the ‘increased uptake of higher productivity vehicles’, despite acknowledgment that there are barriers to the uptake of vehicles that reduce emissions. So even the bright part is dull on closer inspection.
Where To From Here?
The document says there will need to be both significant public and private investment in low- and zero-emissions technology and infrastructure. We have not seen any indication that government will be investing in the heavy vehicle transition.
HVIA is working on a set of sustainability guidelines to provide clear, actionable steps available to industry to start decarbonising their business activities. This will include case studies, as well as clear explanations of key terminology.
The heavy vehicle industry would benefit from an equivalent of the Jet Zero Council, to ensure public and private are working together to assist the transition.
We would benefit from an incentive pool so that new vehicles, technologies and infrastructure can be utilised immediately by more operators.
Ultimately, we would benefit from a plan with more concrete actions backed by capital. Industry is doing a lot to progress the transition, and we need more than hope from the Government.
The Transport and Infrastructure Net Zero Roadmap and Action Plan is available for download here.
The economy-wide Net Zero Plan and other Sector Plans are available for download here.