Heavy Vehicle Industry Australia (HVIA) has reiterated the importance of road freight to be recognised as a priority sector in the Federal Government’s plans to grow Australia’s low-carbon liquid fuel industry, lodging a submission to the consultation on a proposed cleaner fuels demand mechanism.
The consultation, led by the Department of Climate Change, Energy, the Environment and Water, is examining options to stimulate investment in domestic production of low-carbon liquid fuels, including renewable diesel and sustainable aviation fuel.
In its submission, HVIA strongly supports the Government’s objective of building a domestic cleaner fuels industry and acknowledges the important role that demand-side measures may play in attracting investment and strengthening Australia’s fuel security.
HVIA CEO Todd Hacking said low-carbon liquid fuels offer one of the most practical and immediate opportunities to reduce emissions from Australia’s existing heavy vehicle fleet.
“Australia’s freight task cannot be decarbonised through a single technology pathway,” Mr Hacking said.
“Renewable diesel should sit alongside battery electric and hydrogen technologies as part of a technology-neutral transition. It provides a pathway to reduce emissions from existing trucks without infrastructure upgrades, payload penalties or operational disruptions.”
The submission highlights the critical role of road transport in Australia’s economy, noting freight demand is forecast to grow significantly over coming decades. With more than 600,000 trucks operating across the country, HVIA argues that low-carbon liquid fuels have the potential to deliver meaningful emissions reductions in one of the nation’s hardest-to-abate sectors
While supporting the development of a cleaner fuels demand mechanism, HVIA stressed that any future scheme must ensure renewable fuels are affordable, available and fit for purpose.
The association cautioned that obligations introduced ahead of adequate fuel supply could increase freight costs and place additional pressure on transport operators already dealing with tight margins and rising operating costs.
Importantly, HVIA also urged the Government to ensure strong fuel quality, sustainability and certification requirements are in place, with imported and locally produced fuels subject to consistent standards.
The submission also recommends that any move to stronger future obligations should be contingent on an independent assessment of fuel availability, pricing impacts, infrastructure readiness and broader economic consequences.
Mr Hacking said HVIA welcomed the opportunity to contribute to the consultation process.
“We support the development of a strong domestic low-carbon liquid fuel industry and look forward to working with Government, fuel suppliers and industry stakeholders on practical measures that reduce emissions while maintaining freight productivity and competitiveness.
“A successful policy framework must strengthen Australia’s fuel security, support investment across the supply chain and deliver real-world outcomes for transport operators.”
HVIA’s submission also highlights the importance of ensuring renewable diesel is available along major freight corridors and throughout regional Australia, recognising the ongoing reliance of long-haul freight operators on liquid fuels for many years to come.