ACAPMA has recently participated in two formal consultations on a federal level; Fuel Security and Resilience, and Cleaner Fuels.
Fuel Security and Resilience
ACAPMA supports initiatives to build fuel security and resilience and notes that long lead times, complex supply and distribution chains and competitive landscapes all need careful study and consideration when making plans to add to, or alter the fuel industry in an Australian context.
Cleaner Fuels: Low Carbon Liquid Fuels (LCLF)
ACAPMA supports initiatives of all Australian Governments in respect of promoting the early market adoption of LCLFs such as renewable diesel and SAF in the near term – and synthetic diesel in the medium to long term. This support is premised in the fact that LCLFs provide an opportunity to realise emissions reductions from the hard-to-abate diesel vehicles and diesel machinery sector by utilising existing fuel supply infrastructure and existing diesel vehicles and machinery.
ACAPMA believes that it is simply not possible to mandate a target at this stage (even if scheduled for some time in the future) given the significant uncertainty surrounding both short term supply volumes and overall supply economics, for what is essentially an immature global industry.
ACAPMA believes that a more pragmatic approach would involve the utilisation of a demand side taxation incentive focussed solely on adoption of a renewable diesel blend within the road freight sector. Such a mechanism could involve the application of a discount on existing fuel excise – specifically the RUC for road freight operators – to eliminate the cost premium associated with substitution of conventional diesel with a modest renewable diesel blend (i.e. R10 or R20). Once a LCLF market is mature, the fuel excise could be transitioned in combination with a progressive increase in renewable diesel blends by utilising the national fuel quality standards mechanism.
Submissions
Explore the ACAPMA submissions here.
Members are encouraged to reach out with comment to communications@acapma.com.au
ACAPMA
