The Australian Government’s Transport and Infrastructure Net Zero RoadMap has sparked significant discussion among industry and non-industry stakeholders alike. The Roadmap outlines an ambitious vision for reducing greenhouse gas (GHG) emissions within Australia’s transport sector. However, a closer examination reveals a potentially restrictive focus on specific technologies, which may limit the efficacy and adaptability of the nation’s path to net zero.
ACAPMA has provided a comprehensive submission to this Federal Government Consultation this week given that the ultimate strategy for reducing emissions from the national road transport sector will have a significant bearing on the future shape of the Australian fuel distribution and fuel retailing industry.
The submission opens with a clear statement that the fuel industry fully understands that it has a critical role to play in supporting the Nation’s aspirations to achieve Net Zero GHG emissions in the Australian Transport Sector. That said, government strategy should seek to advance actions that are credible and take maximum advantage of the opportunities to leverage existing national infrastructure and industry capabilities, thereby minimising the adjustment costs for the national economy.
“The government’s roadmap should not be about picking technology winners but rather, advance a portfolio of strategies that empower households and businesses to choose the most cost-effective solutions for their unique circumstances, said ACAPMA CEO Mark McKenzie”
“The current draft of the Roadmap is largely a clean technology blueprint – it fails to adequately address the key transition risks associated with significant rises in transport input costs, the need to balance national fuel security objectives, the inherent social equity risks, and the potential risks of distortion of competition within the national road freight sector”, added Mark.
ACAPMA’s submission identifies three specific areas for enhancement of the Draft Roadmap, namely:
- a) Inclusion of Advanced Hybrid Technology The roadmap should incorporate advanced hybrid technologies, such as ‘Series’ hybrid technology, within the potential actions for reducing emissions from light vehicles. These technologies offer a practical and efficient bridge to full electrification, providing significant emissions reductions while maintaining performance and affordability.
- b) Focus on Low Carbon Liquid Fuels for Heavy Vehicles The current roadmap underestimates the importance of low-carbon liquid fuels within the heavy vehicle fleet. Given the likely unsuitability of electric drivetrains for heavy applications and the operational and economic challenges with hydrogen fuel cell electric vehicles (FCEVs) in the medium term, it is crucial to focus on renewable fuels and synthetic fuels. These fuels can provide substantial emissions reductions without compromising the efficiency and reliability of heavy transport – and can be utilised within the existing ageing truck fleet.
- c) Addressing Fuel Security, Competition, and Equity The roadmap should explicitly address the challenges associated with maintaining robust levels of liquid fuel security, ensuring fair competition in the road freight sector, and accommodating the equity needs of low-wealth households during the transition. A comprehensive plan must consider how to support these critical areas over the 25-year transition period, ensuring that the pathway to net zero is equitable and sustainable for all Australians.
Call for a Broader Vision
The pathway to net zero is complex and multifaceted. It requires the development of a national framework that incorporates the widest possible mix of technological innovations, in terms of cleaner drivetrains and cleaner fuels. The market adoption of these options should be supported by policies that incentivise their adoption and lower the cost pass through to the national economy (e.g. differential taxation), accommodate the reduced inability for low-wealth households to participate in the transition, and minimise competition risks.
“A diversified strategy not only mitigates the risks associated with technological uncertainty but also ensures that the transition to net zero is delivered at the lowest possible cost and is fair to all Australians”, Mark concluded.
The fuel retail and distribution industry stands ready to collaborate with the government in refining the roadmap to encompass a broader array of low-carbon technologies and fuels. This collective effort will not only accelerate GHG emissions reductions but also fortify the nation’s energy security and economic resilience.
A copy of ACAPMA’s submission can be downloaded here.
Further information can be obtained by emailing communications@acapma.com.au or by calling the ACAPMA Secretariat on 1300 160 270.
ACAPMA
