The trucking industry has welcomed the Government’s release of two consultation papers about building Australia’s fuel security and renewable fuels.
The Minister for Climate Change and Energy, Chris Bowen, the Minister for Infrastructure and Transport, Catherine King, and the Minister for Agriculture, Julie Collins, released the consultation papers today.
The consultation papers seek feedback on establishing an Australian Fuel Security Reserve, increasing the Minimum Stockholding Obligation and a mechanism to increase demand for low carbon liquid fuels, including renewable diesel.
Australian Trucking Association Chair Mark Parry said the two papers were important steps toward increasing Australia’s fuel security and supporting the domestic production and use of renewable diesel.
“The ATA has long argued that Australia needs to meet its International Energy Agency obligation to hold a reserve of ninety days of net fuel imports,” Mr Parry said.
“We are well short of that target, but the Government’s investment in fuel security and its plan to increase stockholding obligations are a welcome and important step in the right direction.
“I know that our member associations and companies will be keen to participate in the consultations, including on where and how reserve fuel should be stored,” he said.
Mr Parry said the ATA had proposed the adoption of a low carbon fuel standard based on the California Air Resources Board (CARB) model.
“Under this approach, fuel suppliers would have an obligation to reduce the life cycle emissions intensity of the fuel they sell against declining benchmarks,” Mr Parry said.
“They could meet their obligations through a range of certified pathways, including by selling renewable fuel and deploying EV fast charging sites or green hydrogen charging stations.
“This approach would reduce Australia’s dependence on imported fuel and reduce our carbon emissions, with research showing that increasing renewal diesel to 5 per cent of Australia’s diesel supply would reduce Australia’s emissions by a cumulative 6.9 million tonnes over 25 years,” he said.
