Australian government opens public comment period for low carbon liquid fuels policy

In Australia, the Albanese Government is seeking views on ways to help kickstart Australia’s low carbon liquid fuels (LCLF) industry, from farm and feedstock to bowser. Sustainable fuels will play an important role as global economies transform to net zero, and as part of the A$22.7 billion Future Made in Australia package, policy can help unlock investment and create jobs.

LCLFs are a priority sector in the package, with initiatives identified to support the growth of new industries to benefit communities and workers. Advanced biofuels (sustainable aviation fuel and renewable diesel) are compatible with existing fuel infrastructure and can be produced from feedstocks including municipal solid wastes and agricultural crops, some of which are currently exported.

The response to the consultation paper will help ensure Australia has the appropriate policy settings to encourage the growth and use of sustainable fuels which will help decarbonise the transport sector. A domestic LCLF industry will produce sustainable fuels to support emissions reductions in the aviation, heavy vehicle, rail and maritime sectors.

In the 2024-25 Federal Budget, the Government announced a number of measures to support a domestic low carbon liquid fuels industry, including A$18.5 million over four years to develop a certification scheme for these fuels.  

The Government also committed A$1.5 million over two years to undertake an impact analysis of the costs and benefits of demand-side measures for sustainable fuels, which will complement this targeted consultation.

Consultation on A Future Made in Australia: Unlocking Australia’s low carbon liquid fuel opportunity will close on July 18, 2024.