The federal government announced that it will invest A$1.1 billion to drive production into cleaner fuel options in a push to decarbonise hard-to-abate sectors that threaten climate goals.
The government announced a 10-year grants program to encourage the private sector investment in on-shore production of lower-emission fuels, including so-called renewable diesel and sustainable aviation fuels.
Petrol alternatives made from feedstocks like canola, sorghum, and sugar have long been touted as a solution to reduce emissions in aviation, cargo shipping, and heavy road freight.
This announcement comes before Prime Minister Anthony Albanese is expected to announce Australia’s 2035 emissions reduction target range before formally submitting it to the UN later this month.
It also follows the release of the landmark national climate risk report, which outlines the severe and far-reaching social and economic consequences of the climate crisis in Australia.
It found that liquid fuels accounted for around 32% of Australia’s total emissions, making the switch to cleaner alternatives critical for hitting net zero.
The $1.1 billion funding will be provided under a competitive grants system and has been welcomed by the Low Carbon Fuels Alliance of Australia and New Zealand and the National Farmers Federation.
