The Department of Infrastructure, Transport, Regional Development, Communications and the Arts has conducted a consultation on Future Made in Australia: Unlocking Australia’s low carbon liquid fuel opportunity.
Climateworks Centre acknowledges the important role that low carbon liquid fuels (LCLFs) may have in decarbonising certain activities in transport and industry sub-sectors.
Our recommendations would ensure that a framework for LCLF deployment prioritises highest-value use cases and does not limit electrification or more efficient and cost-effective decarbonisation technologies.
This framework would also consider and define the circumstances under which LCLF production – especially biofuels – will achieve the optimal use of land, energy and other constrained resources.
Recommendations:
- Utilise LCLFs in areas of highest-value within the transport and heavy industry sectors, ensuring LCLFs do not ‘lock out’ more economically efficient emissions reduction technologies and levers.
1.1. Prioritise aviation when considering the role for LCLFs in the transport sector, and ensure LCLF usage elsewhere does not undermine more economically efficient approaches to transport decarbonisation.
1.2 Incorporate environmental obligations into government LCLF investment and assurance frameworks. - Government action to support fuel switching will be most effective if it prioritises electrification and use of renewable hydrogen in industry and considers the role of LCLF where alternatives are not viable and there are mid- to long-term emissions reduction benefits.
More detail on these recommendations can be found in the submission.