Australian Trucking Association proposes 5% low carbon fuel target

The Australian Trucking Association (ATA) has submitted a proposal to the federal government suggesting that Australia aim to replace no more than five per cent of its liquid fuel supply with low carbon variants by 2035. ATA CEO Mathew Munro stated that higher targets, such as the 20 per cent mentioned in government consultation papers, are “far too ambitious” and could lead to dramatic fuel price increases and a heavy reliance on imported feedstock.

The ATA also cautioned against the use of biodiesel within the low carbon mechanism. Technical experts within the association warned that modern truck engines are designed to meet specific diesel fuel quality standards that restrict biodiesel to blends of no more than five per cent. Exceeding this limit could damage engine durability and fuel systems, potentially voiding manufacturer warranties. Instead, the association noted that renewable diesel serves as a more viable drop-in replacement for conventional diesel.