The Business Council of Australia today welcomed the Albanese Government's $1.1 billion investment to support cleaner liquid fuel production, including renewable diesel and sustainable aviation fuel (SAF).
Business Council Executive Director of Policy Wendy Black said the announcement recognises the crucial role low-carbon liquid fuels will play in Australia's energy security, industrial competitiveness and pathway to net zero.
"This is a positive step towards creating a secure and competitive domestic industry that can reduce emissions in hard-to-abate sectors such as aviation, shipping, mining and heavy transport," Ms Black said.
"Australia has the natural advantages, feedstocks and expertise to become a global leader in sustainable fuels, but we need durable policy settings to unlock private investment at scale."
The Business Council has consistently called for a well-designed support framework that:
- Provides stability and durability so investors can commit to large, long-lived capital projects with confidence.
- Ensures assistance is internationally competitive and targeted at the long-run scale of production to keep costs down.
- Avoids unnecessary regulatory or compliance burdens that could undermine the efficiency and competitiveness of eligible projects.
Ms Black said it is now important to turn the Cleaner Fuels Program into action to establish a domestic industry that is globally competitive.
The BCA's recent Australia 2035 - Maximising Our Potential report outlines that a low-carbon fuels market in Australia is needed for faster decarbonisation of the Australian economy.
The Business Council looks forward to working closely with government and industry partners to deliver the program and realise the potential for a low-carbon liquid fuels industry by 2050.
