The National Road Transport Association (NatRoad) is urging the Australian government to establish a $3 billion Clean Transport Fund to support the trucking industry’s transition to net zero emissions.
NatRoad made the call for financial backing in a new policy paper Stronger Economy, Lower Emissions and in its recent submissions on the Transport and Infrastructure Net Zero Roadmap and Low Carbon Liquid Fuels in a bid to ensure the sector can effectively reduce emissions without jeopardising its future.
“Trucking is an essential part of Australia’s economy, yet our industry is under immense pressure,” NatRoad CEO Warren Clark said.
“With an average profit margin of just 2 per cent, a shortage of 26,000 drivers, and the weight of extensive red tape, the proposed roadmap falls short of offering the support needed to help road freight businesses reduce emissions effectively.”
NatRoad said transport is poised to become the highest-emitting sector by the end of the decade due to Australia’s growing freight task and the projected reduction in emissions from the electricity sector.
The association said its policy paper underscores the necessity for a cost-effective transition strategy for road freight transport and advocates for a Low Carbon Fuel Standard (LCFS) to facilitate the gradual integration of renewable diesel and other low carbon fuels.
“A Low Carbon Fuel Standard is vital,” Clark said. “Without it, we won’t have renewable fuels, so long-haul and regional freight, which are difficult to electrify, will remain heavily reliant on diesel. An LCFS will reduce the carbon intensity of fuels over time, allowing small trucking businesses to continue operating efficiently whilst reducing emissions.”
NatRoad’s call for the establishment of a $3 billion Clean Transport Fund is aimed at:
- supporting the rollout of electric trucks
- recharging infrastructure
- hydrogen solutions
- boosting efficiency with better heavy vehicle access, and
- giving trucking operators better information to make low emission investment decisions.
Additionally, a supply chain emissions reduction obligation for big businesses is recommended, ensuring they take responsibility for their scope 3 emissions.
“Big businesses need to back up their green pledges with genuine purchasing commitments. Major transport customers can’t simply bank billion-dollar profits while seeking low-cost transport contracts and claiming to be saving the planet. They can do more to offer road freight companies better rates and contract terms to enable low-emission transport solutions,” Clark added.
Clark said successive governments have invested billions in aiding big energy businesses to decarbonise, yet small trucking businesses have not received similar support.
He said the proposed $3 billion Clean Transport Fund would represent just 2.5 per cent of the cost of the 10-year infrastructure pipeline.
“Transport is on track to become the highest emitting sector, but small trucking businesses are not getting the help they need,” Clark said.
“A $3 billion Clean Transport Fund is a reasonable request, considering the significant public benefits, such as lower emissions and health costs.
“The government’s transport net zero roadmap will be meaningless without serious investment. Emissions are still rising, and without the right policy framework, net zero will push the industry into crisis.”
NatRoad’s policy paper also calls for regulatory reform, harmonisation, and better information for operators to plan future investment decisions.
“Australia’s roadmap to net zero for transport is not on track, risking our climate targets and pushing the industry into crisis,” Clark said.
“We need a comprehensive transition strategy that secures the future of our supply chains, strengthens our economy, and lowers emissions. The Australian fair go should apply to this transition, protecting jobs and ensuring no one is left behind.”
The federal government is playing catch-up on the industry transition to net zero emissions on multiple fronts with other peak bodies – and OEMs – also calling for more help.
In its recent submission to a parliamentary inquiry into the transition to electric vehicles held by the House of Representatives Standing Committee on Climate Change, Energy, Environment and Water the Australian Trucking Association called for a $5 billion upgrade of key freight routes and more incentives for buying electric trucks.
Australia’s Kylie Johnson, who is on a Churchill Fellowship researching the communication challenges around zero emission heavy vehicles, told Big Rigs that if the industry doesn’t act now, “we’ll be left in the dust”.
“My concern is that if the Australian trucking industry waits any longer, we’ll be swamped by the tidal wave that’s coming,” she said.
“In Australia, we’re falling behind and the future is coming at us a million miles an hour.”
Submissions to the Transport and Infrastructure Net Zero Consultation Roadmap close on August 6.