Low carbon liquid fuels (LCLFs) are a sensible, realistic and economically viable solution to lowering the trucking industry’s carbon emissions and could significantly contribute to Australia’s carbon net-zero transformation goals, the joint ATA and Truck Industry Council submission to the Government’s LCLF consultations says.

Carbon reduction for the trucking industry is difficult – with the current reliance on diesel engines, a lack of lower-emissions alternative fuels, and high costs of transition.

It is also necessary, although measures must be taken to protect the industry through the transition period.

The submission argues that setting realistic emissions lowering targets is more practical for the short to medium term, rather than net-zero targets by an arbitrary date.

A key aspect of renewable diesel (green diesel, Fisher-Tropsch diesel, HEFA diesel, biodiesel) is that it can be used in existing diesel engines, without the need for modification. The submission proposes an R5 mandate – a requirement that five per cent of diesel be renewable under what is called a book and claim system.

In March 2025, the Government announced $250 million in funding for renewable fuels and to accelerate the development of a domestic LCLF industry. Renewable diesel is a key focus of this initiative and is a sustainable alternative to conventional diesel.

The submission argues for the development of renewable (paraffinic) diesel standards. These came into effect in February 2025. Renewable diesel standards can stimulate investment in renewable diesel production facilities and infrastructure. This can create jobs and drive economic growth in the renewable energy sector.