The Australian Constructors Association (ACA) has applauded the federal government’s plans, announced in the Federal Budget, to support the development of a low-carbon liquid fuel industry with a focus on renewable diesel.
This initiative aims to aid the construction industry in reducing its emissions.
Jon Davies, CEO of the Australian Constructors Association, highlighted the construction industry’s classification as a ‘hard to abate’ sector.
While electrification is the preferred long-term decarbonisation strategy, technological constraints make it unattainable in the short to medium term.
“[This] announcement will help ensure low-carbon liquid fuels bridge the gap until electric options mature, and renewable diesel is the best way to achieve this in the construction industry.
“Renewable diesel enables necessary emission reductions in the short term without modifications to existing machinery,” said Davies.
Davies outlined several benefits of establishing a domestic renewable diesel industry, including reduced air pollutants, improved air quality, enhanced energy security, local employment opportunities, and economic growth from feedstock production and refining.
The ACA has been a staunch advocate for this support and looks forward to collaborating with the Australian government to advance the establishment of a renewable diesel industry in Australia.
Australia’s net zero ambitions hinge on decarbonising the construction industry, a sector responsible for 23 per cent of global emissions.
The ACA’s position paper underscores the urgent need for low-carbon liquid fuels, like renewable diesel, to serve as a critical transition fuel until electric solutions become viable.
Renewable diesel is chemically identical to mineral diesel and can be used as a 100 per cent substitute.
The paper stipulates that this means diesel machinery and supply infrastructure can be immediately switched to renewable diesel without performance issues or any need to modify engines.
Currently, there is no domestic production of renewable diesel in Australia, a significant policy gap that needs to be addressed.
A domestic renewable diesel industry would offer numerous benefits beyond decarbonising construction.
These include lower air pollutants, better air quality, energy security, local employment, and economic growth from both feedstock and refining.
The ACA calls for direct government policy intervention to accelerate the supply and demand for renewable diesel in Australia.
The Federal Budget’s focus on renewable diesel is part of a broader commitment to address major issues in the housing sector.
The government has pledged to build 1.2 million new homes over the next five years as part of a $3.5 billion program in partnership with states and territories.
Davies emphasised the need for a strong and reliable construction industry to meet these ambitious targets, highlighting the importance of supporting established builders in achieving these goals.
The ACA has proposed the creation of a National Renewable Diesel Roadmap to chart the course for a sustainable domestic renewable diesel industry.
This roadmap would provide critical market signals and support mechanisms, including tax incentives and capital grants, to boost the viability of renewable diesel production in Australia.
For more information on the Australian Constructors Association and its initiatives, visit austconstruct.com.
