The Australian Government has announced a new Future Made in Australia Act identifying a package of reforms and initiatives which will support the growth of new industries to benefit communities and workers. Low carbon liquid fuels (LCLFs) have been identified as a priority sector as part of a Future Made in Australia.

In the 2024-25 Federal Budget, the Government announced it is undertaking targeted consultations to identify the best form of production incentives and other measures to support the establishment of a made in Australia LCLF industry. This consultation paper builds on public consultation on the Aviation Green PaperRenewable diesel fuel quality standards, and the Electricity and Energy Sector Plan.

As part of the Future Made in Australia plan, the government is fast-tracking support for an LCLF industry. The domestic LCLF industry will initially focus on sustainable aviation fuel and renewable diesel to reduce emissions in fuel reliant sectors, including transport (aviation, heavy vehicle, rail and maritime), mining, agriculture and construction. The government has also committed $1.5 million over 2 years from 2024-25 to undertake a regulatory impact analysis of the costs and benefits of introducing mandates or other demand-side measures for LCLF.

We are seeking your views, including relevant data and analysis, to inform how an Australian LCLF industry will be supported. Insights from the consultation will also inform the Government’s development of a Transport and Infrastructure Net Zero Roadmap and the Electricity and Energy Sector Plan, and further regulatory impact analysis on the introduction of an LCLF mandate or other demand measures to support an LCLF industry.

The outcomes of consultation are expected to be considered by Government by the end of 2024.

You can find more information on the consultation hub.