By Rachel McDonald, the Australian Science Media Centre
Approximately 17% of Australia's total carbon emissions come from our reliance on diesel combustion, but current policies are propping up its use rather than supporting the viable alternatives, according to a report from the Australian Academy of Technological Sciences and Engineering (ATSE) and mining company Fortescue.
The report looks at the pathways for decarbonising Australia's mining, freight, agriculture, fisheries and forestry sectors through reducing or replacing their use of diesel, and outlines five key recommendations, including reviewing the Fuel Tax Credits Scheme, fast-tracking clean tech, and reducing the cost of green alternatives.
ATSE Chief Executive Officer Kylie Walker told an AusSMC briefing that moving away from diesel would have benefits outside the obvious environmental upsides.
"Decarbonising from diesel in particular, also will benefit the health of the people who work in these industries and the communities where they're located. It'll also support Australia to build our sovereign capability, our independence, which brings resilience from big global shocks, and also our national security," Dr Walker said.
Dr Walker said many of the technological solutions needed to replace diesel in Australia already existed either as emerging or fully fledged alternatives, mainly in the key categories of biofuels, electrification and hydrogen. She said there was already a long list of examples of Australian mining companies testing new electric, hydrogen and biofuel-powered vehicles, as well as investment into renewable energy projects.
"The technology absolutely is there ... I think the two key barriers are the policy and tax settings and the infrastructure," she said.
One of the key recommendations from the report is to review the existing financial incentives that support diesel use, especially the fuel tax credit scheme, which the report suggests should be phased out or reformed.
ATSE Fellow and energy expert Ken Baldwin told the AusSMC the fuel tax credit scheme was originally designed to compensate the mining and agriculture industries for fuel levies that were aimed at generating revenue for road maintenance. Now, he said that the policy was no longer fit for purpose and was the number one policy holding diesel replacement back.
"The OECD and the International Energy Agency have both identified Australia's diesel fuel rebate as the biggest subsidy of fossil fuels in the country, and amounts to almost $11 billion a year and is in the top 20 of expenses in the federal budget," he said.
ATSE Fellow and natural resources and agricultural development expert Andrew Campbell said anecdotally he had heard the diesel fuel tax credit was turning farmers away from growing biofuels that would otherwise be competitive and financially viable.
He said some biofuels can already be put in the fuel tanks of existing vehicles as a solution that doesn't require replacing any equipment, but the more exciting solutions were technological advancements that could change the way farms operate.
"For the first time in 50 years, now we're seeing tractors getting smaller and having a lighter footprint on the soil and using less water and less chemicals as well as less energy and less emissions," he said.
Most of the report recommendations involve providing financial support for technologies, both mature and emerging, as well as providing financial incentives for industries to make large investments in technological change.
"We understand pretty much all the technologies required to replace diesel energy use," Professor Baldwin said, adding that what is needed is research to make this transition cost the least and be the most efficient.
The report also recommends strengthening grid capacity to prepare for a major uptick in the usage of electricity from these large industries, especially in regional and remote areas.
Professor Campbell said where there was innovation and transition, there was also opportunity for high quality jobs in regional areas.
"This is just as significant as the broader electrification energy transition that we're undergoing in rural Australia. So this report gives us a terrific roadmap, and from an agriculture, fisheries and forestry perspective, it sets out a very exciting agenda for change," he said.
Find out more about the report and AusSMC briefing here
This article originally appeared in Science Deadline, a weekly newsletter from the AusSMC. You are free to republish this story, in full, with appropriate credit.
Contact: Rachel McDonald
Phone: +61 8 7120 8666
Email: info@smc.org.au