WHY LOW CARBON FUELS MATTER
Low carbon fuels are essential to cutting emissions, strengthening fuel security and creating new opportunities for Australia.
CUTTING EMISSIONS WHERE IT IS HARDEST
Some industries can’t easily switch to other renewable alternatives. Aviation, freight, mining, rail and shipping all need dense liquid fuels. Low carbon fuels provide immediate alternatives that work with existing technology, making them essential to decarbonising these 'hard-to-decarbonise' sectors. Without them, reaching net zero by 2050 will be extremely difficult.
STRENGTHENING FUEL SECURITY
Australia currently imports more than 80% of its liquid fuels. Developing a domestic low carbon fuel industry means we can rely less on imports, protect against global supply disruptions, and strengthen national fuel security. Local production keeps more value onshore while making Australia more resilient.
READY TO USE, TODAY
Many low carbon fuels are 'drop-in fuels', they can be blended with or directly replace fossil fuels in existing vehicles, planes and machinery. This makes them one of the fastest, most practical ways to cut emissions now, without needing costly engine or infrastructure changes.
PROTECTING INTERNATIONAL CONNECTIVITY
As global aviation and shipping shift to cleaner fuels, Australia must be able to supply low carbon options for international flights and vessels. Doing so safeguards our tourism, trade and travel links, ensuring we remain connected as global standards rise.
REDUCING GREENHOUSE GASES
Low carbon fuels deliver much lower lifecycle emissions than fossil fuels. Many are made from renewable feedstocks or residues that absorb or displace carbon dioxide, helping to close the carbon loop. Others are produced using captured carbon and green hydrogen. Together, they offer a proven way to cut transport emissions at scale.
ECONOMIC AND REGIONAL BENEFITS
Low carbon fuels create opportunities across agriculture, regional communities and advanced manufacturing. Feedstocks like canola, sugarcane and crop residues support farmers and generate new revenue streams. Industry reports suggest the domestic market could be worth $36 billion by 2050, creating jobs and investment in regional areas.
ALIGNING WITH GLOBAL GOALS
International climate policies are driving rapid uptake of low carbon fuels. For example, Europe’s ReFuelEU mandate requires increasing use of sustainable aviation fuel. By scaling up local production, Australia can meet its own net zero commitments while staying competitive in global markets.