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Feedback sought on Future Fuels Strategy discussion paper

08 Feb, 2021



On 5 February 2021, the Australian Government released a discussion paper to further inform the development of Australia’s Future Fuels Strategy.

The Future Fuels Strategy Discussion Paper outlines the Government’s vision to create an environment that enables consumer choice, stimulates industry development and reduces emissions in the road transport sector.

The paper considers the role of a mix of technologies, including traditional fuel, hybrid, hydrogen fuel cell, electric and bio-fuelled vehicles. The Government will focus on three principles to support the future fuels sector:

  • Addressing barriers to the roll-out of new vehicle technologies to increase consumer choice;
  • Investing in early-stage technologies to stimulate the market and drive private sector investment; and
  • Giving Australians access to the right information to help them make informed choices.

 

These principles will foster Government action in areas where current trends in consumer choice can be supported, and on sectors that can derive the most benefit from adopting new technologies first.

Minister for Energy and Emissions Reduction, the Hon. Angus Taylor MP, said the future of road transport in Australia will be a mix of vehicle technologies and fuels.

“Australians are already making the choice to switch to new vehicle technologies where it makes the most economic sense, with hybrid sales doubling last year,” Minister Taylor said.

“We are optimistic about how quickly the technology cost will reduce for other electric vehicles compared to traditional cars, making it an easier choice for consumers.”

The Government has identified five priority initiatives where it makes the most impact to take action first:

  • Electric vehicle (EV) charging and hydrogen refuelling infrastructure where it’s needed;
  • Early focus on commercial fleets;
  • Improving information for motorists and fleets;
  • Integrating battery EVs into the electricity grid; and
  • Supporting Australian innovation and manufacturing.

 

Deputy Prime Minister, Michael McCormack, said the Future Fuels Strategy would be underpinned by significant Government investment.

“We are backing this [Strategy] with substantial funding, including the $74.5 million Future Fuels Package and the $24.5 million Freight Energy Productivity Program,” the Deputy Prime Minister said.

“This [Strategy] forms part of the King Review Technology Co-Investment Fund and the ARENA-administered grants program will help heavy road freight businesses evaluate fuel efficiency technologies for both diesel vehicle or new technology fleets.”

The Department of Industry, Science, Energy and Resources (DISER) is currently seeking feedback on the discussion paper to inform the final Future Fuels Strategy.

Feedback can be provided through DISER’s Consultation hub. Written submissions are open until 2 April 2021.

The final Future Fuels Strategy is expected to be released in the first half of 2021.

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