Introduction
The Superpower Institute (TSI) welcomes the opportunity to contribute to the Australian Government’s Cleaner Fuels Program (CFP) Consultation. We strongly support the program’s objectives to catalyse domestic production, accelerate decarbonisation in hard-to-electrify sectors, create new job and economic opportunities, and improve Australia’s liquid fuel security.
As outlined in TSI’s submission to the 2024 Low Carbon Liquid Fuels consultation process and in recent reports by CSIRO and the CEFC, Australia has a number of sources of comparative advantage including a large land mass, abundant renewable resources, large and diverse feedstocks, competitive agricultural and forestry industries, and world-class science.
These advantages position us to build an internationally competitive, socially trusted Low Carbon Liquid Fuel (LCLF) industry—that strengthens our economy and global influence in the net zero era. These industries are central to onshore high-value manufacturing aligned with Future Made in Australia (FMIA) to help secure Australia’s economic prosperity and security.
TSI analysis shows LCLF, as part of the Australian Superpower trade, could reduce global emissions by between 1.1% and 1.9% by 2050. Total Australian LCLF export revenue could reach $187 billion per annum on today’s level of production, or $357 billion on forecast 2060 levels of production.
Total Australian LCLF export revenue could reach $187 billion per annum on today’s level of production, or $357 billion on forecast 2060 levels of production.
Our submission covers 6 topics:
- Market failures inhibiting development of LCLF industries
- Eligible fuels
- Supporting commercial projects
- Sustainability needs to be a focus
- Appropriate certification of fuels
- Broader supporting policy
The CFP is intended to catalyse LCLF production in Australia and deploy capital at a commercial scale. The Government may attract investment by addressing market failures with the CFP, but it will fail to catalyse production without broader policy architecture and a demand measure.
