Government Low Carbon Fuel Demand Measure set to fast track domestic low carbon fuel production

Australia is taking steps to become a major global player in low carbon fuels, with the Federal Government announcing the commitment to deliver a demand side measure in tonight’s Federal Budget.  If implemented quickly this commitment will unlock investment and turbo-charge Australia’s low carbon fuels sector, strengthen the nation’s fuel security and help position Australia at the forefront of the global clean-energy transition.

The specific Low Carbon Fuel inclusions are quoted below:

1. The Government will introduce a demand measure that provides certainty for new Australian low carbon liquid fuel production and stimulates investment in new, clean fuel refining capacity. (Budget Overview – Page 17)
2. The Government is delivering $1.1 billion to support domestic production of low emissions fuels through the Cleaner Fuels Program. 
3. The Government is delivering $4.0 million over three years from 2026–27 to develop a Green fuel bunkering strategy to support the decarbonisation and long-term resilience of Australia’s maritime industry. (Budget Paper 2 – Page 66) 

Read more in our Media Release