The Australian Constructors Association (ACA) has today released a pivotal report underscoring the crucial role of decarbonising the construction industry in achieving Australia’s net zero ambition.

ACA CEO Jon Davies said construction is a ‘hard to abate’ sector and while electrification is the preferred decarbonisation pathway, technology constraints mean this will not be available in the short to medium term.

“We need to rapidly adopt low carbon liquid fuels to bridge the gap until electric options mature and the best transition fuel for the construction industry is renewable diesel,” said Mr Davies.

“ACA is calling for direct government policy intervention to rapidly accelerate both the supply and demand for renewable diesel in Australia.

“Renewable diesel enables necessary emission reductions in the short term without modifications to existing machinery.

“The problem is, there is currently no domestic renewable diesel production in Australia – this reflects a policy vacuum that lags other countries significantly.

“Importing renewable diesel is cost prohibitive relative to mineral diesel, making adoption a competitive disadvantage.”

ACA’s report reveals domestic renewable diesel industry would have a range of additional benefits beyond construction decarbonisation, including lower air pollutants and better air quality, energy security, local employment and economic growth from both feedstock and refining.

ACA calls on the Australian Government to lead the development of a low carbon liquid fuel policy. This could take the form of a National Renewable Diesel Roadmap that charts a course for a sustainable domestic renewable diesel industry.

View ACA’s position paper.