The Australian Constructors Association welcomes the Australian Government’s plans, announced in tonight’s Federal Budget, to support a low-carbon liquid fuel industry with a focus on renewable diesel to support emissions reduction in the construction industry.

Australian Constructors Association CEO Jon Davies said the construction industry 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.

“Tonight’s announcement will help ensure low carbon liquid fuels bridge the gap until electric options mature and renewable diesel is the best way to achieve this in the construction industry,” said Mr Davies.

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

“A domestic renewable diesel industry will 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.”

The Australian Constructors Association has been advocating for this support and looks forward to working collaboratively with the Australian Government to progress the establishment of a renewable diesel in Australia.

For more information, view the Australian Constructors Association’s position paper on Renewable diesel.