Decarbonising diesel industries
Transition technologies and policy pathways for diesel reduction in Australian mining, road freight and agriculture, fisheries and forestry.
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Diesel fuel is the dominant energy source powering Australia’s mining, freight, agriculture, fisheries and forestry sectors. It supports critical machinery, transport vehicles and infrastructure essential to the nation’s economy and exports.
However, this widespread reliance on diesel comes with significant environmental, health, economic and strategic risks.
Diesel combustion contributes approximately 17% of Australia’s total carbon emissions, posing a major obstacle to meeting the country’s climate targets of a 43% reduction by 2030 and net zero emissions by 2050. Australia imports nearly 29 billion litres of diesel annually, reflecting a heavy dependence on international fuel markets and diminishing domestic refining capacity.
Despite these clear challenges, current policy settings inadvertently support diesel use by subsidising fossil fuel consumption. This delays critical investment and adoption of cleaner technologies.
ATSE’s report outlines five clear recommendations to reduce diesel use in Australia:
RECOMMENDATION 1
Conduct a national technical and economic assessment of decarbonisation pathways and evaluate how prepared key sub-sectors are for the transition
RECOMMENDATION 2
Review the financial incentives supporting diesel use
RECOMMENDATION 3
Develop a coordinated future diesel strategy that includes a quantitative assessment of demand and supply across alternative energy scenarios.
RECOMMENDATION 4
Invest in comprehensive infrastructure to support the clean energy transition
RECOMMENDATION 5
Provide targeted support across the technology maturity spectrum
Read the decarbonising diesel industries report
