Low emission, electric and hydrogen technologies all offer alternatives to fossil fuel transport.
To demonstrate how carbon emissions can be significantly decreased through investment in transport and transport infrastructure, the CEFC has committed up to $150 million to assist in providing medium-term finance for the staged construction the Moorebank Logistics Park intermodal terminal in south-western Sydney.
Through our co-financing arrangements, we are also providing asset finance at favourable interest rates to corporate, government and not-for-profit fleet buyers to encourage them to choose eligible lower emissions passenger and light commercial vehicles, as well as electric vehicles.
We also provide finance for lower emissions agricultural equipment with a goal of reducing on-farm fuel costs and emissions.
Transport emissions are more than 17% of Australia's total emissions profile and increasing (in contrast with emissions from electricity). Decarbonisation of the transport sector will likely be achieved through electrification and replacement of fossil fuels with liquid biofuels. This is critical for Australia to achieve our Paris commitments by 2050.
According to ClimateWorks, 15 billion litres of biofuels is needed to decarbonise Australia's transport sector by 2050, which, based on current project costs, equates to more than $30 billion in projects.
Australia's annual bioethanol production capacity is approximately 440 million litres (mL), or c.0.41% of total global production. This compares to global production of 97,000mL, with the USA and Brazil producing 56,000mL and 27,000mL respectively (ie, c.85% of global production).