Overview

• Funding will be delivered through competitive grants over a decade to build domestic capacity in renewable diesel and sustainable aviation fuel.
• Key design details, including eligibility and sustainability certification, will be finalized later this financial year after consultation.
• Ministers cite about 2 billion litres of projects already in the pipeline that could scale with support from the program.
• The policy targets hard-to-abate sectors such as aviation, shipping, heavy road freight, mining and construction while improving fuel security in a market that imports roughly 90% of liquid fuels.
• Industry groups and farm leaders welcomed the move as a catalyst for private investment and regional jobs, with CEFC analysis pointing to a potential $36 billion industry and around 230 million tonnes of emissions avoided by 2050; some reporting suggests first local output could begin around 2029 subject to program design and investment.