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UPDATED 22/09/2025 4:45pm: The federal authorities’s division of local weather change and power has responded to our questions round its assertion that petrol and diesel will solely be utilized by “mild automobiles in very particular circumstances” as quickly as 2035. It mentioned the Cleaner Fuels Program is about creating low-carbon liquid fuels for aviation, delivery and specialist automobiles, not ending availability of conventional fuels for small automobiles like vehicles.
“The Web Zero Plan is a forecast of the place the market is headed, not a authorities mandate,” mentioned a spokesman for the division.” Australians will proceed to have alternative in regards to the vehicles they purchase and drive.
“As extra individuals select electrical automobiles, the demand for petrol will naturally decline, however there’ll lengthy be particular makes use of – like older vehicles, specialist automobiles or leisure actions – the place fossil fuels are nonetheless a part of the combo.
“We wish to be certain that Australians have entry to cheaper, cleaner vehicles and fuels. Which means supporting motorists with extra choices, not fewer.”
The Australian Authorities has introduced a 10-year Cleaner Fuels Program it says will promote personal funding in native manufacturing of low-carbon liquid fuels to exchange heavy gas oils in cargo ships, jet gas in airliners, diesel in heavy vehicles and – finally – diesel, petrol and liquified petroleum gasoline (LPG) in vehicles.
Federal minister for local weather change and power Chris Bowen mentioned the $1.1 billion program plans to foster the introduction of biofuels produced from feedstocks together with canola, sorghum, sugar and waste.
The primary of those ‘drop-in’ fuels is predicted to be publicly out there from 2029 to energy “jets, ships, development machines and heavy vehicles”, mentioned the federal government.
“Low-carbon liquid fuels are an unlimited financial alternative for Australia,” federal treasurer Jim Chalmers mentioned in an announcement.
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“Growing this business has potential to make us an indispensable a part of rising international web zero provide chains.
“It is a downpayment on creating a wholly new business in Australia.”
The plan is a part of the federal government’s Transport and Infrastructure Web Zero Roadmap and Motion Plan, designed to scale back transport sector emissions.
The federal authorities says the transport sector is at present chargeable for 22 per cent of Australia’s annual carbon dioxide emissions.
To satisfy the federal government’s dedication to realize a CO2 emissions discount of between 62 and 70 per cent from 2005 ranges by 2035, half of all new vehicles offered will have to be electrical throughout the subsequent 10 decade.

Thus far this 12 months electrical automobiles (EVs) have accounted for 7.6 per cent of all new-car gross sales in Australia, following an identical proportion to 2024 and 2023.
Toyota, Australia’s primary auto model since 2008, believes the market share of EVs could rise to as a lot as 30 per cent within the subsequent 5 years.
If that’s the case, EVs would wish so as to add one other 20 per cent market share improve between 2030 and 2035.
“If we don’t act, transport emissions are on monitor to be the most important supply of greenhouse gasoline emissions in Australia by 2030. Guaranteeing the transport sector is match for our web zero future is crucial,” mentioned Mr Bowen within the foreword of the motion plan.

“As the sunshine car fleet continues to impress, fossil gas demand will proceed to lower till it is just utilized in mild automobiles in very particular circumstances,” the report reads.
CarExpert has contacted Mr Bowen’s workplace for clarification on the “particular circumstances” the plan envisions past 2035.
The Transport and Infrastructure Web Zero Roadmap and Motion Plan has three timeframes for its ‘web zero pathway for mild automobiles’.
The primary part, from now till 2030, contains the New Car Effectivity Customary (NVES) launched this 12 months, which is aiming for a 60 per cent discount in mild passenger car emissions.
It additionally contains extra EV charging infrastructure and elevated adoption of bidirectional charging.

Mitsubishi turned the primary automaker in Australia to be accepted for vehicle-to-grid (V2G) charging when its Outlander and Eclipse Cross plug-in hybrid (PHEV) SUVs got the inexperienced mild by the South Australia authorities in Might final 12 months.
Between 2030-2035, the federal authorities plans to ‘scale up’ V2G charging functionality and EV charging infrastructure – with fossil gas solely for use in “particular circumstances” by 2050.
Authorities departments are already transferring away from fossil gas.
Earlier this month, the Australian Military acquired its first supply of renewable diesel as a part of its transition to low-carbon liquid fuels.

The renewable diesel, often called RD30, is now powering its M113 armoured personnel carriers and light-weight armoured automobiles.
In addition to an environmental acquire, an announcement from Australian Defence mentioned the transfer was additionally of strategic significance.
“In keeping with our Nationwide Defence Technique, Military wants strong redundancy throughout power wants and provides,” Lieutenant Colonel Cimbaljevic mentioned in an announcement.
MORE: Australian Authorities local weather goal would require half of all new vehicles offered to be EVs by 2035