Industry News

Decarbonisation transition must have the right support

As CEO of the Victorian Transport Association (VTA), I have the privilege of advocating for one of Australia’s most vital industries—freight and logistics—at a time of transformative change.

The need to decarbonise, driven by environmental imperatives and government mandates, is reshaping how we think about transport, and this change is especially profound in freight and logistics.

As the industry begins its transition from fossil fuels to hybrid and alternative energy sources like hydrogen and battery electric vehicles, it is critical that Australian governments step up to support this change.

The journey toward decarbonisation is not one that can be taken lightly. While the long-term benefits of moving away from fossil fuels are clear—reduced emissions, improved air quality, and the mitigation of climate change—the short-term challenges must not be underestimated.

For operators in the freight and logistics sector, which underpins the national economy, the shift to alternative fuels represents a complex logistical and financial challenge.

Trucks and heavy vehicles that rely on diesel have long been the backbone of this industry, and moving to hydrogen and battery electric vehicles (BEVs) is no simple task.

It requires not just the purchase of new fleets but also the development of an entirely new infrastructure to support these vehicles, such as charging stations and hydrogen refuelling sites.

This is where government intervention becomes crucial. Without adequate financial and policy support from federal and state governments, the transition to alternative fuels will be slower, more expensive, and less effective.

Governments must provide incentives, grants, and subsidies to assist operators in upgrading their fleets and infrastructure. Additionally, policies that promote research and development into hydrogen and electric technologies will ensure Australia remains at the forefront of innovation in this space.

Furthermore, governments must take a leadership role in setting the regulatory framework that will guide this transition.

The logistics and freight industries operate under stringent regulations concerning vehicle weight, emissions standards, and driver safety.

With new fuel technologies come new challenges in ensuring compliance with these regulations while maintaining operational efficiency. Policymakers need to be proactive in establishing clear, realistic guidelines that allow the freight industry to decarbonise in a way that is environmentally and economically sustainable.

At the VTA, we have long recognised the importance of leading the conversation on alternative fuels, which is why I am pleased to announce our upcoming Alternative Fuel Summit on Tuesday, November 19 in Melbourne.

Now in its third year, the summit will be a valuable forum for stakeholders across the freight and logistics industry to come together and discuss the commercial realities of decarbonisation.

The summit provides an opportunity to hear from a diverse range of experts—policymakers, regulators, original equipment manufacturers (OEMs), and suppliers—who are directly involved in shaping the future of transport.

We are especially fortunate to have representatives from the Victorian Government and opposition joining us to discuss the role of public policy in facilitating this transition.

Their insights, alongside contributions from industry leaders, will provide a balanced and informed view of what lies ahead for freight operators as they make the shift to hydrogen and battery electric fuel sources.

The summit will offer an opportunity to explore the latest innovations in alternative fuel technologies, discuss the practical challenges facing operators, and, most importantly, chart a responsible and achievable course toward a zero-carbon future. For further information and to register please visit vta.com.au.

As our industry continues this historic transition, it is vital that state and federal governments recognise the importance of supporting the freight and logistics industry.

With their backing, we can ensure that the shift to hydrogen and electric vehicles is not only achievable but also beneficial for the economy, the environment, and the many Australians whose livelihoods depend on this essential industry.

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