Anthony Albanese unveils $1.1 billion investment in vegetable oils

Diesel and petrol could be phased out as the government announces a $1.1 billion investment into low carbon liquid fuels.

A brave new world where planes and trucks are fuelled with low-carbon liquid fuel made from Australian canola oil is the centrepiece of the Albanese government’s blockbuster new investment in tackling climate change.

The Albanese government will announce on Wednesday it is investing $1.1 billion to help unlock the economic opportunities on offer from low carbon liquid fuels.

Treasurer Jim Chalmers said the liquid fuels investment aimed to deliver sustainable fuels that can “power our trucks, cargo ships and planes into the future.

“The global net zero transformation is an enormous economic opportunity for Australia and producing low carbon liquid fuels is an important part of that opportunity,’’ he told news.com.au.

“Becoming a world leading producer of low carbon liquid fuels is a really big chance for Australia to be part of a really important growing global supply chain.”

Prime Minister Anthony Albanese and Treasurer Jim Chalmers. Picture: Tracey Nearmy/Getty Images

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The big announcement follows the release of Australia’s first national climate risk assessment, outlining grim predictions of “cascading, compounding and concurrent” risks including rising sea levels, floods, cyclones, heatwaves, droughts and bushfires.

The assessment will inform the government’s new national emissions reduction target for 2035 that is set to be debated by cabinet.

Acting Minister for Infrastructure, Transport, Regional Development and Local Government, Murray Watt, said the liquid fuels reforms had the capacity to create jobs.

“Low carbon fuels have the potential to be a $36 billion industry here in Australia, and we have the opportunity to lead the way on the production of these new fuels,’’ he said.

“We have renewable feedstocks, access to clean energy and a strong agriculture base, all of which will allow us to develop this new industry, create new jobs and power how Australians move for decades to come.”

The new ten-year Cleaner Fuels Program aims to stimulate private investment in Australian onshore production of low carbon liquid fuels, such as renewable diesel and sustainable aviation fuel.

But the first production of ‘drop-in’ cleaner fuels, which can be directly substituted for existing fuels and work in today’s engines, won’t start until 2029.  

The Albanese government argues that Australia has the ingredients needed to make cleaner liquid alternatives to fossil fuels, with ready access to feedstocks like canola, sorghum, sugar and waste.

Liquid fuels currently make up around half of Australia’s national energy use and replacing those fossil fuels with cleaner alternatives could deliver big gains.

The Clean Energy Finance Corporation (CEFC) estimates an Australian low carbon liquid fuel industry could be worth $36 billion by 2050.

‘Confronting’ warnings

Climate Change and Energy Minister Chris Bowen conceded this week that many Australians will find the warnings of floods, cyclones, bushfires and deaths in climate report “confronting”.

“Many Australians will find this report confronting. I don’t think many Australians would be particularly surprised that climate change is and will have an impact on Australia,’’ he said.

“The report makes clear that insurance will become increasingly a challenge, both in terms of affordability and availability, and that will have flow on effects.”

Risks in Sydney and Melbourne

The report included a stunning graph that outlines the projected increase in heat related deaths in Sydney, Melbourne, Perth, Townsville, and Darwin.

For example, in Sydney, heat-related deaths will increase by 100 percent under a projected increase in temperatures of 1.5C.

However, if temperatures rise by 3C, those death projections could rise by up to 450 per cent.

The national assessment considers different global warming levels that are likely to be reached by 2050 and long term by 2090 and are based on increases in temperature of 1.5C, 2C and 3C respectively.

But the most sobering predictions relate to the mortality risk from heatwaves if the world fails to act, contributing to up to 355 excess deaths in Melbourne alone.

A national climate risk report has found major cities, such as Sydney, will see heat-related deaths spike if temperatures rise by 1.5C. Picture: iStock

At +1.5C of global warming, heat-related mortality rises by 60 per cent in Melbourne, while at +3.0C of global warming, heat-related mortality rises by 259 per cent in Melbourne.

In Sydney, the risk to health from heat is heightened particularly in western Sydney and west of the Great Dividing Range.

Heatwaves are the deadliest natural hazard in Australia. At +1.5C of global warming, heat-related mortality rises by 103 per cent in Sydney.

At +3.0C of global warming, heat-related mortality rises by 444 per cent in Sydney, taking the current number of deaths from around 100 to an estimated 450 deaths each year.

While Sydney currently experiences 31 days per year with coastal flooding, at +1.5C of global warming, the number of coastal flood days in Sydney could increase to 85 days a year.

The document even claims that at +3.0C of global warming by 2090, the number of coastal flood days could increase to more than 300 days a year.

Coastal communities, including cities like Brisbane, could be impacted by sea level rise. Picture: Bradley Kanaris/Getty Images

Urban areas with increasing exposure to coastal flooding include Darlinghurst, Haymarket, Millers Point, Kogarah, Double Bay and Darling Point in Sydney.

Sea level rise could also pose a significant risk to coastal communities throughout Queensland, including Brisbane and southeast Queensland according to the climate risk assessment.

At +1.5C of global warming the number of coastal flood days in Brisbane could increase to 86 days a year and at +3.0C of global warming the number of coastal flood days in Brisbane could increase to 314 days a year.

Adelaide and Perth

The number of severe and extreme heatwave days in South Australia could increase from approximately 3 days under current global warming levels to 10 days +3.0C.

Low lying urban areas of Perth like Fremantle are at high risk from sea level rise, currently experiencing 3 days per year of coastal flooding.

At +1.5C of global warming with 0.14m of sea level rise, the number of coastal flood days in Fremantle could increase to 11 days a year.

At +3.0C of global warming by 2090 with 0.54m of sea level rise, the number of coastal flood days in Fremantle could increase to 206 days a year.

All parts of Australia are at risk from rising temperature, northern Australia is likely to experience escalating challenges as the global temperature rises putting pressure on emergency responders.

Outer suburban areas stand out as “watch points” that are particularly susceptible to adverse events due to their location and demographics.

“Extreme heat, floods, bushfires, poor air quality and communicable diseases will escalate health risks,’’ the document states.

“Those with pre-existing health conditions, including mental ill health, are most at risk.

“This includes the very young and our older populations. People who work outdoors will also be at increased risk.”

Mr Bowen said Australians were already living with the consequences of climate change today but “it’s clear every degree of warming we prevent now will help future generations avoid the worst impacts in years to come.”

Originally published as Anthony Albanese unveils $1.1 billion investment in vegetable oils