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Australia’s road sector relies heavily on conventional diesel and petrol across freight, bus, service and light vehicle fleets. For parts of the sector that are hard to electrify quickly, low carbon liquid fuels (LCLFs) are one option for reducing emissions while electric, hydrogen and other lower-emissions vehicle pathways continue to develop.

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Reducing emissions Fuels for road Retail fuel supply Policy and regulation

Road at a glance

About 108 million tonnes

of greenhouse gas emissions from road transport a year

Cars, trucks and buses produce more than every other domestic transport mode combined. This counts the emissions from producing the fuel as well as burning it .

About a quarter

of Australia’s transport emissions come from trucks and buses

Heavy vehicles are the hardest part of the road task to electrify, and the part where low carbon liquid fuels matter most .

Under 1%

of the heavy vehicle fleet is electric

Electric buses are furthest ahead. Among the trucks that carry the heaviest, longest freight tasks, battery electric models are still very rare .

Almost 1 in 4

trucks on the road is over 21 years old

More than 90% of truck operators are small businesses, so the fleet turns over slowly. Fuels that run in existing engines can cut emissions without waiting for replacement .

How road is reducing emissions

Road decarbonisation depends on the task. Vans and trucks that run short, predictable routes and return to a depot each night can electrify now, while long-haul and heavy-haul work over great distances is far harder to shift.

1

Electrifying urban and return-to-base fleets

Short delivery runs, depot-based operations and predictable daily routes suit battery electric vehicles, which can charge overnight, so urban freight is the most immediate part of the road task to electrify. Electric options for heavier and longer-distance work are developing, and the share that can electrify will change over time .

2

Efficiency and operational improvements

Better route planning, load consolidation, reduced idling and newer, more efficient vehicles cut fuel use across the whole fleet without waiting for new technology .

3

Battery and hydrogen for longer routes

Both are advancing for intrastate and interstate work, but need staged charging or refuelling infrastructure along freight corridors. Charging at the power levels heavy vehicles require is still being proven .

4

Drop-in low carbon liquid fuels

Renewable diesel runs in existing trucks with no modification, so it can cut emissions from the fleet already on the road. That matters for the longest and heaviest tasks, where electric and hydrogen options are least suited .

Fuels for road

For road transport, the main low carbon liquid fuel options are renewable diesel, biodiesel and ethanol blends for compatible petrol vehicles. Australia’s fuel quality framework includes determinations or requirements for conventional diesel, paraffinic diesel, biodiesel and ethanol fuels.

A diesel-equivalent hydrocarbon fuel produced from oils, fats and residues through hydrotreating (HVO/HEFA) or through synthetic pathways (FT). Chemically and functionally different from biodiesel.

How it can fit in road

  • Line-haul and regional freight trucks
  • Buses and coaches
  • Waste, council and service fleets
  • Diesel delivery vans

Considerations

It can align with paraffinic diesel specifications and may be suitable for some existing engines, subject to original equipment manufacturer (OEM) approval and operating conditions.

Learn more

A liquid fuel made by reacting fats or oils, such as vegetable oils, used cooking oil or tallow, with an alcohol. Reacting with methanol produces fatty acid methyl esters (FAME); reacting with ethanol produces fatty acid ethyl esters (FAEE).

How it can fit in road

  • Depot-fuelled truck and bus fleets
  • Service and utility vehicles

Considerations

Usually requires closer attention to blend limits, storage, maintenance practice and OEM requirements.

Learn more

A petrol fuel made by blending petrol with ethanol, commonly produced from plant-based feedstocks such as sugar, starch or other biomass.

How it can fit in road

  • Petrol cars and utes
  • Petrol light commercial vans

Considerations

Requires checking OEM approval, blend limits and storage practices; higher blends may need dedicated or flex-fuel vehicles.

Learn more

Retail fuel supply and forecourts

Step 1

From terminal to pump

Road fuels move through terminals, depots, retail forecourts and fleet refuelling sites. Product specifications and blending are set upstream, at the terminal.

Step 2

Store and label

E10 must be labelled at the pump. Diesel can carry up to 5% biodiesel without a label; higher blends are labelled. Renewable diesel is sold under its own 2025 paraffinic diesel standard.

Step 3

Check compatibility

Vehicle compatibility and quality assurance come first: OEM approvals for renewable diesel, the FCAI warranty position on biodiesel above B5, and fleet maintenance practice.

Step 4

Tell the customer

Clear customer information: what the fuel is, which vehicles it suits, and where to check the manufacturer’s advice.

Road fuels today

Across the road sector, conventional diesel remains central to heavy freight, buses and other high-utilisation vehicles, while petrol remains important across the passenger and light commercial fleet. The Transport and Infrastructure Net Zero Roadmap identifies switching to low carbon alternatives where electrification is not feasible as part of the transport transition.

Diesel remains central for heavy vehicles

Heavy freight, many bus fleets and other high-utilisation road vehicles need high payload, long range and fast refuelling.

Petrol remains important in the light fleet

Passenger and light commercial vehicles will continue to include many internal combustion vehicles during the transition period.

State biofuels schemes

New South Wales and Queensland have road-fuel biofuels sales mandates for ethanol and biodiesel in defined circumstances.

Policy, regulation and technical guidance

The sections below cover the standards, certification criteria and organisations shaping how low carbon liquid fuels are used across the road transport sector, grouped by the role they play.

Fuel quality and technical standards

These decide whether a fuel is legal to sell in Australia and fit to run in trucks, buses and fleet vehicles.

Certification criteria

If a fuel is bought or claimed as low carbon, these schemes decide whether the claim counts and how it is proven.

Key road sector bodies

Industry bodies and regulators that shape how road transport adopts low carbon liquid fuels.

Australia

National Heavy Vehicle Regulator (NHVR)

Australia’s national regulator for heavy vehicles: heavy vehicle law, standards, modifications and the transition to lower-emissions vehicles.

NHVR

Australia

Australian Trucking Association (ATA)

National trucking industry body representing 50,000 businesses and 200,000 people, publishing on low carbon liquid fuels and trucking decarbonisation.

ATA

Australia

Bus Industry Confederation (BIC)

National body for the bus and coach industry, including operators, manufacturers and suppliers.

BIC

Australia

Austroads

Association of Australian and New Zealand transport agencies providing practical, impartial advice on road transport and infrastructure.

Austroads

International

International Road Transport Union (IRU)

World road transport organisation and publisher of the commercial road transport industry’s Green Compact decarbonisation framework.

IRU

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