Transportation is a critical issue in Australia, with the sector being the third-largest and fastest-growing source of emissions in the country. Accounting for 23% of the total emissions, without intervention, transport is expected to become the leading source of emissions by 2030. In 2023, transport emissions saw a 3.6% increase, with on-road diesel emissions up by 3.7%. The growth in diesel vehicle numbers in Australia has been significant, especially in the freight sector.
One of the most effective ways to reduce emissions in the transport sector is through the electrification of vehicles. While electrifying cars is relatively straightforward, trucks pose a greater challenge. A recent research study evaluated the lifecycle emissions of low-emission trucks, focusing on electric and hydrogen trucks. The results indicated that electric trucks are a faster and more efficient option to meet legislated emission cut targets compared to hydrogen trucks. In fact, in some cases, hydrogen trucks had emissions intensities two to three times higher than electric trucks.
Both electric and hydrogen trucks offer zero tailpipe emissions, but a comprehensive analysis must consider their full lifecycle impacts. Electric trucks use batteries that are charged from a power source, with emissions dependent on the cleanliness of the electricity source. On the other hand, hydrogen trucks utilize fuel cells powered by hydrogen, often derived from fossil fuels. The process of producing, storing, and delivering hydrogen results in significant emissions, with only 38% of source energy remaining to drive the wheels of a hydrogen truck, compared to 80% for electric trucks.
Lifecycle Analysis and Renewable Energy Scenarios
A lifecycle analysis of freight trucks in Australia considered various scenarios of renewable energy mixes and adoption rates of electric and hydrogen trucks. The study highlighted the importance of using renewable energy sources to lower emissions, with scenarios featuring high rates of renewable energy and truck adoption resulting in the greatest emissions reductions. In a fully renewable scenario with 50% electric and 30% hydrogen trucks, freight emissions could drop by 76%.
Challenges and Barriers to Adoption
Despite the benefits of low-emission trucks, there are several challenges and barriers to their adoption. Emissions from manufacturing, maintenance, and disposal play a significant role in the overall carbon footprint of these vehicles. Moreover, concerns about high upfront purchase costs, total ownership costs, and a lack of supporting infrastructure hinder the widespread adoption of low-emission trucks in Australia.
Industry Interventions and Policy Measures
To accelerate the shift to low-emission trucks, a combination of industry interventions and policy measures is necessary. This includes global investment in truck manufacturing to make more affordable models available, as well as tighter emission standards, infrastructure investments, and incentives such as subsidies. Addressing uncertainties around performance and costs through independent trials and knowledge sharing is also crucial in driving adoption.
Fleet decarbonization alone is not sufficient to achieve significant emission reductions in the transport sector. A holistic approach that includes managing demand, shifting freight to rail, and optimizing distribution methods is essential. Without these comprehensive measures, Australia’s reliance on fossil fuels will only deepen, making it increasingly challenging to meet emission targets in the future.
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