Publications

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• Improving the Quality of Australian Transport Fuels (PDF - 41 KB)

The Goal

To reduce air pollution and greenhouse gas emissions resulting from transport in Australia and overseas by improving fuel quality standards.

The Challenge

The transport sector is the single largest contributor to Australia’s urban air pollution and one of the largest contributors to national greenhouse emissions. Mandatory vehicle emission standards were established as Australian Design Rules, which are nationally applicable, under the Motor Vehicle Standards Act 1989. The quality of fuel is a key constraint to enabling the implementation of these new vehicle emission standards.

This case study

This case study outlines Australia’s approach to regulating and improving fuel standards, both domestically and internationally. The main objectives were to:

• Reduce the effects of motor vehicle emissions on air quality, human health and the greenhouse effect;
• Harmonise Australian vehicle emission standards with international standards; and
• Determine national quality standards for mainstream transport fuels and enforce those standards in the marketplace.

How did we make it happen?

Fuel standards have been developed in Australia through technical research and industry/stakeholder consultation, leading to new legislation. In 2002 the Fuel Quality Standards Act 2000 introduced fuel quality standards for petrol and automotive diesel. A downstream compliance regime was also established.

A Consultative Committee was established to provide advice and expertise in the process of fuel standard development. The Committee includes representatives from the Australian Government, States and Territories, fuel producers, environment bodies, consumer interest groups, the automotive manufacturing industry, independent fuel importers and suppliers, the alternative and renewable fuels industry and the trucking industry.

To assist other nations develop similar fuel standards and reduce pollution from motor vehicles, Australia hosted and funded a Fuel Quality Strategy Training Workshop (2003).

Participants from five Asian countries (Sri Lanka, Philippines, Indonesia, Vietnam and Bangladesh) attended the workshop, which focused on improving fuel quality of gasoline and diesel and was part of the Clean Air Initiative for Asian Cities.

How far have we come?

There have been a number of developments in improving fuel quality in Australia and overseas, including:

• Fuel quality standards for petrol and automotive diesel came into force in 2002 with the Fuel Quality Standards Act 2002, which progressively harmonises Australian fuel quality with international standards.
• Fuel quality standards for biodiesel and autogas came into force in 2003, and a standard for fuel ethanol is under development. These standards generally tighten over time, for example, sulphur in diesel was capped at 500 mg/kg in 2002 compared to 50 mg/kg in 2006 (with a further drop to 10 mg/kg in 2009). With the resulting improvement in air quality in Australia’s urban environments, an estimated $AU3.4 billion will be saved in health costs by 2020.
• Incentives for early production and import of lower sulphur petrol and diesel have been introduced, resulting in massive investment to upgrade the quality of fuel refined in Australia, whilst bringing forward environmental benefits.
• Concrete actions are already resulting from the Fuel Standards workshop.
  • Participants are currently drafting ‘Terms of Reference’ to put into practice the draft fuel quality strategies developed during the workshop.
  • In Vietnam, the workshop resulted in reconsideration of the specifications of the proposed Petrovietnam refinery.
  • In Indonesia, monthly meetings are held to monitor and review progress in the implementation of the Terms of Reference.

What have we learnt?

The success of Australia’s fuel standard initiatives is based on strong policy settings and awareness of technological development. Consultation was vital in developing and implementing fuel standards – without an understanding of the importance of the issue, it is difficult to gain public and industry support. As the impacts of transport pollution and emissions are global in nature, it is essential to assist other countries and harness available resources and expertise in order to achieve the goals of reducing air pollution and greenhouse gas emissions.

For more information please refer to the following website/s: http://www.deh.gov.au/atmosphere/fuelquality/publications/mce.html