The Australasian Railway Association (ARA) is asking the government to consider modal equality under the proposed Emissions Reduction Fund (ERF) scheme.
CEO of the ARA Bryan Nye said there were considerable synergies between the intent of the ERF and the current Energy Efficiency Opportunities (EEO) program, which would help do away with unnecessary regulatory burden.
“The ARA strongly supports the integration of these mechanisms to prevent duplication of obligations that may lead to an additional compliance burden for business,” said Mr Nye.
“We are strongly advocating that the terms of reference for the ERF allow the rail industry to make proposals to upgrade or replace locomotives and other relevant equipment with lower emission and more fuel-efficient locomotives and equipment.
“There is a lot the government can do to help rail improve and enhance its environmental performance, such as energy use management tools, the development and implementation of LNG locomotives and supporting infrastructure,” Mr Nye continued.
In its submission, the ARA also stipulated that that if similar proposals from similar sectors will be evaluated against each other, that there be a transport sector only allocation to ensure a level playing field.
“The problem with the former government’s carbon tax is that it denied rail of a level playing field by exempting the heavy vehicle industry from the tax,” said Mr Nye.
“Trains emit one third of the pollution of trucks and yet the rail industry was required to pay $110 million each year, whilst one of Australia’s largest polluters was given a free pass.
“This new government must ensure a level playing field under the ERF to uphold industry competition while reducing carbon emissions,” said Mr Nye.
The ARA believes that to achieve the aspired emission reduction targets, the Coalition must drive further modal shift from road to rail, particularly in the freight sector. Substantial and wide ranging complementary policies will be required to eliminate market failures and encourage the use of carbon efficient modes of transport. These can be done in conjunction with the repeal of the Carbon Tax and delivery of the ERF.
