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Industry groups urge action on zero emission freight

Written by David Sexton | Mar 27, 2026 3:17:46 AM

LOWER freight costs and better air quality are among the benefits if government can bring about a cleaner transport sector, industry groups say.

In an open letter to infrastructure minister Catherine King and energy minister Chris Bowen, the coalition of businesses, subnational governments and civil society organisations called for action to accelerate clean freight.

The letter urged the Australian government to “accelerate the transition to zero-emission medium and heavy-duty vehicles”.

“This transition represents a practical opportunity to reduce emissions while strengthening national competitiveness, enhancing energy security, and supporting local industry,” the letter stated.

“At the same time, zero-emission trucks and buses are increasingly able to reduce total cost of ownership compared to diesel, particularly in long-distance applications.

“In Australia, the case for action is clear. Road freight contributes 8.6% of GDP, accounts for over 80% of freight emissions, and produces around one-third of national transport emissions, yet electric truck sales remain below 1% of the market.”

Signatories to the letter included the Australian Trucking Association, The Electric Vehicle Council and the Victorian Transport Association.

The letter notes zero-emission medium and heavy-duty vehicles were already operating globally at scale, “delivering lower operating costs for specific use cases, reduced fuel price exposure, quieter operations, and cleaner air”.

“For Australia, this transition also represents a clear Made in Australia opportunity to build local supply chains, supporting regional jobs and stronger, more resilient freight networks.”

The group urged the government to adopt several measures to encourage private investment in zero emission freight including:

  • Joining the Global MOU on ZE-MHDVs.

  • Developing a nationwide plan to facilitate high-capacity freight charging, which may include co-investment with industry.

  • Supporting the Sydney-Melbourne Hume Zero corridor as a flagship project to showcase the strength of the long-distance business case.

  • Providing targeted incentives for small and medium-sized operators.

  • Implement policies to create market certainty.

“Together, these practical steps can lower freight costs, create local jobs, improve air quality, and strengthen Australia’s supply chains,” the letter stated.