The transport sector is the third-largest source of greenhouse gas emissions in Australia, and it is on track to be the largest by 2030.
Within the sector, freight transport (freight) is responsible for almost 40 per cent of emissions.
Freight emissions reduction plans will be expected from both government and industry.
We note that freight emissions are under the ambit Australia’s mandatory climate-related financial disclosures for reporting companies.
Further, in 2025, building on global best practices, the Australian Treasury is due to issue guidance on ‘credible transition plans’ [PDF 2.4mb].
We therefore commend Transport for New South Wales (TfNSW) on taking early and foundational steps towards freight decarbonisation through Towards Net Zero Emissions Freight Policy (2023) and Freight Policy reform: Interim Directions.
In particular, it is reassuring to see recognition in the Interim Directions of system-wide access, road user charging frameworks and strategic infrastructure investment as important building blocks and levers of decarbonisation.
At the same time, we take this opportunity to make recommendations on two important areas: actions to shift freight from road to rail and considerations on road user charges.
Our recommendations support the achievement of NSW’s emissions reduction targets while also improving energy efficiency and transport choice.
These recommendations also support TfNSW’s recognition, in Towards Net Zero Emissions Freight Policy, that a ‘whole of government approach [is] required to achieve net zero emissions’.