This report addresses decarbonising the economy in the renewable liquid fuel space, where electrification is impractical. It explores key policy levers that would incentivise production and uptake of renewable fuels and provides an insight into actions that Australian governments could take to progress the transition of renewable fuels domestically.

Key findings:

1. Australia's bioenergy sector has significant potential to contribute to the country's energy mix and help meet emissions reduction targets.

2. Bioenergy is currently the largest source of renewable energy in Australia, but its full potential is not yet being realised.

3. The majority of Australia's bioenergy is currently derived from waste, including agricultural waste, forestry residues, and municipal solid waste.

4. There is significant potential for Australia to increase its use of bioenergy from dedicated energy crops, such as sugarcane, as well as from forestry and agricultural residues.

5. The deployment of bioenergy technologies, such as anaerobic digestion, gasification, and pyrolysis, is increasing in Australia.

6. The establishment of a bioenergy industry in Australia has the potential to create jobs, promote regional development, and provide economic benefits to communities.

7. Policy support is needed to encourage the development of the bioenergy industry in Australia, including the establishment of a national bioenergy strategy, financial incentives, and support for research and development.