Caltex Managing Director & CEO Des King urged support for Australia's alternative transport fuels policy as part of an integrated policy framework during an address to the Academy of Technological Sciences and Engineering in Melbourne today.

"It is not realistic to formulate an alternative transport fuels policy that is independent of major policy initiatives. We should aim for a framework that is integrated with major policy initiatives but seeks to ensure alternative transport fuels are properly considered through some kind of separate action plan," Mr King said.

"Existing major initiatives at the federal level include the Carbon Pollution Reduction Scheme and Renewable Energy Target, Energy White Paper, Henry tax review, car industry plan and green car scheme, Auslink and Infrastructure Australia Fund.

"Optimising energy and environmental policy is a truly heroic policy challenge. The defining energy policy objectives of the next half century will be addressing climate change, which means reducing greenhouse gas emissions massively below business as usual trends, and addressing the situation where supply of conventional crude oil will be insufficient to meet world demand based on historical trends in usage. Alternative transport fuels will play a key role in meeting these challenges.

"Governments will not solve climate change and energy problems for us but markets will, based on scientific and technological innovation. The role of government policy is to let markets operate and only intervene where there are clear market failures and governments are able to improve outcomes.

"The proposed Carbon Pollution Reduction Scheme will have limited impact on transport fuel emissions and should not be used as a basis for shaping alternative transport policies. Most of the emission reduction will come from changes to vehicle technology and fuel supply and from non-price measures such as improved public transport, transport infrastructure and design," Mr King said.

Mr King said an emission trading scheme that imposes a large carbon cost on Australian refineries while our international competitors bear no carbon costs is not the answer. It would not reduce global emissions from use of oil; just relocate Australian's refinery emissions to Singapore and other Asian countries.
A copy of Des King's speech titled, Alternative Transport Fuels for Australia - Policy Challenges and Risks is available on the Caltex website www.caltex.com.au

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