The Low Carbon Fuels Alliance of Australia and New Zealand (LCFAANZ) – an industry alliance established by Bioenergy Australia to accelerate low-carbon fuel development – released the APAC Low Carbon Fuels Benchmark Report on 12 March 2026 at the Renewable Fuels Summit, assessing how 19 economies across the region are positioning themselves to produce fuels such as sustainable aviation fuel, renewable diesel and renewable gas.
The report comes amid growing global concern about fuel security, with Australia currently relying heavily on imported liquid fuels, exposed to supply disruptions and rising global energy prices.
Bioenergy Australia Chief Executive Officer Shahana McKenzie said the benchmark highlights both the opportunity and urgency for Australia to develop domestic renewable fuel production.
“Australia imports the majority of its liquid fuels, which leaves our economy exposed to global supply disruptions and price volatility,” McKenzie said.
“Renewable fuels produced from Australian feedstocks provide a practical pathway to strengthen fuel security while reducing emissions in sectors like aviation, shipping and heavy transport that are difficult to electrify.”
Industry analysis suggests Australia has sufficient feedstock resources to underpin a renewable fuels industry worth more than $10 billion (USD 7.1 billion) annually, supporting more than 26,000 jobs, many of them in regional areas.
The benchmark compares countries across four key indicators: government policy ambition, feedstock availability, fuel production capacity and carbon accounting maturity.
It finds Australia sits within a group of “constrained leader” economies, alongside countries such as Japan, Korea, China and Singapore. These economies show strong policy intent and favourable conditions for industry development but have yet to establish large-scale production capacity.
In contrast, countries including Indonesia, Malaysia and Thailand were identified as “high potential leaders”, with strong feedstock resources, clear policy frameworks and emerging project pipelines supporting renewable fuel production.
The report also highlights a growing shift in global fuel markets, with governments increasingly using blending mandates and demand-side policies to drive investment in sustainable fuels.
Across Asia-Pacific, aviation fuel mandates are gaining momentum. Singapore will require 1% sustainable aviation fuel on departing flights, while South Korea will introduce a mandate from 2027 and Thailand has already introduced blending requirements.
Australia currently has no national sustainable aviation fuel mandate, although voluntary airline targets and some state-based policies are emerging.
The report also warns that biomass and waste oils are rapidly becoming strategic resources, with governments moving to secure domestic feedstocks as demand for renewable fuels accelerates.
Recent policy moves in Asia include export restrictions and supply controls on key feedstocks such as used cooking oil, highlighting growing competition for the raw materials needed to produce renewable fuels.
Australia has significant feedstock advantages, including agricultural residues, waste oils, municipal waste and biomass resources. However, the report notes that a substantial share of these feedstocks is currently exported, which could limit domestic fuel production if policy settings do not encourage local processing.
McKenzie said the benchmark shows renewable fuels represent a major opportunity for Australia to strengthen energy resilience while supporting regional industries.
“With abundant feedstocks, strong research capability and growing investor interest, Australia has the ingredients to become a regional producer of renewable fuels,” McKenzie said.
“The question now is whether we move quickly enough to convert those advantages into domestic production and investment.”
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