There is no doubt that biofuels are needed in Australia to combat climate change, to provide an alternative as peak oil approaches, and to support more jobs especially in regional Australia. This last point is particularly important with the world financial crisis impacting on Australian companies and employees being laid off.

The New South Wales Government recognises these drivers and is showing strong leadership in encouraging expansion of the biofuels industry in NSW.

The Biofuels Association of Australia (BAA), the peak body for the biofuels industry, congratulates the NSW Government on their support for the biofuels industry.

The BAA says that Australia cannot afford to wait to develop solutions in the transport sector for climate change and peak oil. The CSIRO Future Fuels Forum has already indicated the consequences of waiting - $A8 per litre fuel. Even now Australia is importing 30% of its diesel and 20% of its petrol and although prices are relatively low at the moment they will rise when the Australian and world economies turn around.

"Without greater government action now it is unlikely that Australia will be prepared if it needs to abruptly change the transport system (such as in the case of a near-term peak in global oil production)" (CSIRO Future Fuels Forum, 2008).

The NSW Government Minister for Climate Change and the Environment, the Hon Carmel Tebbut and the Hon Tony Kelly, Minister for Lands are strong supporters of biofuels in NSW as the way to improve the environment in NSW and increase fuel security.

It is obvious to the BAA that biofuels are going to be part of the climate change solution because in the short to medium term there are not too many low carbon fuel choices that can be used in our existing transport fuel infrastructure.

The CSIRO and the Rural Industries Research and Development Corporation has publicly stated the positive environmental credentials of biofuels in a range of reports published over the past 12 months so there is no doubt about their benefits.

In fact the BAA estimates that if Australia were to have E10 (10% ethanol) and B20 (20% biodiesel) blends we would be saving 7.1 million tonnes of greenhouse gases each year.

Also, lets not forget the health benefits of biofuels with the Clean Air Alliance reinforcing the BAA view that biofuels improve the health of Australians.

Momentum for biofuels is certainly building in Australia with the NSW Government announcement and GM Holden's publicly announced intention to build E85 vehicles in Australia. These E85 vehicles will enable Australians to make best use of biofuels as we scale up the industry" says the Biofuels Association of Australia.

The BAA says "Australia needs a strong sustainable biofuels industry and we need strong Federal and State Government policies to get there."