What is the evaluation?
In April 2018, Environment Ministers agreed to an evaluation of the potential for a national approach to manage emissions from non-road diesel engines (such as those used in construction, mining and agricultural equipment) as a priority action under the National Clean Air Agreement. The Australian and New South Wales Governments are working together on the evaluation.
The evaluation is informing an understanding of the non-road diesel sector in Australia, as well as possible management options.
Australia currently has no regulations to control noxious emissions from non-road diesel engines. Options considered will include no change to current arrangements, voluntary and regulatory options.
Why evaluate a national approach to manage non-road diesel engines?
Non-road diesel engines are used in a wide range of sectors and applications, including construction, mining, agriculture, marine and forestry. They emit particulate matter (mainly fine particles, PM2.5), oxides of nitrogen, volatile organic compounds and a range of air toxics which are harmful to human health.
Non-road diesel engines are a substantial source of emissions in Australia. Total particulate emissions from non-road diesel engines are significantly larger than total particulate emissions from all on-road motor vehicles in Australia (petrol, diesel and LPG), even though the number of non-road diesel engines is only about 3% of the number of on-road engines. Non-road diesel engines also accounted for around 6% of national greenhouse gas emissions in 2018.
What are the steps in the evaluation?
A cost benefit analysis to examine the benefits and costs of various management options for non-road diesel engine emissions commenced in late 2019, following the completion of a market analysis of the sector. The cost benefit analysis is expected to be completed in late 2021. The results and policy options will be considered in 2022.
2018: Evaluation included in the National Clean Air Agreement Workplan. 2019-2021: Evaluation undertaken. 2022: Evaluation results and policy options considered
Stakeholder input has been important to collect additional data required for the modelling, test assumptions being made for the purpose of modelling and test the parameters of options for the cost benefit analysis, including business as usual and voluntary and regulatory options.
In October 2020 we hosted an online forum to inform stakeholders about the evaluation and to gather information on practical management scenarios for the cost-benefit analysis. Over 80 business, industry and community representatives, as well as state and territory government representatives, attended the forum.
Further feedback was sought from stakeholders though a discussion paper.
- Read the NRDE evaluation discussion paper
- Read a summary of stakeholder feedback and how this information is being used
Which products are included in the evaluation?
Non-road diesel engines refer to diesel-powered (compression ignition) engines used in a wide range of sectors and applications, including construction, mining, agriculture, general industrial, forestry, airport services equipment, marine and lawn/garden.
The evaluation is not examining engines used in the non-road transport sector, being rail, aviation, and shipping (large marine engines over 130kW).
Have any decisions been made?
No decisions have been made to introduce new approaches to manage emissions from non-road diesel engines. Before any decisions are made, Australian governments would need to consider the benefits and costs of any regulatory approach, including completing a Regulation Impact Statement and public consultation.
Evaluation Update – March 2022
A general update was sent to stakeholders in March 2022 noting that the final version of the cost-benefit analysis report was almost completed.
Once complete the report and its findings will be considered by the department, along with our NSW colleagues, as joint partners in this evaluation. Ministerial consideration is required before decision on the next steps. This would include assessing options to engage in further consultation with stakeholders.
We expect Environment ministers from all jurisdictions will review the cost-benefit analysis findings and decide whether to progress to a formal consideration of any potential regulatory impacts. No timing on this aspect has been set at this stage. .
Any decision to release the cost-benefit analysis report will be made by the governments in due course.
Further information
For more information, please email airquality@awe.gov.au.