Australia has an amazing opportunity. He hopes the country can emerge as a major supplier of green energy-intensive exports—in particular, green shipping fuel. At the 5th Maritime Decarbonisation Summit in Melbourne earlier this month, Sims made a strong case for Australia’s competitive position. This puts the country in a strong position to service the increasing global demand for sustainable, innovative shipping solutions as the maritime industry worldwide decarbonizes.
Australia is poised at a critical juncture in its energy landscape. Indeed, with unique strengths, Australia is favourably positioned for this transition. The nation is rich in resources for producing renewable forms of energy, like green hydrogen and sustainable biomass. This would put it squarely on track to dominate the green shipping fuel industry. Sims was unequivocal in his assertion that these inherited characteristics present an amazing competitive edge for Australia. He believes the country will lead the world in producing this crucial resource for decades to come.
Global Regulatory Changes and Opportunities
Most importantly, the International Maritime Organisation (IMO) adopted draft net-zero regulations for the international shipping sector as recently as this April. These emerging regulations target ocean-going vessels above 5,000 gross tonnage. It’s these vessels that are the biggest polluters, responsible for around 85 percent of international shipping emissions. By 2027, this framework will be fully implemented. It will adopt the most effective “de facto world carbon price for shipping fuel”—to date a watershed moment in the global campaign to control carbon emission.
“The IMO, in providing an effective world carbon price for shipping fuel, is providing Australia an opportunity,” – Rod Sims
Sims also focused on Australia’s opportunities in this emerging space—noting that we could have a healthy 25 percent share of the green shipping fuel market. This action alone has potential to produce $43 billion in new export revenue while substantially lowering global emissions. Specifically, he stated, “If Australia’s market share of the green shipping fuel trade was 25 percent, this would result in a mitigation contribution of 0.4 percent of global emissions with an export revenue potential of around $43 billion.”
The Role of Government and Industry Collaboration
Sims asked the Australian federal government to follow suit. He hopes for them to create a gateway toward a cutting-edge, internationally competitive North American green iron industry. He added that clear government support will be needed to ensure a strong green shipping fuel market develops.
“Hopefully, it will put in place grants for innovation from early projects, assist with infrastructure, and deal with our system of embarrassingly slow project approval,” – Rod Sims
He has become an unwavering advocate for cutting the time it takes for a project to be approved or rejected. This reform will ensure Australia is an attractive place to invest in green technology. Beyond the direct positive effects of this move on employment and productivity, there are enormous secondary benefits as well. It will safeguard against worsening declining fossil fuel exports.
Sims conveyed considerable optimism about the potential for growth in this sector, stating, “There is considerable expectation of this occurring on many fronts.” This optimism is the result of intense conviction. Australia is uniquely positioned to take advantage of this sea-change and be a world leader in the emerging global green energy market.
A Future Built on Green Energy
The impacts of Australia’s success in establishing itself as a new major exporter of green shipping fuel are broader than just economic opportunity. More broadly, it reflects a strategic opportunity to fortify the country’s competitive hand as a producer of green energy-intensive products writ large. Sims underscored an important first step in making this goal a reality. He called for more attention to be paid toward research and development of green shipping fuel.
“One of the first places to start on Australia’s journey of being a major exporter of green energy-intensive exports is in producing green shipping fuel,” – Rod Sims
As global demand for sustainable solutions continues to rise, Australia’s proactive approach could set a precedent for other nations, showcasing how transitioning to green energy can yield substantial economic benefits while addressing pressing environmental concerns.
