Former Australian Competition and Consumer Commission (ACCC) chair Rod Sims has suggested that Australia could become the world’s dominant provider of green shipping fuel. Mr. Sims, now chair of the Superpower Institute, addressed attendees at the fifth Maritime Decarbonisation Summit, emphasising the importance of increasing green shipping fuel production as Australia navigates its role in the net-zero economy. The Superpower Institute’s *New Energy Trade* report, released in November 2024, estimates that decarbonising shipping through green fuels could address 1.8% of global emissions. The Superpower Institute is an independent think tank researching and promoting Australia’s transition to a clean energy superpower. They advocate for policies that support renewable energy and sustainable economic growth.
Mr Sims stated that Australia has a significant opportunity to be a major supplier of green energy-intensive exports. He noted that just as Australia has been a key player in the fossil fuel economy, it must also play a critical role in the net-zero economy. According to Mr. Sims, declining fossil fuel exports can be seamlessly replaced by green energy-intensive exports. He emphasised that the forces driving the decline in fossil fuel consumption are the same ones that will propel the growth of green energy-intensive exports.
Mr Sims elaborated on Australia’s potential in green shipping fuel, stating that a 25% market share in the green shipping fuel trade could mitigate 0.4% of global shipping emissions and generate approximately $43 billion in export revenue. The *New Energy Trade* report estimates that green fuels could replace over 8% of total transport fuels, potentially reducing world emissions by around 2% with Australia’s contribution.
Mr Sims urged that for Australia to play a key role in the world moving to net zero, it must produce products that would reduce world emissions by close to 10%. He said government needs to pave the way by acting in at least three policy areas and that Australia would fail comprehensively if it simply left progress to industry or consumers. He highlighted green shipping fuel as a priority due to the International Maritime Organisation’s foresight.
