Former ACCC chair Rod Sims urges Australia to take the lead in global green shipping fuel trade

Former Australian Competition and Consumer Commission chair Rod Sims has suggested that there is an opportunity available for Australia to become the world’s dominant provider of green shipping fuel.

Currently the chair of the Superpower Institute, Mr Sims told attendees at the fifth Maritime Decarbonisation Summit that increasing its green shipping fuel numbers is an important next step as the country grapples with its role in the net zero economy.

The Superpower Institute released its New Energy Trade report in November 2024, in which it estimated that the component of shipping that using green fuels could decarbonise accounts for 1.8% of global emissions.

‘Essential’ net-zero role

“Australia has a huge potential role to play as a supplier of green energy-intensive exports, which will also meet a range of product security needs locally,” Mr Sims told the audience at the Melbourne event.

“Just as Australia has played an essential role in the fossil fuel economy, being the largest exporter of coal and gas combined, we must also play an essential role in the net zero economy.”

“The good news for Australia is that as fossil fuel exports decline […] green energy-intensive exports can more than take their place.”

“One can seamlessly replace the other—the forces for the decline in fossil fuel consumption are the same forces that will drive the growth of green energy-intensive exports.”

Green shipping fuel

Mr Sims said that Australia can begin its journey of becoming a major exporter of green energy-intensive products by producing green shipping fuel.

“If Australia’s market share of the green shipping fuel trade was 25%, this would result in a mitigation contribution of 0.4% of global emissions [from shipping alone] with an export revenue potential of around $43 billion,” Mr Sims said.

“The New Energy Trade estimates that all transport fuels that can be replaced by green fuels represent over 8% of total emissions and that Australia’s share could contribute to reducing world emissions by around 2%.”

“Compare this to the 1% contribution to the reduction in world emissions that is gained from decarbonising Australia’s entire domestic economy.”

10% fall in emissions

Mr Sims told the audience 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.

“One of the first cabs off the rank should be green shipping fuel due to the foresight of the International Maritime Organisation,” he noted.