Hydrogen is not dead, and Labor’s historic victory could change the global energy trade, economist Ross Garnaut says.<\/p>\n
He said Australia could also capitalise on the Trump administration’s anti-climate policies, because many investors who were planning to invest in green production in the US were now looking for a new home for their projects.<\/p>\n
“There is considerable expectation of this occurring on many fronts,” he said.<\/p>\n
“Australia is well placed to benefit.<\/p>\n
“If the world economy and climate are to function effectively, the US must be ignored as much as possible, and like-minded countries need to move forward collectively.\u00a0<\/p>\n
“There is so much at stake,” he said.<\/p>\n
Mr Sims made his comments on Wednesday in a speech<\/a> at Maritime Industry Australia’s 5th Maritime Decarbonisation Summit in Melbourne.<\/p>\n A golden opportunity for Australia<\/p>\n Mr Sims said recent regulatory developments in the maritime sector were playing into Australia’s hands.<\/p>\n He said that in April, the International Maritime Organisation (IMO) approved its draft net-zero regulations for the international shipping sector<\/a>.<\/p>\n The new regulatory framework covers ocean-going vessels over 5,000 gross tonnage, which account for approximately 85 per cent of international shipping emissions.<\/p>\n Chalmers vows to ‘dial-up’ Labor’s ambition for ‘bold’ tax reform<\/a><\/p>\n The treasurer used a National Press Club address to declare he had an open mind on including tax changes as part of a package of reforms considered in August’s round table.<\/p>\n The draft framework will need to be formally adopted in October, and then it will come into force in 2027.<\/p>\n Mr Sims said that when it comes into force, it will create an effective “world carbon price for shipping fuel.”\u00a0<\/p>\n And that will provide Australia with an opportunity.<\/p>\n “The IMO net-zero framework is the first in the world to combine mandatory emissions limits and carbon pricing across an entire industry sector,” he said.<\/p>\n “This represents the first global sectoral price on carbon, an amazing milestone of which the shipping industry should feel proud.<\/p>\n “This framework combines mandatory emissions limits and greenhouse gas pricing, establishing what will be a legally binding framework.\u00a0<\/p>\n “The global fuel standard stipulates ships must reduce, over time, their annual greenhouse gas fuel intensity calculated using a well-to-wake approach,” he said.<\/p>\n Mr Sims said the US withdrew in April from the IMO arrangements, with the US delegation walking out of the meeting.<\/p>\n “The US may eventually come on board, but the world cannot wait for this to happen,” he said.<\/p>\n The pieces are falling into place<\/p>\n He said Australia had to capitalise on this broader opportunity.<\/p>\n “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,” he said.<\/p>\n “With our advantages in producing green energy, green hydrogen, and sustainable biomass, Australia is in a superb position to dominate the production of green shipping fuel.<\/p>\n Rod Sims, the chair of the Superpower Institute, says Australia has a huge potential role to play as a supplier of green energy-intensive exports. (ABC News: Amy Bainbridge)<\/p>\n “In November 2024, the Superpower Institute (TSI) released its New Energy Trade<\/a> report, which, among many other things, identified that the component of shipping which could be decarbonised using green fuels accounts for 1.8 per cent of global emissions.<\/p>\n “If Australia’s market share of the green shipping fuel trade was 25 per cent, this would result in a mitigation contribution of 0.4 per cent of global emissions with an export revenue potential of around $43 billion,” he said.<\/p>\n Mr Sims said the government had to help clear the way.<\/p>\n He said Australia had to greatly reduce the time for project approvals or rejections, which currently makes Australia an unattractive place to invest.<\/p>\n<\/p>\n