10 Reasons why ship bunkering should be included in Australia’s Emission Reduction Fund
In 90 days time Australia will be attending COP26, a timely opportunity to showcase how Australia can be a leader in sustainable shipping policies.
BE&R have always been supportive of legislating emission reductions in shipping. Australia is making progress with the recognition of Australian ports and domestic shipping in Australia’s emissions reduction targets and Emissions Reductions Fund (ERF).
However, we propose that the ERF should be extended further to cover international ships that are fuelled in Australia. This is no small prize as the shipping trade from Australia to international destinations is one of the most intensive in the world.
Extending the ERF to international ships that have taken on bunkers (fuel) in Australia, will have the following positive impacts:
- Australian companies that bunker international vessels with green fuels, such as LNG and Ammonia, will have their Scope 3 emission reductions recognised
- Shipping companies will need to be accountable for their emissions. Taking this approach will encourage the uptake of green marine fuels
- International shipping to and from Australia far exceeds Australian domestic shipping. We have a huge opportunity to capture a new market for our green fuels. If we do not act on this opportunity other countries will, possibly using Australian-produced energy.
- Australian companies are gearing up to supply green fuel to the next generation of international trading ships. Inclusion of these vessels in the EMF will encourage development of a new industry for Australia worth billions of dollars, creating new jobs and local business opportunities
- Australia has the potential to become a world leader in green fuel bunkering, developing training facilities for personnel in the SEA region
- The international shipping industry has already identified Australia as having huge potential for accelerating the green fuel bunkering industry due to our abundant land area and natural resources
- The domestic shipping industry will only support low volumes of green fuel bunkering, whereas the business case for developing green fuels at the ports with major international shipping tonnage will likely be very positive
- Bunkering companies supplying green fuels from Australia are expected to be competitive with those operating from other countries along international trading routes
- Shipping companies operating ships on green fuels will be attracted to operate their newest low emission vessels in our region reducing the impact of old inefficient, polluting ships on Australian trade routes
- Including international shipping in Australia’s carbon offset plan will send a positive message to the world that Australia is a leader in sustainable shipping and part of the global solution