Australia could take a leading role in cutting emissions from international shipping, a Melbourne summit has heard, and US President Donald Trump may unwittingly give the nation's progress a boost.
Superpower Institute chair Rod Sims made the prediction at the Maritime Decarbonisation Summit on Wednesday, revealing Australia's natural advantages could lift progress.
But further work would need to be done to create world-leading green shipping fuel production in Australia, he said, including changes to address the lack of an international price on carbon.
The fifth annual conference comes four months before nations will be asked to endorse a plan by the International Maritime Organisation to cut shipping pollution, and before the federal government releases its own targets.
Australia is the world's fifth largest user of shipping services, with almost all international trade transported by sea.
This reliance on maritime services, in addition to abundant renewable energy sources and existing low-carbon fuel projects, made the nation a natural pick to lead emission cuts, Mr Sims said.
"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," he said.
Battery-powered ships could cut emissions on short journeys, Mr Sims said, but renewable diesel fuel made from used cooking oil and bio-methanol from agricultural and forestry waste would deliver carbon cuts needed for international routes.
But Mr Sims said the industry would need further support from the federal government to compete on the world stage, and called for capital grants to support early projects and financial support to adjust for the lack of an international carbon price.
The call to invest in the sector comes after the International Maritime Organisation issued emission reductions targets in April, due to be put to a vote in October.
The targets would reduce shipping emissions by 30 per cent in 2030 and 80 per cent in 2040, in addition to the use of 10 per cent zero-emission fuels by 2030.
The US delegation withdrew from the talks which, in addition to the repeal of its incentives for low-carbon fuel projects, could ultimately benefit Australia, Mr Sims said.
"The many investors who were planning to invest in green production in the US may now need to find a new home for their projects," he said.
"Mr Trump may assist more than he hinders our progress."
The Australian government did not vote on emission targets due to the timing of the federal election, Transport Minister Catherine King told the summit, but would host a roundtable with the maritime industry this week to discuss the measures.
The government was also preparing a Maritime Emissions Reduction National Action Plan to outline ways to contribute to the global decarbonisation of shipping.
"Our vision is that by 2050 Australia will fully leverage the global maritime decarbonisation transition for the benefit of our ports, vessels and the broader energy sector," the minister said.
