AS GLOBAL maritime leaders debate carbon levies in London, Australia’s domestic fleet risks slipping through the net – but some are already forging ahead.
In London, the International Maritime Organization (IMO) held its 83rd Marine Environment Protection Committee (MEPC) meeting – a critical session shaping the global course to net zero for shipping by 2050.
Among the headline proposals? A global carbon levy on ship emissions spearheaded by Pacific Island nations and supported by more than 60 countries, with mounting pressure to shift from ambition to action. With more than 99% of Australia’s trade moving by sea, these talks matter to us. But with only four major international ships flying the Australian flag, the direct regulatory impact on our fleet is surprisingly limited.
That’s why we need to look inwards.
Australia’s domestic commercial vessel (DCV) fleet – more than 30,000 vessels strong – plays a vital economic and social role. From ferries and fishing boats to pilot launches and tugboats, these vessels keep our coasts moving. Yet, unlike the international fleet, they’re operating in a regulatory vacuum when it comes to decarbonisation.
Despite this, the domestic industry isn’t waiting around.
At Svitzer we’ve committed to cutting the carbon intensity of our global operations by 50% by 2030, and to reaching carbon neutrality by 2040. And we’re already making real progress: in 2023, we achieved a 24% reduction in carbon intensity from our 2020 baseline, thanks to biofuels, hybrid-electric tugs, and new technologies.
But here’s the rub: while these solutions are being deployed overseas, we haven’t yet been able to launch them in Australia at scale. Not because the tech isn’t ready—but because local policy and market settings aren’t keeping pace.
As we shared at Bioenergy Australia’s Renewable Fuels Week recently, sustainable low-carbon fuels are a viable, scalable solution for vessels like ours. But availability, affordability, and certification remain major hurdles on home soil.
To unlock it, we need joined-up thinking: investment in supply chains, incentives to scale biofuels, and robust frameworks to support uptake across the domestic fleet.
But – change doesn’t happen without difficult decisions, and we need to be realistic – it is going to cost money.
And, it needs bipartisan support.
But, unlike a shampoo commercial – it doesn’t need to happen overnight.
We can start with initial lower level commitments and scale from there.
If, for example, Australia had a stable and bipartisan policy outlook for decarbonisation alongside a low carbon fuel standard, it would incentivise organisations (like Svitzer) to take the steps needed to deploy renewable fuels.
It wouldn’t need to be a blanket requirement for say B100 (a biofuel blend that is 100% biofuel), it could initially be a minimum commitment to B20 or B50, just like E10 at the bowser for your car at home.
This type of framework would encourage a new wave of investment into the domestic bioenergy industry and encourage other organisations to commit to fuel offtakes, as well as to build the supporting infrastructure.
Australia’s domestic shipping sector – supported by wider agricultural, manufacturing and other industry – has what it takes to lead on maritime decarbonisation, not just follow global trends.
The only question is whether our policy settings will enable that leadership to thrive.
As Svitzer waits for the domestic decarbonisation landscape to catch up in Australia, we’re still committed to proving what’s possible in areas beyond bioenergy; but, we also know the opportunity is bigger than any one company.
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