The imperative to decarbonise maritime infrastructure

Opening Remarks by H.E. Danielle Heinecke
at Malaysia Maritime Weeks 2024 - Green Shipping Conference
on 1 August 2024 at the Kuala Lumpur Convention Centre

Excellencies, distinguished guests, colleagues, ladies and gentlemen.  

Thank you all for being here, I would like to acknowledge the following:  

• Mr Guy Platten, Secretary General of the International Chamber of Shipping
• Tuan Muhammad Fadeli Shukor, Maritime Undersecretary, Ministry of Transport
• Mr Mohamad Safwan Othman, Chairman of the Malaysian Shipowners Association
• Mr Khairul Faizi Mohamad, General Manager of Petronas LNG  

Salam Sejahtera and a very good morning to all.  

In 1875, the novelist and poet Jules Vernes wrote that water might one day be employed as fuel.  

He was referring to its elements – hydrogen and oxygen which might be used to power vessels, vehicles and the machines of today.  

A hundred and forty nine years later, we have made considerable stride towards Mr Vernes’ vision, although we are still far from the journey’s end.  

Today, we live in a different world.  

Nations face different challenges, from competition, to pandemics to irreversible climate change.  

We live in a world connected by global supply chains with global trade facilitated by our global maritime commons. We have all benefited enormously from this innovation in production and consumption patterns and the interconnectedness which has enabled it.  

But it is becoming increasingly apparent that our environment bears a cost.  

Climate change is already having a significant impact on marine ecosystems.  

The International Maritime Organisation estimates that global shipping is responsible for almost 3 per cent of total global anthropogenic CO2 emissions – under a business-as-usual scenario, that could double by 2050.

As a nation which is utterly reliant on international shipping and committed to climate action, Australia is a strong supporter of efforts to decarbonise the maritime sector.  

99 per cent of our international trade volume is transported by ship; 87 per cent by value.  

As another maritime nation with a proud history of seafaring, Malaysia is also a regional maritime hub.  

Just next to us is the Strait of Malacca, one of the world’s busiest and most important shipping lanes.  

And to our east is the South China Sea, which carries a third of global trade.  

Globally, we are seeing significant efforts to reduce carbon emissions – in the maritime industry we are witnessing a paradigm shift, with numerous ports and shipping lines investing in reducing their carbon footprint.  

The industry is evolving rapidly.  

We’re seeing advancements on methanol and ammonia technologies. However, the infrastructure for producing, storing, and distributing greener fuels around the globe is still developing.  

The limited availability of these fuels at strategic locations remains a challenge to widespread adoption of green fuels in the maritime industry.

And as governments, we play a key role in getting the policy settings right to encourage investment in maritime decarbonisation and green shipping.  

The Australian Government is developing a Maritime Emissions Reduction National Action Plan to set strategic direction and recommend actions to decarbonise our maritime transport sector, and contribute towards reducing international shipping emissions.  

It will cover regulation and standards, energy sources and technologies, skills and training, and the opportunities presented by the development of green shipping corridors and partnerships between industry, government, and the international regulatory authorities.  

There is an urgent need to ensure that our maritime economic infrastructure is decarbonised.  

Both green methanol and green ammonia technologies present promising prospects to foster decarbonisation and transform the global shipping industry.  

This is a global challenge, and Australia is committed to working in partnership with countries in the Indo-Pacific region to meet this challenge.  

Through the Australian Government’s Partnerships for Infrastructure program, we have partnered with Malaysia to develop feasibility studies and economic analysis to support consideration of the establishment of zero carbon bunkering facilities at the Port of Tanjung Pelepas  

Last year we participated in the 2023 instalment of Malaysia Maritime Week.

We also held a green bunkering regulatory roundtable with Malaysian Minister of Transport YB Anthony Loke and other important parties.  

In March this year, at the ASEAN Australia Special Summit, both our Prime Ministers agreed to accelerate bilateral cooperation in maritime decarbonisation and green shipping.

A month later, Australian Assistant Minister for Trade Senator Tim Ayres led a business delegation of maritime businesses to Singapore and Malaysia as part of the Southeast Asia Business Exchange.  

In June, we partnered with the Republic of Korea and the Malaysian Ministry of Transport to host the ASEAN Maritime Connectivity Forum, which brought together expertise from across the region to share ideas and experience in tackling maritime decarbonisation, port digitalisation and automation.  

And we are here again today to continue this very important conversation on the private sector’s role in unlocking value in green shipping.  

I am pleased that later today you will hear from a representative of the Australian private sector, Mr David Stribely, from HAMR Energy who participated in that trade mission.  

Joining him today in the panel are technical experts and representatives from energy companies across Australia and Southeast Asia.  

In the year ahead, we are looking forward to Malaysia’s chairmanship for ASEAN 2025.  

This year we celebrated 50 years of partnership between Australia and ASEAN.  

Australia’s prosperity and security is intimately linked to the prosperity and security of our neighbours and friends.  

Our region connects the Indian and Pacific Oceans.  

As Foreign Minister Penny Wong has said we live in the most competitive region in the world. This offers us enormous opportunity.  

The Australian Government’s Southeast Asia Economic Strategy to 2040 highlights significant opportunities to boost our trade relationship to help meet the needs of businesses and consumers throughout the region, and decarbonising the global maritime sector must be a focus for all.

Building government to government links and connections are a key foundation to realising this ambition.  

There is a first-mover advantage for countries that can navigate the technical, commercial, and regulatory intricacies of green fuel bunkering.  

Acting sooner rather than later will also attract partnerships and investments from others who share the same ambitions and who are looking toward a greener and more sustainable maritime future.

Thank you and please enjoy the upcoming presentations and discussions.