$70 Million Goes Towards Cutting Emissions in Australian Shipping Facilities

A forklift unloads shipping containers from trucks at a storage facility located near Sydney Airport in Australia on Nov. 30, 2017. David Gray/Reuters

The Australian maritime sector is set to go green, fuelled by a significant $70 million (US$48 million) investment from the government-backed Clean Energy Finance Corporation (CEFC).

The new initiative aims to harness green finance to transform a traditionally hard-to-abate industry into a more sustainable player in the global economy.

Shipping is a vital lifeline for the world economy, renowned for its cost-efficiency in transporting goods.

However, the government says the sector is also one of the most emissions-intensive contributors to climate change.

In the fiscal year 2021–22, Australia’s domestic maritime sector emitted approximately 2 million tonnes of climate pollution, according to the Department of Climate Change, Energy, the Environment and Water.

The CEFC’s financial pledge to Flinders Port Holdings (FPH) represents both the first direct investment in the maritime sector by the CEFC and the inaugural green financing of container handling operations in Australia.

The capital will support electrification initiatives across FPH’s seven South Australian ports, with a suite of ambitious projects on the horizon.

Initiatives include installing solar systems to harness renewable energy, transitioning from internal combustion light vehicles to electric alternatives, and exploring the feasibility of an all-electric crane at the Flinders Adelaide Container Terminal in Port Adelaide.

They will also involve investigating how berthed ships can be connected to the electrical grid, reducing reliance on costly diesel bunker fuel—it is unsure how much extra demand this could place on the nation’s electricity grid.

The government claims its actions will help inspire other authorities to electrify their shipping industries.

Nature Positive Summit Coming Soon

Sustainable ocean economies will be one of the topics discussed when Sydney hosts the world’s first Global Nature Positive Summit in October.

A number of speakers from Australian environmental groups and Minister for the Environment Tanya Plibersek will attend.

These will discuss nature reporting frameworks, leadership on sustainability, boosting Indigenous leadership in conservation, and advancing private sector investment in the area.