MIAL: MERNAP must translate policy into investable projects

WHILE Maritime Industry Australia (MIAL) has welcomed the federal government’s Maritime Emissions Reduction National Action Plan (MERNAP), it has warned the absence of dedicated maritime grant funding remains a major barrier.

MIAL chief executive Angela Gillham told Daily Cargo News that MERNAP was an important “signpost” for an industry facing some of the most complex decarbonisation challenges of any transport sector. However, she said, the next 12–24 months would be critical in turning high‑level commitments into practical, investable outcomes for operators.

Ms Gillham said MERNAP provides a clearer pathway for industry planning, but its success will depend on whether government can create an enabling environment that reduces cost and risk for early movers.

“This roadmap creates significant opportunities for industry, but its success will depend on the ability to convert high‑level policy commitments into an enabling environment that reduces cost and risk to deliver investable projects,” she said.

MIAL says industry is encouraged by current policy work on both the supply and demand sides of the future fuels market — including efforts to scale production of lower — and zero‑carbon fuels and provide certainty around offtake. However, Ms Gillham warned the absence of dedicated maritime grant funding remains a major barrier.

“There is no dedicated grant funding available for maritime projects, such as small‑vessel electrification, which comes with huge upfront capital costs,” she said. “While there is a strong desire to move, lower‑ and zero‑emissions retrofits and new builds remain impossible to justify without regulatory or financial drivers.”

She said MERNAP offered important clarity on the government’s decarbonisation priorities, giving operators more confidence to plan for long‑term investments in shore power, alternative fuels and new vessel technologies — all of which require long lead times.

“Understanding the Australian government’s decarbonisation focus is key to investment and innovation within the industry,” Ms Gillham said. “Although we welcome MERNAP as an important step forward, greater support for the industry is still needed to allow for broad adoption of the framework.”

MIAL says the transition will require coordinated regulatory reform, targeted financial mechanisms and sustained government focus, with industry collaboration vital to ensure Australia’s maritime sector can remain competitive, capable and transition‑ready.