How is Global Shipping Trying to Decarbonise?

Why in News: Global shipping is moving towards decarbonisation by 2040–2050, with green fuels like methanol and ammonia emerging as key alternatives to fossil-based marine fuels.

Global Context

• Global shipping targets net-zero emissions by 2040–2050.
• Transition fuels: LNG, followed by green methanol, green ammonia, and biofuels.
• Green methanol is preferred currently due to easier handling vs ammonia.

Green Fuels: Production & Characteristics

• Green hydrogen: Made from water electrolysis using renewable energy.
• Green ammonia: Green H₂ + nitrogen → stable fuel, zero emissions.
• Green methanol: Green H₂ + captured CO₂ from industries; nearly drop-in replacement for existing fuels.

India’s Decarbonisation Strategy

• Target: Green domestic shipping + green fuel bunkering hubs at Tuticorin & Kandla.
• India plans to export green fuels to Singapore, a major bunkering station.
• Leverages its solar capacity (grew from 2.82 GW in 2014 to 105 GW in 2025).

Enabling Factors for India

• Sovereign guarantees: Lower risk, cheaper global financing (~4% interest).
• PLI scheme for electrolysers: Strengthens domestic supply chains.
• CCUS incentives: Promote green methanol from captured industrial CO₂.
• Goal: Create marine green fuel hubs integrated with renewables & industry.

Significance of Decarbonisation in the Shipping Sector

Environmental Necessity

• Shipping accounts for ~3% of global GHG emissions, comparable to large industrialised nations.
• Without action, emissions may rise to 17% by 2050, derailing climate targets.
• Also reduces air pollutants like sulphur and nitrogen oxides, improving public health.

Economic Stability & Innovation

• Powers 90% of global trade; clean energy adoption shields it from fossil fuel volatility.
• Drives technological innovation in fuels, engines, and ship design.
• Boosts green finance and new business opportunities.

Equity and Employment

• Employs ~2 million seafarers, mostly from developing countries.
• A just transition ensures reskilling, job protection, and inclusive growth.

Global Policy Alignment

• IMO targets: 40% carbon intensity cut by 2030, net-zero by ~2050.
• Expected global carbon pricing will favour green fuel adoption.

Sectoral Accountability

• Ensures shipping doesn’t lag behind sectors like power and transport in emissions cuts.
• Delays may lead to stricter global regulations and economic penalties.

Supports Sustainable Development Goals (SDGs)

• Green shipping promotes SDG 13 (Climate Action) by cutting emissions, SDG 9 through cleaner technologies, and SDG 14 by reducing marine pollution.

Challenges in Decarbonisation of Global Shipping

High costs and financial barriers

• Green fuels (ammonia, e-methanol) are expensive.
• New ships and retrofits require heavy upfront investments.
• Limited access to low-cost capital increases financing challenges.

Fuel availability and infrastructure gaps

• Insufficient global production of green fuels.
• Many ports lack bunkering infrastructure for alternative fuels.

Technological uncertainty

• No universally accepted green fuel solution yet.
• Uncertainty deters large-scale investment.

Regulatory and political hurdles

• IMO framework (e.g., MEPC-83) not yet adopted.
• Opposition from oil-exporting countries resisting green transition.
• Disagreements on emissions levies among countries.
• Erosion of CBDR principle causes equity concerns.

Industry fragmentation and slow adoption

• Shipping industry is conservative and fragmented.
• Slow uptake of new technologies and operational practices.

Limited R&D and innovation scale

• Insufficient global investment in zero-carbon tech development.

Equity and fairness issues

• Developing countries face disproportionate costs.
• Lack of adequate support for just transition and capacity building.

Way Forward for Decarbonising Global Shipping

Accelerate green fuel production and infrastructure

• Scale up manufacturing of green hydrogen, ammonia, and methanol.
• Develop global bunkering infrastructure at major ports.

Strengthen global regulatory frameworks

• Finalize and implement IMO’s Net Zero Framework and MARPOL amendments.
• Ensure fair, transparent, and enforceable carbon pricing mechanisms.

Increase financial support and incentives

• Provide subsidies, grants, and low-interest loans for green shipbuilding and retrofits.
• Encourage investment through sovereign guarantees and international climate finance.

Boost research, development, and innovation

• Fund R&D for advanced zero-emission ship technologies and fuels.
• Promote pilot projects and knowledge sharing across stakeholders.

Promote equity and just transition

• Support developing countries with technology transfer, capacity building, and finance.
• Uphold CBDR principles ensuring differentiated responsibilities.

Industry collaboration and culture change

• Foster partnerships among shipowners, manufacturers, and governments.
• Encourage industry-wide adoption of sustainable practices and transparency.

UPSC Relevance

Global Shipping & Decarbonisation

• GS Paper 3 – Environment & Climate Change: Addresses climate mitigation in hard-to-abate sectors like shipping, aligned with SDG 13 and Paris Agreement goals.
• GS Paper 2 – International Governance: Involves global cooperation

Practice Mains Question:

Q. The global shipping sector is a major emitter of greenhouse gases but has lagged behind in decarbonisation. Discuss the key challenges in decarbonising global shipping and examine India’s potential role in this green transition.