06/05/2025

Int’l Shipping Charts Course for Net Zero

Introduction
International shipping, which carries nearly 90% of global trade, is a major yet often overlooked contributor to greenhouse gas emissions. As the world intensifies efforts to combat climate change, the maritime sector is now charting a course toward net-zero emissions. Recent global commitments signal a significant shift toward decarbonising one of the hardest-to-abate sectors.
Context

The push for greener shipping is being led by the International Maritime Organization (IMO), which has adopted revised strategies to reduce emissions from global shipping. These efforts align with broader climate commitments under the Paris Agreement.

Shipping currently contributes around 2–3% of global greenhouse gas emissions, and without intervention, this share could rise significantly by 2050.

Key Developments in Decarbonising Shipping

1. Net Zero Targets
   • IMO has set a target to achieve net-zero emissions from international shipping by or around 2050.
   • Interim targets include reducing emissions by at least 20–30% by 2030 and 70–80% by 2040.
2. Adoption of Cleaner Fuels
   • Shift from heavy fuel oil to low-carbon and zero-carbon fuels such as green hydrogen, ammonia, and methanol.
   • Exploration of biofuels as transitional alternatives.
3. Energy Efficiency Measures
   • Implementation of Energy Efficiency Design Index (EEDI) and Carbon Intensity Indicator (CII).
   • Retrofitting ships and improving operational efficiency.
4. Market-Based Mechanisms
   • Discussions on carbon pricing or levy on shipping emissions.
   • Incentivising cleaner technologies and fuels.

1. Climate Change Mitigation
   • Reduces emissions from a critical global sector.
   • Contributes to achieving global climate goals.
2. Technological Innovation
   • Drives research and development in green fuels and propulsion systems.
3. Sustainable Global Trade
   • Ensures that international trade aligns with environmental sustainability.
4. Opportunities for Developing Countries
   • Potential for green fuel production and port infrastructure development.

1. High Transition Costs
   • Retrofitting ships and adopting new fuels require significant investment.
2. Technological Uncertainty
   • No single fuel solution has emerged as the dominant alternative.
3. Infrastructure Gaps
   • Lack of global infrastructure for alternative fuels like hydrogen and ammonia.
4. Equity and Common but Differentiated Responsibilities (CBDR)
   • Developing countries argue for equitable burden-sharing in line with climate justice principles.
5. Regulatory and Compliance Issues
   • Ensuring uniform implementation across countries remains a challenge.

• India, as a major maritime nation, has a stake in sustainable shipping.
• Opportunities exist in green hydrogen production and port modernisation.
• Alignment with initiatives like Sagarmala can support greener maritime infrastructure.

1. Global Cooperation and Consensus
   • Strengthen multilateral efforts under IMO for uniform standards.
2. Investment in Green Technologies
   • Promote R&D in alternative fuels and energy-efficient ship design.
3. Financial Support Mechanisms
   • Provide climate finance and technology transfer to developing countries.
4. Phased and Flexible Transition
   • Allow gradual adaptation for countries with limited resources.
5. Strengthening Port Infrastructure
   • Develop green ports with facilities for alternative fuels.

Conclusion
The move toward net-zero shipping marks a transformative shift in global trade and environmental governance. While challenges remain, the sector’s commitment to decarbonisation reflects growing recognition of its role in climate change mitigation. Achieving net zero in international shipping will require coordinated global action, technological innovation, and equitable policy frameworks to ensure a sustainable and inclusive maritime future.