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Picture Courtesy: The Hindu

Context:

Member countries of the International Maritime Organization (IMO), including India, have postponed a vote on a strategic plan to transition the shipping industry away from fossil fuels and achieve net-zero emissions by 2050. The delay comes under pressure from the United States. 

Current Status:

The 2023 IMO Greenhouse Gas Strategy aims to:

• Reduce the carbon intensity of international shipping by at least 40% by 2030 (CO2 per transport work).
• Promote zero or near-zero emission fuels and technologies to constitute 5–10% of energy used in shipping by 2030. (Source: The Hindu)

These measures primarily target large ocean-going ships over 5,000 gross tonnes, which contribute around 85% of shipping emissions. Shipping’s share of global anthropogenic CO2 emissions has remained stable at 1.7–2.3% during 2016–2023.

• The shipping industry currently contributes about 3% of global greenhouse gas emissions, a figure projected to rise to 10% by mid-century without regulatory intervention. (Source: Reuters)

Picture Courtesy: Carbonwise.com

What is carbon free shipping?

Carbon-free shipping refers to the operation of ships and maritime transport systems in a way that produces zero carbon dioxide (CO₂) emissions or minimal greenhouse gas (GHG) emissions. The goal is to reduce the environmental impact of the shipping industry, which is a significant contributor to global emissions.

Key Features of Carbon-Free Shipping:

Zero- or Low-Emission Fuels: Uses fuels that do not release CO₂ during combustion, such as hydrogen, ammonia, biofuels, or synthetic fuels. Reduces reliance on traditional fossil fuels like heavy fuel oil or diesel.

Energy-Efficient Technologies: Incorporates wind-assisted propulsion, electric engines, and advanced hull designs to minimize fuel consumption. Optimizes shipping routes and speeds for efficiency.

Carbon Capture & Offsets: Some approaches integrate carbon capture technologies or invest in carbon offset projects to neutralize emissions.

Global Standards & Regulations: International bodies like the International Maritime Organization (IMO) are developing frameworks to ensure ships meet carbon-reduction targets. Examples include the IMO Net-Zero by 2050 strategy and proposed carbon pricing mechanisms.

Significance:

• Shipping contributes about 3% of global greenhouse gas emissions, and this could rise if unregulated.
• Carbon-free shipping is crucial for achieving international climate targets, including the Paris Agreement goals.
• Encourages innovation in maritime technology and reduces the carbon footprint of global trade. 

Challenges in achieving Carbon-Free Shipping:

• High Costs of Green Technologies: Implementing zero-emission technologies, such as hydrogen fuel cells or ammonia engines, requires substantial investment. 

• Limited Availability of Sustainable Fuels: The production of alternative fuels like green ammonia, hydrogen, and biofuels is currently insufficient to meet the industry's needs. Over 95% of zero-emission fuel projects are still in the pre-investment phase, hindering large-scale adoption. (Source: World Economic Forum)  

• Lack of Regulatory Clarity: The International Maritime Organization's (IMO) proposed global carbon pricing mechanism, intended to incentivize cleaner fuels, was delayed due to opposition from major countries, including the United States and Saudi Arabia. 

• Economic and Political Resistance: Some nations and industries argue that carbon pricing could increase shipping costs, leading to higher consumer prices and reduced competitiveness. 

• Infrastructure Limitations: Ports and supply chains are not yet equipped to handle alternative fuels on a large scale. 

International and National measures:

Way Forward:

• Accelerate Adoption of Zero-Emission Fuels: Scale up production and use of green hydrogen, ammonia, and biofuels. Currently, >95% of zero-emission fuel projects are in pre-investment stage. (Source: WEF, 2025) 

• Strengthen Regulatory Frameworks: Implement IMO’s Net-Zero Framework and carbon pricing without delays. Global carbon price proposal: $100 per tonne CO₂. (Source: IMO, 2025) 

• Develop Infrastructure: Upgrade ports to support alternative fuels and carbon capture technologies. India aims for 60% port energy from renewables by 2030 and 90% by 2047. (Source: The secretariat, 2025) 

• Promote Technological Innovation: Encourage energy-efficient ship design, wind-assisted propulsion, and hybrid engines. Reduce operational carbon intensity by 40% by 2030 as per IMO strategy. (Source: Reuters, 2025)  

• Global Cooperation: Ensure coordinated international policies to avoid economic and competitive disparities. Engage major emitters like U.S., China, EU, and India in consensus-building. 

Source: The Hindu