HOW IS GLOBAL SHIPPING TRYING TO DECARBONISE?

Global shipping, which accounts for around 3% of global emissions, is undergoing decarbonization through IMO-led fuel intensity targets, carbon pricing, adoption of green fuels like ammonia and methanol, and energy-efficient technologies. However, challenges like high costs, infrastructure gaps, and ensuring equity for developing nations persist.

Description

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Context:

Global shipping is on course towards decarbonisation by 2040-50.

Background:

International shipping contributes roughly 3 percent of global greenhouse gas emissions, and if left unchecked, emissions may rise to 5–8 percent by 2050. As global trade grows, decarbonizing this “hard-to-abate” sector is critical for meeting climate targets under the Paris Agreement.

Regulatory Frameworks & Policy Milestones:

  • In April 2025, the International Maritime Organization (IMO) reached a historic agreement (Marine Environment Protection Committee Session 83) on binding GHG fuel intensity targets, with mandatory reductions beginning in 2028, and full implementation expected by 2027‑28.
  • The IMO Net‑Zero Framework introduces the world’s first global carbon pricing system for shipping—applying to vessels above 5,000 gross tons, which account for 85 percent of sector emissions—with an initial price of USD 100 per tonne CO₂.
  • Regionally, the European Union has extended its Emissions Trading Scheme (ETS) to the maritime sector (phased from 2024 onward) and introduced FuelEU Maritime, which limits lifecycle carbon intensity from 2025 onward. 

Key Strategies & Technologies:

Policy/Strategy

Objective

Target Timeline

IMO GHG Fuel Intensity Limits

Reduce emissions per energy use

30% by 2035, 65% by 2040

Carbon Pricing Mechanism

Encourage cleaner fuel adoption via ETS-like system

In force for large ships from ~2028

Alternative Zero-Carbon Fuels

Replace fossil bunker fuels

Scale adoption from 2025–2030

Operational Efficiency Measures

Immediate emission reductions via tech & routing

Ongoing

Getting to Zero Coalition

Zero-emission shipping fleet by 2030, net-zero by 2050

2030 / 2050

Challenges

  • Fuel & Infrastructure Constraints: Alternative fuels remain expensive and infrastructure—especially bunkering ports—is still scarce.
  • Aging Fleet: With an average vessel age of over 22 years, retrofitting capabilities are limited. Companies face regulatory uncertainty, making investment decisions difficult.
  • Equity Concerns: Developing countries and Small Island States may face disproportionate cost burdens unless global policy includes support mechanisms. 

Conclusion

The global shipping industry is embarking on a significant transition—mandated by IMO frameworks and regional policies—for fuel intensity limits and carbon pricing. Adoption of green fuels, efficiency measures, and digital tools, backed by large-scale investment and public-private partnerships, aims to decarbonize the sector by mid-century. Challenges include upfront costs, aging infrastructure, and ensuring equitable transition for vulnerable nations. 

ALSO READ- https://www.iasgyan.in/daily-current-affairs/shipping-industry-and-emissions

Source: The Hindu

PRACTICE QUESTION

Q. Discuss the key strategies and challenges in decarbonizing the global shipping industry. How can global cooperation ensure a just transition for developing nations? (150 words)

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