Decarbonising the Shipping Industry in India

Green hydrogen, ammonia, and electrification of port operations are emerging as viable solutions. Pilot projects are underway to introduce electric catamaran water taxis in cities such as Varanasi and Guwahati.

- Tuhin A Sinha and Dr Kaviraj Singh

As the world grapples with the twin imperatives of economic development and environmental sustainability, the shipping industry finds itself at a critical juncture. Globally, maritime transport accounts for nearly 3% of greenhouse gas (GHG) emissions, according to the Review of Maritime Transport 2023 by UNCTAD. Without significant intervention, these emissions are projected to increase by up to 130% by 2050 compared to 2008 levels, fueled by rising trade volumes and energy-intensive shipping practices. India, with its 7517 km-long coastline and dependence on maritime trade for nearly 95% of its trading volume and 70% by value, therefore, must take decisive steps to ensure the sector aligns with its climate commitments and developmental goals.

Global Imperatives and India's Standpoint The International Maritime Organisation (IMO) has undertaken the formidable task of steering the global shipping industry towards decarbonisation. In July 2023, the IMO revised its greenhouse gas strategy, setting a net-zero target for international shipping by or around 2050. One of the most consequential proposals emerging from this effort is a global carbon tax - proposed at $100 per tonne of CO equivalent, to be levied from 2027. It is expected to generate over $10-13 billion annually, with the funds earmarked for climate technology transfer and support for developing nations transitioning to green shipping practices.