Asia’s crucial role in decarbonisation of the maritime industry

With around 60% of global shipping passing through Asia, and a third passing through the South China sea, the region holds significant sway over the flow of goods, and the policies its countries put in place will shape the journey to net zero that the maritime sector adopts.

In an increasingly globalized world, shipping is set to play a role of growing importance in connecting countries and their exports and spurring economic growth through improving global trade. But the IMO’s recent target committing the industry to net zero by 2050 means we must reconcile growing trade while eliminating its environmental cost.

Asia has already taken strides to address the growing climate emergency, across key areas, such as power generation, transportation and of course, shipping. China has committed to becoming carbon-neutral by 2060, and in shipping the country has placed emphasis on upgrading old vessels, developing electric and LNG-fuelled ships, and promoting the use of shore power by ships while in port.

In 2020, Japan introduced its “Roadmap to Zero Emissions from International Shipping”, which outlines a comprehensive strategy to meet the IMO’s decarbonisation targets. Similarly, South Korea has implemented an air quality control programme that designates certain ports as Emission Control Areas (ECAs), within which ships must comply with speed and sulphur limits. While not yet directly applicable to greenhouse gases, implementing regulations such as these provide a framework for future action.

In light of the remarkable strides made by Asia’s largest and most advanced economies, it is crucial to recognize the accelerated growth of smaller nations in the region, particularly in Southeast Asia. These nations are poised to make substantial contributions to global exports and economic activities in the near future. Despite currently representing only 7% of greenhouse gas emissions, the region is experiencing rapid population growth and an expanding middle class. Projections indicate a 139% increase in CO2 emissions per capita from 2015 to 2040.

According to the Asian Development Bank, developing Asia is poised to play a “critical role” in the global initiative to curb climate change. This could be a window of opportunity for the global maritime industry to support a sustainable growth trajectory for the region through increased collaboration and exchange of knowledge.

Latest projections show that there is a need to deepen cooperation between all stakeholders in the maritime decarbonisation journey, and global, regional and national organisations, as well as the global maritime industry, must be on board to get on course. The IEA currently forecasts that international shipping is not on target to meet the decarbonization goals laid out by the IMO in 2023, and calls for technological innovation, supportive policies and collaboration across the value chain to drive the adoption of low- and zero-emission fuels and technologies for oceangoing vessels.

Rising importance of e-fuels 

The application of alternative and e-fuels, synthetic fuels produced from renewable energy, will become crucial in shipping: a survey that Accelleron published in October 2023 found that 97% of 200 interviewed decision-makers expect e-fuels to be the dominant fuel after 2050. In the meantime, alternative fuels such as LNG, bio-methanol, blue-ammonia, etc. will come increasingly into use. To respond to the transition towards a more diverse mix of available fuels, OEMs need to look for more innovative combustion systems with turbochargers and fuel injection systems, as well as at the emissions reduction potential and fuel savings that digital solutions provide.

Asia’s role is crucial in that development; Japan, China and Korea continue to lead in building zero carbon-ready vessels, as well as on bunkering protocols and infrastructure. Singapore has concrete plans in place to implement its decarbonization strategy and to finance its transition away from fossil fuels. There is an opportunity for larger economies in the region and worldwide to play a constructive role in supporting their smaller, but presumably fast-growing counterparts in Southeast Asia in establishing net-zero pathways for the shipping industry. This is particularly relevant as the imperative to promote cleaner maritime trade hinges on ensuring that burgeoning nations are well-equipped to pursue their net-zero objectives while managing the expansion of their economies. Conferences and exhibitions like Marintec serve as pivotal moments for industry stakeholders to come together, fostering collaboration, knowledge exchange, and the development of innovative solutions to address the challenges at hand.