How is the Indian shipping industry handling emissions?

The international shipping industry is responsible for the carriage of around 90% of world trade, making it the lifeblood of the global economy. However, this comes at a heavy price- a cost of 3% contribution to global greenhouse gas emissions. For years, the shipping industry was not included in the international climate discussions despite the urgency and scale of impact. It was only last month that the International Maritime Organisation (IMO), the UN body overseeing global shipping regulations, approved a plan to make the industry net-zero by 2050. 

The IMO Net-zero Framework is the first in the world to combine mandatory emissions limits and GHG (greenhouse gas) pricing across an entire industry sector.  It was approved by the Marine Environment protection Committee during its 83rd session (MEPC 83) and will be formally adopted in October 2025 before entry into force in 2027. 

Key elements of IMO Net-zero Framework

According to the framework, ships will have to comply with global fuel standards by reducing their GHG Fuel Intensity (GFI). Ships that emit above GFI thresholds will have to acquire remedial units to balance its deficit emissions, while there will be financial rewards for ships using a Zero or Near Zero GHG emissions fuel or technology (ZNZ). 

There will be two levels of compliance with GFI, a Base Target and a Direct Compliance Target. A positive compliance balance will allow ships to earn surplus units that can be either transferred to another ship which has a compliance deficit, banked for later use or voluntarily cancelled. 

India’s maritime sector 

With national level policies that align with international decarbonisation goals, India is committed to advancing sustainability in the maritime sector.  The Green Tug Programme is a key initiative under the ‘Panch Karma Sankalp’ that will drive the transition from conventional fuel-based harbour tugs to greener, more sustainable alternatives. With the Harit Sagar initiative, the emphasis is on use of clean/green energy in port operation, developing port capabilities to handle green fuels and use the concept of ‘work with nature; to minimise impact on biotic components. Other than these, the Harit Nauka (Green Vessel) Initiative, Alang Ship Recycling Program and India’s National Green Hydrogen Mission are also pushing India’s maritime sector to become net-zero by 2070. The recently passed Coastal Shipping Bill, 2024 also aims to reduce logistics costs and promote sustainable transport while unlocking the full potential of India’s vast coastline. 

Future efforts 

Despite achieving success in MEPC 83, the work is far from done. The Net Zero Framework will now need an amendment of the MARPOL convention (International Convention for the Prevention of Pollution from Ships) with ⅔ majority. Furthermore, the translation to alternative fuels will also require heavy investment in training and safety measures for seafarers. There is also a huge divide in how different nations are approaching this change as they are guided by national interests. Countries like Saudi Arabia are opposing significant transition to greener fuels to protect their fossil fuel market, whereas small nations and least developed countries are advocating for steep carbon levies to protect their environment and ensure green development. This will prove to be a huge challenge for IMO as it crafts a universally acceptable emissions framework for the shipping industry. 

According to the World Economic Forum and as highlighted in MEPC 83, there is a need for real-time emissions tracking if we are to increase compliance and transparency, while reducing emissions. Tracking these metrics can help expose inefficiencies in fuel use, vessel routing, and idle time. As the future of maritime decarbonization is data-driven, real-time emissions tracking must also be a priority for the global shipping industry.  

Lastly, for the global maritime industry to become net zero by 2050, individual nations have to integrate suitable policies and NDCs to this effect. Only with sustained and combined efforts from all stakeholders can the shipping industry lower its carbon footprint.