The maritime industry is characterised by the need to move towards a sustainable, decarbonised and digital journey. The pollution caused by the use of large vessels and the dependence on energy-intensive operations necessitates the ports and shipping sector to address this key issue of decarbonisation while maintaining sustained growth. A recent knowledge report by the Federation of Indian Chambers of Commerce and Industry and PwC on “Green Shipping and Ports – Unlocking Opportunities for a Sustainable Maritime Future” describes India’s initiatives towards greening the ports and shipping sector and future opportunities. Excerpts…
Global experience
Around 2.8 per cent of global emissions are accounted for by greenhouse gas (GHG) emissions from shipping. The failure to adopt required measures can raise this share by up to three times by 2050. Notably, around 80 per cent of the international export-import volume is transported by sea and handled at ports. With this, the International Maritime Organisation (IMO) has formulated the GHG Strategy 2023, targeting net-zero GHG emissions from international shipping and the use of alternative, cleaner fuels. Decarbonisation and sustainable initiatives for maritime activities are at the forefront, with around 193 UN countries aiming to achieve the UN sustainable development goals related to green and sustainable shipping.
Key global trends in the ports and shipping sector include an increased focus on powering vessels using cleaner alternative fuels such as green hydrogen, ammonia and biofuels. Developments have also been seen for shore power-based infrastructure, enabling vessels to plug into electricity while being docked. Further, green maritime visions have been developed by countries, focusing on emission reduction measures and energy efficiency, promoting sustainable practices and boosting port infrastructure to accommodate green techniques.
Recent trends in India
The maritime sector has a notable share of 95 per cent in India’s trade volume, as well as a 65 per cent share in the trade value. The shipping sector is witnessing advancements in terms of an increased use of alternative fuels, in addition to the existing use of solar and hybrid ferries. The recently launched Maritime Amrit Kaal Vision 2047 also witnessed the development of strategies to achieve carbon neutrality. Key targets include 14 hydrogen/ammonia hubs, a 100 per cent shore-to-ship power facility and 14 carbon-neutral ports.
Harit Sagar guidelines
The Harit Sagar Green Port Guidelines 2023 have been launched by the Ministry of Ports, Shipping and Waterways (MoPSW), with some of the key goals being 20 per cent green cover in port areas by 2030 and increasing this to 33 per cent by 2047, as well as increasing the share of renewable energy in ports to over 60 per cent by 2030 and 90 per cent by 2047. The capacity for renewable energy at ports has increased over the years, and currently, major ports generate around 140 MW of renewable energy. Ports that have surplus renewable energy include Visakhapatnam port, Deendayal port and New Mangalore port, which is 100 per cent solar-powered. The government has also launched the “Harit Nauka” initiative, focusing on inland waterways and enabling a complete transition to green vessels by 2047.
Ships that have a power demand of less than 150 kW are being provided with shore power, and this is targeted to be provided to all visiting ships soon. Major ports are also to be equipped with this facility, with the aim of reducing emissions as power can be drawn from cleaner onshore sources.
Green vessel development
Vessels and ferries using alternative fuels such as hydrogen/ammonia and biofuels, as well as those that run on electricity, are also gaining widespread recognition, and India is to soon deploy the first inland waterway vessel using green hydrogen fuel at Varanasi. Indian shipyards are actively developing ferries and vessels (passengers/cargo) that will be powered by various alternative fuels such as hydrogen/ammonia, biofuels and batteries.
Other developments
The Maritime Amrit Kaal vision aims to set up green hydrogen hub facilities at all ports. India is the lead country for the IMO Green Voyage 2050 Project and has also been selected as the first country to pilot green shipping projects under the programme.
Other key focus areas in the sector include the development of additional liquified natural gas bunkering facilities, electrification of port equipment and the use of eco-friendly propulsion systems, launch of a digital platform to manage the marine environment and enabling paperless online reporting of various information. In addition, there are plans for providing incentives for the development of green vessels, with the MoPSW proposing 30 per cent financial support under the Panch Karma Sankalp initiative.
The way forward
Looking ahead, the ports and shipping sector is on a path towards carbon neutrality and sustainability. However, there are certain aspects to focus on to ensure a steady pace of development. The establishment of a centralised body will aid in preparing policies and frameworks, ensuring that ports have a plan for achieving phase-wise carbon neutrality. Given that vessels running on cleaner fuels have a 20-30 per cent higher capex cost than traditional fuel vessels, incentivising shipowners will be helpful to ensure their investment in environmentally friendly solutions. Government support, such as the production-linked incentive scheme, will also provide a boost to the manufacturing sector and India could become a hub for the manufacturing of hydrogen fuel cells. Further, providing maritime start-ups with an ecosystem for growth will enable the adoption and use of technologies and green solutions.
