India is gearing up to implement new regulations for its ports and shipping industry to align with the International Maritime Organization's (IMO) zero-emission goals. These rules are expected to have a wide-ranging impact, influencing ship design and construction costs, port infrastructure, and the adoption of green fuels.
The move is a significant step towards decarbonizing India's maritime sector and ensuring compliance with global environmental standards. The IMO's Revised GHG Strategy 2023 aims for net-zero emissions from international shipping by or around 2050, and India is proactively preparing its maritime ecosystem to meet these requirements.
Key aspects of the upcoming regulations:
- Fuel Standards: The new rules will set standards for cleaner fuels, encouraging a shift away from traditional diesel. Alternative fuels such as compressed natural gas (CNG), liquefied natural gas (LNG), methanol, ammonia, green hydrogen, and electricity will be promoted. Financial incentives are also being considered to encourage this transition.
- Port Infrastructure: Ports will be required to develop infrastructure for green fuel bunkering, including the establishment of green fuel filling stations and related manpower training programs.
- Ship Design: The regulations will influence the design of new ships built in Indian shipyards, promoting dual-fuel options or designs optimized for green fuels.
- Emission Reduction Targets: The rules will include phased reduction targets for carbon dioxide (CO2) emissions and a time-bound plan for green upgrades of ports.
- Compliance Assessment: Mandatory engagement of classification societies will be required for early compliance assessment.
To facilitate a smooth transition, the Directorate General of Shipping (DGS) has already issued a guidance note on the IMO's Net-Zero Framework and Greenhouse Gas Fuel Intensity (GFI)-based compliance measures. This guidance aims to help stakeholders understand, prepare for, and comply with the forthcoming regulatory requirements.
India's broader green maritime initiatives:
- Harit Sagar Green Port Guidelines: These guidelines, issued by the Ministry of Ports, Shipping and Waterways (MoPSW), target carbon emission reduction at major ports through focused implementation and monitoring of green initiatives. Ports are encouraged to develop infrastructure for green bunkering and adopt digital inspection protocols.
- Green Tug Transition Programme (GTTP): This program aims to replace conventional harbor tugs with greener alternatives powered by cleaner fuels. The first phase involves four major ports procuring or chartering at least two green tugs each.
- Maritime Amrit Kaal Vision 2047: This vision sets a specific goal for major ports to reduce GHG emissions from port vessels by 30% by 2030.
- National Green Hydrogen Mission: This mission paves the way for zero-emission fuels and aims to establish India as a global leader in green maritime technology.
- National Green Shipping Policy (NGSP): A strategic initiative designed to transition India's maritime sector toward environmental sustainability, technological innovation, and global competitiveness.
Challenges and Opportunities:
While India is making significant strides in greening its maritime sector, some challenges remain. The immediate impact of IMO regulations might be limited initially, as only a small percentage of the Indian fleet currently qualifies as foreign-going vessels above 5,000 gross tonnage. Also, the cost of transition to green fuel can be significant.
However, the transition also presents numerous opportunities. India can become a hub for green fuel production and export, capitalize on international incentives, and create new jobs in the maritime sector. The country's proactive approach to maritime decarbonization aligns with its broader commitments under the Panchamrit framework, announced at COP-26, including achieving net-zero emissions by 2070. The IMO's net-zero framework is expected to formally come into force in March 2027 and effectively from calendar year 2028.