Innovation and collaboration are propelling transition to greener practices and shaping a decarbonized future for the maritime industry

The maritime industry is a cornerstone of global trade, responsible for transporting over 90 percent of traded goods. However, it also significantly contributes to greenhouse gas emissions, accounting for approximately 3 percent of global emissions. As the world grapples with the urgent challenge of climate change, the shipping sector is embarking on a transformative journey toward decarbonization.

Innovation is at the heart of the maritime industry's transition to greener practices. The shipping sector is tasked not only with reducing its own emissions but also with facilitating the transport of low and zero-emission fuels critical for decarbonizing other industries. It is estimated that shipping will need to transport 50 percent of the new zero-emission fuels required globally, necessitating significant investments in new technologies and infrastructure.

Recent reports indicate that to meet future hydrogen demand alone, the maritime sector may require up to 411 new ships. This underscores the vast opportunities for innovation and investment in this area. The shift to alternative fuels such as liquefied natural gas, hydrogen, ammonia and biofuels presents notable challenges, including compatibility with existing engines and the need for robust financial mechanisms to support these transitions.

Shanghai has emerged as a front-runner in the push for alternative marine fuels, setting an ambitious goal to supply at least 1 million metric tons of green fuels by 2030.This initiative is part of a comprehensive plan that includes establishing a robust bunkering system, sourcing fuels locally and from nationwide projects. By 2030, Shanghai anticipates that 300,000 tons of green fuels, including green methanol, ammonia and bio-LNG, will be available locally. Furthermore, the city aims to secure an additional 1 million tons from projects across China.

This collaborative approach leverages regional resources and infrastructure, particularly in areas rich in renewable energy potential, thus enhancing the city's capacity to meet its ambitious targets. To achieve its goals, Shanghai is also enhancing its port infrastructure. The ongoing development of storage facilities and bunkering stations at key ports such as Yangshan and Waigaoqiao is essential for the efficient supply of alternative fuels. These initiatives align with broader national efforts to promote the use of green energy, positioning Shanghai as a vital hub for the maritime energy transition.

The Hong Kong Special Administrative Region's commitment to green fuel bunkering has gained significant momentum with the recent promulgation of its action plan on Nov 15. This plan coincides with the ongoing Hong Kong Maritime Week and sets clear targets for reducing carbon emissions from Hong Kong-registered ships by at least 11 percent compared to 2019 levels. Additionally, it aims for 55 percent of diesel-fueled vessels in the government fleet to transition to green maritime fuels by 2026, and it seeks to achieve a 30 percent reduction in carbon emissions from the Kwai Tsing Container Terminals compared to 2021.

The government anticipates that by 2030, Hong Kong will provide bunkering services for oceangoing vessels powered by green fuels such as LNG and green methanol more than 60 times a year, involving over 200,000 tons of green maritime fuels. A key aspect of the action plan is the adoption of a multi-fuel strategy, with an inaugural LNG bunkering operation scheduled for the first half of 2025. The government also plans to draft a code of practice for green methanol bunkering by 2025 and explore future development directions for hydrogen and green ammonia bunkering in Hong Kong.

To ensure a stable supply of green maritime fuels, a Green Maritime Fuel Bunkering Incentive Scheme is set to be established in 2025. This initiative aims to foster collaboration among stakeholders and create a platform for business development in this emerging market. A designated bunkering site in Tsing Yi South has been identified, with a streamlined approval process to expedite the development of methanol storage facilities.

In addition, the Hong Kong government is taking proactive measures to reduce carbon emissions from port operations, with plans to establish green shipping corridors in collaboration with the Chinese mainland. The goal is to identify at least one suitable port for developing a green shipping corridor by 2026.

To support these initiatives, the Marine Department will promote the use of biodiesel in suitable government vessels starting in 2026, aiming to grow a fleet of green fuel-powered vessels by 2027. Furthermore, to align competitively with regional ports, the government plans to lower costs for shipowners transitioning to new fuels by reducing port dues and registration fees for green maritime fuel-powered vessels.

Both Shanghai and Hong Kong are making significant strides in this direction. Shanghai's plans to develop a spot market for green fuel trading and introduce professional certification services echo Hong Kong's initiatives to create a vibrant green maritime fuel market. These efforts not only facilitate the transition to cleaner fuels but also promote economic growth and job creation in the region.

Moreover, the emphasis on training and upskilling the workforce is vital. As the industry adopts new technologies and fuels, ensuring that seafarers and shore-based personnel have the necessary skills will be essential for a smooth transition. Collaborative training programs involving industry stakeholders, educational institutions and governments can help prepare the workforce for the challenges ahead.

As the maritime industry navigates the complex waters of decarbonization, the actions being taken in Shanghai and Hong Kong serve as powerful examples of how innovation and collaboration can drive meaningful change. By investing in infrastructure, developing new markets for green fuels, and fostering partnerships across the global shipping community, these cities are not only setting ambitious targets but also paving the way for a more sustainable future in maritime transport.

The journey toward a greener maritime industry is fraught with challenges, but with concerted efforts and shared commitments, it can lead to a resilient and sustainable global trade network. The time for action is now, and the collective resolve of the shipping industry, supported by forward-thinking policies and innovative technologies, will be pivotal in achieving the ambitious climate goals necessary for future generations.

In conclusion, the collaborative efforts of Shanghai and Hong Kong in promoting green maritime practices illustrate the potential of innovation to drive decarbonization. With strategic initiatives and a commitment to sustainability, these cities are well-positioned to lead the maritime sector into a greener future.

The author is principal representative of International Chamber of Shipping (China) Liaison Office and Shanghai Representative Office. The author contributed this article to China Watch, a think tank powered by China Daily.

The views do not necessarily reflect those of China Daily.

Contact the editor at [email protected].