As the world grapples with the twin imperatives of economic development and environmental sustainability, the shipping industry finds itself at a critical juncture. Globally, maritime transport accounts for nearly 3% of greenhouse gas (GHG) emissions, according to the Review of Maritime Transport 2023 by UNCTAD. Without significant intervention, these emissions are projected to increase by up to 130% by 2050 compared to 2008 levels, fuelled by rising trade volumes and energy-intensive shipping practices. India, with its 7,517 km-long coastline and dependence on maritime trade for nearly 95% of its trading volume and 70% by value, therefore, must take decisive steps to ensure the sector aligns with its climate commitments and developmental goals.
The stage being erected made up of cargo shipping containers (HT Photo)
The International Maritime Organization (IMO) has undertaken the formidable task of steering the global shipping industry towards decarbonisation. In July 2023, the IMO revised its greenhouse gas strategy, setting a net-zero target for international shipping by or around 2050. One of the most consequential proposals emerging from this effort is a global carbon tax, proposed at $100 per tonne of CO₂ equivalent, to be levied from 2027. It is expected to generate over $10–13 billion annually, with the funds earmarked for climate technology transfer and support for developing nations transitioning to green shipping practices.
India’s stance within these negotiations has been pragmatic and cautious. At the 80th session of the IMO’s Marine Environment Protection Committee (MEPC 80) held in July 2023, the Indian delegation called for more realistic, science-based targets that consider the unique challenges of developing countries. India proposed a more measured target of having net-zero carbon fuels constitute 5% of the global marine fuel mix by 2030. Indian representative warned against overly ambitious mandates, suggesting that they could result in "unsustainable investment decisions" and deployment of "immature technologies".
India has also opposed blanket taxation measures that could disproportionately impact developing economies. The Indian delegation to MEPC 81 in March 2024 reiterated the call for a 'Common But Differentiated Responsibility and Respective Capabilities' (CBDR-RC) approach in global shipping taxation. Such a framework, it argued, would ensure fairness while also maintaining the competitiveness of countries like India in global trade.
On the domestic front, India has launched a suite of ambitious initiatives aimed at greening its maritime sector. The Sagarmala Programme, launched in 2015, seeks to enhance port infrastructure, improve logistics efficiency, and promote coastal shipping. By increasing reliance on inland and coastal waterways - which are three to four times more fuel-efficient than road transport--the programme aims to reduce logistics costs and carbon emissions.
Complementing this is the Maritime India Vision 2030, which lays out a ten-year blueprint for the holistic development of Indian ports and shipping infrastructure. One of its standout features is the Harit Sagar or Green Port Guidelines, which encourage Indian ports to adopt renewable energy, electrify cargo handling operations, reduce water consumption, and shift to cleaner fuels. According to the ministry of ports, shipping and waterways, Deendayal (Kandla), Visakhapatnam, New Mangalore, and VOC Port (Tuticorin) have already begun generating renewable energy that exceeds their internal consumption.
Moreover, the Indian government has identified ten highway corridors for exclusive movement of zero-emission trucks, further integrating green mobility with port logistics.
India is also investing in innovation and clean energy alternatives. Green hydrogen, ammonia, and electrification of port operations are emerging as viable solutions. Pilot projects are underway to introduce electric catamaran water taxis in cities such as Varanasi and Guwahati. The Inland Waterways Authority of India (IWAI) has also announced plans for hybrid electric Roll-on/Roll-off (Ro-Ro) vessels powered by both liquefied natural gas (LNG) and batteries.
Private sector innovation is also gathering pace. Startups like Blue Energy Motors are producing LNG-powered long-haul trucks that emit 30% less CO₂ compared to diesel counterparts. The company plans to introduce electric trucks and expand its LNG refuelling infrastructure nationwide.
These technologies, while promising, must be scaled efficiently and supported by investment and policy clarity. As highlighted by the UNCTAD Review of Maritime Transport 2023, a global transition to green fuels and infrastructure will require around $28 billion annually through 2050. In the Indian context, such investments must be prioritised through public-private partnerships, targeted subsidies, and R&D support.
Beyond environmental concerns, sustainable shipping is increasingly linked to economic competitiveness. India's early commitment to sustainable practices--such as the green hydrogen mission, shore-power mandates, and electric logistics, positions it as a low-risk, forward-looking partner in global trade networks.
Indeed, as global supply chains begin to impose sustainability-linked performance standards, India’s proactive green strategies may offer exporters a critical edge. Carbon border adjustment mechanisms (CBAMs) proposed by the EU and similar trade rules elsewhere make it imperative for India to act now, not just to decarbonise, but also to remain competitive.
India’s maritime transition will not be easy. But with the right mix of realism and ambition, it can serve as a global model for how developing economies can tackle shipping emissions without compromising on growth. Through targeted investments in green infrastructure, support for clean technologies, and a balanced global negotiating strategy, India is steering its shipping industry towards a greener horizon--one where sustainability and economic progress can sail together.
This article is authored by Tuhin A Sinha, national spokesperson, BJP and Kaviraj Singh, CEO & director, Earthood.
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