Rajesh Menon, is an expert from the Maritime Industry, underscores COP 29’s maritime mandates, emphasising green hydrogen, decarbonisation challenges, and equity concerns. He urges India’s logistics ecosystem to adopt sustainable strategies alongside advocating balanced climate finance frameworks.
The 29th Conference of the Parties (COP 29) in Baku has marked a significant development for the maritime sector, calling for net-zero greenhouse gas (GHG) emissions by 2050. The International Maritime Organisation (IMO) mandates that by 2030, shipping must transition to alternative fuels and adopt tools like the Energy Efficiency Existing Ship Index (EEXI) and Carbon Intensity Indicator (CII) ratings. However, this shift presents challenges, particularly regarding cost, equity, and operational impact for developing countries.
Alternative fuels may raise shipping costs, disproportionately affecting emerging economies like India
Challenges for emerging economies
The IMO’s directives follow the pattern of previous regulations, such as the 2020 sulphur content rules that raised freight costs. With the introduction of alternative fuels, shipping costs are likely to rise again, which could disproportionately affect emerging economies like India. These countries face significant economic impacts as they lack the advanced green technologies necessary to transition smoothly, raising concerns over equity in the adoption of these changes.
Call to action
On November 12, 50 maritime stakeholders signed the “Call to Action” declaration, urging the accelerated use of green hydrogen, greater investment in zero-emission vessels, and infrastructure development. The declaration stresses the urgency for regulatory frameworks to support the decarbonisation of shipping, promoting a balanced global approach. Key aspects of the declaration include the demand for green hydrogen, which is expected to account for 15 percent of global production, the rise of dual-fuel methanol vessels, and the need for policy frameworks ensuring stable fuel supply and price fairness.
India’s green fuel policies and concerns
For countries like India, the transition to green fuels aligns with existing policies, such as the National Hydrogen Mission, targeting 5 million metric tonnes of hydrogen production by 2030. However, concerns remain about the fairness of levies, pricing, and distribution mechanisms. India’s relatively small share in global shipping tonnage (1.4%) means its impact will differ from that of larger shipping nations. At the same time, India’s G20 proposal seeks a $1 trillion commitment from developed countries for climate finance to ensure an equitable transition.
Ambitious vision
While the declaration’s vision for the maritime sector is ambitious, it falls short of addressing specific climate finance requirements, especially for developing nations. With India’s G20 push for enhanced climate finance from developed countries, stakeholders are closely watching how the international community will support a fair and effective path to net-zero emissions in shipping.
Greening the logistics sector
For the logistics sector, greening the supply chain will become both a reality and a challenge. While multilateral negotiations continue, it is crucial for the logistics ecosystem to begin adopting green technologies and carbon-saving strategies to align with global sustainability goals.
(Rajesh Menon is a maritime expert and the views expressed are personal.)
