Before starting an international trade, we should ask ourselves a question: How will this trade affect our living environment? According to the Global Carbon Budget (2024), carbon emissions have exceeded 35 billion tons each year. How can we reduce the number? This article provides you with a detailed explanation.
What is Green Shipping?
Green shipping refers to the use of several methods aimed at making transportation more environmentally friendly and energy-efficient, including reducing greenhouse gas emissions, using environmentally friendly materials for shipbuilding, and employing new energy sources such as methanol and hydrogen.
Why Green Shipping Should Be Practiced?
The Global Warming Caused by Greenhouse Gas Emissions
The OECD (Organisation for Economic Co‑operation and Development) reported that from 2019 to 2024, global maritime CO₂ emissions increased from approximately 889 million tons to approximately 974 million tons. This means that we are generating an increasing amount of greenhouse gases.
If this trend continues, it will cause climate disruption, lead to glacier melting, and result in rising sea levels. Our cities might also be submerged as a consequence. Therefore, how to reduce greenhouse gas emissions is an urgent issue that needs to be addressed. Some countries consider to reduce the carbon footprint using hydroponic greenhouse.
A Large Amount of Air and Marine Pollution
The transportation industry emits not only greenhouse gases, but also many other gases that pollute the air, like SO₂, CO, NOₓ, PM₂.₅, etc. Besides causing air pollution, these emitted gases will also lead to smog in coastal cities. If inhaled by residents, there is a fatal risk.
Unnecessary Transportation Costs
In today’s shipping industry, many routes are poorly planned, and some outdated vehicles consume excessive fuel. In addition, ships and trucks sometimes idle for long periods while waiting for cargo, causing unnecessary fuel waste. This not only wastes the Earth’s limited resources but also releases more harmful gases.
Aims of Green Shipping
Reduce Greenhouse Gas Emissions
Reducing greenhouse gas emissions is the most essential step today. The primary objective of all the green transportation policies issued by the IMO (International Maritime Organization), the EU (European Union), and the United Nations is to reduce greenhouse gas (GHG) emissions.
Greenhouse gas emissions are causing serious consequences. In recent years, coastal areas have seen more frequent typhoons and heavy rains, and canal water levels have dropped. This problem urgently needs to be solved by humans.
Reduce Marine Pollution
Reducing marine pollution during transportation is something humanity must achieve. During the shipping process, fuel leakage and ship accidents can both cause crude oil or heavy oil to enter the ocean, thereby damaging the marine ecosystem and leading to the death of fish.
For instance, after the oil spill in the Gulf of Mexico in 2010, the water quality in the vicinity was contaminated, causing a large number of fish, shrimp, and marine plants to die, and also affecting the birds.
Energy Conservation
Apart from pollution, how to enhance the efficiency of energy utilization is also a problem faced by the transportation industry. As humans, we need to adopt and actively promote energy-saving measures to ensure the sustainable use of the Earth’s resources.
Economic Sustainability
The costs of the transportation industry consist of fuel expenses, vehicle maintenance costs, waiting costs at ports, and dispatching costs. By improving processes and updating shipbuilding technologies to save these costs, we can not only improve transport efficiency and promote trade but also reduce resource waste and increase fuel efficiency.
How to Achieve Green Shipping?
Formulate Laws and Regulations
To achieve green logistics, IMO (International Maritime Organization) and some regions have constantly published and updated relevant regulations in recent years. In the process of international trade, the regulations that we may need to follow include:
- MARPOL (International Convention for the Prevention of Pollution from Ships): Published by the IMO, formulated to prevent ships from discharging pollutants at sea.
- EEDI (Energy Efficiency Design Index): It is an indicator used to measure the energy efficiency of newly-built ships, and it was developed by the IMO.
- EU ETS (European Union Emissions Trading System): It stipulates the carbon emission trading system of the European Union, sets a carbon emission cap, and encourages enterprises to reduce greenhouse gas emissions.
- Clean Air Act (United States Clean Air Act): This U.S. federal law regulates industrial pollution, car exhaust, and air quality standards.
Use Alternative Fuels
Compared to traditional fuels, alternative fuels are less hard on the environment. Here are some types of alternative fuels:
- Liquefied Natural Gas: After being liquefied, natural gas can be used as a fuel for ships, and its carbon dioxide emissions are 25% lower than those of traditional heavy oil.
- Hydrogen: Using hydrogen as fuel can achieve zero CO₂ emissions.
- Methanol (CH₃OH): Using methanol as the fuel can significantly reduce emissions of NOₓ and SOₓ, and the CO₂ emissions will be reduced by 15–20%.
- Bunker Biofuel: Converting vegetable oil or waste oil into marine fuel can also significantly reduce the emissions of CO₂, SOₓ, and particulate matter.
Optimise Vessel Design
Ship optimization aims to reduce the resistance of movement, so that it can reduce fuel consumption and emissions of greenhouse gases and harmful substances. The specific research directions include optimizing the hull design, using lightweight materials, and enhancing the efficiency of the propeller.
Charge a Carbon Tax
In order to limit carbon dioxide emissions, some governments have issued regulations imposing taxes on enterprises based on their greenhouse gas emissions. For example, according to OECD (Organisation for Economic Co‑operation and Development), Norway has imposed a carbon tax on domestic transportation, including ships, and this tax applies to the transportation of liquefied natural gas (LNG) and liquefied petroleum gas (LPG).
Besides, in April 2025, the IMO released a draft global shipping carbon tax: ships over 5,000 tons on international routes would be subject to a carbon tax, with a base rate of US$100 per ton.
Green Certification Requirements
The Green Certification means certifying ships, planes, vehicles, companies, or transport operations that meet environmental standards. Companies submit information about ships that meet environmental standards to the certification body, and then can receive a green certification.
Green certification systems, such as Green Award, GSI (Green Ship Index), have been widely applied in the transportation industries of Europe, North America, and Japan. In 2018, China issued the Green Ship Evaluation Standards, and ports like Shanghai, Ningbo, and Shenzhen now offer benefits for green ships.
The Challenges of Green Shipping
The High Price and Low Frequency Usage of Green Fuel
Although causing less pollution, new energy fuels are currently more expensive than traditional fuels. Moreover, their availability is still limited. Only a small number of ports can provide alternative fuels, and ships may not be able to refuel promptly when docking.
The High Cost of Innovation
To achieve green shipping, whether through issuing environmental regulations, using eco-friendly fuels, or optimizing ship design, significant costs are required. Some small companies are under significant financial pressure and lack the capabilities to support innovation.
Difficulty of Achieving Technological Breakthroughs
Apart from the high investment, technological breakthroughs are also constrained by high risks, inconsistent standards, and long research and development cycles. Additionally, the alternative fuels such as hydrogen, ammonia fuel, and green methanol are still in trial. There are also safety issues in terms of storage and transportation (such as the flammability of hydrogen and the toxicity of ammonia) that need to be addressed.
Global Regulations are Not Uniform
Even though the IMO and many countries have made green shipping rules, there’s no single global standard. When ships or planes cross borders, they have to follow different environmental laws, and companies need to file lots of reports, which is pretty inconvenient.
Moreover, inconsistent regulations can lead to unfair market competition. From a profit perspective, countries that implement environmental protection measures, actively publish regulations, and impose carbon taxes are actually at a cost disadvantage. Some businesses will refuse to export to these countries because of the strict emission management and the carbon tax.
Conclusion
Because of the greenhouse effect, harmful emissions, and marine pollution, green shipping is something that must be implemented. As humans, we need to take care of our environment; As companies, we should comply with regulations. Even though promoting green shipping comes with many challenges and difficulties, countries and organizations should still actively pursue it.
Meanwhile, green logistics is also a major global trend. In the future, the transportation industry will be more efficient and cause less pollution.
FAQs
Can green shipping reduce operating costs?
Of course, green shipping can reduce the operating costs of shipping enterprises in multiple aspects, including fuel cost, carbon tax, and some ports will also offer discounts to ships with green certification.
What are the alternative fuels? How do they affect the environment and costs?
Alternative Fuels include methanol (CH₃OH), liquefied natural gas, hydrogen fuel, ammonia (NH₃) fuel, biofuel, lithium batteries, and other types. They can replace traditional fuels such as heavy oil (HFO) or diesel (MGO) in transportation to power ships and release less carbon dioxide, sulfur dioxide, and other gases, being more environmentally friendly.
Although it has a relatively small negative impact on the environment, with the current technology, the cost of alternative fuels is still relatively high. For instance, the price of methanol fuel is twice or even more than that of traditional fuel.
Do alternative fuels have any safety issues?
Yes, some alternative fuels have some safety risks. The types of risks vary depending on the fuel, and they need to be managed separately. For instance, Liquefied natural gas (LNG) and hydrogen fuel are highly explosive; Ammonia (NH₃) fuel and methanol (CH₃OH) are toxic and can cause harm to the human body; A short circuit in the lithium battery could cause a fire.
What is the green ship certification?
The green ship certification is given to those ships or companies that meet environmental protection requirements, which is issued by specific institutions. Some common certification standards include the Green Award, GSI (Green Ship Index), ISO 14001, and ISO 50001.
Ships and companies with this certification usually enjoy priority and certain discounts when docking at the port. Furthermore, this certification is very attractive to customers and can enhance the competitiveness of the shipping company in the transportation market.
If you wanna know more information about green ship certification, feel free to contact Bansar!
How can medium and small shipping companies participate in green shipping?
Medium and small shipping companies usually have limited funds and thus are often unable to undertake the work of technological innovation. However, it is possible to achieve green shipping within one’s own capabilities. For instance, you can optimize your flight routes to reduce fuel consumption, gradually use environmentally friendly fuels, and provide regular environmental awareness training for your staff.
What is the IMO’s 2050 GHG Strategy?
The IMO’s 2050 GHG Strategy, published in April 2018, is the abbreviation of the IMO Initial Strategy on the Reduction of Greenhouse Gas Emissions from Ships. It aims to achieve carbon neutrality or zero emissions in the full industry by 2050.
It has formulated detailed plans for the specific implementation of future energy conservation and emission reduction efforts. For instance, by 2030, the carbon dioxide emissions per ton of fuel should be reduced by at least 40%.
What is Carbon Trading?
The government set an upper limit on the carbon emissions of each enterprise, which is known as Carbon trading. After calculating the total carbon emissions, the government allocates carbon emissions according to the size of the enterprise. If some enterprises have unused carbon emission quotas, they can sell them.
Which gases are considered greenhouse gases in shipping emissions?
GHGs (Greenhouse Gases) mainly include:
- CO₂: Approximately 76%.
- Methane(CH₄): 15%
- nitrous oxide(N₂O): 5%
- hydrofluorocarbons(HFCs):
- perfluorocarbon(PFCs):
- sulfur hexafluoride(SF₆): Fluorine-containing gases account for 2% in total.
- ozone(O₃): Approximately 2%.
