Unlocking Green Shipping Corridors: a pathway to sustainable maritime practices

11 December, 2024

The maritime industry faces challenges to align with global decarbonization goals, especially within the context of green shipping corridors. These corridors represent a targeted approach to reduce greenhouse gas emissions, enhance operational efficiency, and to promote collaboration amongst key stakeholders. Current green shipping corridor initiatives include 57 projects globally as of 2024, between the announced, planned and the executes ones (4), with notable example such as the Singapore-Rotterdam Green and Digital Corridor, which employs innovative practices like zero and near-zero fuel bunkering standards and real-time port-to-port data exchanges.

However, challenges like insufficient infrastructure, unclear fuel pathways, high investment costs and stakeholder alignment are holding back the progress. Digitalization will facilitate addressing these challenges, by transforming green corridors into green and digital ecosystems. By using digital tools for real-time monitoring, data sharing, and combining public-private partnerships, the shipping industry can achieve decarbonization and efficient shipping practices. Additionally, promoting transparency and collaboration through standardized digital reporting is needed to ensure accountability and progress. The future is near and there’s an urgent call to action for maritime stakeholders to embrace both green and digital transformations, driving immediate and scalable impacts on the path to achieving zero-emission shipping by 2050.

“To decarbonize the shipping industry, we should not wait for a consensus on the right fuel type(s) or the availability of necessary infrastructure. We should act now, working together as terminals, shipping lines, and ports to align on utilizing digitalization to reduce emissions.”

The main inputs and contributions are:

• The concept of green shipping corridors was introduced in COP26 under the Clydebank Declaration to promote decarbonization, reduce GHG gas emissions through targeted trade routes, needing collaboration between ports, shipping companies, regulators etc.
• According to the DNV database, 57 green shipping corridor initiatives have been recorded as of February 2024. This number doubled from 22 in 2022 to 44 in 2023, the year the IMO adopted its revised greenhouse gas strategy. Of these, more than 12 have cleared a progress stage, 15 have set operation targets between 2024-2030 and 6 aim to be scaled pre-2030 deployment.
• Digital solutions play a pivotal role, providing tools for real time data monitoring, data standardization, JIT port calls and better decision-making process to support green corridors’ success.
• Stakeholders face investment challenges, with high costs of infrastructure and green fuels or alternative fuels, changing to green technology making it a barrier for adoption and scaling.
• Regulatory alignment remains an issue across regions which makes it difficult for the implementation of the policies. As jurisdictions delay reaching a decision, these slow regulatory updates make the implementation of essential infrastructure and decarbonization strategies slower.
• With the low availability of zero emission fuels, such as green methanol, ammonia, hydrogen which play an important role in achieving decarbonization, issues such as high costs are slowing the use of them at scale.
• Initiatives like the Singapore-Rotterdam Green & Digital Corridor, the pilot project highlights the collaborations needed for a successful implementation of the decarbonization goals. With 26 stakeholders across the value chain, their public-private partnerships led to the successful trial of the green methanol bunkering.
• Digitalization is the first step for incorporation of autonomous shipping technologies, improving efficiency further. Several studies have mentioned that the potential of JIT sailing, it has shown a reduction in bunker fuel consumption and emissions ranging from 4% to 40%.
• Real-time data sharing and predictive tools are important to provide stakeholders with insights into emissions and operational efficiency. This could help the stakeholders in decision-making, better cargo handling and route planning which will eventually lead to sustainable shipping industry.
• The strategic five-step approach, outlined by PortXchange, serves as a roadmap for implementing green shipping corridors. It begins with stakeholder alignment to set realistic goals and timelines, followed by prioritizing short-distance, high-impact routes for pilot projects. The plan incorporates digital tools for real-time data sharing, Just-in-Time port calls, and emissions tracking to enhance efficiency. Additionally, it fosters innovation in fuel technologies and regulatory frameworks to address infrastructure and policy challenges, culminating in scalable solutions that accelerate decarbonization while ensuring economic and environmental sustainability.

“Digitalization can significantly optimize port operations and reduce emissions by connecting operational planning and enabling just-in-time sailing. This is an easy solution; it’s a low-hanging fruit that can be implemented today.”