- New Maritime Regulations to Reshape India’s Ports and Shipyards.
- India Plans Green Fuel Norms and Carbon Pricing for Shipping Sector.
- IMO Compliance to Cost India $100 Million Annually by 2030.
The Indian government is currently drafting new regulations aimed at aligning the country’s maritime sector with the upcoming emission standards set by the International Maritime Organisation (IMO), as reported by Mint on Saturday. This initiative is part of India’s larger commitment to a greener transition and the development of its maritime industry, reports Business Standard.
Transforming Ship Design and Port Infrastructure
The proposed regulations are set to significantly affect how vessels are designed, built, and operated, impacting their overall costs. Additionally, these rules will shape the planning of major ports and shipyards, ensuring they meet international sustainability benchmarks outlined in the IMO’s Revised GHG Strategy 2023. These new standards will introduce fuel norms for ships and establish a global carbon pricing system.
Focus on Green Ports and Skilled Workforce
“These regulations will also define parameters for building green fuel filling stations at ports, and training programmes for the workforce involved in related activities,” a source told Mint. As part of the changes, new vessels built in Indian shipyards will need dual-fuel capabilities or must be designed to run fully on green fuels such as CNG, LNG, methanol, ammonia, green hydrogen, or electricity.
Presently, diesel dominates as the main fuel on inland and coastal routes and some international voyages. The upcoming rules will include a phased roadmap for CO₂ emissions reduction and provide a timeline for green upgrades at Indian ports.
Regulatory Guidance Already Issued
The Directorate General of Shipping (DGS), which operates under the Ministry of Ports, Shipping and Waterways, has already rolled out a guidance note that outlines the IMO’s Net Zero Framework and the Greenhouse Gas Fuel Intensity (GFI) compliance standards. This advisory is designed to assist industry stakeholders as they embark on their implementation journey.
IMO’s GFI System Set for 2027 Launch
The IMO is gearing up to launch its GFI system in March 2027, with full operations expected to kick off in 2028. The goal? Achieving net-zero emissions from international shipping by 2050 through a combination of technical fuel standards and market-based strategies. This new rule will require a gradual reduction in the carbon intensity of fuels used by ships over 5,000 gross tonnes that are engaged in international trade, and it will apply to all vessels under the MARPOL convention.
Economic and Strategic Impacts of Compliance
According to Mint, these regulations are anticipated to have significant economic, operational, and strategic repercussions for shipowners, ports, training institutions, classification bodies, and fuel suppliers. The DGS estimates that compliance could cost India between $87 and $100 million annually by 2030, which might lead to a 14% increase in fuel costs and a 5% rise in freight rates.
However, despite these added expenses, India is looking at a strategic advantage. The country aims to produce 5 million tonnes of green hydrogen by 2030, which could result in the creation of 28 million tonnes of ammonia and 26.3 million tonnes of methanol. Both of these fuels are eligible for IMO compliance credits under the GFI system.
Implementation Strategy and Industry Preparation
To support smooth implementation, the DGS has urged all stakeholders — including shipowners, port authorities, fuel suppliers, and training institutes — to begin preparations. This includes:
- Fuel intensity monitoring
- Training the workforce in green operations
- Planning for green infrastructure
Currently, only 14% of India’s registered fleet meets IMO GHG compliance. However, domestic shipyards are already looking into retrofitting options and new green ship designs to capitalise on emerging opportunities.
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Source: Business Standard
