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Decarbonizing Shipping: Key Insights from Recent Maritime Session

Decarbonizing Shipping: Key Insights from Recent Maritime Session

Shipping moves more than 90 percent of global trade. For the Asia-Pacific region, that fact carries particular weight. The region hosts some of the world's busiest ports, longest maritime routes, and most trade-dependent economies. It also includes small island nations, remote coastal communities, and countries where reliable sea transport is not a convenience but a necessity.

Decarbonizing this vast network presents a challenge that extends well beyond vessel technology. It touches fuel production, port infrastructure, regulatory alignment, skills development, and finance. The Economic and Social Commission for Asia and the Pacific has convened a Sustainable Maritime Session designed to address that challenge through regional cooperation. The session is grounded in ESCAP resolution 79/2, adopted in May 2023, which links ocean-based climate action to sustainable development across the region.

Resolution 79/2 is formally titled "Regional cooperation to accelerate climate action on oceans in Asia and the Pacific for sustainable development". It recognizes that oceans are not simply transport corridors. They absorb carbon, regulate climate, support livelihoods, and sustain ecosystems now under pressure from warming, acidification, and pollution. The resolution therefore connects shipping decarbonization with broader efforts to protect marine environments and build climate resilience.

For UK businesses engaged in Asian supply chains, manufacturing partnerships, or logistics operations, the session carries commercial relevance. Changes to fuel standards, port capabilities, and emissions requirements in the region will affect freight costs, delivery timelines, and procurement decisions. Understanding how regional policy is developing helps businesses anticipate where infrastructure investment will flow and where new compliance expectations may emerge.

What ESCAP resolution 79/2 requires

ESCAP adopted resolution 79/2 on 19 May 2023 during its seventy-ninth session. The resolution calls on member states and associate members to strengthen cooperation on ocean-based climate action. Specifically, it encourages governments to expand capacity-building, innovation, and technology development. It also asks them to share knowledge and experience through regional platforms, use science-based decision-making, improve data collection, and mobilize resources for climate action.

The resolution addresses marine pollution where it contributes to climate risk and environmental degradation. It also requested ESCAP to convene a dialogue on ocean-based climate action ahead of the 2025 United Nations Ocean Conference. That dialogue took place on 19 September 2024 in Bangkok, providing a platform for governments, industry representatives, and technical experts to discuss practical measures.

Resolution 79/2 ties shipping and maritime connectivity to Sustainable Development Goals 13 and 14, which cover climate action and life below water. This framing is significant because it positions shipping decarbonization as part of a wider environmental and development agenda, not as a standalone technical problem. Consequently, the policy discussion includes questions about equitable access to technology, the needs of vulnerable economies, and the protection of marine ecosystems alongside emissions reduction.

Why maritime decarbonization is a regional priority

Asia and the Pacific account for a substantial share of global shipping activity. Major container ports, bulk commodity terminals, and transshipment hubs are concentrated in the region. Maritime transport underpins trade in manufactured goods, energy, food, raw materials, and consumer products. However, the sector remains heavily reliant on fossil fuels, making it a significant source of greenhouse gas emissions.

Transitioning to low- and zero-emission shipping requires coordinated action across multiple areas. New fuels such as green methanol, ammonia, and hydrogen need production facilities, storage infrastructure, bunkering networks, and safety protocols. Ports must upgrade electrical systems, refueling capacity, and cargo-handling equipment. Vessels require new engine technologies or retrofits. Regulatory frameworks must align across countries to avoid fragmentation.

ESCAP has identified sustainable and resilient maritime connectivity as a regional priority. Its Regional Action Programme for Sustainable Transport Development, covering 2022 to 2026, includes specific work on low- and zero-emission shipping. The program involves partnerships with governments, international organizations, regional institutions, and the shipping industry.

The transition also raises questions about equity and development. Major maritime economies and hub ports typically have better access to capital, technology, and skilled personnel. By contrast, small island developing states, least developed countries, and archipelagic economies often face higher costs, limited technical capacity, and fewer options for funding infrastructure upgrades. ESCAP materials identify financial constraints, technological gaps, insufficient institutional frameworks, and shortages of trained staff as barriers to progress in parts of the region.

Green shipping corridors and infrastructure coordination

One approach gaining attention is the development of green shipping corridors. These are designated routes on which governments, ports, cargo owners, and shipping companies coordinate the deployment of low- and zero-emission vessels, fuels, and supporting infrastructure. The concept is designed to create predictable demand, reduce investment risk, and enable testing of new technologies in real-world conditions.

ESCAP's ocean-based climate action initiative identifies several priorities related to green corridors. These include promoting zero- or near-zero-emission port operations, supporting green shipping corridors between major ports, improving infrastructure for low- and zero-emission maritime transport, and strengthening both land-based and sea-based connectivity.

The emphasis on infrastructure reflects a practical reality. Ships cannot transition to alternative fuels without reliable supply chains for those fuels. Ports must be able to store and distribute green methanol, ammonia, or hydrogen safely. Electrical grid capacity must support shore power and charging systems. Safety standards must be harmonized across jurisdictions to avoid regulatory conflicts.

Regional coordination matters because shipping routes cross national boundaries. Differing fuel standards, port regulations, and infrastructure capabilities can delay investment and increase costs. Common frameworks and information-sharing can reduce these barriers while allowing countries to participate according to their national circumstances and development priorities.

Ocean-based climate action and wider regional cooperation

ESCAP's work on shipping sits within a broader ocean agenda. A regional initiative proposed by Indonesia, Fiji, and Maldives identifies four areas of cooperation. These are protecting and enhancing blue-carbon ecosystems, decarbonizing shipping and maritime connectivity, accelerating ocean-based renewable energy, and enhancing ocean-climate resilience.

This approach is notable because it treats shipping as one component of a wider climate and sustainability strategy. Oceans absorb heat and carbon, support coastal communities and economies, and contain ecosystems vulnerable to warming, acidification, pollution, and habitat loss. Climate action in the maritime sector therefore addresses both emissions from transport and the protection of marine and coastal systems.

The initiative emphasizes voluntary cooperation. It allows countries to advance shared goals while taking account of different national circumstances and development needs. This flexibility is important in a region where economic structures, infrastructure capacity, and climate vulnerability vary widely.

For businesses operating in the region, these developments signal a shift toward integrated planning. Supply chain decisions may increasingly need to account for port infrastructure, fuel availability, emissions reporting, and environmental compliance across multiple jurisdictions. Companies with operations in Asia-Pacific markets may face new expectations around maritime emissions, particularly where governments adopt targets or incentives linked to green shipping corridors.

Commercial implications for UK businesses

UK businesses with supply chains, manufacturing partnerships, or logistics operations in Asia and the Pacific will encounter several practical effects as regional decarbonization measures take shape. Freight costs may rise as shipping companies invest in new vessels, alternative fuels, and upgraded port facilities. However, costs may also vary depending on which routes and ports receive infrastructure investment first.

Green shipping corridors may create price differentials between routes. Companies that can route goods through corridors with established alternative-fuel infrastructure may benefit from lower emissions intensity and potentially lower compliance costs in the future. Conversely, routes that lag in infrastructure development may face higher costs or regulatory uncertainty.

Procurement decisions may also be affected. Buyers increasingly face pressure to report Scope 3 emissions, which include transportation and logistics. Shipping emissions form part of that footprint. Businesses may need to gather more detailed data on maritime transport, including vessel type, fuel source, and route efficiency. Some may seek carriers committed to decarbonization or participation in green corridor initiatives.

Tender requirements in public procurement are also shifting. UK suppliers bidding for contracts in Asia-Pacific markets may encounter questions about supply chain emissions, particularly for government buyers or publicly funded projects. Demonstrating lower-emission logistics can strengthen competitive positioning. Our sustainable procurement support helps businesses prepare for these requirements.

There are also risks related to supply chain resilience. Investment in alternative fuels, port upgrades, and new vessels will be uneven across the region. Ports and shipping routes that attract early investment may gain competitive advantages. Those that do not may face higher costs, reduced service frequency, or regulatory restrictions. Businesses reliant on specific routes or ports should monitor infrastructure developments and consider contingency planning.

Key details UK businesses should note

Actions businesses should consider now

Businesses with Asia-Pacific supply chains should start by mapping their maritime transport routes and identifying which ports and shipping lanes they rely on most heavily. This provides a baseline for assessing where infrastructure changes, fuel transitions, or regulatory developments may affect costs or service levels. Understanding route dependencies also helps identify alternative options if primary routes face disruption during the transition period.

Gathering data on shipping emissions is becoming more important. Many carriers now provide emissions data on request, though the level of detail and methodology varies. Businesses should request this information from logistics providers and freight forwarders. Where data is incomplete, estimates based on vessel type, fuel, and distance can provide a starting point. This data supports Scope 3 reporting and helps identify higher-emission segments of the supply chain.

Engaging with logistics providers about decarbonization plans is also useful. Ask which green corridors they plan to use, which alternative fuels they are testing, and what timelines they are working to. Providers with credible transition plans may offer lower long-term risk. Those without clear plans may face higher costs or regulatory uncertainty. Our net-zero program includes support for businesses working through supply chain emissions and reporting requirements.

Consider whether your business can influence routing or carrier selection. In some cases, buyers have limited control over shipping decisions, particularly where suppliers arrange transport. In others, contracts allow for input on logistics providers, routes, or service standards. Where influence exists, prioritizing carriers and routes aligned with decarbonization efforts can reduce emissions intensity and future-proof supply chains.

Monitoring policy developments in key markets is also important. Several Asia-Pacific governments are developing emissions standards, port regulations, and incentive schemes linked to green shipping. Changes in fuel standards, bunkering infrastructure, or port access rules can affect costs and timelines. Businesses with significant exposure to the region should track these developments and assess potential impacts on operations.

Finally, consider how you communicate your approach to maritime emissions. Customers, investors, and procurement teams increasingly expect businesses to address transport emissions. Being able to describe your supply chain footprint, the steps you are taking to reduce it, and how you are engaging with the transition to cleaner shipping can strengthen your position in tenders and commercial discussions.

Where to find further information

The Economic and Social Commission for Asia and the Pacific provides detailed information on its ocean-based climate action initiatives, including maritime decarbonization and regional cooperation. Visit the ESCAP oceans and seas program page for policy documents, technical reports, and updates on regional dialogues.

Resolution 79/2 and related materials are available through the ESCAP seventy-ninth session page. This includes the full text of the resolution, supporting documents, and background papers on ocean-based climate action.

For information on the Regional Action Programme for Sustainable Transport Development and its work on low- and zero-emission shipping, see the ESCAP transport program page. This includes resources on maritime connectivity, port infrastructure, and regional transport cooperation.

The United Nations Ocean Conference website provides information on preparations for the 2025 conference and related ocean-climate initiatives. Visit un.org/en/conferences/ocean2025 for updates and background materials.

UK businesses seeking practical guidance on supply chain emissions, Scope 3 reporting, and decarbonization planning can access resources through the SBS Academy, which includes training on carbon measurement and reduction strategies.

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