UPSC DAW Mains Answer Writing 16th July 2025

UPSC DAW Mains Answer Writing 16th July 2025

Question

‘Decarbonisation of global shipping offers both a challenge and an opportunity for India in the context of climate goals and maritime economy.’ Examine the key impediments to green fuel adoption in shipping and discuss India’s policy approach towards developing a green marine fuel ecosystem. (10 marks, 150 words) 

Model Answer

 Introduction:  

  • Global shipping accounts for nearly 3% of global GHG emissions, predominantly from fossil-based marine fuels like Very Low Sulphur Fuel Oil (VLSFO) and Liquefied Natural Gas (LNG). The International Maritime Organization (IMO) targets net-zero emissions by 2050, necessitating a shift towards green fuels like green methanol and green ammonia. For India, a maritime nation with over 7,500 km of coastline, this transition presents both environmental imperatives and economic potential. 

 Impediments to Green Fuel Adoption in Shipping: 

  • High Cost of Green Fuels:  

  • E-methanol costs ~$1,950/tonne, over 3x the price of VLSFO ($560/tonne) - due to expensive renewable electricity (10–11 MWh/tonne of e-methanol) and electrolyser costs. (The Hindu Business Line (2024)) 

  • Technological Constraints: 

  • Engines compatible with green ammonia are nascent and require modifications in fuel handling, storage, and safety protocols due to its toxicity and corrosiveness.  

  • Methanol adoption is quicker but still requires dual-fuel engine retrofits. 

  • Supply-Demand Mismatch: 

  • By 2028, demand for green methanol is projected at 14 million tonnes, while supply may only reach 11 million tonnes. (Maersk Sustainability Report, 2024) 

  • Conservative Industry Practices:  

  • Maritime sector is risk-averse due to safety concerns and long ship lifespans (20–30 years), leading to slow tech adoption. 

  • Infrastructural Gaps:  

  • Lack of green fuel bunkering facilities at ports, especially in the Global South, restricts operational viability of green vessels. 

 India’s Policy Approach to Green Marine Fuels:  

  • National Green Hydrogen Mission (2023): 

  • Targets 5 MMT of green hydrogen production by 2030. Green hydrogen is a feedstock for green ammonia and methanol. 

  • Green Ammonia for Dual Purpose: 

  • Substitutes LNG for fertiliser industry and serves as marine fuel, reducing import dependency (~50% of India’s fertiliser needs are import-based). 

  • Green Bunkering Hubs: 

  • Development at Tuticorin (VOC Port) and Kandla to cater to domestic and international shipping. 

  • Goal: Supply green fuels to Singapore, which handles ~25% of global ship refuelling. 

  • Incentives and Financial Innovation: 

  • Production Linked Incentive (PLI) schemes for electrolyser manufacturing (target: 1.5 GW capacity) 

  • Sovereign guarantees to de-risk private capital and attract multilateral funding (e.g., ADB, World Bank loans at 4%). (NITI Aayog Discussion Paper on Green Fuels, 2023) 

  • Retrofitting & Shipbuilding Revival: 

  • $10 billion pledged for buying 110 Indian-flagged ships, with 10–20% to be green fuel-capable and built in India.  

  • Collaboration with South Korean and Japanese shipbuilders is being pursued. 

 Conclusion:  

  • The decarbonisation of shipping is not just an environmental obligation under the Paris Agreement (2015) and IMO 2023 Strategy, but a geo-economic opportunity. With abundant solar potential, a growing hydrogen economy, and proactive policy architecture, India is well-positioned to become a green fuel hub for global shipping. However, success hinges on addressing cost barriers, technology readiness, and enabling global-standard maritime infrastructure.