in International Shipping News,Shipping: Emission Possible 31/10/2026

Yet despite holding advantages across much of the value chain, the country still faces significant challenges if it is to convert ambition into commercially viable zero-emission trade routes.

A report from the Global Maritime Forum on China’s progress with green shipping corridors noted that China was involved in at least 21 green corridor initiatives as of June 2026, representing “nearly a fifth of the global green corridor portfolio”.

According to the report, China possesses strategic advantages in three of the four building blocks needed to successfully develop green shipping corridors: viable zero-emission fuel pathways, cross-value-chain collaboration and an enabling policy environment. Customer demand remains the weakest link.

“China holds strategic advantages in three of the four building blocks necessary to successfully realise green corridors,” the report said. It adds that the country is positioning itself “as a leading supplier of three zero-emission fuels and technologies central to the advancement of green corridors: methanol, ammonia, and electric batteries”.

That strength is built on China’s rapid expansion in green methanol and ammonia production, coupled with its emergence as a global leader in marine battery technology. The report highlights the country’s “low cost and early availability of green methanol and ammonia” and its position “at the forefront of marine battery development” as key competitive advantages. At the same time, China benefits from “innovative commercial partnerships and knowledge-sharing platforms across the value chain” and “rapidly strengthening policies related to green hydrogen”.

Green avenues The report says that successfully developing green corridors could help China scale strategic hydrogen and battery industries, gain market share in a global bunker market worth approximately $100bn and participate in a wider maritime decarbonisation investment pipeline valued at between $1tn and $2tn. It could also support as many as four million green jobs while helping future-proof Chinese shipyards and maritime labour against the energy transition.

However, the report stresses that major barriers remain. For example, there are gaps in both “soft” and “hard” infrastructure, including fuel certification systems, bunkering networks and charging infrastructure. It also points to the risk of competition for green ammonia from domestic industries, difficulties maintaining alignment across corridor partnerships, high costs associated with alternative fuels and battery-electric vessels, and what it describes as “fragmented global demand for zero-emission shipping services”.

While China may currently offer some of the lowest-cost green methanol and ammonia globally, those fuels remain significantly more expensive than conventional marine fuels. Likewise, battery-powered vessels still carry substantial capital cost premiums.

The report warns that customer demand has not developed at the same pace as supply-side initiatives. While some cargo owners are willing to pay higher freight rates for lower-carbon transport, willingness to absorb green fuel premiums remains inconsistent across markets. This creates uncertainty for project developers, shipowners and fuel producers attempting to make large-scale investments.

Against this backdrop, the report’s recommendations section focuses on a set of practical measures that could help move Chinese corridors from planning into operation.

Points for success The first recommendation calls for accelerated development of infrastructure supporting methanol, ammonia and battery-electric shipping. The report argues that progress is needed in both certification frameworks and physical logistics networks. “This can be split into two focal points: soft infrastructure, aligning fuel projects with global certification standards, and hard infrastructure, the rollout of physical fuel transportation and bunkering networks,” the report noted. “Both are necessary to connect China’s green fuel production with the global shipping sector.”

Alignment with international standards is viewed as particularly important for routes linking China and Europe.

The report notes that compatibility with the EU’s Renewable Fuels of Non-Biological Origin framework will be essential if shipping companies are to maximise regulatory compliance benefits under European legislation.

The second recommendation focuses on governance and collaboration. Drawing on lessons from green corridor projects around the world, the report says successful initiatives tend to share several traits, including clear governance structures, technology-focused targets, detailed feasibility studies and comprehensive implementation roadmaps.

The report also suggests that China can shorten development timelines by building on partnerships that already exist around fuel production, bunkering and offtake agreements. Rather than creating entirely new structures, corridor developers may be able to use existing commercial relationships as the foundation for broader decarbonisation projects.

A third recommendation centres on policy intervention to close the cost gap between conventional and zero-emission fuels. “Both national and international policy action will be needed to support the success of green corridors,” the report says.

The authors argue that corridors connected to Europe already benefit from demand signals created by the EU Emissions Trading System and FuelEU Maritime regulations. They also point to growing domestic support mechanisms in China, including green fuel incentives and hydrogen pilot programmes that could lower fuel costs and encourage early deployment.

Creating partnerships Looking ahead, the report suggests there is scope for bilateral and plurilateral cooperation with major trading partners including the EU, Singapore, Australia and the United States. Mechanisms such as H2Global are highlighted as potential models for supporting green fuel deployment across international trade routes.

The final recommendation addresses what may prove the most difficult challenge: creating customer demand.

“Customer demand can be leveraged by targeting the shipping sectors that have demonstrated a higher willingness to pay and/or aggregating mechanisms,” the report argues.

The authors recommend focusing on first-mover industries with established climate commitments, particularly participants in the iron ore, vehicle and container sectors. Engaging cargo-owner alliances such as the Zero-Emission Maritime Buyers Alliance could also help consolidate demand and improve willingness to pay for green shipping services. Meanwhile, domestic policy measures aimed at reducing shipping carbon intensity among China’s state-owned enterprises may provide an additional source of early demand.

In its conclusion, the report presents a clear assessment of China’s position within the global maritime energy transition.

“With a portfolio that represents nearly one-fifth of global initiatives and international collaboration as a national priority, China is well-positioned to lead the development of green shipping corridors,” the report concludes. It adds that China has “clear strengths across three of the four key building blocks required to make green corridors a success”, citing fuel availability, policy support and supply-chain collaboration. Source: Baltic Exchange