One year after the Memorandum of Understanding (MoU) signed to establish a Green and Digital Shipping Corridor, the Maritime and Port Authority of Singapore (MPA), Port of Los Angeles and Port of Long Beach have concluded a comprehensive baselining study.
This study projects an increase in green jobs, improvements in local community health, and economic benefits for participating countries. It also underscores the growing demand for zero- and near-zero emission fuels and the advantages of decarbonizing shipping routes between these nations.
Commissioned by C40 Cities and the three partnering ports, and conducted by the American Bureau of Shipping, the study analyzed maritime trade flows between Singapore and the two Californian ports.
In addition, it provided a baseline of activities and energy demand requirements for vessels operating on the corridor until 2050. This conclusion follows the successful introduction of the corridor’s Partnership Strategy at the 28th United Nations Climate Change Conference in December 2023, outlining its goals, partnership structure, and governance mechanism.
Moreover, the study estimates the quantity of near-zero and zero-emission fuels needed for this traffic by modelling the adoption of these fuels by vessels operating on the corridor until 2050. It considers various factors such as fuel production costs, availability, and the targets outlined in the 2023 International Maritime Organization’s Strategy on Reduction of Greenhouse Gas Emissions from Ships.
“This study provides a sense of scale and scope to inform our implementation of the Green and Digital Shipping Corridor. Achieving the reductions of greenhouse gas emissions required will take coordination and commitment from public and private stakeholders across the maritime and goods movement industries. We’re proud to be collaborating with industry partners to make this corridor a reality,” stated Gene Seroka, executive director of Port of Los Angeles.
Practically, the study underscores the socioeconomic potential of shifting to zero- and near-zero emission fuels and embracing digital solutions. It suggests that the corridor, upon full implementation, could generate over 700 new job opportunities in zero and near-zero emission fuel production while enhancing local air quality. These findings align with conclusions drawn by C40 and other entities, indicating that initiatives within green shipping corridors can expedite broader decarbonization efforts in the maritime industry, offering health benefits to local communities and green economy prospects for participating countries.
According to a statement, as significant hubs along the trans-Pacific shipping route, Singapore, Los Angeles, and Long Beach play pivotal roles in the maritime sector’s transition toward sustainability. They join 20 other leading ports and port cities as members of C40’s Green Ports Forum, a prominent global platform advocating collaborative climate action. This forum actively promotes ambitious green shipping corridors, recognizing their critical importance in facilitating the green transition of ports and shipping sectors.
The corridor partners emphasize their commitment to a data-driven approach, using insights from the study to inform their efforts in advancing the partnership’s decarbonization goals and aligning with the broader objectives of the shipping sector. Key findings from the study include:
- Vessels operating within the corridor account for 7% of global container trade, with approximately 1% passing through Singapore, 14.5% through the Port of Long Beach, and 20% through the Port of Los Angeles.
- The projected annual energy demand of vessels in the corridor is estimated to be around 60,000 terajoules, equivalent to approximately two months of Singapore’s national electricity generation.
- Shipping demand along the corridor is expected to reach approximately 850,000 tons of methanol and 160,000 tons of ammonia annually by 2030, which could offset greenhouse gas emissions equivalent to nearly 320,000 cars annually.
- Transitioning to zero- and near-zero emission fuels has the potential to create approximately 700 jobs in the production and supply chain of such fuels by 2030.
The partnership convened the inaugural in-person stakeholder meeting of the corridor, joined by representatives from various sectors along the industry value chain. This gathering, held during Singapore Maritime Week 2024 on 18 April, served as a precursor to engaging stakeholders in the corridor.
The meeting, along with subsequent working groups, will concentrate on devising green and digital solutions to tackle the following focal points within the corridor:
- Facilitate the supply and uptake of zero and near-zero emissions fuels (e.g., green ammonia, green methanol) on a large scale, encompassing safety measures, emergency response strategies, mitigation efforts, and standards establishment.
- Foster the development and expansion of energy efficiency solutions, leveraging digital tools (e.g., route optimization, remote monitoring) and technologies aimed at reducing fuel consumption (e.g., wind-assisted propulsion).
- Promote the advancement and utilization of digital technologies to bolster the monitoring, reporting, and verification of greenhouse gas emissions along the corridor.
All three ports will join the Accelerating Digitalization and Decarbonization Conference hosted by MPA as a highlight of Singapore Maritime Week 2024. Additionally, they will take part in a moderated discussion, facilitated by C40, during the event’s sidelines. The session, titled “Navigating Collaboration: Governance of Green Shipping Corridor Partnerships,” will feature the unveiling of C40’s latest report and the sharing of insights on best practices for effective governance within green corridor initiatives.
“Accelerating efforts to decarbonize the shipping sector is urgent if we are to limit global heating to 1.5 degrees Celsius. C40 is proud to support this first-mover initiative which has the potential not only to support the development and uptake of low- and zero-carbon fuels and vessels, but also create good green jobs and health benefits for local communities by doing so,” said Mark Watts, executive director of C40.
