India-EU Green Shipping Corridor

India-EU Green Shipping Corridor aims to decarbonise maritime trade. Read here to learn more.

India and the European Union (EU) launched an industry coalition for the India-EU Green Shipping Corridor during the third edition of Sagarmanthan: The Great Oceans Dialogue 2026.

The initiative seeks to accelerate maritime decarbonisation through low-emission fuels, private investment and commercially viable green shipping routes.

The dialogue was organised by the Ministry of Ports, Shipping and Waterways (MoPSW) in partnership with the Observer Research Foundation (ORF).

What is a Green Shipping Corridor?

A green shipping corridor is a designated maritime route on which governments, ports, shipping companies, fuel producers and technology providers collaborate to reduce greenhouse-gas emissions across the shipping value chain.

It involves cleaner marine fuels, energy-efficient vessels, renewable-powered ports, shore-to-ship electricity and suitable bunkering infrastructure.

Its success depends on synchronising fuel production, vessel availability, port facilities and fuel demand along the route.

Key Features of the India-EU green shipping Initiative

1. Green-fuel trade: The corridor aims to connect India’s renewable-energy potential and emerging green-fuel industry with European demand. Green ammonia and green methanol could serve as alternative marine fuels, subject to safety, cost, availability and lifecycle-emissions considerations.
2. Industry-led implementation: A pre-feasibility study was initiated in 2025, followed by the launch of the industry coalition in 2026. The coalition is expected to facilitate public–private partnerships, mobilise capital and identify commercially scalable shipping routes. The pre-feasibility assessment will inform more detailed feasibility studies and corridor selection.
3. Green ports: The Harit Sagar Green Port Guidelines, 2023 provide a framework for reducing port emissions, expanding renewable-energy use, electrifying equipment, and developing facilities to store and bunker cleaner fuels. The guidelines target renewable energy accounting for more than 60% of major ports’ energy consumption by 2030 and over 90% by 2047.
4. Green maritime infrastructure: Deendayal Port in Gujarat, Paradip Port in Odisha and V.O. Chidambaranar Port in Tamil Nadu have been identified in the initiative’s broader context as potential green-hydrogen hubs. India is also pursuing the Green Tug Transition Programme to replace conventional diesel-powered harbour tugs with cleaner alternatives.
5. Maritime expansion: Under the Maritime Amrit Kaal Vision 2047, India aims to increase annual port-handling capacity to 10 billion tonnes. Major ports handled 915.17 million tonnes of cargo in FY 2025-26, reflecting the growing scale of India’s maritime trade.
6. Multimodal connectivity: Inland waterways can complement green maritime corridors by connecting ports with industrial centres and reducing reliance on road freight. Cargo movement on national waterways reached 218 million tonnes in FY 2025-26.

Significance for India

1. Climate action and maritime decarbonisation

• International shipping supports global trade but relies heavily on fossil fuels.
• Green shipping corridors can demonstrate how alternative fuels, energy-efficient vessels and clean port operations can be integrated into commercially workable systems.
• They complement India’s broader climate commitments and the global effort to reduce emissions from international shipping.

2. Green industrial growth

• India can use its renewable-energy resources to develop green hydrogen and its derivatives, including green ammonia and methanol.
• A reliable export market could encourage investment in renewable power, electrolyser manufacturing, fuel production, storage and port infrastructure, creating jobs across the green industrial value chain.

3. India-EU strategic partnership

• The initiative deepens cooperation in clean technology, maritime trade, investment and energy transition.
• It can help align Indian fuel-production capabilities with European demand while creating opportunities for technology transfer, research and industrial collaboration.

4. Energy security and resilient supply chains

• Diversifying marine fuels and trade routes can reduce exposure to fossil-fuel price volatility and certain geopolitical disruptions.
• However, green fuels must themselves be produced through resilient supply chains and supported by diversified sources of renewable electricity, equipment and critical materials.

5. Sustainable port-led development

• Greener ports can reduce local air pollution, improve energy efficiency and encourage cleaner logistics.
• Integrating ports with coastal shipping and inland waterways could also support more efficient freight movement, provided the environmental impacts of port expansion and dredging are carefully managed.

Major Challenges

• High production costs: Green hydrogen-derived fuels remain relatively expensive compared with conventional marine fuels. Their commercial viability depends on renewable-electricity costs, production scale and long-term fuel contracts.
• Infrastructure gaps: Production facilities, storage tanks, bunkering terminals and compatible vessels must be developed together. Inadequate infrastructure at either end can undermine an otherwise viable corridor.
• Safety and technical standards: Ammonia is toxic, while hydrogen presents demanding storage and handling requirements. Methanol also requires appropriate fire-safety and operational protocols. Common standards, trained personnel and emergency-response systems are essential.
• Lifecycle emissions: A fuel is not automatically green simply because it is an alternative to conventional marine fuel. Its climate benefits depend on how it is produced, transported and used.
• Regulatory uncertainty: Differences in fuel-certification rules, emissions accounting and maritime regulations may increase compliance costs and complicate cross-border trade.
• Equitable transition: Smaller ports, developing economies and smaller shipping operators may struggle to finance new vessels and infrastructure. The transition must avoid concentrating its benefits among large ports and corporations alone.
• Environmental safeguards: Green-fuel production requires land, water and renewable electricity. Poorly planned projects could compete with other local needs or harm sensitive coastal ecosystems.

Way Forward

• Move from pre-feasibility to implementation: Identify priority routes based on cargo demand, fuel availability, port readiness and emissions-reduction potential, followed by transparent cost-benefit and lifecycle-emissions assessments.
• Create predictable demand: Encourage long-term fuel-purchase agreements among shipping companies, ports and fuel producers to reduce investment risks and support economies of scale.
• Mobilise blended finance: Combine public funding, private investment, development-finance institutions and appropriate risk-sharing mechanisms to support first-of-a-kind projects.
• Build interoperable infrastructure: Develop common fuel-quality, safety, bunkering and emissions-accounting standards in coordination with international maritime institutions.
• Integrate green ports and vessels: Coordinate renewable-powered port operations, shore-to-ship electricity, vessel retrofits and alternative-fuel bunkering rather than treating them as isolated projects.
• Ensure a just transition: Support skill development, worker safety, local participation and access to finance for smaller ports and shipping enterprises.
• Strengthen environmental monitoring: Measure actual lifecycle emissions and monitor effects on coastal ecosystems, water resources and local communities to ensure that decarbonisation delivers genuine environmental gains.

Conclusion

The India-EU Green Shipping Corridor represents an opportunity to connect India’s clean-energy ambitions with the decarbonisation of global maritime trade. Its long-term success will depend not simply on launching a coalition, but on converting cooperation into bankable projects, reliable green-fuel supplies and measurable emissions reductions.

By aligning industrial policy, port modernisation, climate finance and international standards, India can strengthen its position as a green maritime hub while advancing sustainable and resilient trade.