~ 40% APAC's share of global shipping CO2
Ships
Asia-Pacific is the beating heart of global maritime trade — and of its emissions
Asia-Pacific is the beating heart of global maritime trade — and of its emissions
The region is responsible for around 40% of global shipping CO₂, with Singapore, China, Indonesia, Japan and Australia at the forefront. Despite the sector’s strategic importance to regional economies, shipping remains almost entirely dependent on fossil fuels, producing over a gigaton of CO₂ every year — more than the total national emissions of Germany.
The technologies to decarbonise ships exist today, but what’s missing is speed, scale, and direction. With global fuel regulations still weak, Asia-Pacific can play a decisive role in shaping the next generation of green maritime policies — from clean fuel production, infrastructure support to efficiency standards and carbon pricing.
~ 40% APAC's share of global shipping CO2
The region’s dependence on imported fossil fuels leaves it exposed to price shocks and geopolitical volatility. Singapore alone supplies more than 50 million tonnes of marine fuels every year, making it the world’s largest bunker hub. Transitioning away from fossil bunkers towards e-fuels and renewable electricity is not only a climate imperative but also a strategic necessity to strengthen energy independence.
By leveraging local renewable potential — from Australian solar and wind to Indonesian hydropower — the region can cut its oil reliance while building future-proof, resilient supply chains.
Hydrogen-based e-fuels, such as e-ammonia and e-methanol, are the most scalable pathway to decarbonise long-distance shipping.
Australia is becoming a global front-runner in green hydrogen and e-ammonia production
Singapore can pioneer the development of robust green fuel standards, using its unique position as a refuelling hub to steer the global bunker market toward zero-carbon fuels
China, with its national emissions trading system, could expand carbon pricing to include international shipping — setting a precedent for other economies
Together, these efforts can define how the world’s shipping routes are powered in the coming decades.
Experience from Europe shows that a reliance on first-generation biofuels and LNG can easily divert investment from truly sustainable options. Relying on unsustainable biofuels or fossil gas would only lock the region into new forms of dependency and accelerate the negative indirect environmental impacts associated with their use.
Instead, governments must ensure robust sustainability rules and transparent certification systems. investments should focus on renewable-based e-fuels, battery-electric propulsion for short-sea routes, and energy-efficiency upgrades across ports and fleets.
Asia-Pacific’s shipping decarbonisation is both a climate and industrial opportunity. Building regional e-fuel supply chains could generate billions in private and public investment, create green jobs, and anchor new clean industries around ports.
Countries like Singapore and Australia can lead with forward-looking policies — such as green bunker fuel mandates or climate contributions on fossil fuels — to unlock the transition. Indonesia can leverage its battery industry to electrify domestic vessels, while China’s inclusion of shipping in its ETS could change the global regulatory landscape.
With the right mix of policy ambition, innovation, and cooperation, the Asia-Pacific region can transform from the world’s largest emitter of shipping CO₂ into the epicenter of the sector’s clean transition.
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