Seoul moves forward with green shipping corridor plans

Under scrutiny is the proposed legislation that will see the collaboration ofSouth Korean ports at Busan, Ulsan and Masan with the US northwestern ports of Seattle, Tacoma and Everett to develop green corridors, initially for pure car and truck carriers and container ships.Proposals for the legislation were based primarily on a report published by a NGO, Solutions for Our Climate (SFOC) which advocates for decarbonisation across a number of key industries, including oil and gas and power generation, among others.

SFOC shipping lead John Yum, toldSeatrade Maritime News that its report entitled, A Study on South Korea’s 2050 Net Zero Pathway for Shipping, which was published in Late September, aided in developing the regulatory proposals."This initiative, led by Daerim Moon and 14 lawmakers, has given the government and related agencies the time to review the regulation and to act on it,” said Yum.

Essentially the SFOC report builds on an agreement made between South Korea and the US at COP27 to establish green shipping corridors between the two countries, and that was followed up at COP28 with a declaration to commence sea trials of the green corridor by 2028.

According to Yum the proposed bill only allows for zero emission fuels, 100% carbon free, but the enforcement decree, a subset of the bill, will establish the details for the law.“Under the bill, the term "Green Shipping Route" refers to a route designated and announced by the Minister of Oceans and Fisheries where Green Ships operate between two or more environmentally friendly ports using zero-carbon fuels and eco-friendly technologies, and no carbon is emitted throughout the entire maritime transportation process,” he explained.

Moreover, Yum confirmed that the bill defines a ‘Green Ship’ as a ship that uses zero-carbon fuel as a power source, “as specified by Presidential Decree”.He added: “The specific mention of zero-carbon fuel is significant as it excludes so-called 'bridge-fuels' based on fossil fuels, such asLNG.”

The Green Corridor bill itself accelerates South Korea’s decarbonisation plans and would see initial costs ballon to around $65 billion up to 2030, for the South Korean transition. Funds that would come from a combination of private and public finances, said Yum.

In conclusion the report suggests that the IMO’s Net0 scenario requires a shift to a fuel mix focused on green methanol, ammonia and hydrogen to achieve its net-zero emissions by 2050.

“Gray methanol, blue hydrogen, and blue ammonia—which have higher GHG emission factors (EF) than their greener counterparts—find themselves economically unviable due to rising carbon prices under net-zero scenarios. Therefore, a transition to carbon-free fuels must ultimately define the future of maritime shipping,” according to the SFOC.That future includes planning for a 38% increase in costs through tax reforms and “enhancements” of the financial system to encourage investment in the maritime transition.

Moreover, government must establish a three-pronged strategy that involves government, industry, and research institutes to lead the eco-friendly ship fuel market.