Australia and Singapore have agreed to create a green and digital shipping corridor by the end of 2025, building on a Green Shipping Cooperation initiative signed by the two countries in October 2022. The two countries’ Department of Infrastructure, Transport, Regional Development, Communications and Arts and Maritime and Port Authority, respectively, aim to identify areas of mutual interest, including the establishment of low and zero-carbon fuel supply chains and the development of green marine fuel sources. The collaboration will also involve the identification of digital shipping solutions to facilitate the paperless handling of cargo between ports of Australia and Singapore.
The concept for green corridors, known as the Clydebank Declaration, is drawing broad interest since it was proposed at the COP26 Conference in October 2021. Both Australia and Singapore have sought to be at the forefront of decarbonization initiatives and are already focusing on the iron ore trade routes between Western Australia and East Asia. A new study from the West Australia-East Asia Green Corridor Consortium found that ships powered by ammonia could be deployed on these routes by 2028. In 2019, around 65 million metric tons of iron ore were exported from Australian mines to Japanese steelmakers, making this the third-largest dry-bulk trade route in the world.
The establishment of green shipping corridors is an important step toward decarbonization efforts for the shipping industry. Shipping is responsible for around 3% of global greenhouse gas emissions, and with the continued growth of global trade, emissions are expected to increase if no action is taken. The implementation of green corridors will shift the industry toward more sustainable practices and help reduce emissions. Australia and Singapore, as major global players in maritime transport, can encourage other countries to adopt similar initiatives and become leaders in the decarbonization of the shipping industry.
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