29 December 2023 (Lloyd's List) - THE Chinese government has set out its plans to catalyse the rapid development of new low- and zero-carbon fuelled ships, with the aim of securing more than 50% of the green shipbuilding market by 2025.
A joint statement released by the Ministry of Industry and Information Technology and four other departments earlier this week sets out the government’s shipbuilding sector goals for 2024-2030.
The plans include a government supported development programme for methanol- and ammonia-fuelled newbuildings, alongside the acceleration of research and development into liquid hydrogen carriers, fuel cells and “a comprehensive green supply chain management system” for the Chinese shipbuilding sector.
By 2030, the Chinese plan envisages a sector-wide overhaul of practices and technology to ensure that China’s shipbuilding industry is a world leader in green shipping.
The plan sets out requirements for China’s yards to cut their carbon emissions intensity, and establish a carbon-management and green supply chain management system that will require a more digitalised workflows.
It also sets out plans to implement green lifecycle requirements that will promote Chinese ship recycling facilities and “prohibit” the dismantling of ships by beaching.
To support the sector-wide push towards green shipbuilding dominance, the plan also promises “green finance policies and supports”, however the document does not spell out any details of what that may entail.
China’s shipyards are already dominating the global orderbook having picked up the lion’s share of new orders in 2023. Around 65% of all newbuilding contracts globally, in total gross tonnage terms, were attributed to Chinese shipyards during the year, according to data tracked by Lloyd’s List.
While China has traditionally mopped up the majority of lower-value standard design bulkers and tankers, it has continued to focus attention on winning orders for more sophisticated vessel types over recent years and the new 2024-2030 only reinforces the direction already established by government policy.
The new goals are in line with Beijing’s plans to future-proof its strategic industrial sectors that will gain prominence as the world tries to reduce emissions over the next few decades. China already dominates global production of solar panels, batteries and electric vehicles.
China’s determined shift towards more technologically advanced shipbuilding output has come at the expense of South Korea and Japan. China now has a 90% market share of all vehicle carrier orders, as that sector has been on a buying spree for new alternative-fuel pure car and truck carriers.
The new government-led plan is only likely to expand that dominance and challenge competitor yards across other asset classes over the next few years.
