Green and Sustainable Investments in Shipping in Asia

Abstract

Asia’s dominant role in global maritime trade places the region at the centre of both shipping-related greenhouse gas emissions and the financing challenge associated with achieving the International Maritime Organisation’s net-zero emissions target by 2050. Decarbonising the maritime sector is estimated to require investment exceeding USD 1 trillion, underscoring the critical role of sustainable finance. This paper examines how green shipping corridors function as a financial structuring mechanism to reduce investment risk and mobilise capital for low-carbon maritime assets in Asia. Using a qualitative research approach based on policy analysis and case evidence from India, Singapore, and China, the study finds that corridor-based development enhances project bankability by aggregating demand, improving regulatory certainty, and enabling climate-aligned financing. Financial instruments such as green bonds, blended finance, sustainability-linked lending, and public–private partnerships — aligned with the Poseidon Principles — emerge as key enablers of maritime decarbonization. The paper contributes to sustainable finance and maritime economics literature by positioning green shipping corridors as the operational nexus linking climate policy, financial markets, and measurable decarbonization outcomes.