Amid the global maritime industry's shift towards green, low-carbon practices, China's shipbuilding sector has emerged as a key player in the international market.
Recent data reveals that in the first three quarters of 2024, China secured over 70% of the world's green ship orders, underscoring its strong competitiveness and technological innovation in green ship manufacturing.
According to the Ministry of Industry and Information Technology, from January to September this year, China’s shipbuilding output reached 36.34 million deadweight tons, marking an 18.2% year-on-year increase, while new orders totaled 87.11 million deadweight tons, a remarkable 51.9% rise. As of the end of September, China's backlog of orders stood at 193.3 million deadweight tons, up 44.3% from the previous year. These figures highlight China's increasingly solid position in the global shipbuilding industry, particularly in securing orders for green vessels.
Of the 18 major ship types globally, China holds the leading position in new orders for 14 types, driven by rapidly growing market demand that has enabled shipyards to exceed their annual operational targets ahead of schedule. This achievement reflects the innovation and development of China's shipbuilding industry in areas such as green technology, high value-added services, and proprietary technologies.
Green ships utilize advanced technologies or renewable energy sources to reduce pollution and greenhouse gas emissions. The Ministry of Transport notes that key characteristics of green vessels include environmental friendliness, energy efficiency, and advanced technology. These ships serve as vital tools in addressing global climate change by minimizing pollutant emissions and enhancing energy efficiency.
In 2023, China's share of international orders for new green-powered vessels reached 57%. In the first quarter of 2024, the proportion of alternative fuel new ship orders China secured soared to 60.8%. For instance, a major Chinese shipbuilding company delivered four 210,000-ton liquefied natural gas (LNG) dual-fuel bulk carriers in January alone, setting a record for monthly large ship deliveries.
The transition to green ship manufacturing in China represents a significant transformation in the shipbuilding industry and plays a crucial role in global efforts to reduce energy consumption, pollution, and greenhouse gas emissions. With over 80% of global trade transported by sea, the development of green, low-carbon solutions has become essential for the shipping sector.
The International Maritime Organization has set a vision for achieving net-zero greenhouse gas emissions in international shipping by 2050, with the use of green alternative fuels seen as a critical pathway to meet this goal. China's green shipbuilding initiatives are expected to effectively facilitate the retirement and retrofitting of older vessels, accelerate the construction of green port facilities, and elevate standards for water transport infrastructure.
While the overall scale of China's green shipbuilding is still relatively small, its competitiveness in the global market continues to rise. Challenges such as uncertain freight rates, high ship prices, and the costs associated with new clean fuels remain, but with ongoing national policy support and technological advancements, China's shipbuilding industry is poised to continue leading the way in global green development.