Korea should lead global push for shipping decarbonization: Rystad analyst

Amid geopolitical uncertainties clouding global net-zero efforts, South Korea should take a leading role in accelerating maritime decarbonization at international platforms such as next week’s Asia-Pacific Economic Cooperation summit, according to a partner analyst at Oslo-based Rystad Energy.

“Korea could reaffirm its position as a strong proponent and supporter of decarbonization in the global shipping industry, especially as we’re now at the Kormarine event, building momentum toward APEC,” said Oddmund Fore, partner and head of shipping and offshore division at Rystad Energy, during a video interview with The Korea Herald on Thursday.

Fore visited Korea to attend Kormarine 2025, an international maritime and energy exhibition that was held in Busan from Tuesday to Friday.

“Korea can join forces with similar-minded neighboring countries to build trust and strengthen its credibility as a leader in these negotiations. So I believe the upcoming events could further reinforce its role as a key middle-power nation.”

Notably, under the theme “Building a Sustainable Tomorrow: Connect, Innovate, Prosper,” Korea — as chair of the 2025 APEC summit — has made sustainability a core priority and identified maritime decarbonization as a key pillar of its agenda.

Fore’s suggestion to the Korean government comes after a major setback in the UN’s International Maritime Organization’s efforts to introduce the first global carbon pricing scheme for ships — a move stalled largely due to US influence, as Washington has shifted toward a more fuel-friendly stance under the second Trump administration.

On Oct. 18, a majority of member states at the IMO voted to postpone the introduction of a carbon price on international shipping by one year, with 57 countries in favor, 49 opposed and 21 abstaining. Korea, once a vocal supporter of the initiative, abstained from the vote. It did so reportedly under pressure from the US, as Seoul continues negotiations to reduce tariffs on key exports.

If member states can reach a consensus by 2026, the IMO’s carbon pricing scheme could still be implemented as early as 2028, as initially planned. However, the one-year postponement has tightened the timeline, raising the possibility that full implementation could slip beyond 2030.

Recognizing Korean shipbuilders’ efforts to decarbonize through fuel-transition technologies, Fore said, “Korean companies are already constructing oceangoing vessels with ammonia engines. One of the companies (HD Hyundai Heavy Industries), in particular, became the first in the world to secure a client for such a vessel earlier this year, with operations set to begin next year — spearheading Korea’s push in this emerging field.”

According to Fore, among alternative fuels, ammonia offers the greatest scalability and potential for commercialization, while green methanol serves as a transitional solution, often used in combination with conventional diesel fuel.

However, Fore noted that the global supply of ammonia fuel remains limited, as other sectors such as the fertilizer industry are also competing to secure available volumes.

“This shows that US pressure may not have been the only factor behind the stalled IMO initiative,” Fore said, adding that, unlike the EU, which has been gradually preparing for maritime decarbonization, non-EU countries could face higher costs and may need a “different playing field” to move the initiative forward.