The Role of Green Shipping in Transforming China's Marine Coatings Industry

China’s marine coatings market has been significantly impacted by the growing demand for green ships. The shift towards environmentally friendly practices in the maritime industry has led to an increased emphasis on coatings that reduced fuel consumption, lowered emissions, and complied with stricter environmental regulations. Green shipping refers to the adoption of practices, technologies, and materials that reduce the environmental footprint of shipping activities. This includes reducing greenhouse gas emissions, minimizing water pollution, and improving energy efficiency. The International Maritime Organization (IMO) has set ambitious targets to reduce the carbon intensity of international shipping by at least 40% by 2030, pushing the industry towards greener practices.

In 2024, China experienced a significant boost in the orders for green fuelled ships. For example, the nine shipbuilding enterprises within the industrial park built 73 ships, with 72 more under construction, marking an 11 percent year-on-year increase. Notably, new-energy ships made up nearly 30 percent of the total output. Additionally, the demand for paints used in green ship order has surged due to stringent international environmental regulations such as Ship Energy Efficiency Index (EEXI), Carbon Intensity Index (CII), Ship Energy Efficiency Management Plan (SEEMP) and other relevant rules and regulation coming into effect (EEXI and CII took effect on January 1, 2023, and SEEMP took effect on November 1, 2022). This has forced shipowners to adopt coatings that enhance hull efficiency. These coatings reduce drag forces, leading to increased fuel efficiency and lower greenhouse gas emissions. Further, by the end of 2026, the total output value of Yichang's green ship manufacturing industry chain is expected to reach 50 billion yuan. The city plans to establish 2-3 industrial parks, with the annual construction of green intelligent ships expected to exceed 300 units.

Chinese manufacturers have responded by developing advanced coatings that meet these new standards. For instance, products like biocide-free and silicone-based coatings are gaining popularity for their ability to improve operational efficiency and support decarbonization efforts. This shift is not only helping the maritime industry meet environmental goals but also driving innovation and competition within China's marine coatings sector.

However, this transition has not been without challenges. The high cost of developing and implementing these advanced coatings, along with the need for a comprehensive green shipping value chain, presents hurdles. Despite these challenges, the long-term benefits, such as cost savings and regulatory compliance, make the adoption of green coatings an attractive investment for the industry.

To align with green shipping practices, the marine coatings industry in China is undergoing significant changes:

Development of Eco-Friendly Coatings

One of the most direct impacts of green shipping on China's marine coatings industry is the development of eco-friendly coatings. These coatings are designed to reduce harmful emissions, minimize the release of toxic substances into the marine environment, and enhance the overall sustainability of ships. For instance, water-based and biocide-free antifouling coatings are gaining popularity as alternatives to traditional solvent-based coatings.

Innovation in Fuel-Efficient Coatings

The demand for fuel efficiency in shipping has led to the innovation of coatings that reduce drag on ships' hulls, thereby lowering fuel consumption and carbon emissions. Advanced hull coatings that provide smoother surfaces and reduce biofouling are becoming increasingly important in the market. These coatings not only contribute to green shipping goals but also offer cost savings to ship operators by reducing fuel costs. For Instance, in 2023, Hempel launched high performance hull paint to help their customers to reduce 6.5 million tons of CO2 emission. This also increased their competitiveness in marine paint segment.

Regulatory Compliance and Standards

The Chinese government, in line with international standards, has introduced regulations that promote the use of environmentally friendly marine coatings. Manufacturers are now required to comply with stricter environmental standards, which has accelerated the shift towards green coatings. This regulatory push is driving the industry to innovate and develop new products that meet both domestic and international environmental standards.

Market Evolution and Consumer Demand

The growing demand for green ships is influencing the market dynamics of China's marine coatings industry. Shipowners and operators are increasingly seeking coatings that are not only effective but also environmentally responsible. This shift in consumer demand is encouraging manufacturers to prioritize sustainability in their product offerings. As a result, companies that can offer high-performance, eco-friendly coatings are gaining a competitive edge in the market.

In conclusion, the role of green shipping in transforming China's marine coatings industry is both significant and far-reaching. As the world moves towards more sustainable practices, the demand for eco-friendly, fuel-efficient, and environmentally responsible coatings is set to increase. China's marine coatings industry is responding to this demand through innovation, regulatory compliance, and market adaptation. By embracing the principles of green shipping, the industry is not only contributing to global environmental goals but also positioning itself for future growth and success in the global market.