The Indian government, through the Directorate General of Shipping (DGS), has introduced a landmark policy to implement a sustainability indexing system for ships. This move marks a shift from the traditional age-based criteria for determining a vessel’s operational life within the Indian registry. Titled the ‘Revised Age Norms and Sustainability Indexing for Ships,’ the policy is designed to align with global emission standards and strengthen the sustainability of India’s maritime logistics and supply chain ecosystem. Currently under stakeholder consultation, the initiative is a strategic response to the International Maritime Organization’s (IMO) net-zero roadmap, which aims for a 20% reduction in emissions by 2030 and full decarbonization by 2050.
Index-Based Flexibility for Older Vessels
The sustainability indexing system for ships, allowing those that exceed traditional age limits to remain operational—provided they meet environmental standards. The index, scored out of 125 points across 17 criteria including emissions, safety, and efficiency, replaces the rigid age norms that previously capped the lifespan of vessels such as oil tankers, bulk carriers, and general cargo ships at 25 years, and gas or chemical carriers at 30 years. Specialized vessels like Floating Storage Regasification Units (FSRUs) and dredgers, while exempt from age limits, must comply with the index by March 31, 2028. This data-driven framework enables greater flexibility for fleet owners while ensuring adherence to global green standards critical for India’s $100 million maritime logistics sector.
Boosting Local Manufacturing and Energy Security
This policy complements India’s broader supply chain vision, which includes a $10 billion investment to build 112 domestically manufactured crude oil tankers by 2040. Aimed at reducing dependence on foreign vessels and strengthening energy security, the initiative is part of the ‘Make in India’ campaign. The target is ambitious: to raise the share of Indian-built tankers from just 5% today to 69% by 2047. By requiring all vessels—new and existing—to meet the sustainability index’s benchmarks, the government is ensuring long-term compliance with environmental goals while offsetting the cost impact of the International Maritime Organization’s (IMO) proposed global carbon levy, which could raise India’s maritime logistics expenses by 4.98% to 8.09% by 2030.
Aligning with Global Trends Through Innovation
The DGS’s indexing initiative addresses the dual challenge of managing an aging fleet and transitioning to low-carbon logistics. By encouraging the adoption of advanced technologies such as AI-driven route optimization and real-time emissions monitoring echoing international efforts like CMA CGM’s partnership with Google Cloud India’s maritime sector is aligning itself with global trends in decarbonization. This strategic policy not only strengthens India’s competitiveness in international trade but also reinforces its commitment to building a resilient, future-ready, and environmentally sustainable supply chain.
