A new report argues that India and South Korea could move faster on shipping decarbonisation by building a single green ammonia corridor instead of waiting for a global carbon price. The proposed route would connect an Indian port like Tuticorin or Kandla with Ulsan in South Korea, using Korean-built ammonia-ready vessels and green ammonia produced from Indian electrolysers. The report notes that ships ordered now will still be burning fuel in the 2050s, so bilateral action matters even if IMO negotiations stall. The report also points to financing as a key issue. Dual-fuel and ammonia-ready ships carry a cost premium that independent owners struggle to cover with ordinary bank debt. It suggests blending funds from India's $3 billion Maritime Development Fund, export credit agencies, and development banks to close that gap. South Korea imported $518 million of ammonia in 2025, mostly from non-green sources, while renewables supplied 11.4% of its electricity by the end of 2025, well short of its 2030 target of 20%. That context makes the fuel supply side the main open question. The report comes ahead of an IMO session on December 4 that may decide on a binding carbon price. If that fails, the India-South Korea corridor could become a template for other bilateral shipping decarbonisation deals.
