India's $2 Billion Plan to Decarbonize Inland Waterways
Key Ideas
- India is finalizing a plan to offer $1.8 billion in subsidies over ten years to replace fossil-fuel powered vessels with cleaner alternatives on its inland waterways.
- The initiative aims to cut about one million tons of emissions annually and boost the transition to less polluting sources like electricity, LNG, and hydrogen.
- The government targets to have half of the existing inland passenger vessels running on cleaner fuels by 2030, with a goal to achieve net zero emissions by 2070.
India is set to offer nearly $2 billion in incentives to shift from fossil fuel-powered passenger vessels to cleaner alternatives on its inland waterways. The plan, proposed by the shipping ministry, is awaiting approval and would be supported by $1.8 billion in subsidies over a decade. The initiative aims to decarbonize the maritime sector by promoting the use of electricity, LNG, and hydrogen. Financial aid will target vessel procurement, retrofitting, and building infrastructure like refueling stations. The government anticipates that half of the inland passenger vessels will transition to cleaner fuels by 2030 and aims for net zero emissions by 2070. The plan also includes a halt on new fossil fuel-based inland vessels by 2033, with full replacement expected by 2045.