Advancing Green Ports:Funding and Financing KEY POINTS •The Asian DevelopmentBank aims to help portsreduce harmful emissions,decrease their carbon Royal HaskoningDHVConsultant TeamJason Chiang, George Lin, Tanya Ferry, R. Duncan McIntoshSenior Regional Maritime SpecialistTransport Sector Office, Sectors Group, •Key areas for Green Portdevelopment includeenergy efficiency, cleanenergy and fuel, climateresilience, nature-basedsolutions, waste and resource Yuebin Zhang Principal Regional Cooperation SpecialistRegional Cooperation and Integrationand Trade Division Effective policy andregulation are crucial inmitigating ports’ impacts PORTS IN ASIA AND THE PACIFIC: THE BACKBONE •The SRMF is expected toprovide support at threelevels. Upstream supportwill focus on public policyand institutions. Midstreamsupport will target marketfunctioning; feasibilitystudies for the advancement, Ports in Asia and the Pacific are essential for domestic and international trade,contributing significantly to economic prosperity. They serve as gateways to accessglobal markets, strengthening their economic potential. The economic impact of portsextends beyond their immediate operations, encompassing a wide range of skills andemployment, and supporting services within the maritime and port sectors. Ports are However, port and maritime operations have a significant impact on the environment, andmaritime installations are vulnerable to climate change. Port operations and hinterland ISBN 978-92-9277-399-1 (print);978-92-9277-400-4 (PDF)ISSN 2071-7202 (print)ISSN 2218-2675 (PDF)Publication Stock No. BRF250317-2 ADB BRIEFS NO. 349 WHAT IS A GREEN PORT? generate emissions (such as greenhouse gases) and other pollutants(including wastewater, light, noise, vibration, and dust). The use offossil fuels in port operations degrades the environment. Ports facedirect and indirect impacts from hazards such as sea-level rise and A port is green when it aims to reduce its ecological footprint andincrease its adaptive capacity to environmental conditions andclimate change. The transition to a green port will proactivelyidentify and tackle the environmental and social impacts of its The Asian Development Bank (ADB) aims to help ports becomemore climate-friendly, operate with sensitivity to social impacts,and strengthen their climate resilience. ADB proposes to achievethese goals through the Sustainable and Resilient Maritime Fund(SRMF), which will provide blended finance options to support By adopting a life-cycle approach, green ports strive to minimizetheir ecological footprint and actively improve the environment.This commitment encompasses all port activities, from initialplanning to daily operations, integrating resilient design andpractices. Through these efforts, a green port not only ensures its The gap in funding and financing for maritime decarbonizationis significant. According to the Global Maritime Forum, halvingshipping emissions by 2050 will require cumulative investmentsof $1.0 trillion–$1.4 trillion, or an average of $50 billion–$70 billionannually over 20 years. Achieving full decarbonization by 2050would demand an additional $400 billion, bringing the totalinvestment needed to $1.4 trillion–$1.9 trillion. A 2023 UnitedNations Conference on Trade and Development (UNCTAD)report highlights the substantial investment required todecarbonize shipping by 2050. Some estimates suggest that an A green port is not static; it evolves over time. It may takeprogressive steps to reduce its environmental and social impacts,each signifying a milestone in its greening journey. These steps,often aligned with the United Nations Sustainable Development NEED FOR A GREENPORT–FOCUSED INITIATIVE In structuring the SRMF, the key areas for green port developmentare as follows: Energy efficiency.This is the ability to maximize productivityand achieve desired outcomes while minimizing energyconsumption. Energy efficiency can be accomplished througha variety of strategies, including scheduled higher productivitytargets, simple energy monitoring and analysis to identify areasfor improvement, the use of more advanced technologiessuch as switching to LED lighting, employment of efficient To determine the necessity and structure of the SRMF, the (i)comprehensively reviewed more than 100 internationaland national documents: policies, strategies, plans, laws,and legislation related to environmental protection, energyefficiency, renewable energy, climate change, and sustainabledevelopment in ADB developing member countries (DMCs);(ii)identified suitable ports for digital surveys, interviews, andsite visits, consulting a diverse range of sources, includingWorld Port Source, Seacast, and Asian Port Network;(iii)visited Nhava Sheva, India; Teluk Lamong, Indonesia; Hai Clean energy and fuels.With minimal environmental impact,clean energy and fuels are crucial for reducing carbon emissions,reliance on fossil fuel, and local pollution. While renewable