China ties green fuel growth to shipping and carbon markets

August 12, 2026 |

In China, the National Energy Administration’s new China Green Fuel Development Report 2026 lays out a green fuel sector backed by expanding production, marine demand and new ways to monetize lower emissions. China ended 2025 with about 380,000 tonnes a year of green methanol capacity, 700,000 tonnes of green ammonia and 3 million tonnes of biodiesel.

Shipping is a major application. Shanghai Electric is moving green methanol from Jilin to Shanghai for CMA CGM vessels, and Shanghai Huayi is converting biomethane into methanol for ship bunkering at the Port of Shanghai. The NEA says China has established marine bunkering systems across its green fuel categories, B24 blending and bunkering technology is mature, methanol marine engines are being delivered in batches and ammonia engines have undergone commercial validation.

Carbon markets add another layer. China is developing China Certified Emission Reductions, or CCER methodologies for biodiesel and other green fuels, part of a broader system of carbon trading, green finance, tax preferences and certification intended to give lower carbon fuels measurable economic value.

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Category: Sustainable Marine Fuels

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