In our April 2025 issue of BDO Spotlight, we explored the key sustainability trends shaping Asia’s marine sector. In this edition, we turn our attention to the pressing challenges the sector faces, particularly in the context of intensifying global trade tensions.
Asia’s marine sector faces a complex and often more acute set of sustainability challenges compared to the global marine context. While many of the issues—such as marine pollution, overfishing, and climate change—are global in nature, Asia’s rapid economic growth, dense coastal populations, and strategic role in global trade give rise to distinct pressures. Below is a comparative analysis highlighting the key differences in sustainability challenges between Asia and the broader global marine sector—and how emerging geopolitical developments, such as the reintroduction of Trump-era tariffs, may influence them.
1. Scale of Maritime Trade and Environmental Impact
Asia's Challenge: Asia is the epicentre of global maritime trade, with countries like China, Japan, South Korea, and Singapore managing over 60% of global shipping traffic according to the International Maritime Organisation (IMO) and UNCTAD. This concentration of trade contributes heavily to greenhouse gas emissions, port-related air and water pollution, and habitat degradation. Many of Asia’s major ports are adjacent to densely populated cities, magnifying public health and environmental concerns.
The rise of new protectionism measures from episodic tariff spikes and negotiation pauses to broad-based tariffs and retaliatory actions, especially between the U.S. and China or Southeast Asian economies, may lead to trade diversion, supply chain reconfiguration, and alter port traffic patterns. While a slowdown in trade volume on long-established routes and regional shifts could temporarily reduce emissions and port congestion, it could also lead to inefficient rerouting and longer shipping distances, ultimately increasing carbon output elsewhere. Given that nine out of the ten busiest container ports are in Asia, the effects of rerouting and supply chain disruptions will be exacerbated. Additionally, reduced trade revenue and higher cost outlays could delay investments in green port infrastructure.
Global Challenge: Globally, shipping accounts for approximately 2-3% of total global carbon emissions. However, environmental impacts are often less concentrated in regions like North America or Europe due to small populations and less intensive port activity. As trade patterns evolve, emerging economies are also becoming more significant contributors to the environmental toll.
Key Difference: Asia’s marine sector faces an exceptionally high volume of trade and industrial activity, making its environmental impact more acute, particularly in regions like the South China Sea - one of the world’s most heavily trafficked and ecologically stressed marine areas. Tariffs may shift these dynamics, but not alleviate long-term environmental stress unless paired with sustainable trade policies.
2. Marine Pollution and Overfishing
Asia's Challenge: Asia is the largest producer and consumer of seafood globally unfortunately, many of its coastal regions are hotspots for marine pollution, particularly plastic waste, agricultural runoff, and oil spills. Based on the 2025 Ocean Pollution Statistics and Ranking by GreenMatch1, Asian countries accounted for 9 out of the top 10 highest ocean plastic waste polluters in 2025 (see table below):
| Ranking | Countries | Annual plastic waste per metric ton |
|---|---|---|
| 1 | Philippines | 360,000 |
| 2 | India | 130,000 |
| 3 | Malaysia | 73,000 |
| 4 | China | 71,000 |
| 5 | Indonesia | 56,000 |
| 6 | Myanmar | 40,000 |
| 7 | Brazil | 38,000 |
| 8 | Vietnam | 28,000 |
| 9 | Bangladesh | 25,000 |
| 10 | Thailand | 23,000 |
Many of these countries struggle with weak waste and recycling infrastructure, heavy reliance on cheap single-use plastics, foreign waste imports, and tourism-driven waste, all of which overwhelm local systems and drive pollution into the oceans. Overfishing remains a critical concern in Asian waters, driven by high demand for seafood and insufficiently enforced fishing regulations. The depletion of fish stocks is further exacerbated by illegal, unreported, and unregulated (IUU) fishing, which is widespread in the region.
Tariffs targeting seafood exports, such as U.S. restrictions on Chinese or Vietnamese fish products, may alter regional fishing pressures. A decline in export demand might reduce overfishing in the short term—but could also encourage increased domestic consumption or redirection to less regulated markets. This shift may exacerbate IUU fishing in unmonitored zones or weaken incentives for sustainable practices.
There have also been growing shifts to aquaculture production farms, particularly in East Asia. This plays an important role in supporting the growing demand for seafood production and reducing the reliance on the fish population However, small-scale farms often face challenges in accessing financing, market reach and modern technologies.
Global Challenge: Globally, marine pollution and overfishing are pervasive, with plastics, chemicals, and industrial runoff affecting all the world's oceans. However, the extent of overfishing is more prominent in specific regions like Asia, where nations rely heavily on marine resources for both food security and economic growth. Developed regions have more stringent regulations on IUU fishing, but enforcement remains challenging worldwide.
Key Difference: Asia’s pollution challenges are heightened by poor waste management in populous nations and heavy reliance on seafood. Trade disruptions from tariffs can introduce unpredictable shifts in consumption and production patterns, affecting marine ecosystems in both direct and indirect ways.
3. Climate Change and Rising Sea Levels
Asia's Challenge: Climate change impacts are particularly pressing for Asia’s marine sector due to the region’s exposure to extreme weather events, rising sea levels, and the acidification of oceans. Coastal cities like Bangkok, Shanghai, and Manila are highly vulnerable to flooding and erosion, threatening port infrastructure and coastal populations. Additionally, Southeast Asia’s Coral Triangle—home to the world’s richest marine biodiversity—is increasingly threatened by rising temperatures and ocean acidification, jeopardising fisheries and livelihoods.
Trade tensions may divert public investment away from climate resilience and infrastructure upgrades, particularly in developing nations reliant on export income. If tariffs suppress export earnings in countries like the Philippines or Vietnam, this could delay adaptation projects such as seawalls, port fortifications, and early-warning systems. Conversely, any reduction in shipping volumes may temporarily reduce emissions, but long-term effects depend on broader trade realignment.
Global Challenge: Climate change is a global issue, and rising sea levels, extreme weather events, and ocean acidification affect countries worldwide, especially those with low-lying coastal areas. However, Asia’s population density and economic reliance on coastal zones make it more vulnerable to these climate impacts. Small island nations in the Pacific, such as Kiribati and the Maldives, are similarly at risk globally, but Asia’s vast coastlines and megacities are under more direct pressure.
Key Difference: Asia’s marine sector faces a unique vulnerability to climate change due to its extensive coastlines, dense populations, and reliance on fishing and coastal ecosystems for both economic and food security Economic disruptions from tariffs could further reduce resilience by limiting funds for adaptation and undermining longer-term sustainability planning.
4. Technological Advancements and Green Shipping
Asia's Challenge: While some Asian nations, such as Japan, South Korea, and China, are leading the way in green shipping technologies, the region faces challenges in the widespread adoption of sustainable practices due to cost barriers and the high pace of industrial growth. The infrastructure required to support alternative lower-emission fuels such as LNG, ammonia, or hydrogen is not universally available across all Asian countries, and the shipping industry in many countries still depends heavily on conventional fuels. Moreover, outdated fleet structures and resistance to change in some parts of Asia complicate efforts to transition to greener technologies.
Tariff-induced economic strain may delay green technology adoption. For instance, reduced export income in affected countries could limit public or private investments in renewable marine technologies, clean ports, or low-emission fleets. Supply chain disruptions could also make it harder for Asian shipbuilders to source parts for green vessels, slowing innovation diffusion.
Global Challenge: Globally, the marine sector faces similar hurdles in adopting green technologies. However, developed countries with higher access to financial resources and established regulatory frameworks (like those in Europe and North America) may transition to low-emission vessels and green ports at a faster rate. The global push for decarbonisation is intensifying, with IMO goals pushing for net-zero emissions by 2050.
Key Difference: Asia’s rapid industrialisation and diverse economic levels across countries result in uneven adoption of sustainable technologies. Wealthier nations like South Korea and Japan are at the forefront, while countries in Southeast Asia may face more obstacles due to economic constraints. Trade tensions may widen this gap by disproportionately impacting emerging economies that are least equipped to absorb shocks. Hence, potentially delaying the adoption of cleaner technologies that are more readily available through international trade.
5. Regulatory Frameworks and Governance
Asia's Challenge: In Asia, governance issues—such as inconsistent enforcement of environmental regulations, weak international cooperation, and insufficient oversight of fishing practices—pose significant barriers to achieving sustainability. Some Asian countries have yet to implement or strictly enforce environmental standards for marine operations. For example, while China has made progress in green initiatives, enforcement of regulations in its vast territorial waters remains a challenge. Similarly, Indonesian and Philippine waters, rich in marine resources, suffer from inadequate enforcement of conservation laws and overfishing.
Increased geopolitical tension and economic protectionism could weaken multilateral cooperation on marine sustainability. Tariffs may also lead to a more fragmented global trading system, making it harder for Asian nations to harmonise regulations or join international initiatives. If tariffs reduce government revenue in affected countries, enforcement of existing marine protections may suffer.
Beyond current trade tensions, the EU’s Carbon Border Adjustment Mechanism (CBAM) is moving from a transitional phase into full implementation set for January 2026, with certain duties on specific carbon-intensive imports such as steel and aluminium. This may then impact bulk shipping demand for major steel and aluminium exporters in Asian producing countries such as China, India, South Korea and Vietnam.
Global Challenge: Globally, there are also challenges related to international cooperation and enforcement of sustainability standards, especially in international waters where jurisdiction is complex. However, the global regulatory landscape for marine sustainability is generally more robust in the EU and OECD countries.
Key Difference: Asia’s governance challenges are more pronounced due to weak enforcement mechanisms in certain countries and the difficulty of enforcing laws across such vast and diverse territories. Many Asian nations are still developing or refining their environmental regulations, particularly in the marine sector. Divergent trade and environmental policies impose challenges on regional coordination and collaboration on green shipping. Trade disruptions may further erode capacity for environmental governance, especially in fragile economies or politically unstable regions.
Conclusion
The global marine sector faces shared sustainability challenges—but Asia experiences these issues at greater intensity due to its role as a trade nexus, its economic dependence on coastal resources, and its exposure to climate and governance vulnerabilities. The potential reimplementation or escalation of Trump-era tariffs adds a new layer of complexity. Tariffs may shift trade routes, alter resource demand, increase operational costs and impact public and private investment in sustainable infrastructure.
In the short term, reduced shipping volumes could modestly ease environmental pressure. Still, without coordinated, long-term strategies, such disruptions may delay progress on sustainability and widen the gap between developed and developing economies. Moving forward, Asia must continue investing in resilience, green technologies, and regional cooperation—regardless of global political winds—to ensure the health of its marine sector and, by extension, the world’s oceans.
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