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Singapore Launches $90 Million Decarbonization Fund for Shipping

The Maritime and Port Authority of Singapore (MPA) announced two initiatives on Wednesday to reduce the shipping industry’s greenhouse gas emissions, including a S$120 million ($90 million) fund for a decarbonisation centre.


Maritime decarbonisation is a global challenge requiring a collective responsibility from all stakeholders involved,” MPA Chief Executive Quah Ley Hoon said in a statement.


With about 90% of world trade transported by sea, shipping accounts for nearly 3% of the world’s carbon dioxide emissions.


The industry is examining a range of technologies as it tries to meet the International Maritime Organization target of a 50% cut in greenhouse gas emissions from 2008 levels by 2050.


The agreements signed today are two initial steps, which we hope will catalyse a larger, much-needed momentum to make international shipping more sustainable,” said Quah.


The MPA signed a memorandum of cooperation with six shipping industry members – BW Group, Sembcorp Marine, Eastern Pacific Shipping, Ocean Network Express, Foundation Det Norske Veritas and BHP – to establish the Singapore maritime decarbonisation centre and will fund maritime decarbonisation research and technology development projects, the MPA statement said.


The six private sector members will each contribute S$10 million to the fund with the remaining S$60 million coming from the MPA, it said.


Climate change is a defining challenge of our time, and the only way to tackle this is with cross-border, cross-sector collaboration,” Andreas Sohmen-Pao, chairman of BW Group, said in the statement.


In the second agreement, MPA signed a memorandum of understanding with Singapore’s Temasek to explore decarbonisation opportunities with the state investor and companies in its portfolio.


This MPA-Temasek agreement paves the way for joint efforts aimed at reducing carbon emissions across port operations, maritime supply chains and shipping, including new potential low- or no-carbon fuels for ships,” said Juliet Teo, head of transportation and logistics at Temasek.


Source: Reuters


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