Shipping sector announces $5bn zero-carbon fund

CORE funding from shipping companies across the world of about US$5bn, to be spent over a 10-year period, will go towards efforts to decarbonise the industry.

Specifically, the funds will be used to accelerate the development of commercially viable zero carbon-emission ships by the early 2030s.

Esben Poulsson, chairman of the International Chamber of Shipping said, “The coalition of industry associations behind this proposal are showing true leadership.

“The shipping industry must reduce its CO2 emissions to meet the ambitious challenge that the International Maritime Organization has set.

“This proposal is simple, accountable and deliverable and we hope governments will support this bold move.”

Welcoming the news, UK Chamber of Shipping chief executive Bob Sanguinetti, said, “Climate change is a serious challenge for us all. That is why we have called for a Green Industrial Revolution to make the UK a world leader in the development of green maritime technology.

“This new multi-billion-dollar fund is a game-changing development. It shows just how serious the industry is about reducing its emissions and tackling climate change. It is a huge step in the right direction to achieving net-zero emissions by 2050.”

This will be financed by shipping companies worldwide via a mandatory R&D contribution of US$2 per tonne of marine fuel purchase for consumption by shipping companies. Although the R&D scheme and its funding is an initiative of the leading international ship owners’ associations, additional stakeholders’ participation is welcomed.