Global shipping sector announces $5billion R&D fund to eliminate CO2 emissions
In an unprecedented move, the international shipping community has today announced plans to create the first collaborative shipping R&D fund, intended to eliminate CO2 emissions from international shipping.
The proposal includes core funding from shipping companies across the world of about $5 billion over a 10-year period
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.”
Speaking on the announcement, Esben Poulsson, Chairman International Chamber of
“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. Innovation is therefore vital if we are to develop the
technologies that will power the 4th Propulsion Revolution. This proposal is simple, accountable
and deliverable and we hope governments will support this bold move.”
This will be financed by shipping companies worldwide via a mandatory R&D contribution of USD 2 per tonne of marine fuel purchase for consumption by shipping companies worldwide. Although the R&D scheme and its funding is an initiative of the leading international ship owners’ associations, additional stakeholders’ participation is welcomed. This move is a vital step towards the decarbonisaion of shipping.
To achieve the Paris Agreement’s climate change goals rapid decarbonisation is vital. The move will provide funding to much needed advances in maritime innovation and technology, to help develop the zero-emission solutions of the future that shipping sorely needs.