Singapore Launches $90 Million Shipping Decarbonization Fund
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 decarbonization center.
"Maritime decarbonization 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 catalyze 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 decarbonization center and will fund maritime decarbonization 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 decarbonization 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.
(Reporting by Roslan Khasawneh; Editing by David Clarke)