Singapore is to launch a SGD 120m ($90m) maritime decarbonisation fund with the backing of some of the biggest shipowners and charterers in the city-state.
Eastern Pacific Shipping (EPS), BW Group, BHP, Ocean Network Express, Sembcorp Marine and foundation Det Norske Veritas have each agreed to contribute SGD 10m to the fund, with the Maritime and Port Authority of Singapore (MPA) chipping in a matching SGD 60m.
The funds will go towards establishing a maritime decarbonisation centre in Singapore, first reported by TradeWinds on Monday.
They will also support maritime decarbonisation-related research and technology development projects, as well as collaboration with institutes of higher learning and research institutes.
Plans for the centre are one of the key recommendations of an international advisory panel on maritime decarbonisation set up by the Singapore Maritime Foundation last July.
Separately, the MPA has agreed a deal with Singapore sovereign wealth fund Temasek to “explore collaborations” to develop low-carbon or alternative marine energy sources. It will also explore carbonisation of port operations and other parts of the global and regional maritime supply chain.
“Maritime decarbonisation is a global challenge requiring a collective responsibility from all stakeholders involved,” said MPA chief executive Quah Ley Hoon.
“It is crucial to have strong public-private sector partnerships. We thank like-minded partners that have responded strongly to our call for collaboration.
“The agreements signed today are two initial steps, which we hope will catalyse a larger, much-needed momentum to make international shipping more sustainable.”
EPS, Singapore’s largest shipowner, said sustainability begins with accountability, and maritime leaders have a “responsibility to implement emission-lowering solutions available today, while simultaneously developing solutions for tomorrow”.
EPS chief executive Cyril Ducau described the formation of a maritime decarbonisation centre as a “major milestone”, combining forces of public and private industry players.
“It proves that the sector is willing to band together and take ownership of environmental preservation for future generations,” he added.
BHP chief commercial officer Vandita Pant said the key to navigating the pathway to decarbonisation in the maritime industry is an “ecosystem approach with all partners working collaboratively towards the same goal”. This followed comments on Monday in which she said there was “no silver bullet” for decarbonisation.
Temasek’s head of transportation and logistics, Juliet Teo, said decarbonisation is an “important priority” for the maritime industry.
“By combining our expertise, experience and global networks, both within and beyond the maritime ecosystem, we hope to bring capabilities to this task that will make a difference,” she said.
Temasek recently established a $600m venture capital fund with the world’s biggest asset manager, BlackRock, dedicated to carbon-cutting technologies.
The fund, Decarbonisation Partners, aims to take stakes in start-ups that have the potential to reduce the world’s reliance on fossil fuels and meet the goal of zero carbon emissions by 2050.
The Singapore decarbonisation fund was announced on the same day that shipping groups joined the call for a carbon tax to reduce the industry's greenhouse gas emissions.
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