Singapore maritime authority launches $90m decarbonisation fund
London, (Quantum Commodity Intelligence) - The Maritime and Port Authority of Singapore (MPA) announced Thursday a S$120 million ($90 million) fund is to be put in place to establish a maritime decarbonisation centre in the city state, in conjunction with six industry partners that will each contribute S$10 million.
The six partner companies are global resource giant and one of the world's largest bulk shippers BHP, the shipping companies BW Group, Ocean Network and Eastern Pacific Shipping, marine engineering firm Sembcorp Marine and the environmental non-profit Foundation Det Norske Veritas.
The MPA also announced at the same time a memorandum of understanding (MoU) signed with Singapore-headquartered investment company Temasek to explore collaborations related to the decarbonisation of port operations and the development and use of low-carbon and alternative marine energy sources.
The International Maritime Organisation (IMO) has set out a strategy to reduce greenhouse gas emissions from maritime transport by 40% in 2030 and 70% in 2050, compared to a 2008 baseline.
Seaborne shipping transports 80% of the world's traded goods and produces around 2.9% of global carbon emissions, making it a key policy target for lawmakers around the world.
However, decarbonisation presents unique technical and commercial challenges compared with other transport modes.
Low carbon fuels and biofuels are already used in small percentages in some regions while LNG and hydrogen have also been mooted as possible solutions.
