Home Cyprus Global Shipping sector announces $5billion R&D Fund to eliminate CO2 emissions

Global Shipping sector announces $5billion R&D Fund to eliminate CO2 emissions

  • The international shipping community has today announced proposal for the establishment of a new Research & Development Fund to pave the way for decarbonisation of shipping.
  • Core funding from shipping companies across the world of about USD 5 billion over a 10-year period.
  • To accelerate the development of commercially viable zero carbon-emission ships by the early 2030s.
  • The Cyprus Shipping Chamber played an active role in the deliberations for the development of the proposal for the R&D Fund. 

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 USD 5 billion over a 10-year period.

Speaking on the announcement, Esben Poulsson, Chairman 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. 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 R&D Fund will be financed by shipping companies worldwide via a mandatory R&D contribution of USD 2 per tonne of marine fuel purchase for consumption. 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 decarbonisation of shipping.

The Cyprus Shipping Chamber President, Mr. Philippos Philis, speaking on the R&D Fund said:

“The Cyprus Shipping Chamber, having actively participated in the development of the R&D Fund proposal, fully supports this initiative. The global shipping industry, through this proposal, shows that it recognises the problem and takes a proactive and tangible approach. Furthermore, Cyprus as a leading international shipping centre will play an active part in the global shipping industry’s efforts to decarbonise.”

To achieve the International Maritime Organizations (IMO) ambitious goal to reduce CO2 emissions from shipping by 50% by 2050, 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.

The international shipowner associations making this proposal, which collectively represent all sectors and trades and over 90% of the world merchant fleet, are:

  • BIMCO
  • CRUISE LINES INTERNATIONAL ASSOCIATION
  • INTERCARGO
  • INTERFERRY
  • INTERNATIONAL CHAMBER OF SHIPPING
  • INTERTANKO
  • INTERNATIONAL PARCEL TANKERS’ ASSOCATION
  • WORLD SHIPPING COUNCIL

A copy of the full proposal can be found HERE