- $1.5 Trillion Needed for Shipping’s Green Shift
- Call to Scale Green Fuels Beyond Pilot Stage
- Coalition Pushes EU to Bridge Funding Gaps
With the EU and IMO regulatory frameworks changing and Denmark taking the helm of the EU Presidency, Cleantech for Nordics has put out an open letter calling for urgent policy action to speed up the green transition in the maritime sector, reports Safety4Sea.
Coalition Advocates for Cleantech-Driven Growth
Cleantech for Nordics is a coalition made up of investors and innovators who are passionate about turning the Nordic region into a global powerhouse for cleantech innovation, economic growth, and job creation. This group collaborates closely with policymakers to eliminate regulatory barriers and tap into the market potential for clean technologies.
Scaling Green Solutions Remains the Key Challenge
Even though technologies like green fuels (biofuels and e-fuels) and electrification hold great promise, the letter emphasises that the main hurdle is scaling these solutions beyond their pilot phases. While public funding has been helpful for early-stage innovation, making the leap to commercial-scale deployment has been quite a challenge.
The letter cautions that without a more robust policy framework, the estimated $1.5 trillion required for the global maritime energy transition could remain out of reach.
Accelerating Market Uptake Through Economic Incentives
Cleantech for Nordics is urging for stronger demand-side incentives to create a fairer playing field for low- and zero-carbon fuels and technologies. It’s crucial to have ongoing and enhanced economic support to spark early market demand.
Bridging the Funding Gap for Mature Technologies
The coalition points out that many mature but expensive technologies, like green methanol, aren’t getting the support they need from current EU funding. They believe that the upcoming Sustainable Transport Investment Plan could help fill this gap and suggest innovative solutions like double-sided auctions to attract new investment.
Reinvesting ETS Revenues to De-Risk Maritime Investment
Now that maritime is part of the EU Emissions Trading System (ETS), Cleantech for Nordics recommends strategically reinvesting ETS revenues to aid decarbonization efforts. This includes:
- Establishing a green fuel market
- Supporting early-stage production
- Reducing investment risks with credit guarantees or export credit backing
By addressing credit risks, the EU can facilitate longer-term offtake agreements and draw in private capital on a larger scale.
Leveraging Public Procurement to Drive Early Demand
The letter emphasises that green public procurement is a powerful way to reduce the risks associated with innovation and promote market growth. Coordinated procurement at the EU level could generate stable early demand, enhance market confidence, and lower costs through economies of scale.
Building Resilience in Clean Fuel Supply
To reduce reliance on imports, the letter emphasises the need for policies that bolster Europe’s production of clean fuels and technologies. We need to ramp up supply-side investments to ensure that the maritime sector enjoys long-term energy security and resilience.
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Source: Safety4Sea
