Shipping Industry Proposes $5bn R&D Decarbonisation Fund

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The shipping industry has welcomed the growing momentum for a USD 5 billion R&D Fund for shipping, but is calling on governments to act in line with their climate commitments and not waste more time in moving forward with decisive action to support the decarbonisation of the industry, says in article published on BIMCO website.

R&D Fund programme

At the recent UN IMO meeting (MEPC 76), the world’s governments agreed to continue work on the IMO-supervised USD 5 billion R&D Fund programme, to be led by a new International Maritime Research and Development Board (IMRB), with many nations stepping up to support the proposal. However, it is disappointing that yet again we must wait for the next meeting before we can get going.

The USD 5 billion R&D programme is designed to accelerate the development and introduction of zero-emission technologies and fuels for maritime transport, which are vital for allowing the industry to decarbonise.

“The R&D fund has been thoroughly developed over the past three years. It is the only concrete proposal on the table and can be agreed and put in place by 2023. Governments rightly call for innovation and for decarbonisation to happen now. This is now, and we need IMO member states to move forward and allow us to accelerate the R&D needed without further delay,” the industry organisations said.

IMO target

The IMO has set targets to cut total shipping emissions by at least 50 per cent by 2050, with the United States and the EU now calling for zero emissions shipping within the next 30 years. To succeed, the industry needs zero-carbon ships, capable of trans-oceanic voyages, available by 2030. However, technologies for operating deep-sea vessels on zero-carbon fuels are not yet available and current R&D efforts are not sufficient.

“We urgently need to expand and accelerate R&D around zero-carbon technologies and fuels. But innovation does not come for free. To catalyse innovation, the industry is willing to provide guaranteed funding of 5 billion USD at no cost to governments, giving all nations equitable access to the work and the technologies the fund advances. So, what are we waiting for?” the shipowner organisations said.

Summary

  • The shipping industry has welcomed the growing momentum for a USD 5 billion R&D Fund for shipping.
  • UN IMO meeting (MEPC 76), the world’s governments agreed to continue work on the IMO-supervised USD 5 billion R&D Fund programme, to be led by a new International Maritime Research and Development Board.
  • The USD 5 billion R&D programme is designed to accelerate the development and introduction of zero-emission technologies and fuels for maritime transport.
  • The IMO has set targets to cut total shipping emissions by at least 50 per cent by 2050, with the United States and the EU now calling for zero emissions shipping within the next 30 years.

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Source: bimco.org

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