- MPA has signed a memorandum of cooperation (MoC) with industry heavyweights to establish a fund for a maritime decarbonization center in Singapore.
- The deal was signed with BW Group, Sembcorp Marine, Eastern Pacific Shipping, Ocean Network Express, Foundation Det Norske Veritas, and BHP.
The Maritime and Port Authority of Singapore (MPA) has announced two initiatives to reduce the shipping industry’s greenhouse gas emissions, including a S$120 million ($90 million) fund for a decarbonisation centre.
Need for GHG cuts
With about 90% of world trade transported by sea, shipping accounts for nearly 3% of the world’s carbon dioxide emissions.
The industry is examining a range of technologies as it tries to meet the International Maritime Organization target of a 50% cut in greenhouse gas emissions from 2008 levels by 2050.
“Maritime decarbonisation is a global challenge requiring a collective responsibility from all stakeholders involved,” MPA Chief Executive Quah Ley Hoon said in a statement.
“The agreements signed today are two initial steps, which we hope will catalyse a larger, much-needed momentum to make international shipping more sustainable,” said Quah.
Maritime decarbonisation research
The MPA signed a memorandum of cooperation with six shipping industry members – BW Group, Sembcorp Marine, Eastern Pacific Shipping, Ocean Network Express, Foundation Det Norske Veritas and BHP – to establish the Singapore maritime decarbonisation centre and will fund maritime decarbonisation research and technology development projects, the MPA statement said.
The six private sector members will each contribute S$10 million to the fund with the remaining S$60 million coming from the MPA, it said.
“Climate change is a defining challenge of our time, and the only way to tackle this is with cross-border, cross-sector collaboration,” Andreas Sohmen-Pao, chairman of BW Group, said in the statement.
Carbon emission reductions
In the second agreement, MPA signed a memorandum of understanding with Singapore’s Temasek to explore decarbonisation opportunities with the state investor and companies in its portfolio.
“This MPA-Temasek agreement paves the way for joint efforts aimed at reducing carbon emissions across port operations, maritime supply chains and shipping, including new potential low- or no-carbon fuels for ships,” said Juliet Teo, head of transportation and logistics at Temasek.
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Source: MPA
