The international shipping community has announced plans to create its first collaborative shipping research and development fund to eliminate CO2 emissions from shipping.
The fund will see $5 billion of contributions from several shipping companies across the world over a ten-year period.
“The coalition of industry associations behind this proposal are showing true leadership,” said Esben Poulsson, Chairmain International Chamber of Shipping (ICS) said.
“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.”
The ICS was recently present at the United Nations Climate Change Conference in Madrid and embraced the transition to zero CO2 emitting fuels, which it dubbed the 4th Propulsion Revolution.
“Climate change is a serious challenge for us all. That is why we have called for a Green Industrial Revolution to make the UK a world leader in the development of green maritime technology,” UK Chamber of Shipping Chief Executive Bob Sanguinetti said.
“This new multi-billion-dollar fund is a game-changing development. It shows just how serious the industry is about reducing its emissions and tackling climate change. It is a huge step in the right direction to achieving net-zero emissions by 2050.”
This will be financed by shipping companies worldwide via a mandatory R&D contribution of $2 per tonne of marine fuel purchase for consumption by shipping companies worldwide.
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 decarbonisaion of shipping.
To achieve the Paris Agreement’s climate change goals rapid decarbonisation is vital, the ICS noted.