The US Senate has passed the long-awaited Inflation Reduction Act, allocating $3 billion over five years to install electrified equipment and reduce emissions at ports.
According to the American Association of Port Authorities (AAPA), the $3 billion grant will prove vital in establishing innovative projects at ports to boost resiliency, expand cargo-handling capacity, and reduce emissions across supply chains.
Alongside these funds, the Inflation Reduction Act contains other provisions ports can benefit from – including another $2.6 billion allocated to the National Oceanic and Atmospheric Administration (NOAA) for protecting coastal communities and marine habitats from extreme weather; and a $1 billion grant for the replacement of heavy-duty vehicles with zero-emissions alternatives.
READ: Electrification is coming to ports. Is hydrogen right for your container handling operation?
“The creation of a federal grant programme to reduce emissions and electrify ports demonstrates the federal government’s unprecedented attention to port infrastructure needs,” said the AAPA
“This federal grant programme will signal to equipment manufacturers and private investors that this electrification technology at ports will be ubiquitous in the coming years.”
The bill awaits approval from the House, which is expected to pass it as early as this week before US President Joe Biden can sign it into law.
“This bill makes the largest investment ever in combatting the existential crisis of climate change. […] The House should pass this as soon as possible and I look forward to signing it into law,” said President Biden in a recent announcement.
The Clean Shipping Act of 2022 is modelled off of the European Union’s Fit for 55 regulatory framework for shipping.
