The Maritime and Port Authority of Singapore (MPA) on Wednesday announced two initiatives to reduce greenhouse gas emissions from the maritime sector, including a $90 million fund for a decarbonization center.
“Decarbonization of shipping is a global challenge that requires the collective responsibility of all stakeholders,” MPA chief executive Quah Ley Hoon said in a statement.
With about 90% of global trade transported by sea, shipping accounts for nearly 3% of global carbon dioxide emissions.
The industry is exploring a range of technologies to try to meet the International Maritime Organization’s target of a 50% reduction in greenhouse gas emissions by 2050 from 2008 levels.
“The agreements signed today are two initial steps, which we hope will catalyze a major and much-needed push to make international shipping more sustainable,” Quah said.
The MPA signed a memorandum of cooperation with six maritime industry members – BW Group, Sembcorp Marine, Eastern Pacific Shipping, Ocean Network Express, Foundation Det Norske Veritas and BHP – to establish the Singapore Maritime Decarbonization Centre and will fund maritime decarbonization research and technology development projects, according to the MPA release.
Each of the six private sector members will contribute US$10 million to the fund, while the remaining US$60 million will be contributed by the MPA.
“Climate change is one of the most important challenges of our time, and the only way to address it is through cross-border and cross-sector collaboration,” said Andreas Sohmen-Pao, chairman of BW Group.
In the second agreement, MPA signed a memorandum of understanding with Singapore’s Temasek to explore decarbonization opportunities with the state-owned investor and its portfolio companies.
“This agreement between MPA and Temasek paves the way for joint efforts to reduce carbon emissions in port operations, maritime supply chains and shipping, including new low- or zero-carbon fuels for ships,” said Juliet Teo, head of transportation and logistics at Temasek.