Singapore launches $90m million fund for shipping decarbonization

SINGAPORE — Maritime and Port Authority of Singapore (MPA) has signed two agreements to advance industry-wide decarbonization efforts across maritime and shipping. The fund will launch with $90 million (S$120 million) for the purpose of decarbonization.

MPA signed a memorandum of cooperation with companies like BW Group, Sembcorp Marine, Eastern Pacific Shipping, Ocean Network Express, and the Foundation Det Norske Veritas, and BHP to establish a fund for the decarbonization efforts outlined by the authority.

The authority also signed a memorandum of understanding with Temasek, which is a Singapore-headquartered investment firm to explore public-private partnerships related to the decarbonization of port and harbor operations.

This includes the “development and use of low-carbon and/or alternative marine energy sources and decarbonization of the other parts of the global and regional maritime supply chain, with Temasek and Temasek Portfolio Companies at the same event today.

“Maritime decarbonization is a global challenge requiring a collective responsibility from all stakeholders involved,” said Quah Ley Hoon, the chief executive of the MPA, in an official press statement. “It is crucial to have strong public-private sector partnerships. We thank like-minded partners that have responded strongly to our call for collaboration. The agreements signed today are two initial steps, which we hope will catalyze a larger, much needed momentum to make international shipping more sustainable.”