Governments Decide on International Chamber of Shipping USD5 Billion R&D Fund to Accelerate Zero-Carbon Shipping in First ‘litmus Test’ of COP 26 Commitments
One week after Glasgow, 174 governments will meet this week at the International Maritime Organization (IMO) in London to address the pressing carbon emission reduction challenges facing international shipping, in what industry is calling the ‘first litmus test’ of government’s decarbonisation commitments following COP26.
A critical meeting of the Marine Environment Protection Committee (MEPC), held by the global shipping industry’s UN regulator, will decide whether to go ahead with a USD 5 billion R&D fund – the ‘IMO Maritime Research Fund (IMRF)’.
Paid for entirely by the industry, at no cost to governments or taxpayers, the fund would be used to accelerate the rapid increase of Technology Readiness Levels to ensure zero-carbon fuels can be used on large ocean-going ships.
If approved, the R&D fund is expected to be up and running by 2023, with the ability to put large numbers of zero-carbon ships in the water by 2030, making net zero shipping by 2050 a reality.
Esben Poulsson, Chairman of ICS said: “If governments do not support the IMRF, we have to ask the question… why?”
“The fund is a ‘no brainer’. Something you’d have thought governments would jump at to send a clear message to the world that they are serious about achieving their climate goals.”
A proposal for the IMRF was first put forward in 2019 and is now supported by major shipping nations including Denmark, Greece, Japan, Panama, Singapore and the United Kingdom, plus developing nations such as Liberia, Nigeria and Palau, who collectively represent the majority of the world’s shipping.
However, the IMRF needs regulatory approval from the majority of governments attending MEPC for the mandatory R&D contribution system to be passed, which will be funded by collecting USD2 per tonne of marine fuel consumed by ships trading internationally.
Guy Platten, Secretary General of ICS said: “This really is the first ‘litmus test’ on governments’ commitments to decarbonisation since COP26
“The USD 5 billion R&D provides governments with the opportunity to prove that their words have meaning, and they are serious about the transition to a zero-carbon sector.
“At COP 26, governments announced many plans, but we need to ensure we have the necessary zero-carbon technologies to actually make this happen? Importantly this needs to be for all and not just the few, as the R&D Fund provides.”
Despite widespread calls during COP26 for global shipping to decarbonise completely by 2050, a goal which the shipping industry fully supports, ICS fears that some governments may raise procedural obstacles to the establishment of an R&D fund. This is due to suspicions that collaborative action benefiting global CO2 reduction efforts might negatively affect what governments perceive to be their national or regional interests. A comprehensive impact assessment was conducted to placate these concerns, it demonstrates the negative effect on national economies will be virtually zero.
Notes to editors
a. Figures from the IEA on Private Sector R&D in maritime reveals spending has fallen from 2.7billion USD in 2017 to 1.6 billion USD in 2019.
b. Ricardo report identifies that more than 260 R&D projects, with total cost of around USD 5 billion, are needed to overcome key technical challenges involved with the use of new fuels.
The International Chamber of Shipping (ICS) is the principal international trade association for merchant shipowners and operators, representing all sectors and trades and over 80% of the world merchant fleet.
To view this piece of content from cts.businesswire.com, please give your consent at the top of this page.
Tel.: +44 (0) 7972 224445
About Business Wire
For more than 50 years, Business Wire has been the global leader in press release distribution and regulatory disclosure.
Subscribe to releases from Business Wire
Subscribe to all the latest releases from Business Wire by registering your e-mail address below. You can unsubscribe at any time.
Latest releases from Business Wire
Sunny Varkey Launches Tmrw, a New Learning Operating System (LearnOS) for Global Education to Bring a Quality Education Within Reach of Every Child7.12.2021 17:48:00 EET | Press release
Tmrw, a new and scalable Learning Operating System (LearnOS) for global education with a mission to help bring a quality education to every child, was launched this month. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20211207005768/en/ Sunny Varkey, Chairman and Founder of Tmrw (Photo: Business Wire) Its interoperable All-In-One Integrated Platform is built to be accessible and affordable for Government funded schools operating in both the developed and developing world settings. In particular, it seeks to reach all students irrespective of their background or their ability to pay. It is designed to cater to the needs of every curriculum, context and mode of learning, whether brick and mortar, virtual or blended. Tmrw’s vision over time is to underpin learning, teaching, and the operational needs of K12 education, higher education and life-long learning. Sunny Varkey, who also founded the Global Teacher Prize, has ensured th
Nexo Expands Institutional Access to Crypto in Collaboration with Fidelity Digital Assets7.12.2021 17:30:00 EET | Press release
Nexo , the leading regulated institution for digital assets, today announced its collaboration with Fidelity Digital AssetsSM, a leading institutional focused execution and custody services platform provider, to revolutionize institutional access to digital assets by together offering best-in-class custodial and lending services, including the launch of innovative institutional-focused products. Nexo, a pioneer of cryptocurrency-collateralized credit, and Fidelity Digital Assets as custodian and collateral agent, will develop a comprehensive product suite and compliant infrastructure for institutional investors seeking exposure to digital assets. As a first step, the collaboration with Fidelity Digital Assets will expand Nexo’s ability to service and enhance its growing portfolio of assets under management and will provide an additional custody layer to Nexo’s military-grade security infrastructure. This latest development gives institutional investors who currently custody their digit
Percona Platform Unifies Open Source Databases, Supports Private Database-as-a-Service Deployments7.12.2021 17:20:00 EET | Press release
Percona, a leader in open source database software and services, today announced Percona Platform to bring together database distributions, support expertise, services, management and automated insights into a single product. Building on the company’s expertise with databases including MySQL, PostgreSQL and MongoDB, the new Percona Platform will simplify how users monitor, manage and optimize their database instances across any infrastructure. In addition, Percona Platform will enable developers and database administrators to run their own private Database-as-a-Service (DBaaS) instances. This launch will preview the Percona Platform, allowing users to unify the entire database experience from packages and backup to monitoring and management, with general availability in early 2022. Percona brings together distributions of MySQL, PostgreSQL and MongoDB including a range of open source tools for data backup, availability and management. It also includes Percona Monitoring and Management
Zencity Accelerates Collaboration Between Communities and Local Governments by Acquiring Civil Space7.12.2021 17:16:00 EET | Press release
Zencity, the leading global community engagement technology platform for local governments, announced the acquisition of cutting edge digital engagement startup Civil Space, based in Vancouver, Canada. The deal immediately adds to Zencity’s powerful suite the capability to create and capture deep, meaningful, equitable, two-way conversations between governments and their residents. With its acquisition of Civil Space, Zencity emerges as the most effective, inclusive and wide-reaching community engagement platform available for local governments, built around two core principles: Lowering the barriers to participation by meeting residents where they are and hearing many more voices; and Making it easier for governments to turn the resulting, broadened community input into action. The combination of Zencity’s analysis of broad community input with Civil Space’s direct engagement platform will enable local leaders to further enhance the feedback they are leveraging. The information will b
MCR Acquires Cloud-Based Hotel Management Platform Optii7.12.2021 17:00:00 EET | Press release
MCR, the 4th-largest hotel owner-operator in the United States and one of Fast Company’s 10 Most Innovative Travel Companies of 2020, has acquired Optii, the only predictive, cloud-based technology for improved hotel operations. Optii will continue to be a standalone company with its existing management team of CEO Katherine Grass, Founder and CSO Soenke Weiss and CRO Deborah Pevenstein. MCR’s portfolio of 140 branded and independent hotels will be arms-length customers of Optii, which will continue to offer its product to forward-thinking hotel companies. No data will be shared with MCR. MCR will mobilize its 4,000 hotel team members — who will utilize Optii for 20,000 guestrooms per day — to push for innovative product enhancements. Stayntouch property management system software, another standalone company owned by MCR, will integrate with Optii. A data-driven platform powered by artificial intelligence, Optii has revolutionized housekeeping technology, optimizing labor and cleaning
Alation Forges Strategic Partnerships With Bigeye and Soda7.12.2021 17:00:00 EET | Press release
Alation, Inc., the leader in enterprise data intelligence solutions, today announced formal partnership agreements with Bigeye and Soda, leading data observability vendors. The partnerships provide customers with the choice to select the best data observability partner for their organisation’s needs. Alation’s active data governance helps organisations drive data culture by providing all data users, regardless of technical skillset, with access to quality data. Bigeye’s data observability platform helps detect data quality issues and ensures reliable data pipelines. Soda’s data observability platform allows teams to discover, prioritise, and collaboratively resolve data issues. The platforms are invaluable for alerting technical users to deeper data quality issues, such as the trustworthiness of the data or its usability. Alation’s integrations with Bigeye and Soda provide all data consumers, from business users to data scientists, with a single-pane-of-glass view into the trustworthin
Acadia and Capitolis Launch SA-CCR Optimization Service7.12.2021 16:30:00 EET | Press release
Acadia, the leading industry provider of integrated risk management services for the derivatives community, and Capitolis, the leading SaaS platform that drives financial resource optimization for capital markets, today announced the launch of SA-CCR Optimization. SA-CCR Optimization will bring considerable cost savings to firms subject to the Standard Approach to Counterparty Credit Risk (SA-CCR) regulations, focusing on specific FX products such as FX forwards, options, deliverable swaps and cross-currency swaps. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20211207005660/en/ With SA-CCR Optimization, banks and participating financial institutions provide trade data, which Acadia and Capitolis process and use to generate a series of FX transactions that reduce capital requirements, leaving each client’s net FX risk profile largely unchanged. “The newest wave of capital regulation is pushing firms to be more mindful of capi
In our pressroom you can read all our latest releases, find our press contacts, images, documents and other relevant information about us.Visit our pressroom