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SMW 2021: MPA & Partners ink SGD 120 million fund to establish maritime decarbonisation centre

21 Apr 2021

The Maritime and Port Authority of Singapore (MPA) said it will join hands with industry partners under two separate agreements signed on Wednesday (21 April) to advance decarbonisation efforts in the maritime industry.

Chee Hong Tat, Senior Minister of State for Foreign Affairs and Transport, witnessed the signing of the two agreements.

Firstly, MPA signed a memorandum of cooperation (MoC) with BW Group, Sembcorp Marine, Eastern Pacific Shipping, Ocean Network Express, Foundation Det Norske Veritas and BHP to establish a fund for a maritime decarbonisation centre to be set up in Singapore.

This follows the release of a recommendation by the International Advisory Panel on Maritime Decarbonisation (IAP) to set up a maritime decarbonisation centre in Singapore.

Under the MoC, each private sector partner will contribute SGD 10 million (USD 7.5 million) to support the establishment of the centre, fund maritime-decarbonisation-related research and technology development projects and collaborate with institutes of higher learning and research institutes.

MPA will add SGD 60 million (USD 45 million) R&D funding to these contributions, bringing the fund to a total of SGD 120 million.

“Maritime decarbonisation is a global challenge requiring a collective responsibility from all stakeholders involved. It is crucial to have strong public-private sector partnerships,” said Quah Ley Hoon, Chief Executive of MPA.

“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 catalyse a larger, much needed momentum to make international shipping more sustainable.”

“We are delighted to be able to contribute to this initiative. Climate change is a defining challenge of our time, and the only way to tackle this is with cross-border, cross-sector collaboration,” added Andreas Sohmen-Pao, Chairman, BW Group.

“While helping to find solutions for the industry, companies can also help themselves to prepare for the future by being part of this effort. We look forward to partnerships and insights through the centre.”

“Collaboration and knowledge sharing is the new normal to advance decarbonisation in the maritime industry,” noted Wong Weng Sun, President & Chief Executive Officer, Sembcorp Marine.

“SembCorp Marine believes that an interconnected approach to tap the best- in-class capabilities of players in our industry will lead to breakthrough outcomes in decarbonisation.”

“Sustainability begins with accountability and maritime leaders have a responsibility to implement emission-lowering solutions available today while simultaneously developing solutions for tomorrow,” added Cyril Ducau, Chief Executive Officer, Eastern Pacific Shipping.

“The formation of a maritime decarbonisation centre is a major milestone, combining forces of both public and private industry players,” said Cyril Ducau, Chief Executive Officer, Eastern Pacific Shipping.

“It proves that the sector is willing to band together and take ownership of environmental preservation for future generations. EPS is proud to be part of this partnership.”

“This is a further significant step forward by ONE, in alignment with its new green strategy direction. ONE is committed to accelerating maritime decarbonisation collaboration at both governmental and private sector industry level,” commented Jeremy Nixon, CEO, Ocean Network Express.

“The Foundation Det Norske Veritas is driven by a desire to help society tackle major global transformations,” noted Remi Eriksen, Chief Executive Officer, Foundation Det Norske Veritas and DNV.

“Transforming the world energy system is one of the biggest challenges confronting society, and shipping must play its part. But this cannot be achieved without industry wide collaboration. Working together, I am confident the Centre will deliver a global impact on decarbonisation while further bolstering the Foundation’s purpose of safeguarding life, property and the environment.”

“The key to navigating the pathway to decarbonisation in the maritime industry is an ecosystem approach with all partners working collaboratively towards the same goal,” said Vandita Pant, Chief Commercial Officer, BHP.

“BHP is proud to sign this Memorandum of Cooperation (MoC), and is committed along with our other like-minded companies, to lead the maritime sector towards that goal through the marine decarbonisation centre.”

MPA also signed a memorandum of understanding (MoU) with Singapore-headquartered investment company, Temasek, to explore collaborations related to decarbonisation of port operations, development and use of low-carbon and/or alternative marine energy sources and decarbonisation of the other parts of the global and regional maritime supply chain, with Temasek and Temasek Portfolio Companies at the same event today.

“Decarbonisation is an important priority for the maritime industry. This MPA-Temasek agreement paves the way for joint efforts aimed at reducing carbon emissions across port operations, maritime supply chains and shipping, including new potential low- or no-carbon fuels for ships,” said Juliet Teo, Head of Transportation and Logistics at Temasek.

“This partnership underscores Temasek’s commitment to a net zero carbon emissions portfolio by 2050 by applying our capital to catalyse new, potentially game- changing, solutions to today’s carbon challenges.”

Photo credit: Maritime and Port Authority of Singapore
Published: 21 April, 2021

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