Singapore Shipping Association join decarbonisation initiative

The agreement will pave the way for greater cooperation in data sharing when it comes to maritime decarbonisation initiatives such as green corridors and pilot programmes, to help accelerate the adoption of low- or zero-carbon solutions.

The GCMD was formed in Singapore on 1 August 2021 with funding from the Maritime and Port Authority of Singapore (MPA) and six founding partners: BHP, BW, DNV Foundation, Eastern Pacific Shipping, Ocean Network Express and Sembcorp Marine. The aim of the non-profit organisation is to help the industry meet or exceed the IMO’s goals for 2030 and 2050. In January, the Centre awarded its ammonia bunkering safety study to a DNV-led consortium, with Surbana Jurong and the Singapore Maritime Academy as partners.

Professor Lynn Loo, CEO of GCMD, said: “Collaboration and alignment across the industry is key to decarbonising the sector. SSA is a trusted advisor and partner to more than 470 member companies across the ecosystem as well as related government agencies.

“This partnership is an opportunity for GCMD to understand industry concerns around the technical and standards challenges to better ideate pilots and trials, as well as share insights from other decarbonisation projects through SSA’s technical committees. GCMD can also help to support the shaping of standards and guidelines through our involvement in the various standards development organisations.”

Earlier this month, the GCMD released a report Dual Actions: National and Route-Based Plans to Tackle GHG Emissions from International Shipping. The report proposes a solution built around Route-based Action Plans which will complement the IMO’s existing National Action Plans (called for in resolution MEPC.327(75)5 to provide a structure for organising decarbonisation initiatives. Due to the varying conditions of shipping routes, it advocates for a greening-one-route-at-a-time approach that is driven by local needs, capabilities, and availability of resources.

It supports sourcing revenue from market-based measures, such as global carbon levies or cap-and-trade systems, or from member states’ contributions, development banks, or the international capital market. A recent example being Trafigura’s proposal for a global carbon levy at approximately USD300 per metric tonne of CO2 or the International Maritime Research Fund (IMRF) proposed by the International Chamber of Shipping. The report notes decarbonisation is a costly undertaking and that flexible solutions will be required to meet the varying needs of IMO member states. The scope for funding should be focused on decarbonisation but should not only relate to R&D projects. Infrastructure development and capacity building should also be accepted as suitable for funding.

The report is available here.