New fund boosts green retrofits

FEET, the world’s first fund for vessel retrofits using a pay-as-you-save repayment model, is designed to overcome longstanding financial barriers that have slowed adoption of energy efficiency technologies in shipping.

By linking repayments directly to verified fuel and regulatory savings, the fund offers shipowners an unsecured financing route for retrofits such as wind-assisted propulsion and air lubrication systems.

“Bringing FEET to life has taken persistence and a willingness from everyone involved to step into the unknown,” said Professor Lynn Loo, chief executive of GCMD.

“There was no playbook – our teams were learning as we went. This is exactly the kind of collaborative, problem-solving mindset needed to move the needle on maritime decarbonisation.

“My hope is that FEET will accelerate the uptake of shipboard energy efficiency solutions and help unlock the scale of action needed to turn the industry’s decarbonisation ambition into tangible progress.”

The fund is managed by AIM Horizon Investments, with GCMD serving as decarbonisation advisor. Shareholders of AIM Horizon hold the commercial equity position, while the Development Bank of Japan holds preferred equity. DBS Bank and ING have agreed in principle to provide senior debt financing.

With several projects already advancing to final investment decisions, FEET aims to scale further, potentially reaching US%500 million by 2030 to support roughly 200 vessels.

The fund’s blend of catalytic, commercial and preferred capital, alongside project diversification, is designed to reduce financial risk, lower financing costs, and generate robust datasets on performance.