Deputy Executive Director of the Green Climate Fund, the Secretary General of IMO and the Secretary General of ICS met to discuss funding options for the proposed ‘IMO Maritime Research Fund’ (IMRF).
n fact, a key aim with the meeting was to develop potential solutions to ensure that developing economies from Latin America, the Caribbean, Africa, Eastern Europe, Central Asia, and the Pacific can access technology and funding for zero carbon ships and the required infrastructure.
One solution to be discussed further in the coming weeks is the potential availability of up to USD 1.5 million from the GCF Project Preparation Facility (PFF) to fast track the creation of the IMRF; a USD 5 billion research and development fund to accelerate research and development into zero emission technologies to be used by shipping.
In 2019, our industry put forward a proposal to create a USD 5 billion innovation fund to kick start the R&D needed to deploy the technologies required to deliver a zero emissions future. This would not add a penny in taxes and would provide a fund which could be leveraged by industry and governments. This is a no brainer, something that all governments can jump at to send a clear message that the world is serious about the energy transition and climate goals.
….Guy Platten, secretary general of the International Chamber of Shipping, commented.
The PPF, to be requested by a GCF Accredited Entity to develop the proposal, could be used to pay for the feasibility and governance work required to set up the fund quickly as soon as it is approved by the IMO.
As informed, the IMRF proposal would provide guaranteed levels of funding to all member countries at no cost to taxpayers, to accelerate the production of zero emission ships.
The International Maritime Organization (IMO) are due to review a proposal to form a USD 5 billion R&D programme at its next Marine Environment Protection Committee to be held right after COP26.
The USD 5 billion fund would be overseen by IMO and financed through a mandated R&D contribution by ship owners of USD 2 per tonne of marine fuel consumed. The shipping industry wants the fund in place by 2023.
During the meeting, Javier Manzanares, Deputy Executive Director of the Green Climate Fund, said:
The proposed Research and Development fund could provide access to climate technologies for developing countries with the aim of reducing the CO2 footprint of the shipping industry, which would be very welcome. GCF is proud to have joined the global methane pledge, which has strong synergies with this initiative, and welcomes moves to foster innovation that will drive the climate transformation of the maritime industry.
Concluding, the meeting also discussed the possibility of GCF providing additional support to developing economies to attract match funding, which could significantly increase the levels of R&D available to developing economies.