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Financing of green shipping

Priority KVNR: additional financing for green shipping

Dutch shipowners:

“The transition to a more sustainable shipping industry will only succeed when there is public and private sector financing available for existing and new-build ships.”

At the European level, there is sufficient capital available for green projects. These fall under the umbrella of the EIB or European recovery resources. Linking these resources to the projects of Dutch shipowners is required, with specific attention being paid to SMEs.

 

2011 - Vroon - MPI Adventure - 2
Marjolein van Noort 150.JPG
Contact

 

Marjolein van Noort
Economy and Finance

+31 10 2176 278
noort@kvnr.nl

Nathan Habers 150.JPG
Press inquiries

 

Nathan Habers
Public Relations


+31 10 2176 264
habers@kvnr.nl

Context

The transition to a sustainable economy requires shipowners to equip their ships with new systems in addition to switching to other fuels, energy carriers and propulsion mechanisms.

However, the lifespan of ships is so long that it takes time to renew the fleet. Furthermore, Dutch shipowners sail a variety of routes. As such, the type of ship and the market also influence the applicability of new technology.

When it comes to so-called retrofitting – the interim modification of ships – the tricky point is that the investment is sometimes so large that it cannot always be recuperated with the contracts that shipowners have with shippers.

Traditional bank financing is not always suitable for financing business plans that are centred on innovative technology.

The challenge

A public or private sustainability fund can stimulate the accelerated sustainability of the shipping industry so that Dutch shipowners can compete internationally and significantly reduce their emissions of harmful greenhouse gases. Considering the size and scope of the fleet, a combination of funds, including Invest NL, is required.

Sustainable business cases can be accomplished by jointly developing and implementing an R&D programme from the maritime sector, and by giving shipowners (improved) access to innovation schemes and financing. The application of new technologies on a large(er) scale is expected to lead to solutions that banks can finance better. Considering the size of the Dutch fleet and the demand for sustainability, the financing requirement is substantial.

State of play - 8 February 2021

At the European level, there is sufficient capital available for green projects. These fall under the umbrella of the EIB or European recovery resources. Linking these resources to the projects of Dutch shipowners is required, with specific attention being paid to SMEs.