Unlocking green finance for the shipping sector: key learnings and recommendations

The maritime industry stands at a pivotal juncture, with decarbonisation becoming a critical priority. Our latest report, “Support Study for the Development of a Living Inventory of Relevant Instruments to Support Investments in the Shipping Sector,” published in December 2024 delves into the financial landscape and offers strategic recommendations to drive sustainable investments. The report is associated with the Ship Financing Portal that was launched earlier in 2024 by the European Commission to centralise access to a variety of pan-European financing products, simplifying the search for suitable financing opportunities for stakeholders across the maritime sector.

The below summarises our key takeaways and actionable insights from the report.

Key Learnings

• Diverse Financing Landscape: The maritime sector benefits from a variety of financing products, including grants, loans, and guarantees. However, the accessibility and relevance of these products vary significantly. Private financing products are often tailored to specific needs, while public funds cover a broader range of activities but are highly competitive.
• Barriers to Access: SMEs face significant challenges in accessing green finance due to complex application processes and high administrative burdens. There is a notable gap in financing for early-stage demonstration projects and retrofitting existing vessels, which are crucial for decarbonisation.
• Awareness and Information Gaps: Stakeholders often struggle with scattered information on available financing options, leading to inefficiencies and missed opportunities. A centralised database of financing products is unanimously supported by industry stakeholders to streamline access to information.

Strategic Recommendations

• Bridge the Innovation Financing Gap: Introduce grants and subsidies specifically for early-stage demonstration and testing of green technologies.
• Support Retrofitting Initiatives: Provide financial incentives for retrofitting existing vessels to meet decarbonisation goals.
• Enhance Accessibility for SMEs: Simplify application processes and reduce administrative burdens to make green finance more accessible to smaller stakeholders.
• Develop dedicated support mechanisms: including financial training programs, to assist SMEs in navigating the financing landscape.
• Centralised Information Platform: Establish a comprehensive, user-friendly portal that consolidates information on all available financing products, eligibility criteria, and application processes. Ensure regular updates and active promotion of the portal to keep stakeholders informed about the latest opportunities.
• Incentive Schemes for Infrastructure Development: Introduce targeted financial support for the development of onshore bunkering and recharging infrastructure to facilitate the transition to alternative fuels. Implement guarantees and blended finance options to reduce the cost gap between conventional and alternative fuels.

Conclusion

The path to a sustainable maritime industry is paved with strategic financial interventions and streamlined access to information. By implementing these recommendations, we can unlock the full potential of green finance, driving the shipping sector towards a greener, more sustainable future.

Explore our comprehensive report for a deeper dive into these insights and join us in championing the decarbonisation of maritime transport.

Read the full report >

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