Page 50 - European Energy Innovation - autumn 2018 publication
P. 50
50 Autumn 2018 European Energy Innovation
GREEN SHIPPING
Shipping’s green transition
The European Union bank is investing millions to clean up the maritime industry and switch to
alternative fuels
By Chris Knight (below), Senior Editor, European Investment Bank
Maritime shipping can competitiveness. The shipping sector build better ships, make vessels
be dirty, dangerous of transport often struggles to find friendlier to the climate and improve
and competitive. Many financing that will help it expand, the industry’s reputation. The Bank is
vessels burn a heavy, remain competitive and transition trying to help many areas of maritime
high-sulphur fuel that creates a lot of to green technology. European shipping, including inland waterways
pollution. The water stored in tanks shippers need better financing and short-sea shipping. It also is
to balance ships can cause trouble options, because good roads, trains, actively seeking ways to encourage
when dumped back into the sea. The airways and waterways enable the alternative fuels.
shipping sector is inherently risky, free movement of people and goods
involving highly leveraged, mobile and ensure better lives for everyone. CLEANING UP THE SEAS
assets, so obtaining financing is Better mobility achieves social For the past two years, the EIB has
difficult. When the economy starts to cohesion, economic growth and been making key investments to
tank, so does the shipping industry. employment. help the maritime sector switch to
more sustainable operations. One
Transport is one of the most The European Investment Bank is way the Bank is helping: a new €750
important ways Europe can injecting hundreds of millions of million Green Shipping Guarantee
increase economic growth and euros into the maritime sector to Programme that encourages
environmentally friendly projects
to improve air quality (reducing
greenhouse gasses and other harmful
exhausts) and to make the seas and
ports cleaner.
The programme is an umbrella
project of the bank’s European Fund
for Strategic Investments, which
was set up to fill financing gaps
across Europe. This new shipping
programme is also supported by
the Connecting Europe Facility, an
EU funding instrument that has
been promoting growth, jobs and
competitiveness for many years.
As the shipping industry faces
significant regulatory pressure to
clean up its emissions, ship owners
have shown a lot of willingness
to improve their environmental
performance. But they face many
challenges. First, investing in green
technology is expensive and often
hurts profits and competitivity.
Second, many banks stopped lending
to the sector after the 2008 financial
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