Work to address the financial challenges of shipping’s transition to a more sustainable future has continued this week with a meeting of the FIN-SMART
Roundtable Workstream 1. The Roundtable provides a platform for regular dialogue among key maritime stakeholders to support accelerating financial flows, particularly in developing countries, for the decarbonization of the maritime sector.
This is carried out in line with country priorities and the goals of the IMO Initial Strategy on the reduction of GHG emissions from ships.
IMO GHG Strategy
In the latest meeting of ‘Workstream 1’ (28 January) the basis of discussion was a mapping analysis undertaken by a technical specialist, under the guidance of the European Bank for Reconstruction and Development, the World Bank and IMO. The discussion highlighted the overall needs mapping of decarbonizing the sector in line with the Initial IMO GHG Strategy.
It focused on investment risks, financing and other barriers which pose challenges for the needed investments to materialize – especially in developing countries, both in relation to investments in public and private assets.
LDC’s and SIDS
Workstream 1 recognised the need to come up with innovative financial means to address decarbonization needs of the maritime sector in line with the IMO Initial GHG Strategy. Participants highlighted the importance of new risk sharing financial structures. Financial instruments for gap-funding, grant funding and a new distinct approach that considers the needs of LDC’s and SIDS.
Workstream 2 will concentrate on financial solutions. A more detailed analysis will be conducted that will support regional needs, port and shipping finance, with a focus on the needs of developing countries, especially LDCs and SIDS.
All technical outcomes will then be discussed at a Second High Level Roundtable Meeting, due to take place in June/July 2021.
