Rotterdam offers cash for CO2 reductions

Malcolm Latarche
Malcolm Latarche
ShipInsight

22 January 2019


Europe’s largest port yesterday launched a €5Mn scheme aimed at reducing CO2 emissions from shipping.

The Port of Rotterdam Authority has invited shippers, shipping companies, fuel manufacturers and suppliers, engine manufacturers and service providers to take advantage of the new scheme. The initiative is intended to promote projects and demonstrations that make use of low-carbon or zero-carbon fuels delivered in Rotterdam’s port area. Interested parties can apply for funding via the Incentive Scheme Climate-Friendly Shipping.

Allard Castelein, CEO of the Port of Rotterdam Authority: “We wish to play an active part in the reduction of CO2 emissions generated by the shipping sector. Through this scheme, we are able to give various parties just that extra financial push they need to realise a concrete project in this area.”

One of the Port of Rotterdam Authority’s ambitions is to help decarbonise the logistics chains that run via Rotterdam. This inspired Allard Castelein’s announcement of the incentive scheme during the Energy in Transition Summit of April of last year. It is now officially open to applications. Through this scheme, the Port Authority will contribute to the realisation of climate policy targets in the Netherlands and worldwide. The scheme runs until the end of 2022.

This incentive scheme aligns with the goals set out in the World Ports Climate Action Program, which was launched in September 2018. In this partnership – a Rotterdam initiative – the port authorities of Hamburg, Barcelona, Antwerp, Los Angeles, Long Beach, Vancouver and Rotterdam are working together on projects intended to reduce the shipping sector’s contribution to global warming.

While the scheme is open to all, the bar for receiving funding has been set quite high. Article 5 of the conditions relating to the scheme’s operation says, ‘In principle, the alternative fuel must be able to achieve at least a 50% CO2 emission reduction compared to MGO/MDO (well-to-propeller)’. The same Article 5 defines alternative fuels as all biological and synthetic fuels, including electricity and fuel cells.