HKUST has a funded research project on Green Transition Finance for Maritime Retrofitting, focusing on retrofitting existing fleets to meet IMO’s 2030 targets. This workshop aims to explore what enabling conditions are crucial to incentivize local small and medium shipping companies (SMSCs vs big shipping companies having more resources) to adopt energy efficiency technologies (EETs) on in-use vessels.
A recent study by the UCL Energy Institute has uncovered a critical issue in green financing for the shipping industry. While banks offer cheaper loans to shipping companies with strong climate records, they do not extend these benefits to individual low-carbon ships. This gap suggests that current financing practices may not effectively promote the adoption of greener technologies in shipping.
Whilst the workshop is separate from the HKUST Shipping Decarbonisation Forum, though designed to offer for those by-invitation people ONLY (e.g. members of Panel 1; shipowners, charterers, ship managers; banks active on green finance, ship leasing companies, green finance NGOs) for more in-depth discussion on the Part I of the Forum: Maritime Energy Efficiency Technologies (EETs). Joining only this Workshop is also possible, though you will miss the Part I presentations and panel discussions. We expect those invited people to actively participate in both sessions of Open Floor Discussion, as your views will contribute to the aim of this Workshop.
For example: GCMD has developed and launched a fund using a Pay-as-you-save repayment mechanism, sharing the operational and technical risk of the projects with the shipowner. GCMD has developed a method for quantifying the savings from installations like wind-assisted propulsion systems (WAPS) and will share findings from some ongoing pilot projects, leveraging on-off testing in combination with automated high frequency data collection systems. Kongsberg will highlight three case studies—general cargo, chemical tanker, and dry bulk carrier—to demonstrate significant fuel savings (up to 48%) using combinations of WAPS, among various EETs. CMI will speak on another way of quantifying performance of EETs: by Vessel Technical Index (VTI).
Notes:
- This is a by-invitation event. Free Admission. Limited seats of 60.
- If you are invited but wish to nominate another colleague, whether to take over your seat or not, please contact us if that can be arranged. Organizer has full discretion to limit registrants per company or decline registration not invited.
- Notes of the event will be uploaded to internet for global coverage. Event details and the programme may be subject to change without prior notice.
[Draft and subject to change]
| Time | Sessions | Speakers |
|---|---|---|
| Part 1: Estimated budget and timeline to retrofit recommended EETs (30 mins) | ||
| 2:15 – 2:25 PM | Recommended EETs and sample implementation timelines for SMSCs | Daniel Song / BV |
| 2:25 – 2:45 PM | Open Floor Discussion: Examples: What are the types of EETs more suitable for SMSC? How to select/rank those EETs spoken by Kongsberg, BV, Caravel, etc.? What are the estimated capex amount, implementation timeline and breakeven time? Etc. |
Daniel Song / BV (Moderator) |
| Part 2: What enabling conditions are crucial to incentivize local SMSCs to adopt EETs on in-use vessels (70 mins) | ||
| 2:45 – 2:55 PM | How China’s green and transition finance taxonomy1 supports reduction of GHGs from shipping | Gu Beibei / Green Finance Forum of 60 (GF60) |
| 2:55 – 3:05 PM | Hong Kong’s green and transition finance taxonomy1 for shipping | Lionel Mok / Climate Bonds Initiative (CBI) |
| 3:05 – 3:55 PM | Open Floor Discussion: Examples: Are charterers and shipowners willing to share the fuel savings via some performance contracting (sharing a portion of efficiency gains)? Will actual performance evaluation like VTI index contribute to developing performance contracting acceptable to both charterers and shipowners? Are financiers willing to lower the interest in order to help the shipowners to build life-cycle carbon neutral vessels? Etc. |
Keith Chan / HKUST (Moderator) |
| Summary / Closing Remark (5 mins) | ||
| 3:55 – 4:00 PM | Summary / Closing Remark | Kenneth Leung / HKUST |
| 4:00 PM onwards | Coffee / Tea Time for Networking – on ground level, foyer of IAS | — |
1 One of the enabling conditions is a green and transition finance taxonomy that supports ship retrofitting with EETs.
| No. | Organization / Company | Name of Speaker | Job Title |
|---|---|---|---|
| 1 | BV | Daniel Song | Head of Expertise Center Sustainability, Future Shipping Team |
| 2 | GF60 | Gu Beibei | Vice President |
| 3 | CBI | Lionel Mok | Ex-Policy Consultant |
| 4 | HKUST | Keith Chan (Moderator) | Assistant Professor, Division of Environment and Sustainability |
| 5 | HKUST | Kenneth Leung | Director of Sustainability / Net-Zero Office |