Green shipping: governmental support scheme for green offshore vessels

In furtherance of its ambition to cutting CO2 emissions from the short sea shipping industry in Norway by 50 % within 2030, the Norwegian government today announced that NOK 150 million has been earmarked for 2021 to support green investments in offshore vessels.

The new support scheme is an addition to the existing arrangement for scrapping of vessels involved in short sea shipping established last year. The government will subsidise shipowners' investments in more environmentally friendly offshore vessels as well as the scrapping of older, polluting vessels. In case a shipowner scraps an offshore vessel, it may receive subsidies for investments in low to zero-emission upgrades on other existing offshore vessel such as battery packages. To be eligible for such funding support, the vessel which is being upgraded must be owned by the shipowner applying for the subsidy, or bought from a Norwegian company.

The level of the subsidy being granted for an eligible green investment may vary from case to case, but the starting point is that 40 % of the excess costs for the "green" solution will generally be granted.

The intention behind this new scheme is to ensure that the offshore fleet becomes increasingly green, reduce the surplus capacity of offshore vessels in the market and contribute to activity with Norwegian yards and other suppliers.

It is reported that the application process for such subsidies will be made available by Innovasjon Norge within short.

With the international focus on green and sustainable shipping, this is a welcome development for shipowners in the Norwegian market and an important contribution to the maritime industry as a whole.

Read our latest articles on Shipping Offshore

  • Shipping Offshore

    2023

    MUR Shipping v RTI: "Reasonable endeavours" decision overturned

    Previously, we wrote about the case of MUR Shipping v RTI and whether the obligation in the relevant force majeure clause to use "reasonable endeavours" to overcome a force majeure event required "non-contractual" performance. The English High Court held that it did not. This decision was overturned by the English Court of Appeal.

  • Shipping Offshore

    2023

    Safety first: The position on demurrage

    The High Court has clarified when a shipowner may disregard charterers' voyage instructions without interrupting demurrage, in a decision which underlines the obligation on voyage charterers to choose safe ports and safe berths for the vessel to proceed to.

  • Shipping Offshore

    2022

    BIMCO Infectious or contagious diseases clause for time charter parties 2022

    In anticipation of possible cases of future pandemics and epidemics, BIMCO redrafted its 2015 Infectious or Contagious Disease Clause for Time Charter Parties, providing more clarity for shipowners and charters when it comes to risk and costs obligations as a consequence of disruption and delay.