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

    2021

    Always on demand?

    In a decision with potentially far reaching implications for the shipbuilding industry and for guarantees generally, the English Court of Appeal on 23 July issued a judgment addressing what makes a guarantee issued by someone other than a financial institution a "demand" guarantee versus a "see to it" guarantee. The Court rejected the application of a presumption that a guarantee issued by anyone other than a financial institution should be considered a "see to it" guarantee just because of the status of the guarantor.

  • Shipping Offshore

    2021

    Read our Shipping Offshore Update June 2021

    In this Shipping Offshore Update we seek to address the legal developments relating to the shipping and offshore markets

  • Shipping Offshore

    2021

    ASBAGASVOY 2020 – a new voyage charter for gas tankers

    BIMCO and the Association of Ship Brokers & Agents (“ASBA”) recently released a dedicated gas tanker voyage charterparty, the ASBAGASVOY 2020. The form is a based on the well-established ASBATANKVOY form for product tankers and has been developed in response to the growth of the gas spot market.