In furtherance of its ambition to cut CO2 emissions from the short-sea shipping industry by 50% by 2030, the government announced on 5 May 2021 that NKr150 million has been earmarked to support green investments in offshore vessels in 2021.
The new support scheme is an addition to the existing arrangement for scrapping vessels involved in short-sea shipping which was established in 2020. The government will subsidise shipowners' investments in more environmentally friendly offshore vessels, as well as the scrapping of older polluting vessels. If a shipowner scraps an offshore vessel, it may be able to receive subsidies for investments in low to zero-emission upgrades to other existing offshore vessels, such as battery packages. To be eligible for such funding, the vessel which is being upgraded must be owned by the shipowner applying for the subsidy or be bought from a Norwegian company. The subsidy for an eligible green investment may vary from case to case. However, as a starting point, 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 has been reported that Innovasjon Norge will make the application process for such subsidies available shortly. 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.
