Unlocking the Potential: Investment Needs for Port Climate Adaptation and Decarbonisation in Developing Nations
Key Ideas
- Port infrastructure faces financing challenges, requiring projects with a positive socio-economic impact and a bankable business case.
- Green hydrogen emerges as a key energy source to replace fossil fuel dependency, along with solar and wind energy opportunities.
- Consensus on regulatory framework and GHG mitigation measures is crucial to encourage investment in sustainable technology.
- Investment decisions from a market-based measure require considerations like climate vulnerability, economic benefits, and adaptation costs.
At the IMO Working Group meeting, IAPH submitted a report on port climate adaptation and decarbonisation needs in developing nations, based on a study by MTBS. The report highlighted challenges in financing port infrastructure and emphasized the potential of green energy, especially green hydrogen, to replace fossil fuels. It stressed the importance of reaching consensus on future regulatory frameworks and GHG mitigation measures to drive technology adoption. The study estimated total investment needs for ports in developing nations to be between USD 55 and 83 billion, with a focus on adaptation investments over decarbonisation. Small island ports, notably in Indonesia and the Solomon Islands, prioritize adaptive measures due to vulnerability. The study emphasized the importance of balancing adaptation and mitigation efforts for port resilience and future sustainability. IAPH expressed support for a carbon-pricing mechanism to incentivize investment in low-carbon fuels and port infrastructure. The organization highlighted the opportunity for revenue from the market-based measure to fund adaptation and mitigation measures, promoting energy transition infrastructure in and around ports. The article stresses the need for unity between shipping, ports, and the energy sector to attract necessary investment for sustainable infrastructure.
Topics
Green Hydrogen
Infrastructure
Climate Change
Investment
Energy Transition
Resilience
Regulatory Framework
Developing Nations
Ports
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