A recent partnership between the Inter-American Development Bank (IDB) and the Caribbean Shipping Association (CSA) is seeking to accelerate decarbonisation of the region’s shipping industry.

The signing of a memorandum of understanding (MOU) during IDB’s recently held annual general meeting is pushing to reinforce Latin America and the Caribbean’s commitment to support decarbonisation of the maritime transport sector, ultimately reducing greenhouse gas emissions and the amount of carbon produced across countries.

The agreement, signed by IDB’s Vice-President for Countries Richard Martínez, CSA President Lindsay Marc Sampson, and General Manager Milaika Capella Ras aims to expedite the decarbonisation of the shipping industry while simultaneously enhancing the economic and social development of the region.

Additionally, the framework strives to improve the efficiency and efficacy of maritime transport activities and services, as well as to optimise the operations of seaports, harbours and their associated hinterland activities.

“This partnership is an essential step in our mission to support the region’s economic development. As we know, the Caribbean relies heavily on maritime transport for trade. This partnership will create opportunities to enhance trade, which is critical for economic growth,” Martínez said.

During the course of the three-year arrangement both institutions will collaborate on different activities, including studies focused on decarbonising maritime transport and improving the operations of seaports and harbours in the Caribbean. They will also work on technical and operational matters related to reducing the use of fossil fuels in seaport activities, such as operation and maintenance.

Additionally, the entities will also undertake joint capacity-building activities to advance shipping and trade policies and regulations on decarbonisation, the circular economy, labour affairs, gender inclusion, small and medium-sized entities, and institutional strengthening.

The CSA, as a central voice for the region’s shipping industry, serves the interest of private and public sector bodies across the Caribbean along with South, Central and North American ports. The recent partnership will see the association facilitating the development and exchange of ideas as well as practices integral to the growth of regional shipping.

“The enactment of our partnership today will help to bolster our efforts to protect the region’s environment and hasten our progress to adopting better technologies, procedures, and energy alternatives. This agreement is not only necessary for the environment but also for economic growth and international cooperation,” Sampson stated.

The IDB, pushing further collaborations with the CSA, said it will also develop an analytical framework for the key building blocks necessary for decarbonising shipping and port services.

According to statistics, the global shipping industry is responsible for about three per cent of total global greenhouse gas emissions, most of which comes from fossil fuels burned to propel the more than 100,000 large ships on the ocean. While efforts remain underway to cut carbon footprint, total emissions could more than double by 2050 if these efforts are not continued. A report from the last Global Maritime Forum summit in New York has indicated that more than $1 trillion in investment will be required to decarbonise the shipping industry by 2050.

“The partnership will also include the creation of new alliances and the analysis of existing policies and regulations to support the shift towards decarbonisation of shipping and port services in an enabling environment,” the IDB noted.