norwegian fishing fleet loan scheme

The Norwegian Government has announced a new loan scheme which will help replace the fishing fleet with environmental friendly vessels

 

The goal of the scheme is greener shipping overall, says the Norwegian government.

The Norwegian government is launching a decommissioning scheme for ships in short sea shipping and a loan scheme for ships in short sea shipping and the fishing fleet. The schemes will stimulate green fleet renewal and reduced greenhouse gas emissions from Norwegian shipping.

The Nordic state’s government has an ambition to reduce CO2 emissions from domestic shipping and fishing by 50 percent by 2030.

“The decommissioning scheme will contribute to old ships being dismantled, and no longer polluting along the coast. More climate-friendly ships along the coast help reduce emissions. In addition, this can secure and create new green jobs and strengthen the industry’s competitiveness internationally,” says Minister of Trade and Industry Iselin Nybø.

“Ships to the aquaculture industry and fishing vessels can benefit from a risk loan scheme, which can stimulate environmentally friendly investments. This will make both the fishing and aquaculture industry more green and sustainable,” says Minister of Fisheries and Seafood Odd Emil Ingebrigtsen.

Norwegian-registered companies must have owned the vessel that is condemned for at least 12 months prior to the time of application. The vessel to be decommissioned must be an older vessel, and as a general rule, the vessel must be older than 20 years.

Decommissioning scheme for ships in short sea shipping

In 2020, the government has planned a stronger focus on green shipping. In the revised national budget 2020, NOK 75 million (€7.2m) was allocated to a decommissioning scheme for ships in short sea shipping. The scheme will contribute to older vessels being condemned and replaced by zero- and low-emission vessels.

“It is urgent to start a fleet renewal in short sea shipping. The purpose of the Loan Scheme and the Condemnation Scheme is to stimulate that the green fleet renewal in short sea shipping can take place faster,” says Minister of Trade and Industry Iselin Nybø.

Loan scheme for vessels in short sea shipping and the fishing fleet

As part of the government’s corona measures aimed at the business community, it was decided in May to establish a separate loan scheme for ships in short sea shipping and the fishing fleet. NOK 300 million (€28.7m) has been allocated for loss provisions for the scheme, which provides a total borrowing limit of NOK 600 million (€57.4m). Here, shipping companies in short sea shipping and fishing that want to invest in zero- and low-emission vessels or rebuild a vessel that produces lower emissions will be able to apply for a loan. The loan scheme is based on Innovation Norway’s innovation loan scheme, but will be reserved for vessels in short sea shipping and the fishing fleet.

“I encourage shipping companies that want to renew cargo ships or fishing vessels to investigate these possibilities. We need green sea transport solutions in the future,” says Minister of Fisheries and Seafood Odd Emil Ingebrigtsen.

Norway has world-leading players in green shipping, and the government wants to support further development of Norwegian maritime low- and zero-emission solutions. The measures are a follow-up to the Government’s action plan for green shipping, which was presented in 2019. Green shipping will also be a key focus area in the Government’s forthcoming report to the Storting on maritime policy.

More about the schemes 

The target group for the decommissioning scheme is Norwegian-registered companies that have cargo ships in the short sea fleet that run between Norwegian ports and Norwegian and European ports. In order to be able to receive a subsidy, it is assumed that the shipping company sends a ship for scrapping and invests in a new zero- or low-emission vessel or rebuilds a vessel to produce lower emissions. Shipping companies can receive a subsidy amount of up to NOK 8 million (€765,000).

The new loan scheme for ships in short sea shipping and the fishing fleet is based on the existing Innovation Loan scheme, but will be reserved for ships in short sea shipping and the fishing fleet. The loan scheme will give shipping companies a greater opportunity to finance good projects. The loan amount is assessed in each project, and is limited to NOK 50 million (€4.8m).

The loan scheme and the decommissioning scheme will help ensure that short sea shipping has a good financial offer that contributes to older vessels being replaced by more environmentally and climate-friendly vessels.

The decommissioning scheme for ships in short sea shipping, and risk loans for ships in short sea shipping and the fishing fleet are managed by Innovation Norway.

Source

Brian J McMullin Solicitors
MMG Welding Killybegs

New loan scheme announced for the Norwegian fishing fleet

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