MTBS, commissioned by the International Association of Ports and Harbors (IAPH), has released a comprehensive report detailing the substantial infrastructure investments required for developing nations’ ports to achieve a fair and equitable energy transition.
In summary, the report reached the following conclusions:
- Port infrastructure financing is already challenging today, with most bankable projects requiring a combination of a positive socio-economic impact for the region as well as a bankable business case.
- Green energy from solar and wind will provide several developing nations with a new opportunity to produce, use/and or export green energy to high energy demanding nations. Green Hydrogen generated from renewable energy is earmarked as a base energy source to replace fossil fuel dependency.
- The sector must reach consensus regarding the regulatory framework and GHG mitigation measures of the future as soon as possible to avoid risk aversion to investing in technology which, eventually may not become widely adopted.
- Any share of funds generated from a market-based measure will require decisions based on:
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- Level of dissemination (country, port, project)
- A sound methodology for gauging viable investments, with a minimum of climate change vulnerability
- A region’s dependency on maritime transport
- Cargo value and type (economic benefit of increased investments)
- Increase of transport costs due to the charging scheme
- Food security
- Adaptation relative to required mitigation investments
- Cost-effectiveness (such as adapting to rebuild)
- The overall related socio-economic impact and development
MTBS explored the current state of port adaptation and decarbonization in regions such as Brazil, India, Indonesia, Kenya, and the Solomon Islands. These examples demonstrate investments in port adaptation (resilient infrastructure) and decarbonisation infrastructure varying widely depending on port size, location, existing infrastructure, activities, and prior adaptation and mitigation plans. That said, based on estimations, it is predicted that the aggregate total investment needs for ports in developing nations lies between USD 55 and 83 billion.
MTBS has been contributing to sustainable port development through our ‘Greenports’ initiatives, and this report represents another step in the right direction. By highlighting the investments necessary for decarbonization and resilience in developing ports, we continue to support our clients in navigating the complexities of the energy transition. This report reaffirms our commitment to driving impactful, sustainable change across the port sector and aligns with our broader efforts to promote a greener, more equitable future for ports worldwide.
For more details, you can access the full report here.
Source: https://www.mtbs.nl/mtbs-report-commissioned-by-iaph-calls-for-significant-investments-in-port-infrastructure-for-developing-countries-energy-transition/
