GCMD partners with the Asian Development Bank (ADB) to advance maritime decarbonisation through sustainable finance

Accelerating the adoption of energy efficiency technologies (EETs)

By lowering fuel consumption, EETs are considered a “no-regrets approach” to reducing emissions in the maritime sector. Yet, EET adoption faces significant hurdles primarily arising from the challenges to accurately quantify fuel savings, which translates to an uncertainty in return on investment.
 

To address this gap, GCMD is currently developing and testing methodologies to validate fuel savings through the deployment of onboard sensor installations. By providing clear attribution of fuel savings to specific technologies, GCMD aims to implement Pay-As-You-Save (PAYS), a financing model proven in other sectors. Under PAYS, upfront investments in EETs can be repaid over time, with payments directly tied to verified fuel savings. This approach aligns stakeholder interests and fosters risk-and-reward sharing.

ADB and GCMD are partnering to combine their complementary strengths—exchanging knowledge from GCMD’s pilots and ADB’s financing expertise—to address barriers in green financing. By grounding green financing in verified emissions reduction data, the collaboration aims to build investor confidence, unlock capital for bankable, scalable decarbonisation solutions, and accelerate the widespread adoption of EETs in the maritime sector.

Professor Lynn Loo, CEO of GCMD, said, “At this critical juncture, the IMO’s announcement of a global emissions pricing mechanism sends the clearest signal yet that urgent action is required—not only to advance decarbonisation, but also to safeguard the long-term commercial viability of shipowners. Energy efficiency technologies (EETs) can play a vital role by reducing fuel consumption, thereby lowering the penalties shipowners will face under IMO’s framework. We believe that the Pay-As-You-Save (PAYS) model can uniquely accelerate and scale the adoption of these critical solutions. In this context, we value the opportunity to leverage ADB’s extensive global network to drive meaningful progress, particularly in unlocking financing to support sustainable growth of the maritime industry.”

Mr. Hideaki Iwasaki, Director General, Sectors Department 1, ADB, said “ADB’s partnership with the Global Centre for Maritime Decarbonisation reflects our shared commitment to unlocking private capital and accelerating the deployment of clean technologies in the maritime sector. Through the Sustainable and Resilient Maritime Initiative and associated new funding arrangements being developed, we are supporting our client countries to modernise ports, strengthen regional trade connectivity, and de-risk investments that drive greener, more resilient supply chains. Together with GCMD, we aim to bridge the gap between innovation and implementation.”