The Global Centre for Maritime Decarbonisation (GCMD) and AIM Horizon Investments report that its Fund for Energy Efficiency Technologies (FEET) has closed with commitments of up to US$35 million, exceeding its initial target. The fund employs a ‘pay-as-you-save’ mechanism for vessel retrofits, linking repayments to verified fuel and regulatory savings.
GCMD is providing catalytic equity and is acting as decarbonisation advisor, while AIM Horizon Investments manages the fund. The Development Bank of Japan holds the preferred equity position, and DBS Bank and ING have agreed in principle to provide senior debt financing.
FEET aims to overcome the financing barriers associated with energy efficiency technologies. GCMD says it has conducted trials using additional sensors and data analytics to quantify fuel savings with statistical confidence, to address the lack of standardised measurement methods.
A core feature of the structure is the use of unsecured leases, allowing retrofit financing to be separated from vessel mortgages. FEET provides up to 100% financing for equipment, installation and sensor costs, with repayments linked directly to verified savings. Ownership of the equipment transfers to the shipowner after the lease.
The organisation says that it plans to diversify across technologies, manufacturers and vessel types, with several projects already progressing to the final investment decision stage.
GCMD and AIM Horizon Investments aim to scale the fund to $500 million by 2030 to support around 200 ships. They expect that a larger portfolio will reduce financing costs and generate broader datasets on energy efficiency performance.
“Bringing FEET to life has taken persistence and a willingness from everyone involved to step into the unknown,” said Professor Lynn Loo, CEO, GCMD.
“There was no playbook; our teams were learning as we went. This is exactly the kind of collaborative, problem-solving mindset needed to move the needle on maritime decarbonisation.”
“My hope is that FEET will accelerate the uptake of shipboard energy efficiency solutions and help unlock the scale of action needed to turn the industry’s decarbonisation ambition into tangible progress.”
