Financing for Vessels
The European Commission has a wide number of financial tools and incentives ready to support investments in shipping for the use of LNG as an alternative fuel. The below financial structures are combined with other traditional forms of financing (i.e. lending and private equity) for the realization of investments in the shipping sector.
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Connecting Europe Facility-CEF Financial Instruments and Trans-European Transport Network infrastructure-TEN-T Policy, aims at stimulating credibility of infrastructure projects and lowering their risk, in order to attract funding from public and private investors. Financial assistance is provided in forms of grant, procurement and financial instruments, where the financial instruments include dedicated investment funds, equity or debt (loans, guarantees, risk sharing) instruments, project bonds, LGTT. CEF is divided into the General and Cohesion envelope, with different dedicated grants budgets and different co-funding rates for projects support (up to 50% for the general and up to 85% for the cohesion envelope). Greece has access to both of these envelopes for projects of common interest falling under the funding priorities. In the case of vessels’ environmental upgrade for the use of LNG as an alternative marine fuel, only the LNG conversion applications are eligible for grant under CEF. |
| Geographic Scope | Budget | Type of Projects |
|---|---|---|
| Core Network Corridors | Grants of EUR €24.05 billion of the CEF Transport up to 2020 | Projects of common interest, prepared and implemented within the framework of TEN-T policy in the sectors of transport and energy |
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European Fund for Strategic Investments-EFSI, aims at mobilising private financing for strategic investments. EFSI utilises EIB loans, guarantees, counter-guarantees, capital market instruments, any other form of funding or credit enhancement, equity or quasi-equity participations in favour of NPBs, Investment Platforms or funds, EIB funding or guarantee to EIF enabling it to undertake financing in favour of NPBs, Investment Platforms or funds, EIB guarantees to NPBs, Investment Platforms or funds, under a counter-guarantee of the EU Guarantee. |
| Geographic Scope | Budget | Type of Projects |
|---|---|---|
| EU-28 & projects with 1 MS & Western Balkans, Turkey, EU East/South Neighbourhood, EEA/EFTA (Norway, Switzerland and Liechtenstein), Overseas Countries and Territories | EUR 60.8 billion of additional financing by the EIB Group and a total of EUR 315 billion in investment in the EU over the next three years | Aims investments in real economy for projects related to transport infrastructure and equipment, TEN-T projects, but also projects for smart and sustainable urban mobility |
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European Structural and Investment Funds-ESI, aims at delivering a wide number of investments in key EU priority areas, responding to the needs of the real economy. It consists of five European funds, European Regional Development Fund (ERDF), European Social Fund (ESF) and Cohesion Fund (CF) under Cohesion Policy, European Agricultural Fund for Rural Development (EAFRD) and European Maritime and Fisheries Fund (EMFF) operating under a common regulatory framework. One of the main purposes of the coordinated funds is to establish a clear link with the Europe 2020 Strategy. Financial assistance is provided in the form of grants or financial instruments in the form of loans, guarantees and equity investments. |
| Geographic Scope | Budget | Type of Projects |
|---|---|---|
| EU-27 divided in Less developed region (GDP per capita less than 75% of EU-27 average), Transition region (GDP per capita between 75% and 90% of EU-27 average) and more developed region (GDP per capita greater than 90% of EU-27 average) | More than EUR 450 billion up to 2020 | Aims Infrastructure projects in a wide number of investment areas such as Research and innovation, Information and communications technology (ICT), SME competitiveness and Low carbon economy |
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Green Shipping Financing Tool, aims at accelerating the implementation of investments in greener technologies by European shipping companies. The program is intended to finance shipbuilding projects including new vessels, conversion and retrofitting of vessels that promote sustainable transport and environmental protection including Climate Action initiatives. |
| Geographic Scope | Budget | Type of Projects |
|---|---|---|
| EU-27 with pilot phase to be launched with financial institutions in France, The Netherlands and Nordic countries | EUR 750 million guarantee programme, EUR 250 million grants by CEF and EUR 500 million supported by EFSI combined with a EUR 250 million Green Shipping Loan programme | Aims green investments and sustainable shipping eligible under CEF horizontal priorities and EIB transport lending policy with significant European interest |
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