GCMD: Vessel retrofit fund using pay-as-you-save repayment mechanism closes at $35M

The Global Centre for Maritime Decarbonisation (GCMD) and partners have closed the world’s first fund for vessel retrofits with a pay-as-you-save repayment mechanism, securing total commitments of up to $35 million and exceeding its initial target.

The Fund for Energy Efficiency Technologies (FEET) offers up to 100% upfront financing for retrofits and introduces a pay-as-you-save repayment mechanism, directly linked to verified fuel and regulatory savings.

Aiming to address the long-standing financial barriers hindering the sector’s uptake of vessel retrofits, this fund has drawn strong interest from across the maritime value chain, including equipment manufacturers, shipowners, and investors, GCMD said.

GCMD provides catalytic equity and is FEET’s appointed decarbonization advisor, while AIM Horizon Investments manages the fund.

FEET uses a pay-as-you-save repayment mechanism to address payback uncertainty with energy efficiency technologies (EETs), such as wind-assisted propulsion systems and air lubrication systems, by directly linking repayment to quantified and verified fuel and regulatory savings.

Deploying this mechanism requires robust data collection and analysis to isolate the retrofit’s contribution to overall fuel savings, and GCMD has undertaken EET performance pilots, equipping vessels