The Global Centre for Maritime Decarbonisation (GCMD) and Gard have signed an Impact Partnership Agreement, committing to a five-year collaboration to accelerate decarbonisation of the maritime industry.
As an Impact Partner of GCMD, marine insurer Gard will assess and quantify the risks inherent in GCMD’s pilots and trials and provide hull and machinery (H&M) and protection and indemnity (P&I) insurances for the projects.
GCMD noted that decarbonisation of the maritime sector would involve shipowners having to venture into new waters testing low-carbon fuels and new technologies, ‘which could expose them to new operational risks’. Accordingly, Gard will help assess these risks and provide the insurance needed to test, and eventually scale up these technologies. In addition to providing insurance coverage, Gard will also provide legal and risk advisory services, as well as financial contributions towards GCMD’s pooled funds for pilots and trials.
‘As a leading marine insurer, we want to support the industry in the journey towards decarbonisation. We all have our role to play in this transition, and ours is to provide the support and risk mitigation needed to make it happen,’ said Gard CEO, Rolf Thore Roppestad. ‘We want to support our Members and clients as they test and implement new technologies, and look forward to working together with the Global Centre for Maritime Decarbonisation in this regard.’
Commenting, Professor Lynn Loo, CEO of the GCMD, said Gard joining GCMD as an Impact Partner, would enable both parties to provide greater clarity to the maritime industry on the use of green fuels and emerging decarbonisation technologies from an insurance perspective.
‘As the uptake of low/ zero carbon fuels begin to take off, insurers are faced with the need to reinvent operating models and offer new products to clients,’ said Loo. ‘The GCMD–Gard partnership aims to have the legal and operational risks of GCMD’s pilots and trials assessed and insured, and to demonstrate how decarbonisation technologies can be de-risked commercially.’