World’s First Pay-As-You-Save Ship Retrofit Fund Adopts Singapore’s Revised Taxonomy

The Fund for Energy Efficiency Technologies (FEET) has adopted the second edition of the Singapore-Asia Taxonomy for Sustainable Finance (SAT) to guide investment decisions, making FEET the first fund to adopt the SAT.

The revised SAT criteria recognise qualifying vessel retrofits and energy efficiency technologies (EET) installations that deliver measurable greenhouse gas emissions reductions.

The Singapore Sustainable Finance Association (SSFA), supported by the Monetary Authority of Singapore (MAS), announced the second edition of the SAT at COP31 in Türkiye. At the launch event, FEET’s adoption of the revised taxonomy was highlighted as an example of how transition taxonomies can inform capital allocation in hard-to-abate sectors, where emissions reductions often require incremental investments in existing assets.

FEET is the world’s first fund to link verified fuel and regulatory savings from EETs installed on vessels to a pay-as-you-save mechanism. It offers up to 100% upfront financing through a blended finance structure. FEET is managed by AIM Horizon Investments, with GCMD as the fund’s decarbonisation advisor, and is supported by the Development Bank of Japan, DBS Bank and ING.

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