French shipping company CMA CGM, alongside finance organisation Bpifrance, has announced a significant investment in an endowment aiming to bring together the main players in the marine sector in France to manage the decarbonisation of the French maritime sector.
The endowment fund will be divided into three distinct envelopes:
- €130m in grants managed by Bpifrance on behalf of the endowment fund, intended for the maritime sector to finance French companies wishing to accelerate their decarbonisation, including €20 million in subsidies for French fishing companies to finance the decarbonisation of their vessels.
- €50m subscribed to an investment fund managed by Bpifrance Investissement to invest equity and quasi-equity in French SMEs / mid-caps in the maritime sector that wish to accelerate their decarbonisation.
- €20 million in grants for maritime research managed directly by the Endowment Fund to finance state-of-the-art research institutes and centres in the maritime sector.
Described as an unprecedented commitment from a private player, this contribution is considered to demonstrate the CMA CGM Group’s solidarity with all other players in the maritime sector in France and the French Overseas Territories. The funds dedicated to the endowment are entirely financed by Pulse, CMA CGM’s energy fund, created in September 2022 by CMA CGM Chairman and CEO Rodolphe Saadé with a budget of €1.5bn over five years to support the decarbonisation of the Group and its supply chain.
A steering committee, composed of seven members from the maritime sector and the financial sector (Corimer, Armateurs de France, Gican, Cluster Maritime Français, Meet2050, Comité national des pêches and Rothschild), will decide on the direction of intervention of the endowment fund. The examination of subsidy or investment applications intended for the maritime sector will be managed by Bpifrance. The CMA CGM Group’s R&D department will directly supervise some research grants by forging dedicated partnerships with identified research institutes and centres at the forefront of the maritime sector.
The establishment of this endowment fund represents an important step in the deployment of PULSE, whose investment strategy is based on two main pillars: innovation with investments in electrification, energy efficiency or carbon capture; and industrial energy projects with the production of alternative fuels for CMA CGM vessels (bio and e fuel) and the production of renewable energy (photovoltaic) for these onshore assets.
Saadé said: “Decarbonisation is a major challenge for the future of the French maritime industry. As a leader, it is our responsibility to support our industry’s decarbonisation efforts. This is why I wanted the CMA CGM Group to allocate €200m to an endowment fund to help, with the support of Bpifrance, identify and finance the most innovative and successful projects in this field.”
Nicolas Dufourcq, CEO Bpifrance, added: “Supporting French companies in their ecological and energy transition is a major strategic focus for Bpifrance. To do this, we have developed a complete toolbox and a unique continuum of financing and support solutions as part of our climate plan, in order to accelerate the decarbonization of the French industrial and economic fabric. The operational launch of this endowment fund, which will be used to make equity, quasi-equity and debt investments, alongside CMA CGM, and which aims to accelerate the implementation of energy transition projects by players in the maritime sector, is an important step in the decarbonisation of the maritime sector.”
Image credit: CMA CGM
