FEET becomes first fund to adopt updated Singapore-Asia Taxonomy, linking financing for vessel efficiency technologies to independently verified fuel and emissions savings.

Singapore has taken another step toward accelerating maritime decarbonization, with the Fund for Energy Efficiency Technologies (FEET) becoming the first investment fund to adopt the revised Singapore-Asia Taxonomy for Sustainable Finance (SAT), establishing a framework to direct capital toward vessel retrofits and energy efficiency technologies.

The second edition of the taxonomy was announced by the Singapore Sustainable Finance Association (SSFA), supported by the Monetary Authority of Singapore (MAS), at COP31 in Türkiye on November 11, 2026.

Significantly for shipping, the revised taxonomy recognizes qualifying vessel retrofits and energy efficiency technology (EET) installations that deliver measurable greenhouse gas emissions reductions. The development expands the framework for sustainable maritime investment beyond new low-emission vessels to include technologies capable of improving the environmental performance of ships already operating.

FEET, managed by AIM Horizon Investments with the Global Centre for Maritime Decarbonisation (GCMD) serving as decarbonization advisor, provides up to 100% upfront financing for qualifying efficiency technologies through a blended finance structure.

The fund uses a "pay-as-you-save" model, linking shipowners' payments to independently verified fuel and regulatory savings generated by installed equipment. The initiative is supported by the Development Bank of Japan, DBS Bank and ING.

A key development accompanying the taxonomy's adoption is the independent review by Lloyd's Register of GCMD's methodology for measuring fuel savings from wind-assisted propulsion systems (WAPS).

The methodology builds on GCMD's pilot with Eastern Pacific Shipping aboard MV Pacific Sentinel, during which researchers collected 276 million data points over four months of commercial operations.

Researchers analyzed more than 3,000 transitions between operating states, identifying 203 instances with sufficiently consistent conditions to isolate fuel savings attributable specifically to the wind sails.

Lloyd's Register concluded that the methodology aligns with relevant industry standards and current best practices.

For future FEET-financed installations, fuel savings will be independently verified, providing the basis for calculating shipowners' payments.

"Even small gains in fuel efficiency can deliver meaningful fuel cost savings over a vessel's operating life, but financing them depends on confidence in the numbers," said Professor Lynn Loo, CEO of GCMD. "Trust in data is what accelerates adoption."

Ang Wee Keong, Chief Executive of the Maritime and Port Authority of Singapore, described the adoption as an important step in advancing sustainable maritime finance.

For shipowners, the significance is practical: a financing structure that reduces upfront investment requirements while tying repayment to demonstrated operational savings could help accelerate adoption of proven efficiency technologies across the existing global fleet.