Green shipping corridors to European ports including Dublin, Amsterdam, Oslo and Copenhagen are being targeted.
The plan is to accelerate the shipping industry's journey to net zero by financially incentivising ports to make the necessary changes which will encourage ship owners and charters to employ lower carbon ships and associated operations.
The Department for Transport (DfT) said that up to £8 million of match funding will be delivered through the Smart Shipping Acceleration Fund (SSAF) to 30 projects across the country.
In addition, the DfT has announced granted funding of £640,958 under the fifth round of the government’s Clean Maritime Demonstration Competition (CMDC5) for feasibility studies for green shipping corridors.
Future routes will include corridors between the Port of Tyne and the Port of Ijmuiden in the Netherlands, and the Port of Holyhead to the Port of Dublin in Ireland. The DfT said that it is also funding studies on the development of green shipping routes from the UK to Norway and Denmark, and ‘the organisations who will lead these are soon to be announced’.  
Alexandra Herdman, Logistics UK's Senior Policy Manager said: "With shipping being a difficult sector to decarbonise and with no clear green fuel for the future, an initiative like this from the government is a welcome step in the efforts of the industry to reduce emissions.
"We support the Minister in making these recommendations to government. Logistics UK’s members have long been calling for support and clarity to decarbonise the maritime sector and government needs to provide the direction to make this change happen. Funding incentives aimed at creating green shipping corridors from the UK to key European destinations can go a long way to the industry achieving its net zero targets. "
The Port of Tyne will receive £76,580 and the Port of Holyhead £64,378 of CMDC5 funding, and £500,000 has been committed to funding feasibility studies for the corridors with Norway and Denmark.
CMDC5 and SSAF are both funded by the UK Shipping Office for Reducing Emissions (UK SHORE) programme.
Commenting on the funding announcements, the UK Maritime Minister said: "Shipping is a big contributor to global greenhouse gas emissions, so these new green corridors could be a real game changer for industry.  
"This is exactly the direction we need to be going in to achieve our mission of becoming a Clean Energy Superpower.
"These new corridors could turbocharge the use of sustainable fuels, secure the green jobs of the future and advance environmentally friendly travel to major European capitals like Amsterdam and Dublin."
Matt Beeton, CEO of the Port of Tyne, added: "Today's funding announcement will support the development of port infrastructure for electrification and the refuelling of state-of-the-art clean powered vessels. This important green infrastructure will ensure that the Port of Tyne and the Port of Ijmuiden are supporting decarbonised routes between the north east of England and Europe with the aim of saving up to 850,000 tonnes of CO2 annually.
"Bolstered by the Maritime Innovation Hub, the Port of Tyne continues to drive sustainable innovation and act as a focal point for a growing European decarbonised distribution network for green trade and passenger journeys.
"The River Tyne fuelled the industrial revolution and now it's at the forefront of greening international logistics."
Mike Biddle, Executive Director for Net Zero at Innovate UK, said: "With this year’s round of competitions delivering a host of exciting prospective technologies, from smart shipping drones to methanol-fuelled vessels, UK SHORE looks to accelerate the adoption of these sustainable solutions and help the UK drive towards its net zero targets."
