Leading banks to promote greener global shipping

Eleven major shipping banks, representing a bank loan portfolio to global shipping of approximately $100bn will integrate climate considerations into lending decisions to incentivise maritime shipping’s decarbonisation.

The Poseidon Principles are a global framework for assessing and disclosing the climate alignment of financial institutions’ shipping portfolios and are consistent with the policies and ambitions of the Initial GHG (greenhouse gas) Strategy adopted in April 2018 by member states of the International Maritime Organization (IMO). The strategy prescribes that GHG emissions from international shipping must peak as soon as possible and that the industry must reduce the total annual GHG emissions by at least 50 per cent of 2008 levels by 2050, with a strong emphasis on zero emissions.

The Principles are applicable to lenders, relevant lessors, and financial guarantors including export credit agencies. They are implemented in internal policies, procedures and standards and applied in all credit products secured by vessels that fall under the purview of the IMO.

Founding Signatories include Citi, Société Générale, DNB, ABN Amro, Amsterdam Trade Bank, Crédit Agricole CIB, Danish Ship Finance, Danske Bank, DVB, ING and Nordea, and represent around 20 per cent of the global ship finance portfolio. Additional banks are expected to join in the near future, including Asian banks.

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