Shipping Industry Reports It’s on Track for Sector’s Decarbonization Goals

It’s the moment climate finance professionals live for: when an idea — an initiative — is turned into real-world action by real-world actors. A year after the Poseidon Principles were signed, 15 banking signatories last month disclosed their ship loan portfolios’ climate alignment scores for 2019.

The release of the inaugural “Poseidon Principles Climate Alignment Report” allows us to reflect on the progress the financial sector has catalyzed in the global shipping sector in 2020. First, banks leveraged the principles to engage existing clients and close over $1 billion in Poseidon-linked loan facilities. Additionally, 17 leading ship charterers signed the Poseidon-inspired Sea Cargo Charter for charterers to assess and disclose climate alignment. Finally, the Climate Bonds Initiative defined how shipping projects contribute to climate change mitigation through the Shipping Criteria of the International Climate Bonds Standard (CBS).

But the impacts go beyond shipping. The signals from the ship finance community demonstrate how financial institutions can lead sector-wide decarbonization efforts in other high-emitting industries…

View entirety: GreenBiz