Major Banks to Weigh Environmental Impact in New Shipping Loans
Excerpt from this Wall Street Journal story:
Eleven banks, including Citigroup Inc., France’s Société Générale SA and Norway’s DNB ASA, say they will take climate considerations into account when extending new shipping loans.
The goal is for the ship-financing sector to support an industry target to cut greenhouse-gas emissions by half in 2050.
The banks, which have a combined shipping portfolio of about $100 billion, or about one-fourth of the global ship-finance market, have signed on to an industrial framework known as the Poseidon Principles, which seeks to direct new money for shipping toward environmentally-friendly, oceangoing vessels.
“As banks, we recognize that our role in the shipping industry enables us to promote responsible environmental stewardship throughout the global maritime value chain,” said Michael Parker, global industry head of shipping and logistics at Citi.
Mr. Parker said the banks will look at the type of ship, the kind of fuel it uses and other criteria that will support a target by the International Maritime Organization, the global marine regulator, for ships to pare back their emissions compared with 2008 levels.
“We hope that around 90% of lenders will sign the Poseidon Principles,” Mr. Parker said, adding that Chinese lenders could join by next year.
Major Banks to Weigh Environmental Impact in New Shipping Loans