Another four major Japanese banks have signed up to Poseidon Principles, which offer the framework for financial institutions to lend in line with IMO goals to halve greenhouse gas emissions by 2050.
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In recent weeks, Shinsei Bank Ltd, Sumitomo Mitsui Banking Corporation, Sumitomo Mitsui Finance & Leasing and MUFG Bank became the latest lenders to have signed up to the scheme, Reuters reported. All banks are headquartered in Japan, one of the world’s major maritime hubs.
As the shipping industry accelerates efforts to reduce its footprint, which accounts for nearly 3% of the world’s CO2 emissions, a group of leading banks in 2019 signed up to the “Poseidon Principles”, whereby financiers would take account of efforts to cut CO2 emissions when providing loans to shipping companies.
With these additions, there are now 24 institutions involved, representing around $175 billion or nearly 50% of global shipping finance.
Last month, Greece-based METIS Cyberspace Technology announed the upcoming launch of shipping’s first tool to predict the trade-off between emissions reduction and debt servicing for ships financed under the Poseidon Principles.
The IMO aims to reduce the industry’s greenhouse gas emissions by 50% from 2008 levels by 2050, a target that will require the swift development of zero or low emission fuels and new ship designs using cleaner technology.
