Standard Chartered has become a signatory to the Poseidon Principles, the framework that aims to align carbon emissions in the shipping industry with the international targets set by the UN.
Standard Chartered and the other 25 bank signatories hold a global shipping loan portfolio of more than USD185 billion.
This represents around 50% of all shipping finance globally, making the Poseidon Principles initiative a significant contributor to tackling climate change.
Commenting on this development, Abhishek Pandey, Global Head of Shipping Finance at Standard Chartered, said:
Cutting carbon emissions in the shipping sector is crucial in curbing the worst effects of climate change and achieving net-zero. As a bank that specialises in financing world commerce and the enablers of global trade, signing up to the Poseidon Principles is therefore an important addition to our existing efforts to reduce our financed emissions
The Poseidon Principles, launched in 2019, are a commitment between banks and the shipping industry to reduce emissions from maritime transport, with two key goals set by the IMO: To reduce carbon emissions compared to 2008 by at least 40 per cent by 2030 and by at least 50 per cent by 2050, and ensure that greenhouse gas emissions peak as soon as possible.
What is more, the Greece-based METIS Cyberspace Technology is about to launch shipping’s first tool to predict the trade-off between emissions reduction and debt servicing for ships financed under the Poseidon Principles.