Big banks, big shipping join big climate lobby in decarbonisation drive
AS environmental lobbies command greater public attention, Michael Parker, head of shipping and logistics at Citi bank, says more lenders will want to join his 'Poseidon Principles' scheme, reports London's Lloyd's List
AS environmental lobbies command greater public attention, Michael Parker, head of shipping and logistics at Citi bank, says more lenders will want to join his 'Poseidon Principles' scheme, reports London's Lloyd's List.
BNP Paribas and Credit Suisse have been named as the latest leading financial institutions to sign up to the Poseidon Principles guidelines designed to accelerate decarbonisation efforts across shipping.
It means signatories of the Poseidon Principles now represent around US$140 billion in loans to international shipping - about 30 per cent of the total global ship finance portfolio.
BNP Paribas, the world's largest lender to global shipping, and wealth manager Credit Suisse bring the number of financial institutions to have signed up to the initiative to 16.
Mr Parker said he expected up to 25 lenders to join the scheme by the end of the year. At its launch in June last year, 11 had signed up.
The Poseidon Principles aim to align the shipping portfolios of signatory banks with the International Maritime Organisation's emission reduction targets.
Mr Parker, who has been a banker for three decades, said that Asian lenders such as China's ICBC were also interested and could sign up in a matter of months.
He said the challenges of decarbonisation and digitalisation would change the shipping industry, and expected more consolidation, with 'real institutional funding coming in'.
The Poseidon Principles were developed by Citi, DNB, and Societe Generale in collaboration with leading industry participants - AP Moller-Maersk, Cargill, Euronav, Lloyd's Register, and law firm Watson Farley & Williams - with support from the Global Maritime Forum, Rocky Mountain Institute, and University College London Energy Institute.