€300 million facility for green ship finance

The facility, available to ‘clients with significant European interests’, can be used for projects with a green innovation element covering the construction of new vessels or retrofitting of existing vessels. Potential projects will improve the environmental performance of transport vessels in terms of reducing the emission of pollutants as well as increasing fuel efficiency.

Werner Hoyer, president, EIB, said: “The shipping sector is a major contributor to CO2 emissions. Climate action is one of the EIB’s top priorities, and this type of financing should be seen as an incentive for ship owners to consider doing things differently.”

The €300 million facility, which applies to both inland shipping and seagoing operators, will be lead and managed by ING’s shipping team. Comprising equal contributions from the two parnters, the fund wil be invested with the EIB over the next three years. It will benefit from the guarantee of the European Fund for Strategic Investments.

Isabel Fernandez, head of wholesale banking, ING, added: “This agreement helps us support our shipping clients into making changes to their business models by adapting for the future in increasingly sustainable way, and supports them throughout their green journey.”

The EIB has previously invested in green shipping through a €150 million framework guarantee agreement with ABN AMRO signed in April last year. Transport projects accounted for €12.5 billion of the EIB’s investments in 2016.