LR in drive for sustainable financing

LR is uniquely positioned to provide expertise to the signatories of the Poseidon Principles, ensuring that lending decisions protect and help those who are planning to finance, design or build a ship in the 2020s and who will need to consider how their ships can switch to non-fossil fuel later in its operational life.

Alastair Marsh, LR’s chief executive commented, “Zero-emission vessels must enter the fleet by 2030 at the latest if the maritime industry is to successfully meet the IMO ambitions of at least 50% reduction in greenhouse gases by 2050.

“The introduction of the Poseidon Principles demonstrates that ship finance is determined to support shipping’s decarbonisation challenge across the maritime value chain and also support other factors such as the energy transition.”

Poseidon Principles will give owners and operators more opportunity to explore different ways to decarbonise, knowing there will be financial incentives to support their success. The 11 founding signatories represent a bank loan portfolio of approximately $100bn and around 20% of global ship finance.

The Poseidon Principles will be implemented in internal policies, procedures and standards and applied in all credit products secured by vessels that fall under the aegis of the IMO. They will also aim to support other initiatives developed to address climate, environment, and social risks, such as the Principles for Responsible Banking, Energy Transitions Commission, and the Task Force of Climate-Related Financial Disclosures.