With the international banking group Standard Chartered becoming a signatory to the Poseidon Principles, the global shipping loan portfolio of the member banks has surpassed the $ 185 billion mark.
This represents around 50 percent of all shipping finance globally, making the Poseidon Principles initiative a significant contributor to tackling climate change, Standard Chartered said.
Under the global framework, the 26 bank signatories have committed to track, monitor, and drive down emissions in their shipping portfolios, with the aim of aligning carbon emissions in the shipping industry with the international targets set by the IMO.
“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,” Abhishek Pandey, Global Head of Shipping Finance at Standard Chartered, said.
The Poseidon Principles, launched in 2019, are a commitment between banks and the shipping industry to cut emissions from maritime transport.
The framework is aligned with two key goals set by the IMO: reduction of carbon emissions compared to 2008 by at least 40 percent by 2030 and by at least 50 percent by 2050, and ensure that greenhouse gas emissions peak as soon as possible.
The first disclosure report from the original 15 signatories of the framework released in December 2020 shows that the ship finance portfolios of only three banks are aligned with the UN decarbonization targets.
The portfolio assessment builds on 2019 emissions data from shipping clients compared to a decarbonization trajectory for the same year.