Banking sector increases ship finance transparency - SAFETY4SEA - Safety4Sea

More than 2 twelve planetary banks person reported emissions information of their vessel concern portfolios successful the 3rd Poseidon Principles Annual Disclosure Report 2022. The study visualizes the hard roadworthy up to trim emissions. The information remains influenced by COVID-19.

This year’s study includes a much granular disclosure of emissions information which volition let fiscal institutions to amended recognize their c footprint and jointly beforehand the maritime industry’s modulation to zero emissions.

Out of the 28 fiscal institutions reporting their emissions information this twelvemonth (up from 23 the twelvemonth before), 7 banks are aligned with the IMO’s ambition of reducing greenhouse state emissions from planetary shipping by astatine slightest 50% by 2050.

This year’s reporting is the astir granular and extended yet, and much banks person joined the initiative, which is precise encouraging. I americium pleased that Signatories person been consenting to beryllium adjacent much transparent astir the marque up of the c footprint successful their portfolios

said Michael Parker Chairman, Global Shipping, Logistics and Offshore, Citi, and Chair of the Poseidon Principles.

The study collates vessel emissions information collected by lenders from their clients for their activities successful 2021. This information is past compared to a decarbonisation trajectory for the aforesaid twelvemonth to amusement whether, astatine that constituent successful time, a vessel concern portfolio was compatible with a 50% simplification of emissions by 2050.

In summation to their wide portfolio clime score, 14 Signatories disclosed idiosyncratic scores for rider vas portfolios, cargo vas portfolios, oregon both. This information mostly shows that COVID-19 continued to person a antagonistic interaction connected the clime scores due to the fact that of congestion and the dilatory betterment successful the cruise concern with overmuch shorter cruises arsenic the assemblage started to resume activity.

Future alignment

In September 2022, Poseidon Principles Signatories committed to aligning the model with the ambition of the Paris Agreement to bounds planetary somesthesia emergence to 1.5 degrees supra pre-industrial levels by 2100.

The banks volition measurement their clime alignment against this ambition erstwhile a Paris-aligned trajectory oregon trajectories are identified and officially adopted by the Signatories. Such a trajectory oregon trajectories person not been approved yet and are truthful not included successful this year’s report.

Once a caller trajectory comes into effect, some the existent IMO-aligned trajectory and a Paris-aligned trajectory volition beryllium utilized arsenic benchmarks.

However, Signatories person besides committed to evaluating the existent trajectory pursuing the expected adoption of the Revised IMO GHG Strategy astatine MEPC 80 successful July 2023, including raising its levels of ambition.

It is hoped that the Annual Disclosure Report 2023 volition see reporting against some a Paris-aligned and a revised IMO-aligned trajectory.

COVID-19 continues to interaction clime alignment

Relative to 2020’s scores, 2021’s clime alignment scores were marked by continuous COVID-19 induced impacts connected shipping, some connected antithetic vessels and vas types.

Most Signatories with precocious misaligned scores property this to the rider vas segments, arsenic these services were inactive recovering from the interaction of the pandemic successful the archetypal fractional of 2021.

Many of these rider vessels are higher worth than freight carrying vessels and tin beryllium associated with ample indebtedness exposure; therefore, adjacent a portfolio with a tiny fig of rider vessels tin beryllium powerfully negatively affected overall.

However, seeing cruise and rider shipping starting to retrieve and vessels returning to operation, these Signatories are optimistic for 2022.

As for cargo vessels, Signatories person attributed their misaligned scores to proviso concatenation disturbances, including higher-than-normal waiting times, higher shipping speeds and larboard congestion resulting from the expanding shipping activities post-COVID-19 restrictions astir the world.

Reflecting connected the disclosure of much granular scores, immoderate Signatories highlighted however this information provided utile insights and enabled them to amended bespeak differences successful the constitution of their portfolios.

Generally, successful summation to a vessel’s method characteristics, galore Signatories recovered vas operations, particularly speed, an important operator of c intensity.

explore much astatine poseidon principles’ report