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LR SIGNS UP TO DECARBONISATION FINANCING PRINCIPLES

Tuesday, June 18, 2019 

Eleven major shipping banks, supported by a number of industry strategic partners including Lloyd’s Register (LR), will launch the Poseidon Principles – a pioneering set of principles that will integrate climate considerations into lending decisions in line with IMO’s Greenhouse Gas (GHG) strategy.

Poseidon Principles will give owners and operators more opportunity and freedom to explore different technologies and projects to decarbonise, knowing there will be financial incentives to support their success. As a global framework, the Principles will establish a common baseline to quantitatively assess and disclose whether financial institutions’ lending portfolios are in line with adopted climate goals.

The 11 founding signatories represent a bank loan portfolio of approximately $100 bn and around 20% of global ship finance.

The Principles, which will promote responsible environmental stewardship and socially responsible behaviour throughout the maritime value chain, have been established in collaboration with leading industry players including A.P.Møller Mærsk, Cargill, Euronav and Lloyd’s Register – the only classification society to have worked on the framework. They have been developed with support from the Global Maritime Forum (GMF), Rocky Mountain Institute and University College London Energy Institute.

Founding Signatories include Citi, Société Générale, DNB, ABN Amro, Credit Agricole CIB, Danish Ship Finance, Danske Bank, DVB, ING and Nordea.

Alastair Marsh, Lloyd’s Register CEO, said: “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 2020s will be a critical decade for not only piloting and prototyping new fuel types and energy sources but also building future fuel supply chains. 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. As a strategic member of the GMF, Lloyd’s Register is committed to working with all the Poseidon Principles partners to support the evolution of this landmark initiative.

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