Sector Importance for Sustainable Finance:
Shipping generates approximately 2 -3% have global GHG emissions. However, shipping is extremely important for the functioning of the global economy approximately 90% plus of all goods and services are moved between countries via shipping.
Shipping is a very global industry with the great diversity within fleets and geographies. We need shipping however there are many challenges especially for the long- haul shipping.
Talking Points:
- What are the best solutions to decarbonize shipping?
- Are there really any alternative fuels such as hydrogen or ammonia that will work for long distance shipping at scale
- Approximately USD2 trillion is required to decarbonize shipping with 80% plus of that needed in land based fuel infrastructure, how will this be financed and by who?
- For short trip shipping batteries and electric may be feasible but his only represents a very small part of the shipping market.
- Energy efficiency and general decarbonization measures only go so far is the real action is in fuels and design plus other more fundamental aspects of shipping?
Useful Links:
https://www.climatebonds.net/standard/shipping
https://www.transitionpathwayinitiative.org/sectors/shipping
https://sciencebasedtargets.org/sectors/transport
https://www.poseidonprinciples.org/
Previous Transactions:
- Dorian/International Seaways: Sustainability Linked Loan
- Seaspan: Green Bond and Transition
- Objell: Sustainability Linked Bond
- Kiwi Rail: Climate Bond Certification (Green Bond)
- Maersk: Green Bond