The association now represents more than a third of lending to the shipping industry. Image Credit: File Image / Pixabay
The Poseidon Principles, the banking industry group seeking to bring lending to the shipping industry in line with decarbonisation targets, has signed up its first Asian bank, the organisation said Friday.
With the arrival of Japan‘s Sumitomo Mitsui Trust Bank, the organisation now represents more than $150 billion of loans to international shipping, it said in a statement on its website.
A total of 18 financial institutions have now joined the organisation, it said, covering more than a third of the global shipping finance portfolio.
The Poseidon Principles “establish a common framework to quantitively assess and disclose whether financial institutions’ lending portfolios are in line with climate goals set by the International Maritime Organization,” the association said.
They aim to support shipowners in reaching the IMO 2050 initial strategy of reducing shipping’s greenhouse gas emissions by at least 50% from 2008‘s levels by 2050.
The Poseidon Principles were established in June 2019, with 11 banks representing about $100 billion in loans signing up at launch.