Shipping Industry Claims to be On-Track for Sectoral Decarbonization Targets

15 banking signatories last month disclosed their ship loan portfolios’ climate alignment scores for 2019 following signing of the Poseidon Principles in the inaugural Poseidon Principles Climate Alignment Report. 17 leading ship charterers also signed the Poseidon-inspired Sea Cargo Charter to assess and disclose climate alignment while the Climate Bonds Initiative defined the Shipping Criteria of the International Climate Bonds Standard (CBS).
The importance of financial institutions in leading sector-wide decarbonization is highlighted through the actions now beginning to be taken by the industry.
Under this inaugural report, the average reported alignment score is +1.2%, which indicates the 2019 greenhouse gas (GHG) emissions associated with signatories’ shipping portfolios are on average 1.2 percent above the decarbonization trajectory expected by the IMO. Individual scores ranged from -45% percent to >+32%, but it should be noted, the decarbonization trajectory expected by the IMO is grossly insufficient in meeting the 1.5 degree trajectory demanded by the Shipping High Ambition Coalition.


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