Standard Chartered Joins an industry initiative to reduce carbon emissions in the shipping sector
Standard Chartered announced today that it has become a signatory to the Poseidon Principles, a global framework that aims to align carbon emissions in the shipping industry with the international targets set by the United Nations.
According to the International Maritime Organisation (IMO, a United Nations agency that regulates shipping), maritime transport emits around 940 million tonnes of carbon annually and is responsible for around 2.5 per cent of global greenhouse gas emissions. Standard Chartered and the other 25 bank signatories – who commit to track, monitor and drive down emissions in their shipping portfolios – together hold a global shipping loan portfolio of more than USD185 billion. This represents around 50 per cent of all shipping finance globally, making the Poseidon Principles initiative a significant contributor to tackling climate change.
Abhishek Pandey, Global Head of Shipping Finance at Standard Chartered, said: “Cutting carbon emissions in the shipping sector is crucial in curbing the worst effects of climate change and achieving net-zero. As a bank that specialises in financing world commerce and the enablers of global trade, signing up to the Poseidon Principles is therefore an important addition to our existing efforts to reduce our financed emissions. Standard Chartered joins this initiative during Singapore Maritime Week – the nation state is a hugely important maritime hub – and we look forward to partnering with our peers and clients globally to achieve the goals that we all share with the IMO.”
The Poseidon Principles, launched in 2019, are a commitment between banks and the shipping industry to cut emissions from maritime transport, with two key goals set by the IMO: To reduce carbon emissions compared to 2008 by at least 40 per cent by 2030 and by at least 50 per cent by 2050, and ensure that greenhouse gas emissions peak as soon as possible.
Source: Standard Chartered