The Poseidon Principles has announced revising its framework to align shipping’s top banks with the International Maritime Organization’s new climate change emissions target.
The change marks a significant update following the IMO’s GHG revised strategy adopted during MEPC80 in July and demonstrates the commitment of 30 leading shipping banks to support the maritime sector’s transition towards a sustainable, low-carbon future.
“We are now raising our targets to align with the IMO’s new ambition,” said Michael Parker, Chair of the Poseidon Principles and Chairman of Global Shipping, Logistics and Offshore, Citi. “Our focus is on working with our clients to help them transition to a greener, more sustainable maritime future through the energy transition to net zero once the fuels, ships, and technology are available at scale.”
Launched in 2019, the Poseidon Principles is a global framework increasing the transparency of financial institutions’ shipping portfolios against the International Maritime Organization’s (IMO) climate targets. It was launched with 11 founding members, known as signatories,, but has since grown to 30 financial institutions covering more than 70% of the global ship finance portfolio.
The Poseidon Principles’ alignment with the IMO’s latest ambition aims to reach net-zero greenhouse gas emissions in the shipping sector close to 2050, with indicative checkpoints in 2030 and 2040 on a well-to-wake basis.
The IMO’s initial strategy set an ambition of at least a 50% emissions reduction target by 2050, compared to 2008 levels.
“The Poseidon Principles’ revisions go beyond mere reporting; they provide financial institutions with invaluable data-driven insights,” said Paul Taylor, Vice Chair of the Poseidon Principles and Global Head of Maritime Industries, Société Générale. “These insights empower them to better support their clients on their journey towards decarbonization. The updated trajectories will empower Poseidon Principles’ signatories to elevate their ambition levels in measuring and reporting emissions. It’s a clear demonstration of their commitment to not just meeting but collaboratively advancing climate goals.”
The reporting scope will be expanded to include all greenhouse gases (GHG) and to account for well-to-wake emissions, aligning with the IMO revised ambition. More detailed information will be provided in the fourth Annual Disclosure Report, published at the end of this year.
“Decarbonizing shipping requires urgent, large-scale cross-sector collaboration and government and international regulator support,” said Stephen Fewster, Treasurer of the Poseidon Principles and Managing Director and Global Head of Shipping Finance, ING. “To maximize our impact and enhance transparency, the Poseidon Principles initiatives must continue to expand. We invite key players in this global effort to join hands and navigate towards a greener horizon together.”
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