The banks united under the “Poseidon Principles” are making progress in decarbonizing their shipping loan portfolios. However, the target is narrowly missed.
The banking group was able to improve its emissions reduction figures for 2023, but still falls short of its self-imposed target of a 50% reduction by 2050. [ds_preview]
According to the fourth annual report of the now 34 banks at the end of the COP28 climate conference in Dubai, the CO2 value of the total loans granted is 2% above the target. However, this is a significant improvement on the previous year, when it was still 9.7% above the target, according to the report.
KfW IPEX and Deka comply with Poseidon Principles
The financial institutions that make up the “PoseidonPrinciples” account for 80% of ship financing worldwide. From Germany, KfW IPEX and Deka Bank are among the signatories.
The climate targets were met in eleven of the 30 reported portfolios. According to the report, the range extends from 13.5% below the target value to 18.5% above the target value.
In September, the banks agreed to revise the reporting framework in order to bring the shipping portfolios more in line with the goals of the Paris Climate Agreement. This year, emissions reporting was switched from the tank-to-wake method to the more complex well-to-wake method.
