EU rolls out Ship Financing Portal to support shipping’s green transition

Brussels: The European Commission recently unveiled the Ship Financing Portal which provides businesses and organizations with a repository of available financial tools needed to drive fleet renewal and retrofitting, enhance efficiency, and reduce environmental impact.

The platform, launched by the European Commission’s Directorate-General for Mobility and Transport, is designed to improve access to financing for the shipping sector and the wider maritime industry.

As explained, the portal is seen as a further step in supporting the greening of the maritime industry as it addresses the lack of available information on financing opportunities.

Specifically, the portal centralizes access to a variety of pan-European financing products, simplifying the search for suitable financing opportunities for stakeholders across the maritime sector.

Moreover, it provides up-to-date details on available grants, loans, and other financing products administered by the EU, Member States, and private financial institutions. This ensures that users are informed about the latest financing opportunities.

The platform also lists financing products relevant to the shipping sector, facilitating the development and deployment of technologies and services to promote shipping decarbonization. This aligns with the EU’s commitment to steer the maritime sector towards a green transition.

This initiative is said to underscore “the EU’s dedication to fostering a sustainable and competitive maritime sector”.

Back in 2019, several banks including the European ones launched a regulatory framework for responsible financing of the shipping industry, named the Poseidon Principles. The general idea behind the framework is for the signatory banks, as capital providers, to support the objectives of the International Maritime Organization (IMO), the primary issue being climate change.

Thirty-five banks, jointly representing about 80% of global shipping finance, are acknowledged signatories by 2024. It is believed that banks can influence the type of ships being provided with capital moving forward, and ensure greater liquidity for greener ships supporting the energy transition.

Michael Parker, Chairman of the Poseidon Principles, said last year that green corridors are likely to transform the realm of shipping finance as the focus shifts from emissions from ships to the entire supply chain following the emergence of green shipping routes around the globe.