The European Investment Bank (EIB) and Dutch financial institution ING have signed an agreement to support green investments intended for the European shipping market with a total of EUR 300 million (USD 372.5million).
Under the deal, ING and EIB will each contribute EUR 150 million to the facility.
The facility is intended for clients with significant European interests, and can be used for projects with a green innovation element ranging from the construction of new vessels to retrofitting of existing vessels. It applies to both inland shipping and seagoing operators.
The EUR 300 million will be invested gradually over the next three years, with ING’s shipping team leading and managing the commitment. The deal also benefits from the guarantee of the European Fund for Strategic Investments (EFSI), according to ING.
“I think it’s no secret that the shipping sector is a major contributor to CO2 emissions. Climate action is one of the EIB’s top priorities, and this type of financing should be seen as an incentive for shipowners to consider doing things differently, ” EIB President Werner Hoyer said.
“The facility was set up after numerous discussions with Dutch counterparts from the public and private sector and aims to help the shipping sector transition to a greener future.”
“This agreement helps us support our shipping clients into making changes to their business models by adapting for the future in increasingly sustainable way, and supports them throughout their green journey,” Isabel Fernandez, Head of Wholesale Banking at ING, added.
Projects should be presented to ING and will be subject to ING’s financial and non-financial risk acceptance criteria.
The facility is being set up under the umbrella of the Green Shipping Guarantee (GSG) Program, which is supported by the EU’s Connecting Europe Facility (CEF) Debt Instrument and the European Fund for Strategic investments (EFSI).
The program is designed both for general fleet renewal and the retrofitting of ships with sustainable technologies (such as LNG, ballast water, energy efficiency, etc.).