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Shipping Efficiency Finance

We aim to uncover the growing financial opportunities that exist with a more efficient shipping industry, and the financial risks that are mounting for poor-performing vessels.

What is the Shipping Efficiency Finance Initiative?

The Shipping Efficiency Finance initiative works with stakeholders across finance and investment to understand and manage climate risk in the global maritime industry.

Why it Matters

Vessel financiers and investors in shipowning companies lack the tools to understand the financial implications of climate policy. With increased awareness of financial risks and opportunities and access to the tools necessary to understand these risks, shipping can avoid carbon lock-in and remain profitable through decarbonization.

What We’re Doing

Enabling Investor Engagement: Our partnership with 2° Investing Initiative is providing guidance to equities investors who wish to align their portfolios with a 2°C future by analyzing the vessels that companies own, their efficiency, and how they stack up against a 2°C pathway. Once complete, this tool will enable climate-related investor engagement with shipowning companies on a level previously not possible.

Incorporating Climate Risk: In partnership with University College London, we are working directly with financiers to build the tools necessary to align project finance in shipping with 2°C pathways.

Making Efficient Ships Pay: We are identifying market failures that slow investment in efficient ships and clean technologies, identifying business models that overcome them, and working to standardize these practices across the industry.

What We’ve Accomplished

Incorporating climate risk: In 2016, we released the findings of industry-wide research on the practices of ship financiers, finding that only a minority considered vessel efficiency when financing vessels, while even fewer had the tools to consider what the impacts of climate policies would be on their assets in the future.

Identifying/overcoming market failures: Working with shipowner Hammonia Reederei and charterer Intermarine in an innovative request for proposal, we identified a profit-sharing business model that enables profitable investment in energy efficiency technologies.

Our Partners

2° Investing Initiative

Partner

University College London

Partner

Hammonia Reederei

Partner

Charterer Intermarine

Partner

BIMCO

Partner