Societe Generale and EIB Sign €150 Million Agreement for Greener Maritime Sector

Societe Generale has signed a €150 million agreement with EIB.

Société Générale S.A. (Societe Generale) has announced the signing of the first financing provided under the Investment Plan for Europe, a  €150 million ($195.33 million) agreement between Societe Generale and the European Investment Bank (EIB).

The investment plan is said to be specifically aimed at providing support for the development of energy efficiency technologies and reducing emissions in Europe's maritime transport sector, with the first agreement said to mark France as a pioneer toward this goal.

Further, the plan is noted to be supported by the Juncker Plan, an EU guarantee under the Investment Plan for Europe, as well as the Connecting Europe Facility (CEF) - providing an overall envelope of 750 million.

"This is a new Juncker plan financing programme, and is also the first framework agreement for making the maritime sector greener in Europe," said Ambroise Fayolle, EIB Vice-President.

"Coming as COP22 is held in Marrakesh, it is a strong signal from the EIB in support of green and lasting growth. With the EU guarantee, the EIB is offering an attractive and tailored financing framework to support sustainable projects mounted by French shipowners. It is a first for Europe."

The agreement, signed on Tuesday, is noted to be in line with the COP22 objectives, and will support shipbuilding projects that promote sustainable transport and environmental protection.

"The new EU guarantee mechanism will increase responsible investment in the maritime sector. It will also improve the environmental performance of the 'motorways of the sea,' an EU transport policy priority," said Violeta Bulc, European Commissioner for Transport.

"The maritime sector must play its part in tackling climate change. Ten days ago, progress was made at an international level. In the near future, ships will have to emit less sulfur and efforts to cut CO2 emissions have been stepped up. This will require immediate investment, to which today's agreement will contribute."

Last week, the International Chamber of Shipping (ICS) told the United Nations Framework Convention on Climate Change (UNFCCC) COP 22 in Marrakesh that the International Maritime Organization's (IMO's) CO2 Road Map for shipping is a "significant decision" that will go "much further" than the Paris Agreement.