The loan to fund the purchase of the vessel is the first of its kind in Japan. Image Credit: K Line
Japanese shipping firm K Line has received a 'climate transition loan' allowing it to arrange an operating lease for a car carrier using LNG as a bunker fuel.
The car carrier Century Highway Green is expected to be about 45% more energy-efficient than previous vessels on an EEDI basis, as well as running on natural gas, K Line said in a statement on its website on Thursday.
The company received Japan's first climate transition loan from Mizhuo Bank and Sumitomo Mitsui Trust Bank, rated by Japan Credit Rating Agency and supported by the Japanese government, to fund the purchase.
"The concept of Climate Transition Finance is to accelerate the efficient flow of financing to the companies, which address climate change risk as material issues for its core business activities and to move beyond conventional business procedures to achieve its GHG emission reduction target to contribute to the global goals for decarbonization," the company said in the statement.