The Poseidon Principles Association represents a growing amount of loans to the shipping industry.
European banks BNP Paribas and Credit Suisse have joined the Poseidon Principles, the climate agreement for banks lending to the shipping industry.
BNP Paribas is the largest lender to global shipping, and its arrival along with Credit Suisse mean signatories of the agreement now represent about $140 billion in loans to the industry, or about 30% of the total global ship finance portfolio, the association running the agreement said Wednesday.
The principles "establish a common framework to quantitatively assess and disclose whether financial institutions' lending portfolios are in line with climate goals set by the International Maritime Organization," the association said.
They aim to support shipowners in reaching the IMO 2050 initial strategy of reducing shipping's greenhouse gas emissions by at least 50% from 2008's levels by 2050.
The Poseidon Principles were established in June 2019, with 11 banks representing about $100 billion in loans signing up at launch.