Banks Need to Play a Bigger Role in the Uptake of More Fuel Efficient Tonnage: CWR

by Ship & Bunker News Team
Monday September 5, 2016

UCL Energy Institute (UCL) and Carbon War Room (CWR) say banks need to play a bigger role in helping to drive forward the uptake of more fuel efficient tonnage.

The comments came alongside the release of a new study by the groups which found that there was no longer any financial incentive for owners of eco-vessels in the time charter market, with the savings benefitting only the bunker buyers.

"While charterers can play a role by rewarding the owners who help them to save fuel, financiers have the power to decide which ships are built or maintained, and which are not," the groups said.

"Banks making investment decisions should consider how to factor efficiency into their decision-making so that it can benefit all parties, as well as the environment."

Even better for bunker buyers is that the study also found the bunker savings for more efficient vessels was better than expected.

"Financiers are in a key position to reshape the makeup of the global shipping fleet through their investment decisions today and in the future," said Mark Clintworth, Head of Shipping, European Investment Bank.

"As maritime shipping is a key driver of sustainable economic development, this research represents a crucial first step in identifying how maritime financial institutions can prepare for a profitable low-carbon future and help shape it."

The study also noted that prior to the 2008 global market crash, eco-tonnage had commanded premiums over their less efficient peers.

The full research report is available to download at