Dutch Bank, EIB Team up on Green Shipping
Dutch bank ING and the European Investment Bank signed an agreement February 19 to (EIB) and ING to lend €300mn ($372mn) – 50% by each party – for green investments in the European shipping market
The facility is available to clients, either inland or seagoing operators, with significant European interests, and can be used for projects with a green innovation element covering the construction of new vessels or retrofitting of existing vessels. It is aimed at supporting energy transition and combating climate change. Conversion/retrofitting to LNG is expected to qualify for funding.
EIB president Werner Hoyer said: “The facility was set up after numerous discussions with Dutch counterparts from the public and private sector and aims to help the shipping sector transition to a greener future. ” Isabel Fernandez, ING's head of wholesale banking, added that the facility would help the bank to "support our shipping clients into making changes to their business models by adapting for the future in an increasingly sustainable way."
Ten months ago the EIB launched an analogous if smaller partnership with another Dutch bank ABN Amro, unlocking €150mn of loans.
This framework allows the EIB to invest €750mn (guaranteed by the EC) in green shipping initiatives, a spokesperson for the EIB told NGW, adding that the signature with ING was the EIB's third under its green shipping framework, following ones with ABN and separately a ferry project in Brittany last year: "The main point for the EIB, is that shipping is still a big polluter yet covers up to 90% of all intercontinental transport, so greening the sector is important."
(Banner photo shows the LNG-fuelled inland barge, Greenstream, and is courtesy of Shell / Twitter)