Ports and financial institutions as well as other stakeholders, such as shippers associations, NGOs, consultants and regulators have a crucial role to play in improving the efficiency of the international shipping fleet.
Terminals seeking to position themselves as an environmental leader can provide discounts, incentives or even simply recognition to more efficient vessels. Under Port Metro Vancouver’s EcoAction Program and Prince Rupert Port Authority’s GreenWave program offer discounted harbour dues to efficient vessels based on the GHG Emissions Rating and other environmental metrics. Terminals seeking to set targets for their environmental performance can calculate their historical benchmark and compare their performance over time for reporting purposes such as an Annual Report. You can contact our team for information on implementing clean vessel incentive schemes such as Port Metro Vancouver and Prince Rupert Port Authority’s.
Financial institutions increasingly factor sustainability into their financing criteria as the trend towards responsible investment grows. An energy efficient vessel has lower fuel costs and better chartering potential, which may lead to a higher initial asset value and a longer period of economic depreciation. Given the current over supply of vessels in the market, it makes financial sense for banks to reduce their risk by financing energy efficient assets, particularly given the typical 25-year investment horizon.
The EVDI™ and GHG Emissions Rating provide a standardized framework for measuring the efficiency of an investment portfolio and tracking changes over time. Financial institutions can also use the environmental rating to map the correlation between investment risk and vessel employment as an increasing number of charterers seek out more efficient vessels. As more nations place a price on carbon, the payoff for investing in energy efficient vessels will materialize and financial institutions who are first movers will have significant market advantage.