ING and the European Investment Bank (EIB) have agreed to provide $370 million (€300 million) to support green investments by inland shipping and seagoing operators.
In an announcement, the Amsterdam-based global financial corporation and the lending institution of the European Union said that they would only back projects that have “significant European interests” and a “green innovation element” for the construction of new vessels or retrofitting of existing vessels.
ING stated: “To this end, we are helping to develop and promote sustainable business models and explore how sustainable financing can help support energy transition and combat climate change.”
ING and EIB will each contribute $185 million (€150m) to the facility to ensure that sponsors of green and sustainable projects in the maritime transport sector can benefit from advantageous financial terms.
This agreement forms part of ING’s wider sustainability strategy, which aims to facilitate and finance society’s shift to sustainability – environmental, economic, and social.
In order to create a diversified portfolio, ING will invest in the facility with EIB gradually over the next three years, with ING’s shipping team leading and managing the commitment.
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Photo, left to right: Stephen Fewster (ING), Werner Hoyer (EIB) and Isabel Fernandez (ING)
The deal also benefits from the guarantee of the European Fund for Strategic Investments (EFSI), the central element of the Juncker Plan.
EIB President Werner Hoyer said: “I think it’s no secret that the shipping sector is a major contributor to CO2 emissions.
“Climate action is one of the EIB’s top priorities, and this type of financing should be seen as an incentive for ship owners to consider doing things differently.
“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, Head of Wholesale Banking at ING, commented: “Sustainability is an important strategic priority for ING and we are very proud to partner with the EIB to encourage our shipping clients to think about more green and sustainable financing options.
“This agreement helps us support our shipping clients into making changes to their business models by adapting for the future in increasingly sustainable way, and supports them throughout their green journey.”