Changing course: bank financing of the shipping industry
Relative to other carbon-intensive industries, shipping has faced less scrutiny, falling outside the scope of the 2015 Paris Agreement. However, for investors and banks that support the Paris goal of limiting global warming to well below 2˚C, the industry warrants attention. Emissions from shipping account for 2.4 per cent of global greenhouse gas (GHG) emissions and could rise by as much as 250 per cent by 2050 under a business-as-usual scenario.
In 2018, after years of relative inaction, the International Maritime Organisation (IMO) announced its GHG strategy, targeting at least a 50 per cent reduction in shipping emissions by 2050.
This briefing identifies steps that can be taken by investors and banks that support the shipping industry in meeting and going beyond this target.