Climate-aligned shipping: A science-based approach to classifying ships as green.
Green Ships Ahoy!
It’s a-boat time that a set of criteria were available for the market to determine whether a bond is financing a climate-aligned ship.
The Climate Bonds Shipping Criteria will provide a science-based assessment process on the low carbon and climate resilient credentials of ships. These Criteria will determine whether (or knot) a green bond’s Use of Proceeds are aligned with the Paris Agreement.
No dedicated fossil fuel carrying vessels (No LNG Tankers, No Crude Carriers).
Zero emissions ships are automatically eligible, along with infrastructure that is dedicated to refuelling or recharging these ships.
Ships that are not zero-emissions must comply with the declining emissions intensity threshold (using AER or EEOI as a metric).
The declining emissions intensity starts at the median 2012 AER or EEOI for each size and class of ship and declines to zero by 2050. A ship must remain underneath this threshold throughout the tenor of the bond AND provide evidence that it can technically remain under the threshold over its entire operating life.
Jack up rigs that are dedicated to installing renewable energy infrastructure are eligible, provided that they are also zero-emissions.
There are 3 options depending on how much detail you’d like:
Brochure – Summary of the Shipping Criteria
Criteria Document – Full details of the Shipping Criteria
Background Paper – Summary of discussions and rationale for Criteria.
The public consultation will run for two months and ends on June 26th, 2020.
The feedback form is available here. We need your input!
Once public consultation is complete, the feedback will be reviewed and a final proposal will be presented to the Climate Bonds Standard Board for approval.
Once the Criteria have Board approval, issuers of green bonds financing ships and shipping retrofit programmes will be able to seek Climate Bonds Certification.
Date: Tuesday, 5th May
Time: 9:00 AM CEST 8.00 AM BST
- Sean Kidney, CEO, Climate Bonds Initiative
- Tristan Smith, Lecturer, Energy and Shipping, UCL
- Matteo Bigoni, Head of Certification, Climate Bonds Initiative
The last word
As more Criteria are launched and the reach of our international standard scheme expands, market confidence and transparency will increase, matching the growth of global green bond markets.
We would like to extend our gratitude and sincerely thank all TWG and IWG members and their constituent organisations for their invaluable support and guidance in developing the Shipping Criteria.
'Till next time,