The European Investment Bank (EIB) and ING have agreed a €300m investment to support European maritime shipping projects.
Each institution will contribute €150m to a sector risk-bearing facility to support European maritime shipping projects, which will include novel solutions to tackle emissions from vessels and increase fuel efficiency.
The joint investment from the EIB and ING will be used to secure private investment in projects, and offer the sponsors of sustainable projects more advantageous financial terms for their investments.
Who can apply for the funding?
The facility is available to investors 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. This will apply to both inland shipping and seagoing operators, the European Commission has confirmed.
The EIB’s investment will be provided over the course of three years, and also benefits from a guarantee by the European Fund for Strategic Investments. ING’s shipping team will lead and manage the commitment. Projects will be subject to ING’s financial and non-financial risk acceptance criteria.
What did EIB and ING say about the deal?
EIB President Werner Hoyer said that the need to reduce greenhouse gas emissions in shipping was the motivation for providing a new financing structure for European maritime shipping projects which could provide solutions.
He said: “It’s no secret that the shipping sector is a major contributor to carbon dioxide 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. [This] facility was set up … to help the shipping sector transition to a greener future.”
Isabel Fernandez, head of wholesale banking at ING, added that sustainability is also an important strategic priority for the financial institution, and that this partnership was a vital opportunity for ING to fulfil its climate change responsibilities.
She explained: “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.”
