Published on April 24th, 2017 | by Joshua S Hill0
European Investment Bank & ABN Amro Commit €150 Million To Finance Green Shipping
April 24th, 2017 by Joshua S Hill
The European Investment Bank and Dutch bank ABN Amro have committed to finance the greening of the European shipping fleet to the tune of €150 million.
Announced earlier this month, the European Investment Bank (EIB), the European Union’s bank, signed an agreement worth €150 million with the third largest bank in the Netherlands, ABN Amro, to promote sustainable projects in the European maritime transport sector. The agreement framework is the first for the European Investment Bank with a financial institute in the Netherlands. Specifically, the financing is intended to improve the environmental performance of transport vessels, reducing emissions and increasing fuel efficiency.
“The Bank received a clear signal from the market that there was a financing gap for the greening of shipping fleets,” said EIB vice-president Pim van Ballekom. “By allowing the EIB to take more risk, the Investment Plan for Europe enabled us to create a new instrument to support shipping companies in complying with the European sustainability standards. This is the second agreement under a EUR 750 million EFSI Green Shipping Guarantee Programme, which was set up after numerous discussions with Dutch counterparts from the public and private sector. We are really looking to ship owners to make use of it so that we can implement it in other countries as well.”
The European Investment Bank is the European Union’s long-term lending institution and has committed to numerous clean technology and sustainable investments. Just a few weeks ago, the EIB committed €50 million to Italian energy efficiency projects, and a few weeks later another $214 million for Indian solar projects — partnering with Indian bank SBI Capital Markets to disburse more than $200 million in debt.
“We are very happy we can support the Juncker plan through this initiative,” added Daphne de Kluis, CEO Commercial Clients ABN AMRO. “The EIB facility is an extra stimulus for ABN AMRO to stimulate our shipping clients to look for sustainable solutions. It fits perfectly with our other efforts to promote sustainable solutions in this important sector.”