Japanese shipping group Mitsui O.S.K. Lines (MOL) has landed major credit agreement to help the company take action on climate change.
The deal is made with Japanese bank Sumitomo Mitsui Banking Corp and is worth around USD 425m. The bank is one of the group’s largest shareholders.
This type of loan is a financial instrument granted to companies wishing to reduce greenhouse gas emissions, MOL reveals.
MOL operates within a varied range of segments, and the carrier is also a part of container carrier Ocean Network Express (ONE). Targeting net-zero emissions by 2050, the group’s climate ambitions thus surpass the remaining industry’s combined goals, having been set by UN maritime organization IMO on halving net emissions by 2050.
More players deem those targets unambitious, meaning climate objectives could be sharpened when member nations convene this summer.
Major investments are needed from carriers if shipping is to become more sustainable. Additionally, lenders increasingly require plans from borrowers on how climate ambitions are to be met.
Some shipping companies, including Maersk, has issued green bonds to fund new climate-neutral vessels.
Green bonds are a type of credit allowing investors to demand money be spent on measurable climate action
Interest rates on such securities are usually lower than on other bond varieties due to rising demand for green investments among investors.
English edit: Simon Øst Vejbæk
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