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Shipping Loans will go Only to Clean Vessels - JP Morgan

Logistic News - Published on Fri, 13 Sep 2019

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Wall Street Journal reported that JP Morgan Asset Management is joining a chorus of global financiers saying that protecting the environment will be a key consideration for extending shipping loans. Mr Andy Dacy, the chief executive of the finance firm’s global transportation group, said that There is not an institutional investor in the Western world that is not thinking about the impact of environmental, social and governance factors. Anyone looking for shipping capital, if you’re not employing such a strategy, it’s going to be increasingly very difficult to get capital. The group is the latest financial institution to warn shipowners to abide by a series of measures kicking off next year and extending to 2050 that are aimed at cutting emissions from oceangoing vessels.

Starting on January 1st 2020, some 60,000 ships will be required to reduce sulfur emissions by more than 80%. Many are preparing to switch to new low-sulfur fuel mixes or blends that are still under development, a move industry executives say will add some $50 billion in new fuel costs over the next three to four years.

Meanwhile, the move is mandated by the International Maritime Organization, an arm of the United Nations that works as the global marine regulator. The IMO has also set a timeline to cut greenhouse gas emissions from ships by 40% by 2030 and by 50% by 2050.

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Posted By : Mohan Sharma on Fri, 13 Sep 2019
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