Danske Bank has entered a partnership between the Norwegian government and several private companies by the name ‘Grønt kystfartsprogram’ (in Norwegian), which aims to make Norwegian coastal shipping the most efficient and environmentally friendly in the world.
The ambition of the programme is that by 2030, greenhouse gas emissions from Norwegian domestic shipping will be reduced to 60 pct. of today's level. By 2050 greenhouse gas emissions should be zero.
Danske Bank is the first bank to join the programme and will lead the work in identifying and tackling possible barriers that could prevent private financing of both the vessels and the related infrastructure.
“We are very pleased to have Danske Bank, known as a progressive forward thinking player, onboard in the Green Coastal Shipping Program as the leader of the green financing pilot study aiming to establish a framework for private funding, “ says Narve Mjøs, responsible for Green Coastal Shipping Program and director in DNV GL.
Samu Slotte, Head of Sustainable Finance in Danske Bank C&I, further comments:
“We wish to support the transition towards making Norwegian coastal shipping the most environmentally friendly in the world by finding the best financial solutions to reach this ambitious goal.”
Radical changes and new possibilities
The project was initiated back in 2015 and is currently in the third out of four phases. The third phase evolves around setting up a detailed implementation plan and removing potential barriers.
“We will work with both the maritime industry and the investor community as well as the public sector in identifying possible bottlenecks that could prevent financing of green coastal ships and the required infrastructure”, Samu Slotte explains.
The green coastal shipping programme will pave the way in further reducing the environmental impact of the shipping industry whilst at the same time contributing to more sustainable economic growth.
Learn more about the programme here (in Norwegian).
Despite being an efficient form of transportation, the shipping industry contributes significantly to emissions – the Norwegian domestic shipping contributes to 9 pct. of the total CO2 emissions, 34 pct. of NOx emissions and 25 pct. of the SOx emissions in Norway.
The green costal shipping project is in line with a recent climate change strategy agreed to in April by the International Maritime Organization, a UN specialised agency. The aim is to ban the use of heavy fuel in the arctic and to cut greenhouse gas emissions of international shipping by at least 50% by 2050 and phase them out eventually within this century.