EIB Unveils 1st Green Support for European Shipping Operator

The European Investment Bank (EIB) has signed the first agreement under its Green Shipping Guarantee Programme (GSGP) through Dutch bank ABN Amro.

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The EIB will contribute EUR 10.1 million (USD 11.6 million) to an ABN AMRO arranged facility to finance the construction of three cement carrier vessels for Eureka Shipping.

As explained, the project vessels’ design represents an improvement to the overall environmental performance of the promoter’s fleet, as well as cement carrier vessels currently operating in European waters.

The new ships, which will be laid up in the Netherlands, will operate with significantly better fuel efficiency and reduced emissions of pollutants, according to the EIB.

All three new ships will be built and operated in compliance with IMO and EU regulations and will operate under an EU flag. They will serve northern European ports, predominantly in the sulphur emission control areas (SECAs) of the Baltic and North Sea.

The EIB said the project will contribute to a ‘modal shift’ in which, instead of by road, goods are transported by sea, which is considered to be the most sustainable transport mode for this type of cargo. This will help to reduce the overall climate impact of transport, and specifically the company’s carbon footprint.

Back in 2017, the EIB and ABN Amro signed an agreement to support investments for greening the European shipping fleet.

The framework guarantee agreement ensures that promoters of sustainable projects in the maritime transport sector can benefit from favourable financial terms.

The facility is open for both retrofitting of existing shipping as well as for projects that envisage the construction of new vessels with a green innovation aspect and it applies to both inland shipping and seagoing operators.