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KfW to Back Responsible Ship Recycling

German lender KfW IPEX-Bank has become the country’s first bank to join the initiative to adopt Responsible Ship Recycling Standards (RSRS).

KfW IPEX-Bank is one of the top 5 ship financiers in the world with a lending volume of EUR 13.9 billion in 2017.

The RSRS initiative was launched at the end of May 2017, by ABN Amro, ING and NIBC.

The initiative now has eight members worldwide, with Nordea, DNB, SEB and Export Credit Norway having joined the three founding banks.

The RSRS initiative aims to entice the shipping companies to meet the minimum standards of occupational safety and environmental protection when scrapping their ships.

The goal of the RSRS initiative is to incorporate scrapping clauses in accordance with international standards, including the Hong Kong Convention, into loan agreements. These clauses also include an obligation for shipping companies to ensure that all ships carry a “Green Passport” that provides an overview of all the hazardous materials on board.

“Joining this global initiative is another significant step for us in further strengthening the sustainability aspect in the maritime industry together with our clients,” Andreas Ufer, Member of the Management Board of KfW IPEX-Bank, said.

“This is an important way to raise awareness about the significance of sustainable ship recycling. We view the RSRS initiative as a long-term project that will continue to develop and welcome more and more members around the world.”

Even though it cannot yet be foreseen just how far these clauses will take root throughout the market, Ufer is hoping for some tangible effects.