Skip to content
www.txepc.org

www.txepc.org

Stay Updated Always.

Primary Menu
  • Home
  • Digital Home
  • Gaming
  • Tech
  • Social
  • Contact Us
  • Home
  • Latest
  • Green Investing Looks to Clean Up the Maritime Industry

Green Investing Looks to Clean Up the Maritime Industry

Rebecca Montgomery 4 min read

The Maritime industry has seen a number of setbacks in recent years, leading to major changes and challenges for those involved. Many companies are now looking towards green investing as the solution; environmental compliances increasing by 3% every single year is one such development that investors have taken note of.

Green investing looks to clean up the maritime industry. The green investment is a new movement that has been popping up over the last few years. It’s a way for people to invest in sustainable businesses and companies that are looking to make a difference in the world.

The first green bonds were issued. They’ve become blue now.

Seaspan Corp., the world’s biggest containership lessor by cargo-carrying capacity, issued over $1 billion in “blue bonds” earlier this year, pledging to support vessels that would reduce emissions and pollution at sea.

The transaction exemplifies how the sustainable investment boom is spreading to the world’s waterways. The debt is the most recent incarnation of green bonds, which are investments that attempt to combat climate change and accelerate the transition away from fossil fuels by lowering the cost of funding such initiatives.

Seaspan, which has a fleet of 132 ships, sought $500 million in bonds from asset managers in July to pay for ships that minimize carbon emissions—the company’s first U.S. blue bond. The sale drew more investors than expected, enabling the business to expand the size of its junk-rated offering to $750 million in eight-year notes with a 5.5 percent annual return.

The transaction highlights how demand for environmentally friendly debt has increased in recent years, as part of Wall Street’s drive to market products that incorporate environmental, social, and governance, or ESG, issues. In 2018, the Seychelles archipelago and the World Bank issued the world’s first blue bond, generating $15 million. BNP Paribas SA said on Friday that it has arranged a $942.5 million blue bond for Bank of China.


Subscribe to our newsletter

Markets

A pre-markets primer full of breaking news, trends, and ideas. In addition, you’ll get access to up-to-date market data.


Green bonds were originally issued approximately a decade ago by high-rated borrowers who agreed to meet long-term sustainability goals. Wall Street is now selling a record amount of debt. According to estimates from the Climate Bonds Initiative, global green bond issuance in 2021 will exceed $350 billion, breaking the previous record set in 2020.

“We regard marking a green bond blue as an attempt to improve attention on concerns relating to the marine environment,” Nicholas Pfaff, the International Capital Market Association’s director of sustainable finance, said.

In principle, recruiting more investors, especially those looking for environmentally friendly assets, could lower the cost of financing for green businesses. This is especially important in shipping, where the epidemic has hindered ambitions by members of the International Maritime Organization, the UN’s maritime regulator, to increase fuel economy by 30% by 2025 and cut greenhouse-gas emissions in half by 2050 compared to 2008 levels.

“‘We regard labelling a green bond blue as an attempt to raise attention on problems concerning the marine environment,’ says the company.

— International Capital Market Association’s Nicholas Pfaff

The absence of a low-emitting fuel that is economically available at scale is one of the issues confronting the marine sector. While Seaspan runs ships all around the world, it is ultimately up to its customers to choose which fuel to use. As a result, the business is designing boats with tanks that can be switched out to handle different fuel types, as well as cutting-edge designs that vary the vessel’s form, nose, and propulsion systems. The majority of the company’s new container ships run on liquefied natural gas.

Atlas Corp., Seaspan’s parent company, is devoted to building a sustainable business in accordance with green efforts, according to Bing Chen, president and chief executive officer.

The ICMA’s green-bond principles, a set of rules established by the European self-regulatory organization, are followed by Seaspan’s blue bonds. According to an ICMA research done this year, more than 95 percent of environmental financing agreements in 2020 followed the trade association’s recommendations.

Green bonds and other kinds of sustainable-linked finance, according to some investors, lack an enforceable framework to guarantee that funds are utilized as promised. Green bond rating agencies report to no governmental body in the United States. The small print on certain bonds says that not all of the funds obtained must be used for environmental initiatives.

Green-Investing-Looks-to-Clean-Up-the-Maritime-Industry

Green bonds have evolved into blue debt, which is the most recent form of such assets. In April, the Seaspan Thames was awaiting offloading at Seattle’s port.

Paul Christian Gordon/Zuma Press/Zuma Press/Zuma Press/Zuma Press/Zuma

Companies who fail to keep their environmental pledges or reach their objectives are likely to face criticism and penalties the next time they want to borrow, according to some experts.

Neuberger Berman’s head of European ESG investment, Sarah Peasey, said the asset management selects its green bonds carefully, avoiding one-time transactions that seem to be made just to benefit from the label.

“For us, it’s first and foremost about appraising the business at a sustainable level,” Ms. Peasey said, “since the risk lies with the broader company, not the bond offering.”

Others are concerned that Wall Street would overwhelm investors with a plethora of specialty items. Mr. Pfaff of the ICMA, a Zurich-based trade organisation, said that the number of specialized bonds should be limited.

“Creating wide and consistent categories has been the whole success in ESG over the last two years,” he remarked.

Julia-Ambra Verlaine can be reached at [email protected].

Dow Jones & Company, Inc. All Rights Reserved. Copyright 2021 Dow Jones & Company, Inc. 87990cbe856818d5eddac44c7b1cdeb8

About The Author

Rebecca Montgomery

See author's posts

Continue Reading

Previous: NFL kickers have historically rough week with record
Next: England given one

Trending Now

From Craps to Stud Poker: Exploring the Table Game Selection at Modern Online Casinos Image1 1

From Craps to Stud Poker: Exploring the Table Game Selection at Modern Online Casinos

Most Knife Skins in CS2 Image3 2

Most Knife Skins in CS2

Eight Promising Tips to Build a Strong Social Media Presence 3

Eight Promising Tips to Build a Strong Social Media Presence

How Gamers Can Prioritize Their Eye Health Image3 4

How Gamers Can Prioritize Their Eye Health

A step-by-step guide to metal cliff platform ark 5

A step-by-step guide to metal cliff platform ark

How to customize your IPhone 6

How to customize your IPhone

Related Stories

The Tech Behind Gaming and Gambling: How Innovation Shapes Digital Entertainment Image3
4 min read

The Tech Behind Gaming and Gambling: How Innovation Shapes Digital Entertainment

How to Run MenBoostermark in Online: Boost Your Business Success Today How to Run MenBoostermark in Online
6 min read

How to Run MenBoostermark in Online: Boost Your Business Success Today

What is The Zusiymorp 35.3 Software: The Ultimate Productivity Software You Need to Know About what is the zusiymorp 35.3 software
6 min read

What is The Zusiymorp 35.3 Software: The Ultimate Productivity Software You Need to Know About

Use Dobzools38.0 Software Python: Boost Your Coding Efficiency Today Use Dobzools38.0 Software Python
7 min read

Use Dobzools38.0 Software Python: Boost Your Coding Efficiency Today

TXEPC.org: Your Ultimate Guide to Texas Estate Planning Excellence | Join 1,500+ Professionals txepc.org
5 min read

TXEPC.org: Your Ultimate Guide to Texas Estate Planning Excellence | Join 1,500+ Professionals

Exploring Different Types of Bingo: Which One is Right for You? Image1
3 min read

Exploring Different Types of Bingo: Which One is Right for You?

Trending News on Txepc

TXEPC.org: Your Ultimate Guide to Texas Estate Planning Excellence | Join 1,500+ Professionals txepc.org 1

TXEPC.org: Your Ultimate Guide to Texas Estate Planning Excellence | Join 1,500+ Professionals

How the Echo Buds Compare to Other true Wireless Earbuds echo budsgen true ancsteeleengadget 2

How the Echo Buds Compare to Other true Wireless Earbuds

Which is better, Google TV or Apple TV? 3

Which is better, Google TV or Apple TV?

Watch Ted Lasso with a VPN outside the US 4

Watch Ted Lasso with a VPN outside the US

Truth Behind the Jake Paul vs. Tyron Woodley Twitter Feud 5

Truth Behind the Jake Paul vs. Tyron Woodley Twitter Feud

View Up to 10 Recent Followers in Under 2 Minutes 6

View Up to 10 Recent Followers in Under 2 Minutes

Watch HBO Max Without A Cable Subscription 7

Watch HBO Max Without A Cable Subscription

Address: 2954 Polmesar Boulevard, Talen, UT 32754

  • Home
  • Privacy Policy
  • Terms & Conditions
  • About Us
  • Contact Us
© 2024, txpec.org All rights reserved.
We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.
Do not sell my personal information.
Cookie SettingsAccept
Manage consent

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
CookieDurationDescription
cookielawinfo-checkbox-analytics11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checkbox-functional11 monthsThe cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checkbox-necessary11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-others11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-performance11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy11 monthsThe cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
viewed_cookie_policy11 monthsThe cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Performance
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytics
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
Advertisement
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
Others
Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.
SAVE & ACCEPT