Singapore: DNV and OCBC tackle sustainable maritime financing for greener future

Continuing its Singapore Decarbonization Insights series, classification society DNV recently delved into the critical role of sustainable financing in driving the maritime industry’s transition to a greener future in the third episode of the series.

With the maritime industry undergoing a significant transformation as it navigates the complex waters of sustainability, the transition to greener practices is not only a regulatory necessity but also an economic imperative.

In this session, Dr Shahrin Osman, the Director of DNV’s Maritime Decarbonization and Smart Shipping Centre of Excellence (Asia Pacific) discusses this topic with Vanessa Chow, Associate Director of OCBC’s Sustainability Office for Global Wholesale Banking, and Lars Holterud, Head of DNV Maritime Advisory of South East Asia, Pacific and India.

OCBC has been at the forefront of sustainable maritime financing, reporting in alignment with the Poseidon Principles (PP) since 2021, with support from DNV.

Their commitment to sustainability is evident through their impressive PP climate alignment of -2.7% based on the IMO 2018 strategy, compared to the average of +2% among PP signatories and +11.2% for the IMO 2023 strategy, compared to the PP signatories’ average of +27.2%.

These figures reflect OCBC’s continued efforts to support customers in decarbonizing their operations through green and transition loans as well as sustainability-linked financing that incentivizes emission reductions. DNV has also supported the bank in some of its sustainable finance transactions, providing OCBC’s maritime clients with Second Party Opinions as well as annual validation for sustainability-linked loans.

However, the journey to net zero remains challenging, as developing commercially viable low-carbon alternatives for the sector will take time.

In this episode, the trio explored OCBC’s perspective as financiers and shared invaluable insights into how financiers can play a pivotal role in fostering a sustainable future for the maritime industry.

By understanding the challenges and opportunities, financial institutions can develop strategies that not only comply with regulatory requirements but also drive economic growth and environmental stewardship.

This perspective, enriched by OCBC’s experience and network of industry partners, is crucial for stakeholders across the maritime sector, from shipping companies to policymakers, as they collaborate to achieve a greener and more sustainable maritime future.

Watch a trailer of the third episode of DNV’s Decarbonization Insights featuring OCBC on DNV’s official YouTube Channel here while the full episode will be released on 6 November here. 

Manifold Times has also covered the first two episodes of DNV’s Decarbonization Insights as well. The following are the articles on them:

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Photo credit: DNV
Published: 1 November, 2024