GREEN FINANCING FOR SUSTAINABLE FINANCIAL AND ENVIRONMENTAL DEVELOPMENT IN MARITIME SECTOR

Abstract

Since the International Maritime Organization (IMO) set the goal of achieving net zero carbon emissions by 2050, the maritime sector has been under constant pressure to cut its greenhouse gas emissions and comply with global climate targets. These goals, together with growing stakeholder expectations, have forced shipping corporations to investigate more sustainable business models and greener technologies. The marine industry is finding it challenging to identify a way to achieve long-term financial and environmental sustainability in the face of growing climate change demands, changing regulations, and a changing investor landscape. This changing environment is also changing how investors and financial institutions view and evaluate the maritime sector. One important aspect that has arisen to help shipping companies achieve this change is green financing. Securing funds is no longer the only goal; proving a dedication to sustainable ideals is now as important. Accordingly, the introduction of the Poseidon Principles is hailed as a groundbreaking step in bringing financial practices into compliance with global climate goals. The principles offer financial institutions an open framework for determining whether the carbon intensity of their shipping portfolios complies with IMO's targets. Every year, their shipping portfolios align. This paper makes an effort to thoroughly examine and evaluate the ways in which green finance could support the maritime industry's sustainable environmental and financial development.