Poseidon Principles adds 1.5°C global temperature rise ceiling to benchmarks

Signatories to the Poseidon Principles have will benchmark their shipping investment portfolios to both IMO and Paris Agreement emissions goals.

PHOTO: A briefing seminar last month, with Poseidon Principles chair Michael Parker (left), vice chair Paul Taylor (second from left), Poseidon Principles for Marine Insurance chair Patrizia Kern (second from right) and vice chair Rolf Thore Roppestad (right). Poseidon Principles

The Poseidon Principles for Marine Insurance and the Poseidon Principles for Shipping have supported the establishment of a common global decarbonisation pathway. The signatories include 30 shipping banks and 17 marine insurance providers and brokers.

Signatories have agreed to benchmark their portfolios against two greenhouse gas (GHG) emissions reduction trajectories for shipping.

One trajectory will be aligned with the International Maritime Organisation's (IMO) global of halving GHG emissions by 2050, compared to a 2008 baseline.

The other trajectory will be aligned with the Paris Agreement goal of limiting the global temperature rise to 1.5°C above pre-industrial levels by 2100. This goal sets out efforts towards net zero GHG emissions by 2050.

For the second trajectory to be consistent with a 1.5°C future, the scope will be expanded to include all greenhouse gases, and to account for well-to-wake emissions.

Michael Parker, chair of the Poseidon Principles for Financial Institutions, says that since shipping plays a huge role in the global economy, efforts towards meeting the Paris Agreement's 1.5°C temperature goal must be accelerated.

Poseidon Principles is a global framework for assessing and disclosing how the shipping portfolios of financial institutions and marine insurers align with climate ambitions and goals. They collectively cover over 65% of the global ship finance portfolio.

By Konica Bhatt

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