Japan's state-owned Development Bank of Japan (DBJ) has joined the Poseidon Principles, a global banking initiative that supports the shipping industry's climate change efforts, as part of a strategy to strengthen support for the industry's transition towards carbon neutrality.
The DBJ became the sixth Japanese signatory of the Posendon Principles after private-sector bank MUFG Bank signed up to the initiative in March this year. The state bank has pledged to disclose the contribution of its shipping finance to greenhouse gas (GHG) reductions every year in accordance with the principles.
The Poseidon Principles initiative was launched in 2019 by some of the world's major banks as a framework to quantitatively assess if the signatories' lending portfolios are in line with the International Maritime Organisation's 2050 goal to reduce the global shipping industry's GHG emissions by 50pc from 2008 levels. It now has 27 global financial institutions as its signatories, representing around $185mn in shipping finance.
The DBJ yesterday released a new five-year strategy with a proposed ¥13 trillion ($119bn) of loans and investments for the period until March 2026. It plans to allocate ¥5.5 trillion for the transition to and realisation of a sustainable society in the energy, transportation, infrastructure and manufacturing sectors, as part of efforts to achieve Japan's 2050 decarbonisation goal.
The DBJ has been providing financing to support the growth of Japan's transportation sector and development of transportation networks in the country. It also acts as a bridge between Japan's and global transport financing markets.
The bank previously put together financing for Japanese shipping firm NS United to build the very large ore carrier NSU Carajas, which was launched in 2019. The VLOC was the first Valemax to be built in Japan and operated by a Japanese shipping firm.
The Japanese transport ministry is also supporting the shipping industry's transition to cleaner fuels, such as LNG, ammonia and hydrogen. The ministry has backed development of LNG bunkering operations in Tokyo and Ise bay, while co-operating with local authorities and companies to set up a carbon neutral port at the country's key industrial locations.
