The Role of Export Finance in Global Shipping’s Sustainable Growth

(Hellenic Shipping News, Cyprus, 12 August 2024) From mitigating risks associated with financing large-scale maritime projects to promoting sustainability and compliance, export finance plays a pivotal role in the shipping industry. Shipping moves 11 billion tons of goods each year, amounting to 1.5 tons per person worldwide, underscoring its indispensable role in international trade and economic development. Therefore, export finance strengthens the financial backbone that facilitates global trade operations. Investments in modernizing fleet technologies can lead to significant reductions in emissions, operational costs, and improved competitiveness on a global scale. While the global shipping industry represents a critical component of international trade, its operations have significant negative impacts on the environment, ranging from emissions to disturbances in marine ecosystems. In fact, even though maritime shipping is the most carbon-efficient method of transporting goods, it still accounts for 3% of all CO2 emissions worldwide. To achieve massive measurable impact in the shipping industry, strategic initiatives focusing on sustainable technologies and innovative financing solutions are paramount. Export finance [could act] as a key enabler by providing the necessary funding and financial instruments to support these large-scale retrofitting projects.