The new feature displays AER estimates for 2020 and compares this to the trajectory published by the Poseidon Principles based on the IMO’s goals of cutting shipping emissions dramatically over coming decades.
The Poseidon Principles include 27 signatories which have committed to measure the sustainability performance of their borrowers and of these 15 banks reported their portfolio climate alignment scores last year. The initiative has been quickly adopted as momentum has grown around the transparency of shipping’s carbon emissions and the link to owner, charterer and end-user ESG strategies.
“The Poseidon Principles AER trajectories are a market measure not a regulation but their alignment with IMO goals makes them an important measure of success in shipping’s decarbonisation efforts,” says Dr Adam Kent, Managing Director, MSI. “How well it reflects reality is an important point of debate for the whole industry and our initial findings suggest it must be judged a work in progress.”
Data modelled using the estimated AER values illustrates the scale of the challenge for the industry in achieving the declining emissions trajectory required by the Poseidon Principles.
Using the estimated AER values, MSI analysis finds that:
The vessel specific AER estimates are available to subscribers to MSI’s HORIZON platform which provides access the consultancy’s proprietary macro and shipping market models and asset valuations data. MSI’s proprietary valuation tool Forward Marine eValuator (FMV) provides historical and forecast values, earnings and operating costs for individual vessels, fleets or portfolios with Alternative Marine eValuator (AMV) enabling clients to stress test forecast assumptions for their vessels against the MSI Base Case and custom scenarios.