KfW IPEX-Bank evaluates energy efficiency of its merchant shipping portfolio
KfW IPEX-Bank, one of the largest ship financing banks in the world, has evaluated together with FutureShip, a subsidiary of Germanischer Lloyd, the energy efficiency of its shipping portfolio based on the Energy Efficiency Design Index (EEDI).
The applied valuation approach is based on the standards of the International Maritime Organisation (special organisation of the United Nations) and provides an indicator for the energy efficiency and CO2 emissions of merchant vessels. In 2013, binding EEDI limits were introduced for newbuildings. However, the energy efficiency of existing vessels also plays an increasingly important role during chartering decisions.
Merchant shipping portfolio of KfW IPEX-Bank ranks above average
Using the EEDI methodology, the energy efficiency of 88% of the ships in the KfW IPEX-Bank portfolio could be evaluated, with positive results: The merchant shipping portfolio is on average slightly better than the world fleet.
Energy efficiency reduces credit risk
Furthermore, the evaluation verified that less energy efficient ships are associated with a higher credit risk. The compatibility of ecological and economical aspects for ship financing has now been empirically supported through the joint project of KfW IPEX-Bank and FutureShip.