Key progress in 2025
The Poseidon Principles, a voluntary framework guiding lenders in measuring climate alignment of their shipping portfolios, released its Sixth Annual Disclosure Report on fifteen December. The study covers thirty six signatories spanning fourteen countries and representing nearly three quarters of global ship finance. The latest figures reveal that average deviation from the International Maritime Organisation minimum decarbonisation trajectory narrowed from just over nineteen percent last year to under twelve percent, an improvement of almost eight percentage points even as the pathway became more demanding.
Ninety five percent of eligible loan exposure was reported, marking the second highest disclosure level since the framework debuted in 2019. Twenty nine signatories reported at least ninety percent while nine institutions achieved complete coverage. Cargo and passenger segments showed the biggest leaps, moving to six and twenty six percent misaligned respectively, thanks to retrofit programmes, dual fuel tonnage and operational efficiency gains.
Why transparency matters
Full portfolio disclosure does more than satisfy environmental curiosity. Banks report that emissions data now informs credit committees, pricing grids and sustainability linked covenants, directing capital toward energy efficient vessels and emerging fuel projects. That feedback loop creates a virtuous cycle where cleaner assets enjoy better financing terms, accelerating fleet renewal.
A non obvious insight is that by extending membership to private equity, hedge funds and bond underwriters through a new associate tier, the initiative is poised to influence earlier stages of capital formation. Future shipbuilding bonds or structured notes could embed emission linked triggers before steel is cut, amplifying impact beyond traditional bank loans.
Conclusion
The Poseidon Principles have demonstrated another year of concrete progress, shrinking the gap between financing decisions and climate goals while broadening their reach across the wider investment community. Transparent data driven finance is proving to be a powerful propeller for decarbonising global shipping.