Furetank has been granted a green credit guarantee by the Swedish Export Credit Agency for financing a tanker that meets superior environmental and climate standards
Export credit guarantees are a key element in financing newbuildings, and the Swedish Export Credit Agency and Furetank have pioneered the first green credit guarantee for newbuildings that meet high environmental and climate standards.
The guarantee applies to the prefinancing of Furetank’s next product and chemical tanker. It covers 80% of the risk for the lender Tjörns Sparbank, and marks a milestone for Furetank and Swedish shipping.
This is the first time a green credit guarantee has been granted to the shipping industry and only the second time the Swedish Export Credit Agency has granted this guarantee overall.
Swedish Export Credit Agency director-general Anna-Karin Jatko said, “For the world to succeed in the green transformation, it is vital that businesses like Furetank can finance their ambitious climate initiatives. We are very proud to have the opportunity to support Furetank’s investment in this new vessel.”
The green credit guarantee is granted based on the EU taxonomy, the assessment tool that will guide international capital towards green investments. To reach EU climate goals and realise the European Green Deal, capital needs to be directed towards a sustainable business sector.
The Swedish Export Credit Agency motivated the approval saying the ship is of a ”top-class environmental standard" thanks to LNG/LBG propulsion and energy consumption already lower than the IMO objectives for 2050.
The Swedish Export Credit Agency also took into account Furetank’s environmentally optimised transport patterns and ambition to eliminate carbon dioxide emissions from the vessels through exclusive biogas agreements.
Furetank chief financial officer Pär Karlsson described the approval as a definitive breakthrough: a confirmation from the state that Furetank has chosen the right path in making the climate investments that Sweden, the EU and the world are calling for.
He said, “This is a significant recognition that we believe our environmental efforts deserve. We have undertaken heavy investments of time, know-how and capital to develop the Vinga vessels this far. The guarantee enables us to continue investing in green technology that takes us closer to our goal of a fossil-free fleet” he said.
The approval also means progress for shipping as a whole, according to the Swedish Shipowners’ Association.
It aims to give shipping companies access to green credit guarantees, according to Swedish Shipowners’ Association chief executive Anders Hermansson, who said, “This is a very positive development for shipping, as a capital-demanding industry where the cost of climate investments is very high and difficult to earn back.”
He added, “It is a major step for the green transition of shipping globally, as Swedish shipping companies are world leaders in the environmental field. When our members invest in new green technology, it progresses not only the vessel in question but the entire industry.”
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