Japan’s state-owned Development Bank of Japan (DBJ) has recently become a signatory to the Poseidon Principles, according to the media. The Principles are voluntary initiatives established by the European and US financial institutions to help promote and achieve climate change targets in the maritime industry. The International Maritime Organisation has set medium and long term targets for greenhouse gas emissions reductions under the Principles.
The signatory financial institutions calculate and disclose the contribution of their overall ship finance emissions reductions every year based on the targets set earlier by the Poseidon Principles. This global banking initiative aims to accelerate the decarbonisation of the shipping industry. After signing up, DBJ will also release its yearly contribution to its ship finance to reduce greenhouse gas emissions.
Along with the Poseidon Principles, the banking firm also promotes the GRIT Strategy. The GRIT Strategy refers to the G – realisation of a green society, R – constructing a flexible, strong, safe and secure regional, social and industrial infrastructure. I- initiatives for innovation that can be evaluated as feasible for commercialisation and T – strategic initiatives for transition based on current business fundamentals. GRIT Strategy and Poseidon Principles are a part of the bank’s Fifth Medium-Term Management Plan that contributes to a sustainable society through investment and finance.
The participation of DBJ in the Poseidon Principles is connected to the GRIT Strategy, and the firm is expected to be active in promoting both. The addition of DBJ brings the total number of signatories to the Poseidon Principles to 27, representing around $185 million in shipping finance.