What are the acceptable thresholds for “GHG reduction”? Noted that IMO has a 2008 base year/ baseline and 2030 target year- since the targets are set at a global level and achievement happens in the future (e.g. 2030), how do we evidence that a particular vessel contributes/aligns with it?
In the SAT, there is no clear indication that the thresholds can be referred for PP at the moment. One could use existing data from the fleet to estimate the fuel type and whether it would meet PP requirements. For more information on these, do refer to Poseidon Principles Technical Guidance – Version 5.1. […]
Under Activity 2.6 Sea and coastal water transport, it mentions “vessels achieve the levels of ambition set by the 2023 IMO Strategy…” under the Amber Criteria. What are the acceptable thresholds for said “energy efficiency improvements”?
Note that IMO has set the level of ambition in 2023, but regulations have yet to be updated accordingly. The only framework which has been developed based on the IMO2023 ambition is the Poseidon Principles (PP). [Updated in Oct 2025]
What are some of the IMO documentation/submissions/annual audit requirements that we can rely on to ascertain that the borrower meets all the criteria (e.g. EEOI/AER and their calculation methodologies)?
Fuel Consumption Reporting and Efficiency Monitoring: Shipowners of vessels above 5000GT must report the fuel consumption of each vessel to the IMO via their respective flag states, a process facilitated by the Data Collection System (DCS). Verified by Recognized Organizations (ROs) such as classification societies (e.g., DNV, ABS, LR), the DCS statement includes key metrics […]
How does the borrower attest/evidence that the vessel would be using such biofuels?
Sustainable Certification of Biofuels: For biofuels, shipowners can obtain an ISCC certificate or Proof of Sustainability certificate (POS) from biofuel suppliers. This certification can be used as evidence that the vessel will procure or use certified fuels as part of their operations. [Updated in Oct 2025]
It is mentioned that if vessels are using biofuels, the biofuels must “be recognised by the IMO as relevant and eligible fuels/energy carriers……taking into account the IMO LCA Guidelines”, can we curate the list of such eligible fuels in the Handbook for easier reference?
Lifecycle Assessment Framework Development: The IMO is currently developing a Life Cycle Assessment (LCA) framework for over 120 alternative fuels, including Ammonia, Methanol, LNG, and LPG. This comprehensive approach aims to address the environmental impact of various fuels. The framework is planned to be completed by Jan 2027. [Updated in Oct 2025]
Under Activity 2.6 Sea and coastal water transport, for the financing of newbuilds ships under amber, how can we make an assessment if it meets the transition criteria given actual fuel use is needed to assess alignment with the IMO revised trajectory?
Newbuild ships can be considered to meet the transition criteria where the vessel is designed at the outset to allow for future modernisation/adaptation to run on 100% renewables or otherwise meet the Green criteria by 2030, and where the owner has a transition plan aligned with a 1.5ºC pathway. To obtain such data, emissions can […]
In the event of a revision, such as if the IMO develops a 1.5-degree pathway, what would be the treatment for vessels aligned with the current version of the SAT?
In the event of a revision, grandfathering provisions of 7 years will apply and issuers may refer to the Guidance for Leveraging the Singapore-Asia Taxonomy in Green and Transition Financing – Singapore Sustainable Finance Association – #3 – Grandfathering rules and provisions in the SAT [Updated in Oct 2025]
The SAT has adopted the same metrics as the EU Taxonomy which are also used by IMO, however it goes beyond what is offered by EU by providing the long-term decarbonization pathway. The EU Taxonomy has specified such criteria will be valid until 31 December 2025, while the SAT has the thresholds until 2050.
The SAT and EU frameworks employ fundamentally different metrics for assessing maritime sustainability. The EU’s requirements align with the IMO’s standards, focusing on metrics such as the Energy Efficiency Design Index (EEDI), Energy Efficiency Existing Ship Index (EEXI), and fuel energy intensity. In contrast, the SAT is structured around the CBI trajectory which is based […]
Is there any reason why energy efficient/ emission reduction activity for water transport infrastructure is not considered? What does water transport infrastructure include?
Water transport infrastructure is included under Activity 2.5 Low-carbon transport infrastructure. These include: Electricity charging, hydrogen-based refuelling. The infrastructure is dedicated to the provision of shore-side electrical power to vessels at berth. The infrastructure is dedicated to the performance of the port’s own operations with zero direct tailpipe CO2 emissions. The infrastructure and installations are […]
Are there any thresholds required for infrastructure dedicated to zero-emission aviation (e.g. airports) in terms of energy efficiency or emissions reduction to be eligible as green?
Under Activity 2.5 Low-carbon transport infrastructure, any enabling infrastructure that is essential for zero-emission transportation is considered green without needing to meet additional thresholds. This means infrastructure dedicated to supporting zero-emission vehicles, vessels and aircraft are automatically eligible under this activity. This applies to all forms of transport: Air Transport: A hydrogen refuelling stations would […]
