The Green Gamble: Navigating Risks and Opportunities in Sustainable Ship Financing

Reed Smith, in partnership with DNV Maritime Advisory, organized “The Green Gamble: Balancing Risks and Opportunities in Shipping Investments” seminar at their London office.

This half-day seminar, attended by over 70 specialists, including advisors, investors, representatives from shipping and energy sectors, and legal experts, focused on the current trends in sustainable ship financing.

The maritime sector is currently experiencing significant environmental, geopolitical, and technological shifts, making this a crucial time for discussions on how to mitigate risks and capitalize on opportunities within green finance.

Reed Smith, known for its leading role in shipping practices, together with DNV, a top classification society and maritime consultant, offered deep insights into the evolving regulatory and financial landscapes.

Antonia Panayides, a partner in Reed Smith’s Transportation Industry Group, provided updates on emissions regulations, specifically the FuelEU Maritime Clause for Time Charter Parties. Panayides, who participated in the BIMCO drafting committee for FuelEU Maritime, pointed out that FuelEU affects a broad array of shipping contracts, stating that FuelEU is sometimes missed in sales and purchase discussions, yet it’s a pivotal element.

The seminar further delved into the role of banks in ship financing aligned with climate goals, risks in transactions related to green maritime investments, and the influence of forthcoming EU and UK regulations.

Tallat Hussain and Wim Vandenberghe, partners at Reed Smith, outlined major regulatory updates, including the EU and UK Emissions Trading Schemes (ETS) for maritime emissions, due diligence in the supply chain, and capitalizing on green attributes. They also discussed the possible effects of shifting geopolitical priorities on EU policies and their execution.

Susan Riitala, another partner in Reed Smith’s asset finance team and co-chair of the event, remarked on the energetic discussions and high engagement levels, underscoring the critical importance of green finance for the maritime industry.

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