Vigeo Eiris commissioned to provide an independent Second Party Opinion for the first green loan issued by H-Line Shipping in South Korea
The proceeds of the loan will exclusively finance, in part, the shipbuilding of two LNG dual-fuel bulk carriers to be delivered to H-Line between Q4 2021 and Q1 2022
Vigeo Eiris is of the opinion that the Green Loan Framework of H-Line is aligned with the four core components of the Green Loan Principles 2018. The Eligible Project to be financed by the Loan appears to provide a positive contribution to the prevention of air pollution at the scale of the project. Although Liquid Natural Gas (LNG) fuel does not have the highest reduction potential compared to other alternative fuels and energy, it is one of the best available option for full scale application to avoid or reduce air pollution and GHG emissions in the global shipping industry, especially for long-distance navigation purpose.
The contribution of the project to the energy transition and to climate change mitigation is considered limited, given the level of GHG emissions avoidance allowed by the project compared with the IMO’s 2050 targets on GHG emission reduction for the sector.
Vigeo Eiris expresses a moderate assurance on H-Line’s commitments and on the Green Loan’s potential contribution to sustainability.