Abstract
Green/Sustainable finance represents a relatively new sector, and, despite the increasing interest of scholars that have contributed vastly to the literature, it is inevitably still ‘uncharted territory’ to some extent. The present thesis contributes to the existing literature by dealing with the pressing and important question of how (corporate) finance can assist in allocating capital in a way that can contribute to the reduction of the environmental impact of shipping. For this purpose, the method I employ will be to gauge current international/European doctrinal sources that refer to and/or can be used for achieving green shipping purposes, such as conventions and regulations, as well as the existing market-based practices/financial products.
Structurally, the paper will be divided into four parts. First, the most important international and European finance initiatives/measures aiming to decarbonise the shipping industry will be sketched. Second, after giving an overview of the present situation, the current barriers along with the consequences/advantages of sustainable finance/financial products for shipping stakeholders will be presented. Third, the present market-based products will be assessed, namely the green/sustainability-linked loans and bonds—along with practical examples—to proclaim that the necessary corporate finance framework exists to assist in transforming the ‘blue economy’, into green. Fourth, the writter will conclude with thoughts related to policy and market-based products that may encourage green/sustainable shipping finance even more.