City Research Online

Abstract

A group of global banks led by Citi, Société Générale and Danske Bank have collaborated to formulate a framework known as the Poseidon Principles, which will limit lending to shipping companies that fail to uphold increasing environmental standards. Signatories to the green deal will integrate climate considerations into lending decisions with the objective of achieving decarbonisation in the industry. This raises a number of questions pertaining to the contractual obligations that Signatories will impose on Borrowers in their financing agreements. This Paper specifically addresses the question of enforceability and the legal consequence of the Poseidon Principles Standard Covenant Clause (SCC), its available remedy, and the incorporation of environmental obligations into financing agreements. This Paper calls for a gradual implementation of stricter enforcement mechanisms as a set of green norms become increasingly pervasive throughout the shipping sector. The Poseidon Principles framework can become a powerful private governance tool in achieving international climate change goals through providing both directional industry guidance and legal avenues for accountability.

Publication Type:	Monograph (Working Paper)
Additional Information:	This is a pre-print version of an article published in the Journal of International and Maritime Law. The final version of record is available at https://www.lawtext.com/publication/the-journal-of-international-maritime-law/contents/volume-26/issue-2
Subjects:	K Law > K Law (General)
Departments:	The City Law School > Academic Programmes The City Law School > CLS Working Paper Series

Export

Downloads