significant challenges for start-ups to meet the criteria of some of the EIB green
shipping finance schemes.
7 Conclusion
It is undeniable that blending is likely to take on greater prominence in green
shipping finance globally, given its advantages discussed above. It is hoped that
this chapter, by analysing the scope and workability of the EIB green shipping
finance schemes, has demonstrated that in blending regard must be had to the legal
competencies of the public institution providing the financing incentives and underwriting the risks. Additionally, the question of competency is often linked to the
institution’s green legal competency but that idea of “greenness” is often
circumscribed by wider policy and regulation.
In this connection, the EIB is empowered by its statute to provide green shipping
financial support but only on commercial terms, regardless of the predominant
non-profit making remit.
66 Additionally, it must seek to help the EU to develop
economically, complete the internal market and promote its foreign policy objectives.
67 Leaving aside the question as to clarity in these objectives, “blending” seems
to allow the EIB to achieve its legal aims.
Blended financing has several distinct advantages in encouraging investment
from the private sector in green shipping projects. However, it has been argued in
this chapter that that is not a silver bullet, although it is most definitely an important
green finance toolkit. Blending brings together many stakeholders—which from a
sociological perspective means that more individuals are rewarded for sharing in a
green cooperative venture which in turn means greater ownership of the green
agenda in European shipping. That in itself might arguably be considered to be an
aspect of sustainability.
Of wider general interest is that the notion, concept or idea of that which is
“green” for the purposes of EIB green financing is largely given a somewhat
legalistic definition to be properly incorporated in any financing agreements between
the EIB and its partner financial institution. The EIB’s green agenda is not merely a
matter of policy, important though that may be, but also a measure or criterion of its
legal competencies. It is not empowered to provide financing support for projects
which are not green, according to its own expressed definition. However, the
definition as found in the EIB’s proforma template of standard contractual terms
68
is not necessarily helpful. Although as a matter of contract, the term might be varied,
it is unlikely that the EIB and its prospective partners would to be too quick to test
and reformulate a different definition. A lesson perhaps for other public financing
66 Supra n. 27.
67 Ibid.
68 Supra n. 15.
150
J. Chuah
shipping finance schemes.
7 Conclusion
It is undeniable that blending is likely to take on greater prominence in green
shipping finance globally, given its advantages discussed above. It is hoped that
this chapter, by analysing the scope and workability of the EIB green shipping
finance schemes, has demonstrated that in blending regard must be had to the legal
competencies of the public institution providing the financing incentives and underwriting the risks. Additionally, the question of competency is often linked to the
institution’s green legal competency but that idea of “greenness” is often
circumscribed by wider policy and regulation.
In this connection, the EIB is empowered by its statute to provide green shipping
financial support but only on commercial terms, regardless of the predominant
non-profit making remit.
66 Additionally, it must seek to help the EU to develop
economically, complete the internal market and promote its foreign policy objectives.
67 Leaving aside the question as to clarity in these objectives, “blending” seems
to allow the EIB to achieve its legal aims.
Blended financing has several distinct advantages in encouraging investment
from the private sector in green shipping projects. However, it has been argued in
this chapter that that is not a silver bullet, although it is most definitely an important
green finance toolkit. Blending brings together many stakeholders—which from a
sociological perspective means that more individuals are rewarded for sharing in a
green cooperative venture which in turn means greater ownership of the green
agenda in European shipping. That in itself might arguably be considered to be an
aspect of sustainability.
Of wider general interest is that the notion, concept or idea of that which is
“green” for the purposes of EIB green financing is largely given a somewhat
legalistic definition to be properly incorporated in any financing agreements between
the EIB and its partner financial institution. The EIB’s green agenda is not merely a
matter of policy, important though that may be, but also a measure or criterion of its
legal competencies. It is not empowered to provide financing support for projects
which are not green, according to its own expressed definition. However, the
definition as found in the EIB’s proforma template of standard contractual terms
68
is not necessarily helpful. Although as a matter of contract, the term might be varied,
it is unlikely that the EIB and its prospective partners would to be too quick to test
and reformulate a different definition. A lesson perhaps for other public financing
66 Supra n. 27.
67 Ibid.
68 Supra n. 15.
150
J. Chuah