Major Japan Shipper Sees Sector Benefits From Transition Finance

A new kind of financing that allows borrowers to gradually move toward greener operations is well suited for the shipping industry, according to an official closely involved with such fundraising at one of Japan’s biggest shippers.

That’s because the capital-intensive industry will need decades to achieve carbon-neutral targets, Arisa Ebata, a manager in the finance team of Kawasaki Kisen Kaisha Ltd., said in an interview.

Kawasaki Kisen’s LNG-fueled car carrier “Century Highway Green”

Source: Kawasaki Kisen Kaisha Ltd.

The company said in March it arranged an operating lease for a car carrier fueled by liquefied natural gas, using an about 5.9 billion yen ($53.4 million) climate transition loan, the first such ...