Two major European banks are agreeing to support investment in upgrading the European shipping fleet to fit in with a new, more eco-friendly future.

The European Investment Bank (EIB) and Dutch bank ABN Amro will guarantee that promoters of sustainable projects in the maritime transport sector can benefit from favorable financial terms due to the EIB's AAA rating.  This will include projects to retrofit existing ships and construction of new vessels, as well as both inland shipping and seagoing operators, with the goals of cutting emissions and increasing fuel efficiency.

"The Bank received a clear signal from the market that there was a financing gap for the greening of shipping fleets," said EIB vice-president Pim van Ballekom.  "By allowing the EIB to take more risk, the Investment Plan for Europe enabled us to create a new instrument to support shipping companies in complying with the European sustainability standards."

European shipping firms recognize that they need to invest in new, cleaner technologies.  A recent study showed that some 15 percent of firms tended to consider that their investment over the past three years to have been too low to ensure their success going forward - and they plan on catching up.