ABN AMRO provides world’s first financing for Ballast Water Treatment systems

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ABN AMRO Head Office

ABN AMRO Transportation has successfully concluded the world’s first financing for the installation of a Ballast Water Treatment system on several vessels for its Danish client, Celsius Shipping.

As per 8 September 2017, the IMO Ballast Water Treatment (BWT) Convention will enter into force. The convention will stop the spread of invasive aquatic species, which can be a threat to local ecosystems and affect biodiversity. Under the convention, vessels will be required to install a BWT system. This will have implications for both shipping clients and ABN AMRO as the core financier.

Ballast water

Ballast water is carried on board a vessel to keep it stable when it is not, or not (fully) loaded. Once cargo has been loaded onto the vessel, the ballast water needs to be discharged. The discharge of ballast water can have negative implications for the environment as local water systems become ‘polluted’ by invasive aquatic species from other regions.

Treatment

BWT systems ensure that ballast water is treated before being discharged to avoid posing a threat to the local marine ecosystem. The BWT system filters the water to prevent these organisms from reproducing. The International Maritime Organization has outlined certain deadlines in the regulation of BWT systems to improve disposal methods. The goal is to have a BWT system on board all vessels by 2022.

ABN AMRO

ABN AMRO Transportation has a clear focus on the sustainability side of shipping and aims to jointly work on this with its clients. As a result, ABN AMRO is the first bank to finance BWT systems for one of its core clients. Bart van Veen, Associate Director Transportation for North-Europe at ABN AMRO: “This can be seen as a landmark step where ABN AMRO continues to support its clients in improving their sustainability. The combination of new legislation and a creative financing solution is a fine example of sustainable shipping.”

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