A.P. Moeller-Maersk (Maersk), the largest container shipping in the world by market share, has agreed to link its new $5 billion revolving credit facility to its environmental performance.

In a statement, the carrier said it had agreed the terms of the facility with 26 selected banks.

It is the first bank refinancing Maersk has arranged since its transformation from a diversified conglomerate to a global container logistics company.

The credit margin under the facility will be adjusted based on Maersk’s progress to meet its target of cutting CO2 emissions per cargo moved by 60% by 2030.

This goal is substantially higher than that set out by the International Maritime Organisation (IMO) of 40% in the same period.

“We have received strong support from our global relationship banks. The facility was substantially oversubscribed, and we are pleased with the terms and conditions of the new facility,” said Henriette Hallberg Thygesen, CEO of Fleet and Strategic Brands, Maersk.

“With the new facility we have extended the maturity profile of our finance commitments, while aligning with our sustainability ones.”

In December 2018 Maersk unveiled plans to make carbon-free vessels commercially viable by 2030 and to phase carbon out all together by 2050, a story Port Technology International (PTI) reported on.

As part of that, the carrier launched a project to utilise eco-friendly biofuel in commercial shipping alongside Shell and the Dutch Sustainability Growth Coalition.

“We are determined to reach our ultimate target of becoming fully carbon neutral by 2050, and this agreement serves as another enabler for us to deliver on that ambition,” explained Thygesen.

“Given the lifespan of our fleet, we need to find new and sustainable solutions to propel our vessels within the next 10 years.

“To realize this ambitious commitment, we are partnering with researchers, regulators, technology developers, customers, energy providers – and now banks.”