NYK issues first green bond from the shipping sector

The Climate Bonds Initiative evaluates the JPY10bn green bond issued by Nippon Yusen Kaisha (NYK) on 24 May 2018. While the bond is included in the Climate Bonds database because LNG-fuelled ships are currently the lowest-emission option for long-haul shipping, the briefing argues that switching to LNG is insufficient for long-term climate goals. LNG-fuelled ships reduce total GHG emissions by only 15-21% and CO2 by 30% compared to heavy fuel oil ships, failing to meet the IMO's 2030 target of a 40% cut in GHG emission intensity. The document highlights the risk of 'lock in' to fossil fuels, as these vessels will operate into the 2030s, potentially delaying the transition to commercially viable renewable fuels like ammonia and hydrogen. It also emphasizes the necessity of controlling methane leakage to prevent LNG from having a worse GHG profile than traditional fuels.

• Nippon Yusen Kaisha (NYK) issued the shipping sector's first green bond on 24 May 2018, with a value of JPY10bn (USD92m) and a 5-year term, supported by a second party opinion from Vigeo Eiris.
• The proceeds of the bond are used to finance and refinance LNG-bunkering ships, LNG-fuelled ships, SOx scrubber systems, and ballast water management systems.
• Switching to LNG is deemed insufficient to meet the International Maritime Organisation (IMO) 2030 target of at least a 40% cut in GHG emission intensity, as NYK's LNG-fuelled ships only reduce total GHG emissions by 15-21% and CO2 by 30% compared to heavy fuel oil ships.
• Investing in LNG vessels creates a risk of fossil fuel 'lock in' because these ships will remain in operation into the 2030s, which is beyond the period when renewable alternatives are expected to become viable at scale.
• While ammonia and hydrogen are identified as main renewable fuel alternatives for decarbonising shipping, they are currently in the R&D stage and not yet commercially available, with uptake expected mainly after 2025 according to the OECD.
• Methane leakage during the transport and storage of LNG can potentially result in a GHG-emissions profile worse than that of traditional heavy fuel oil ships, as methane is approximately 28 times more powerful than CO2 in its warming potential.
• The Climate Bonds Initiative is establishing a Technical Working Group (TWG) and Industry Working Group (IWG), including NYK, to develop specific eligibility requirements for shipping-related green bonds.

APA

Climate Bonds Initiative (2018). NYK issues first green bond from the shipping sector. https://www.climatebonds.net/files/documents/publications/Briefing-NYK-Green-Bond-%E2%80%93-green-enough-for-now-but-not-for-long_2025-02-17-163155_jpar.pdf

Chicago

Climate Bonds Initiative. NYK issues first green bond from the shipping sector. 2018. https://www.climatebonds.net/files/documents/publications/Briefing-NYK-Green-Bond-%E2%80%93-green-enough-for-now-but-not-for-long_2025-02-17-163155_jpar.pdf.

Wikipedia

{{cite report |author=Climate Bonds Initiative |title=NYK issues first green bond from the shipping sector |date=5 June 2018 |url=https://www.climatebonds.net/files/documents/publications/Briefing-NYK-Green-Bond-%E2%80%93-green-enough-for-now-but-not-for-long_2025-02-17-163155_jpar.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatebondsinitiative2018nyk, author = {{Climate Bonds Initiative}}, title = {{NYK issues first green bond from the shipping sector}}, institution = {Climate Bonds Initiative}, year = {2018}, month = jun, url = {https://www.climatebonds.net/files/documents/publications/Briefing-NYK-Green-Bond-%E2%80%93-green-enough-for-now-but-not-for-long_2025-02-17-163155_jpar.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }