Funding Sustainable Shipping: a Fuzzy Cognitive Mapping Approach To the Poseidon Principles

Abstract

The shipping industry is a major contributor to global greenhouse gas emissions, posing a significant challenge to achieving the International Maritime Organization's 2050 decarbonization targets. The Poseidon Principles provide a framework for financial institutions to align their portfolios with these climate goals, using metrics like the Annual Efficiency Ratio and Carbon Intensity Indicator. However, misalignments between these climate metrics and financial systems create barriers to accessing capital, hindering investments in low-carbon technologies. This study applies Fuzzy Cognitive Mapping to examine the complex relationships between environmental performance, regulatory compliance, and financial accessibility in the maritime industry. The Fuzzy Cognitive Mapping model identifies key leverage points for improving access to capital, such as enhancing energy efficiency, adopting innovative technologies, and fostering policy interventions like carbon pricing. Simulations analyses provide actionable insights, offering a comprehensive framework for overcoming funding challenges and supporting sustainable, lowcarbon maritime transportation.