Progress on Climate Strategy – Introducing the shipping sector as one of the climate targets

In a time marked by unprecedented global uncertainty—shaped by geopolitical tensions, rising defense priorities, and economic volatility—the urgency of the climate crisis has not diminished. NIB remains on track and fully committed to its climate objectives.

While climate change poses immense challenges, NIB recognizes the great opportunities the Bank has in shaping a sustainable future. NIB is committed to addressing the climate challenge in accordance with the Paris Climate Agreement and becoming a net-zero bank by 2050. As a sign of NIB’s commitment, the Bank has also set mid-level climate targets for 2030 for key lending sectors and own operations, which have been validated by the Science-Based Target initiative (SBTi) in 2025.

Building on this foundation, NIB continues to strengthen its Climate Strategy by keeping the sectoral focus and expanding the coverage of its climate targets. As part of this development, NIB is now including the shipping sector within the scope of its climate targets. NIB’s upcoming and revised Climate and Nature strategy will also integrate the shipping sector in the scope.

Nikunj Pokhrel, NIB’s Sustainability Advisor, explains where NIB stands with its Climate Strategy and what we can expect in the future.

How is NIB currently performing against its climate targets?

“While the green transition is not a linear process, our performance shows encouraging momentum. We see good progress in six out of nine sectors where we have set the targets. Notably, sectors with clear decarbonisation pathways – such as power, heat, consumer retail and capital goods – are advancing even faster than a linear trajectory would require. These are also the sectors that make up largest share of our emissions.”

What has been the driver behind these improvements?

“First, having clear and measurable sectoral targets has created strong internal alignment and focus. Second, we continue to see the demand from clients for financing their transition strategies, especially in sectors where decarbonisation technologies are already well established. Lastly and importantly, our teams have built stronger climate expertise, which allows us to identify impactful projects and structure financing in ways that directly support reductions.”

Where do you see potential challenges in meeting the climate targets?

“The next phase of the transition will be more demanding. As we move beyond the sectors where transition solutions are commercially available, we increasingly face areas and sectors where solutions are more complex, investment cycles are longer, and regulatory and market conditions are still evolving. At the same time, climate transition is facing some headwinds as global priorities shift, creating a risk of reduced attention at the top— even though we continue to see progress on the ground. Keeping the pace for sectors such as real estate, steel, cement and aluminium, will require more tailored financing solutions, deeper client engagement, and continued development of our analytical capabilities. It is less about speed alone, and more about the quality of impact we can finance in these sectors.”

NIB is now including the shipping sector within the scope of its climate targets. Why?

“Shipping is a strategically important sector for our region and a material contributor to global emissions. It is also a classic hard-to-abate sector, where transition requires long-term planning, significant investment, and close cooperation between financiers and the industry. We are targeting to increase the share of zero emission capable commercial vessels in our portfolio from 30% to 67% by 2030. By including shipping in our climate targets, we strengthen both the completeness and the credibility of our climate strategy and ensure that it reflects the real economy we are financing. It also sends a signal to our clients in the sector: We recognize the scale of the transition challenge and are committed to supporting them in addressing it.”

It also sends a signal to our clients in the sector: We recognize the scale of the transition challenge and are committed to supporting them in addressing it.

Nikunj Pokhrel

Sustainability Advisor, Nordic Investment Bank

What does this mean in practical terms for how NIB engages with the shipping clients?

“It means that our engagement will increasingly focus on long-term transition pathways and the shipping value chain as a whole. We will look at how our financing supports fleet renewal, energy efficiency, alternative fuels readiness, and emissions performance over time. We recognize that ship operators, fuel producers, and port infrastructure are closely interdependent in the transition, and that investment incentives and risks sit in different parts of the value chain. This calls for deeper dialogue not only with operators, but also on how today’s investments align fuel availability, infrastructure, and vessels.  In this way, financing becomes a tool to enable both growth and transition.”

If you look five years ahead in 2030, what would success look like for NIB in terms of climate impact?

“Success in 2030 would mean that our portfolio is aligned with the objectives of our climate strategy and that we can demonstrate measurable progress. It would mean that through our financing and engagement, sectors with existing transition solutions today have delivered tangible and scalable outcomes, while more complex and hard-to-abate areas have credible transition pathways and investments in place.”

NIB’s revised and expanded Climate and Nature Strategy is expected to be published in 2026.