On the Synergy Between Renewable Energy and Npl Reduction in the Maritime Industry
On the Synergy Between Renewable Energy and Npl Reduction in the Maritime Industry

Author(s): John Hlias Plikas, Panagiotis Trakadas, Dimitris Kenourgios
Subject(s): Social Sciences
Published by: Udruženje ekonomista i menadžera Balkana
Keywords: Non-performing loans; Renewable energy; Sustainable finance in maritime industry
Summary/Abstract: The recent geopolitical tensions, the rising uncertainties and climate risks pose challenges to all industries. The shipping industry faces challenges such as rising fuel costs and tightening environmental regulations, which decrease the ability of shipping borrowers to meet their loan repayment obligations, exacerbating the likelihood of increased non-performing loans (NPLs). Drawing on existing literature, this study examines the synergy between renewable energy adoption and NPLs in the maritime industry. The findings underscore that the increased renewable energy dependency will bolster the resilience of maritime borrowers. Vessels adopting renewable sources and aligning with tightened environmental regulations may avert the regulatory disruptions that could hinder loan repayments. Renewable sources’ adoption will also attract investors and enhance access to additional financing. Consequently, reduced NPLs will stimulate banks’ financial stability and foster economic growth. This study also identifies challenges related to renewable energy adoption, offering practical pathways to adoption and outlining the channels of NPL reduction.

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