Teekay Shuttle Tankers has mandated a $150m “green bond” to fund new oil tankers built to the firm’s “e-shuttle” standards. The deal raises questions about the logic of using green-branded debt instruments to fund fossil fuel extraction.
The bond has been assessed as “light green” by second-opinion provider Cicero.
Cicero describes such bonds as being climate friendly, but that they do “not by themselves represent or contribute to [a] long-term vision. These represent necessary and potentially significant short-term [greenhouse gas] emission reductions, but need to be managed