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Freighter financing: It's not easy being green

The environmental consequences of funding decisions are rising higher and higher in the list of factors that lenders and financiers must to take into account when evaluating how best to put money to work.

This is especially the case in aviation, and in the freighter conversion market in particular, as the world watches to see how the industry re-shapes itself in the wake of the pandemic and COP26. There is a fine balance to be struck between the economic gains to be made by converting older and less efficient aircraft models and the environmental benefits of newer, greener, purpose-built freighters.

Read about the issues in detail in Reed Smith’s special report, ‘Global air freight’s future: The sky is the limit’, available to download here:

The company also warned green interests must be considered when looking at financing. It said that converting older, less efficient passenger aircraft into freighters may be unattractive to financiers with regulators, investors or shareholders who are actively engaged in environmental issues.


transportation, aviation, air freight, logistics, finance, asset and equipment finance, supply chain