Analytical software that generates an index to predict the trade-off between emissions reduction and debt servicing for ships financed under the Poseidon Principles has been developed by Metis Cyberspace Technology.

The Poseidon Principles offer a framework for lenders representing more than $150bn in loans to finance ships in line with International Maritime Organization goals to halve greenhouse gas emissions by 2050.

Metis said assessing whether ships merit further investment to keep pace with the IMO average efficiency ratio (AER) underpinning the principles “will be key”, although exact emissions targets have not yet been set.

Chief technical officer Serafeim Katsikas said the company has created the first viable methodology allowing owners to predict whether vessels would benefit most from investment, a change in operating profile or disposal in response to the advancing emissions rules.

“The owner calculates an individual ship’s standard deviation from the AER target, then considers the impact of investments or operating guidance on overall costs, including outstanding debt,” Katsikas said.

The calculations also offer a prediction on the costs of servicing debt in the context of emission restrictions and so can provide an assessment of a ship’s viable lifespan, he said.

The index is a refinement of Metis’ cloud-based data acquisition and performance reporting platform used by more than 250 ships. Twenty financial institutions have signed up to the Poseidon Principles, representing more than one-third of shipping’s global financing.

A pilot test has shown one owner that, while some of its ships may never need investment to cut emissions, others will need action now or at a future date, and two should be sold immediately.