KfW IPEX-Bank said on Wednesday it has become the first German bank to adopt responsible ship recycling standards (RSRS) in loan agreements.

It will insert green scrapping clauses in finance contracts, it added.

With a lending volume of EUR 13.9bn ($17bn) last year, the lender ranks in the top five ship financiers worldwide.

"By joining the RSRS initiative, it is underlining its high standards regarding the environmental and social compatibility of its financing," the bank said.