Saudi Arabia, the world’s biggest oil exporter, is set to sell green bonds for the first time. The move comes as it seeks to raise money for eco-friendly projects and shift away from fossil fuels, the backbone of the country’s economy.
The Green Financing Framework was released by the Finance Ministry on Thursday. The framework identifies eight types of projects eligible for so-called green debt sales financing, ranging from support for clean transportation and renewable energy to projects that help local climate adaptation. The structure will allow the government to sell green bonds and sukuk for projects that meet the criteria, the ministry said. The sale would be a first of its kind for the central government as it aims to reduce greenhouse gas emissions by 278 million tonnes per year by 2030 and achieve net zero emissions by 2060.
Saudi Arabia’s sovereign wealth fund, known as PIF, will start issuing green debt in 2022. Issues to the government will be through the Ministry of Finance. Two committees, the Sustainable Finance Committee and the Projects and Monitoring Committee, will oversee the sale and allocate funding for projects.
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2024-03-30 07:11:22
