The Arab Petroleum Investments Corporation (APICORP) will allocate $1 billion for green energy projects and sustainable energy companies in the next two years as part of its low-carbon footprint energy transition strategy.

The investment firm, which is owned by the governments of Organisation of Arab Petroleum Exporting Countries, intends to focus the funds on the Middle East North Africa (MENA) region, and review its holdings’ environmental, social and governance (ESG) footprint in 2023.

The company also said it will “focus on supporting the proliferation of renewable energy sources and low-carbon technologies, as well as forging more strategic partnerships to promote” its sustainability agenda.

“We want to support a transition to a low-carbon, climate-resilient economy by mitigating risks across our operations, supply chain and client transactions by embedding sustainable principles in our business practices,” APICORP chairman Aabed bin Abdulla Al-Saadoun said.

"We will continue to drive the ESG agenda in our member countries through our research and knowledge-sharing activities, as well as our unique position in advising key policy makers within government and regulatory circles," said Ahmed Ali Attiga, chief executive officer of APICORP.

The plans were announced on Monday, as the company launched its new ESG policy framework, which is part of APICORP's drive to support energy transition in its member countries and beyond. The new framework includes a robust due diligence toolkit to measure the ESG impact when making financing and investment decisions.

The multilateral development bank’s “green assets”, or $550 million in loans and direct investments, make up about 13 percent of its holdings.  

The company had earlier formulated a set of objectives in line with its five-year (2020-2024) strategy to integrate ESG principles across its business.  

Among its objectives, APICORP had said it wants to manage both its direct and indirect environmental and social impacts through the lending and investment portfolio. It also aims to promote access to finance and investment to support the development of the wider energy sector.

(Writing by Cleofe Maceda; editing by Seban Scaria)

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