|16 January, 2020

Abu Dhabi's green bond accelerator initiative aims to finance sustainable projects

The initiative's announcement was part of the Abu Dhabi Sustainability Week 2020

Image used for illustrative purpose. Young Arab investor monitoring his investments.

Image used for illustrative purpose. Young Arab investor monitoring his investments.

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The Abu Dhabi Department of Energy (DoE) announced a new green bond accelerator programme aimed at showcasing the emirate as a regional hub for the issuance of green bonds and green sukuk for sustainable projects across the Middle East and Africa.

The DoE programme aimed at financing green projects is a joint initiative with Abu Dhabi Global Market (ADGM) and Abu Dhabi Securities Exchange (ADX) and will develop a transparent framework for green bonds, Mohamed Bin Jarsh Al Falasi, Undersecretary of the Abu Dhabi Department of Energy said.

Al Falasi said that the green bond will be established, regulated and listed in Abu Dhabi, with the money from any green bond supporting sustainable and efficiency projects both inside and outside the emirate.

“Over the coming months, we will be engaging with stakeholders to further develop this initiative and consider whether Blue and Transition Bonds can also be included,” Al Falasi added.

DoE will not itself issue the bonds, it said in a statement. The bonds will be issued by financial institutions, governments and companies, to support green projects and energy and water efficiency inside and outside the Emirate.

The statement adds that the initiative will encourage the clustering of international and local advisers in Abu Dhabi to provide a one-stop-shop for sustainable financing.

The initiative’s announcement was part of the Abu Dhabi Sustainability Week 2020.

(Reporting by Gerard Aoun; editing by Seban Scaria)

(gerard.aoun@refinitiv.com)

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© ZAWYA 2020

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