Etihad Rail, the developer and operator of the UAE's national rail network, announced the launch of its sustainable finance framework on Wednesday. This initiative marks a significant step towards potentially issuing green bonds aimed at financing low-carbon infrastructure projects across the country.
The rail network, which already facilitates freight services, will eventually include passenger services and form part of a wider Gulf railway network. However, the completion date for the entire project has not yet been disclosed.
According to a statement from Etihad Rail, the newly launched framework provides comprehensive guidelines on several key areas, including green loan and bond principles, the use of proceeds, project evaluation and selection and the management and reporting of proceeds. This framework closely aligns with the company’s environmental, social and governance (ESG) strategy.
The framework will ensure that future financing aligns with investments in clean transportation, green buildings, and pollution prevention and control. This initiative comes as part of the UAE's broader commitment to achieving net zero emissions by 2050. The country, which hosted the UN climate talks last year, has pledged to invest $54 billion in energy and renewable sources by 2030, further underscoring its dedication to sustainable development.
This sustainable finance framework by Etihad Rail is expected to play a crucial role in advancing the UAE’s environmental goals while supporting the nation’s growing infrastructure needs.
Input From: Reuters