Saudi Arabia unveils green financing framework to drive sustainability

By Shilpa Annie Joseph, Official Reporter
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Saudi Arabia launches green financing framework
Rep. Image | Courtesy: ekrem osmanoglu @ Unsplash

Saudi Arabia’s Ministry of Finance has published the Kingdom’s Green Financing Framework, an important initiative under the Financial Sector Development Program aimed at propelling the country toward its sustainability and net-zero emissions objectives.

This strategic move is aligned with the Circular Carbon Economy approach. The framework also highlights the Kingdom’s sustainability efforts to investors and market participants.

According to the ministry, the framework is a major step toward achieving the Saudi Vision 2030 goals for a more sustainable future, starting from policies and investment development to planning and building all kinds of infrastructure.

The Green Financing Framework is also proof of the Kingdom of Saudi Arabia’s regional leadership in sustainable finance and works to catalyze more public and private financing of climate and environment initiatives.

The framework was established following the Kingdom’s October 2021 announcement that it works to achieve net zero emissions by 2060 through the Circular Carbon Economy approach.

As per the statement, “This Framework contains certain forward-looking statements that reflect the Kingdom of Saudi Arabia’s current views with respect to future events and the financial and economic performance of the Kingdom of Saudi Arabia.”

The Kingdom aims to help fulfill the commitment to reducing greenhouse gas emissions by 278 million tons annually by 2030, according to the Paris Agreement, under the Green Bonds Principles of the International Capital Market Association. Through its Vision 2030, the Kingdom has already instigated a comprehensive set of unprecedented reforms in the public sector’s operating model, the economy, and society as a whole.

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