UAE’s Tabreed launches green financing framework to fund projects

The UAE’s National Central Cooling Company (Tabreed) has announced a Green Financing Framework.

The framework enables Tabreed to issue green bonds and loans, with the resulting net proceeds to be used for financing ‘Eligible Green Projects’ which include its core business of constructing, acquiring and operating district cooling schemes, as well as projects related to energy and water efficiency as well as wastewater management.

The framework is accompanied by a second party opinion from ESG ratings agency Sustainalytics.

Tabreed’s district cooling operations currently utilise 50 per cent less power than conventional cooling.

Tabreed’s Green Financing Framework has been developed in accordance with the ICMA Green Bond Principles (GBP) 2021 and the Loan Market Association (LMA) Green Loan Principles (GLP) 2021, and will be governed by a multidisciplinary management committee led by the group’s chief financial officer.

In October last year, the UAE announced a new Net Zero 2050 Strategic Initiative to reduce carbon emissions. Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, said that the UAE will spend over Dhs600bn on renewable energy until 2050. The UAE plans 50 per cent of its energy to come from renewable sources by 2050. The UAE is targeting an energy mix that combines renewable, nuclear and clean energy sources. The equation targeted by the 2050 strategy includes 44 per cent clean energy, 38 per cent gas, 12 per cent clean coal and 6 per cent nuclear. It also aims to increase consumption efficiency of individuals and corporates by 40 per cent, and enable savings of Dhs700bn.

Read: UAE reveals Net Zero 2050 Strategic Initiative