The Department of Energy in Abu Dhabi today announced the "Green Bonds" initiative during the "Abu Dhabi Forum for Sustainable Finance", which is being held within the framework of the activities of Abu Dhabi Sustainability Week 2020.
The "Green Bonds" initiative is a joint initiative between the Energy Department, Abu Dhabi Global Market and Abu Dhabi Stock Exchange; it aims to establish Abu Dhabi as a regional center for issuing green bonds and sukuk for sustainable projects in the emirate and throughout the Middle East and Africa.
The value of the green bond market in the Middle East and Africa is more than $ 2 billion, with the possibility of further growth. The total value of the global green bond market exceeded $ 230 billion in 2019, and is expected to grow to about $ 350 billion in 2020.
The Department of Energy will cooperate with the Abu Dhabi Global Market, Abu Dhabi Securities Market and other relevant authorities to develop the green bond initiative and support sustainable financing in the region.
The Energy Department indicated that it is about to issue a consulting paper soon on the department's new green bond policy.
The Energy Department continues to work closely with the Abu Dhabi Global Market, Abu Dhabi Securities Market and various other partners to develop the mechanism of work and seek to create a regulatory framework for green bonds .. More details will be included in the green bond advisory paper. In general, however, the Green Bond Issuer will be established in Abu Dhabi with funds from any green bond that can support sustainable and effective projects inside and outside the emirate. This will create a global hub for investing green bonds in the emirate.
Eng. Mohammed bin Jarash Al Falasi, Undersecretary of the Energy Department in Abu Dhabi said: We will work closely with the Abu Dhabi Global Market, Abu Dhabi Securities Market and other stakeholders to pave the way towards developing a transparent framework for green bonds, and we will soon issue a consulting paper that includes more details; General, green bonds will be issued, organized, and listed in Abu Dhabi, with the resulting funds to be used to support sustainable projects inside and outside the emirate .. In the coming months, we will communicate with stakeholders to further develop this initiative, and discuss the possibility of including blue and transitional bonds .. and N This would contribute to the consolidation of Abu Dhabi's position as a leading center for sustainable financing of green bonds in the region.
The objective of the Green Bond Program is not only the provision of green financing and refinancing options for sustainable projects in Abu Dhabi, but also seeks to establish Abu Dhabi as a new hub for investment in sustainable projects in the Middle East and Africa region. The program also provides for the establishment of a center for knowledge, innovation and excellence in the field of green bonds in the region, as well as mobilizing the efforts of international and local consultants in Abu Dhabi to establish a comprehensive and integrated center for sustainable financing; this includes energy consultants, banks, law firms, auditors and other specialized consultants who work to build Strong green and sustainable financing infrastructure.
The bonds will be listed on the Abu Dhabi Stock Exchange to exclusively support green and sustainable projects that are in line with the Department's green bond policy.
The green bond policy will also cover plans to raise energy and water efficiency, green buildings, new infrastructure services for electric vehicle charging, and carbon capture, as well as effective water management, wastewater, and recycled water technologies.
In order to enhance investor confidence and ensure that any green bonds issued in Abu Dhabi are made real, the Energy Department will clarify in its consultative paper qualification, reporting and approval standards in accordance with the international standards followed (including the principles of green bonds approved by the International Capital Markets Association.