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ABU DHABI - Abu Dhabi National Energy Company (TAQA) announced today that it has launched a new Green Finance Framework for the issuance of green bonds, sukuks, loans, and other debt instruments.
Proceeds from such issuances will go to eligible green projects, including renewable energy, energy efficiency, sustainable water and wastewater management, clean transportation, and terrestrial and aquatic biodiversity. Projects that are being financed under the Framework will contribute to TAQA’s 2030 ESG targets and its long-term net-zero goal.
TAQA’s Green Finance Framework is aligned with the global best practices set out under the four core components of the Green Bond Principles 2021 published by the International Capital Market Association (ICMA).
TAQA has also obtained a Second Party Opinion (SPO) from Moody’s Investor Services (Moody’s). Moody’s has also assessed the framework and given it a Sustainability Quality Score of SQS2 (Very Good), the second-highest score under Moody’s SPO scoring framework which means it demonstrates a significant contribution to sustainability.
Jasim Husain Thabet, TAQA’s Group Chief Executive Officer and Managing Director, commented, “TAQA’s Green Finance Framework is an important mechanism to help us finance the journey towards achieving our environmental, social, and governance (ESG) goals, as a low carbon power and water champion.
"This framework is further evidence of how serious we are about putting sustainability and responsible business practices at the heart of everything we do, as we also support the UAE in achieving its Net Zero by 2050 objective. Our own emission reduction targets are backed by a business plan and credible green projects that will see us play a key role in decarbonising the power and water sector and other industries in the UAE and worldwide.”
In establishing its Green Finance Framework, TAQA has received support from Citi, Standard Chartered Bank, MUFG and HSBC as Joint Sustainability Structuring Banks alongside First Abu Dhabi Bank (FAB) as Sustainability Finance Framework Advisor.
In late 2022, TAQA announced its 2030 ESG Strategy which included interim greenhouse gas (GHG) emissions reduction goals. A credible step towards achieving its net-zero ambitions by 2050, TAQA has committed to a 25 percent reduction of scope 1 and 2 emissions by 2030 across the Group, including a 33 percent reduction of the UAE portfolio emissions compared to the 2019 baseline.