RIYADH: Standard Chartered Bank and Siemens Energy have issued Qatar’s first Green Guarantee – an initiative designed to increase sustainable and responsible banking practice in the country. The Green Guarantee was granted for a solar power project that is projected to play a significant role in the country’s national climate change action strategy and its goal of reducing its carbon footprint while enhancing its energy independence. This Green instrument is intended to aid in the project’s completion and long-term sustainability. Green guarantees can serve as a powerful de-risking mechanism, accelerating the flow of private financing into climate mitigation and adaptation projects in developing nations. “The road to net zero requires partnership, innovation, as well as decarbonization. This is highlighted in the development of this innovative Green Guarantee as a trading instrument with Standard Chartered, which will support the development of an important solar power project in Qatar,” Daniela Schoeppner, vice president of Finance Hub Middle East at Siemens Energy said. The collaboration between Standard Chartered Bank, Qatar, and Siemens Energy creates an entirely new benchmark for sustainable finance in Qatar and serves as a model for companies and institutions interested in promoting responsible and sustainable finance practices. The announcement is the latest move by countries in the region to push ahead with sustainable investments. In February, Saudi Arabia’s Ministry of Industry and Mineral Resources also signed a memorandum of understanding with Standard Chartered Bank to evaluate the requirements for sustainable investment in the mining sector in the Kingdom, in line with its Vision 2030 objectives. The MoU focuses on promoting knowledge transfer, technological enablement, job creation and executing the outcomes of the Future Minerals Forum. It will also encourage local and foreign businesses to discover investment potential in Saudi Arabia’s mining and mineral sectors. Saudi Arabia’s Public Investment Fund announced in February that it has raised $5.5 billion through its second green bond sale. This follows the PIF’s initial green bond issuance amounting to $3 billion in October 2022. The money will be used to fund sustainable investments by the sovereign wealth fund through its Green Finance Framework. The first offering was more than eight times oversubscribed, with a subscription request totaling $25.9 billion. The most recent bond issuance was more than six times oversubscribed, with books surpassing $33 billion, and it was offered in three tranches – $1.75 billion for 7 years, $2 billion for 12 years, and $1.75 billion for 30 years.