RIYADH: Abu Dhabi National Energy Co., also known as TAQA, announced the establishment of a new Green Finance Framework for green bond issuance, sukuk, loans and other financial instruments. The proceeds from these issuances will be utilized to finance qualifying green initiatives such as renewable energy, energy efficiency, sustainable water and wastewater management, clean transportation, and terrestrial and aquatic biodiversity. Projects funded within the framework will contribute to TAQA’s 2030 environmental, social, and governance strategy objectives and long-term net-zero goals. The Green Bond Principles 2021, released by the International Capital Market Association, are aligned with the major components of TAQA’s framework. “This framework is further evidence of how serious we are about putting sustainability and responsible business practices at the heart of everything we do. We also support the UAE in achieving its Net Zero by 2050 objective,” said Jasim Husain Thabet, the group CEO and managing director of TAQA. “Our emission reduction targets are backed by a business plan and credible green projects that will see us play a key role in decarbonizing the power and water sector and other industries in the UAE and worldwide,” he continued. Citi, Standard Chartered Bank, MUFG and HSBC, as joint sustainability structuring banks, helped the energy company develop this framework. In addition, First Abu Dhabi Bank joined hands as a sustainability finance framework adviser. Credit rating agency Moody’s Investor Services also gave TAQA a second-party opinion. Moody’s has also evaluated the framework and assigned it a sustainability quality score of SQS2, which is very good. It is the second-highest level under Moody’s SPO assessment scheme, indicating that it contributes significantly to sustainability. TAQA unveiled its 2030 ESG Plan in late 2022, which included intermediate objectives to reduce greenhouse gas emissions. It has also committed to a 25 percent reduction in scope 1 and 2 emissions by 2030 throughout the group, including a 33 percent reduction in UAE portfolio emissions compared to the 2019 baseline, as a natural step toward reaching its net-zero aspirations by 2050.