As countries and organizations strive to meet ambitious climate goals, innovative financing and infrastructure development approaches are becoming increasingly important.

Etihad Rail, owned by the Abu Dhabi sovereign wealth fund ADQ, recently unveiled a detailed sustainable finance framework to advance sustainable development and meet global environmental targets. This framework aims to facilitate the issuance of green bonds, which will be instrumental in securing funds for lower-carbon infrastructure projects.

Developed in partnership with industry experts and financial institutions such as First Abu Dhabi Bank and Standard Chartered Bank, which acted as co-ESG advisors, the framework has also received validation through a Second Party Opinion (SPO) from Det Norske Veritas (DNV). It outlines critical aspects such as green loan and bond principles, the allocation of proceeds, project evaluation and selection, and the management and reporting of proceeds.

Additionally, the framework will align future financing with its environmental, social, and governance (ESG) strategy, covering environmental risk assessment mechanisms and promoting transparency, according to the Emirates News Agency (WAM).

The focus will include investments in clean transportation, green buildings, and pollution prevention and control measures.

According to Ali Tabbal, Etihad Rail’s chief financial officer, the framework is a pivotal element of its broader ESG strategy, directly aligning with the United Nations’ Sustainable Development Goals. “It provides a clear roadmap for integrating ESG considerations into investment decisions, empowering companies to generate long-term sustainable value. By doing so, we are not only fostering a transition to a low-carbon, resilient economy but also supporting the UAE’s Net Zero 2050 Strategy and contributing to the nation’s vision for a sustainable future,” he said.

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