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Emirates Global Aluminium introduces green financing framework to drive decarbonization

Citi, ING, and First Abu Dhabi Bank (FAB) all played a role in developing the framework.

Emirates Global Aluminium introduces green financing framework to drive decarbonization
[Source photo: Krishna Prasad/Fast Company Middle East]

Emirates Global Aluminium (EGA) has launched its Green Finance Framework, according to Emirates News Agency, taking a significant step towards achieving its sustainability goals. 

This framework will fund projects and initiatives that contribute to a low-carbon economy. It outlines eligibility criteria and governance procedures for securing financing from institutions prioritizing sustainability in their investments.

This approach could provide EGA with access to a wider range of lenders at potentially lower borrowing costs and promote transparency. Citi, ING, and First Abu Dhabi Bank (FAB) played key roles in developing the framework.

EGA’s commitment to sustainability is further highlighted by its public pledge to achieve net-zero greenhouse gas emissions by 2050, aligning with the UAE’s national target. This commitment comes amidst a projected surge in global aluminum demand, which is expected to increase by 50% to 80% by 2050. To meet this demand sustainably, recycled and low-carbon primary aluminum is expected to play a major role.

EGA recently demonstrated its commitment to sustainable aluminum production by acquiring Leichtmetall, a European specialty foundry that utilizes renewable energy and secondary aluminum. This acquisition, funded entirely through EGA’s first green loan facility, marks another milestone in the company’s sustainability journey.

“The aluminum EGA produces plays an essential role in the development of a more sustainable society. It is also important how sustainably it is produced,said EGA’s Chief Executive Officer, Abdulnasser Bin Kalban. “Our Green Finance Framework enables us to access a deeper pool of liquidity to finance projects and initiatives that advance our decarbonization goals.”

EGA has implemented several initiatives to promote sustainability across its operations and supply chain. In 2023, the company launched the UAE’s first ESG-linked supply chain finance program, offering $73 million in financing to suppliers dedicated to sustainability practices.

Additionally, EGA established dedicated sustainable corporate bank accounts in 2022, ensuring a portion of its cash reserves is used to support sustainability initiatives across the economy.

These combined efforts firmly establish EGA as a leader in sustainable aluminum production, striving to reduce its environmental footprint while satisfying the increasing global demand for the metal.

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