The Saudi Ministry of Finance has introduced a pivotal initiative through the release of the Kingdom of Saudi Arabia Green Financing Framework. This move is set to propel the nation closer to sustainability and the ambitious goal of net zero emissions, employing the principles of the Circular Carbon Economy model. The framework is designed to exhibit to investors and participants in the market the Kingdom’s commitment to sustainable practices.
As outlined by the ministry, this framework represents a significant advancement in the journey towards the objectives established by Saudi Vision 2030, which include a comprehensive strategy for sustainable policy, investment, planning, and infrastructure development. It stands as testimony to Saudi Arabia’s emergent regional dominance in the domain of sustainable finance and aims to stimulate both public and private investment in projects focused on climate and environmental concerns.
The inception of the Green Financing Framework follows Saudi Arabia’s declaration in October 2021 of its dedication to achieving net zero emissions by the year 2060, in line with the Circular Carbon Economy strategy. The Kingdom is set to contribute to the global efforts in reducing greenhouse gas emissions, with a target of 278 million tons annually by 2030, which aligns with the stipulations of the Paris Agreement and adheres to the Green Bonds Principles as set forth by the International Capital Market Association.