Etihad Rail, the developer and operator of the UAE's rail network, has introduced a sustainable finance framework, as announced on Wednesday. This move could potentially lead to the issuance of green bonds aimed at financing infrastructure with lower carbon emissions. Etihad Rail connects key industrial and commercial hubs with terminals and major ports. Upon completion, the network will not only include existing freight services but also introduce passenger services, integrating into a broader Gulf-wide railway network. However, the completion date remains undisclosed.
In a recent statement, Etihad Rail outlined that the newly launched framework establishes guidelines for green loans and bonds, detailing the use of proceeds, project evaluation and selection processes, as well as management and reporting of these proceeds. The framework is designed to align future financing with the company's environmental, social, and governance (ESG) strategy, focusing on investments in clean transportation, green buildings, and pollution prevention and control. The UAE, which hosted UN climate talks last year and plans to invest $54 billion in energy and renewables by 2030, is committed to achieving net zero emissions by 2050.
