Saudi Arabia’s Ministry of Finance has unveiled a green financing framework. This framework marks a significant step forward in the Kingdom’s journey towards sustainability and its commitment to achieving net-zero emissions through the circular carbon economy approach.
The green financing framework serves as a cornerstone in Saudi Arabia’s efforts to transition towards a more sustainable future. By outlining policies and investment strategies geared towards sustainability and environmental preservation, the framework sets the stage for investors and market participants across various sectors. It underscores the Kingdom’s dedication to aligning financial resources with its sustainability goals. Hence, this contributes to the global efforts to combat climate change.
The framework marks a significant milestone in reaching the goals of Saudi Vision 2030 for a more sustainable future. This includes sustainable policies, investment development, and planning and building all kinds of infrastructure.
Leadership in sustainable finance
The introduction of the green financing framework reaffirms Saudi Arabia’s position as a regional leader in sustainable finance. Thus, it provides clarity and transparency to investors and market participants. It also fosters confidence in the Kingdom’s commitment to sustainability and responsible investment practices. Moreover, it seeks to catalyze more public and private financing of climate and environmental initiatives.
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Net-zero emissions by 2060
Saudi Arabia established the green financing framework following its October 2021 commitment to achieve net-zero emissions by 2060. Saudi Arabia has set a goal to reduce greenhouse gas emissions by 278 million tons annually by 2030, according to the Paris Agreement. By adhering to the Green Bonds Principles of the International Capital Market Association, Saudi Arabia demonstrates its dedication to transparency, accountability, and international best practices in sustainable finance.
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