The Abu Dhabi National Oil Company (ADNOC) and the Japan Bank for International Cooperation (JBIC) have entered into a $3 billion green financing facility, marking a significant step in ADNOC’s decarbonization and energy transition efforts.
Key Facts
- Financing Agreement: ADNOC and JBIC signed an agreement for an 11 billion UAE dirhams ($3 billion) green financing facility.
- Previous Agreement: The deal follows the signing of a Heads of Agreement (HOA) between the two entities in January.
- Funding Purpose: This is ADNOC’s first green funding initiative, aimed at supporting its decarbonization and energy transition strategies.
Green Financing Details
The green financing facility is part of JBIC’s Global action for Reconciling Economic growth and Environmental preservation (GREEN) lending program. It is partially supported by Japanese commercial banks, aligning with global efforts to balance economic growth with environmental preservation.
Strategic Goals
Khaled Al Zaabi, ADNOC Group Chief Financial Officer, emphasized that the proceeds from this facility will bolster the company’s strategy for a fair and sustainable global energy transition.
ADNOC’s Decarbonization Plans
ADNOC has previously announced ambitious plans to reduce its carbon intensity by 25% by 2030. This initiative is part of a broader strategy that includes a $23 billion (AED84.4 billion) investment to decarbonize operations and foster growth in future energy sources such as hydrogen, geothermal, renewables, and carbon capture technologies.
By securing this green financing, ADNOC is reinforcing its commitment to sustainability and innovation in the energy sector, setting a precedent for future industry practices.
