Abu Dhabi National Oil Company (ADNOC) has signed a general agreement with the Japan Bank for International Cooperation (JBIC) for a $3 billion (AED11 billion) green financing facility.
The credit facility is part of JBIC’s Global Action for Reconciling Economic Growth and Environmental Preservation (GREEN) lending program and is partially supported by Japanese commercial banks.
Khaled Al Zaabi, ADNOC Group Chief Financial Officer, said that the funding will go towards its energy “transition initiatives” and decarbonisation efforts.
The green financing announcement follows the signing of a Heads of Agreement (HOA)between ADNOC and JBIC in January this year.
As reported by The National, according to the UAE oil major, headed by COP28 President HE Dr. Sultan al-Jaber, last year, the company reduced 6.2 million tonnes of carbon dioxide equivalent in Scope 1 and Scope 2 emissions, including a 4.8 million tonnes reduction from clean grid energy.
The giant has also moved its net zero ambition to 2045.
At the same time, according to Global Witness forecasts, ADNOC is set to become the second-largest oil producer globally by 2050. Last year, the international NGO also published that in the years up to 2030, ADNOC reportedly plans to spend $100 billion on oil and gas production—this is compared to the $15 billion it announced earmarked for investment in “low-carbon solutions.”
“Proceeds of this credit facility will enable ADNOC’s strategy to support a just, orderly and equitable global energy transition. The agreement also marks the next milestone in the long-standing strategic energy relationship between the UAE and Japan, and we look forward to further collaboration with JBIC as ADNOC delivers against its ambitious growth strategy,” added ADNOC Group’s CFO.