Etihad Rail has launched its Sustainable Finance Framework. According to the developer and operator of the UAE’s national railway network, the framework is designed to link future financing to its ESG Strategy in relation to Clean Transportation, Green Buildings, and Pollution Prevention and Control.
Ali Tabbal, Chief Financial Officer at Etihad Rail called the framework a “pivotal element” of its broader ESG strategy, aligning with the United Nations’ Sustainable Development Goals.
“It provides a clear roadmap for integrating ESG considerations into investment decisions, empowering companies to generate long-term sustainable value. By doing so, we are not only fostering a transition to a low-carbon, resilient economy but also supporting the UAE’s Net Zero 2050 Strategy and contributing to the nation’s vision for a sustainable future,” said Tabbal.
Etihad Rail shared that the sustainable finance framework establishes a structured approach to evaluate parameters in the financing of sustainable projects across four main components:
- Green Loan and Bond Principles for alignment with international sustainability standards,
- Use of Proceeds to define clear criteria for the allocation of funds towards sustainable projects,
- Project Evaluation and Selection to identify “impactful projects,” and
- Management of Proceeds and Reporting for transparency and accountability in fund utilisation.
The framework also encompasses mechanisms for environmental risk assessment and the promotion of transparency in implementing ESG initiatives, which it said helps to mitigate environmental risks and capitalise on emerging sustainable markets.
Etihad Rail added that the framework serves not only to guide investment decisions but also to foster collaboration and knowledge-sharing among industry peers, regulators, and investors.
The framework was developed in collaboration with various industry experts, as well as First Abu Dhabi Bank and Standard Chartered Bank, who served as co-ESG advisors and provided guidance to ensure the framework’s alignment with the Green Loan and Bond Principles.
The framework was validated through a Second Party Opinion (SPO) from Det Norske Veritas (DNV).