Riyadh, March 28, 2024, The Ministry of Finance recently unveiled the Kingdom of Saudi Arabia Green Financing Framework as part of its Financial Sector Development Program initiatives. This framework is a strategic move aimed at propelling the Kingdom towards sustainability and achieving net-zero emissions, aligning with the Circular Carbon Economy approach.
One of the key objectives of this framework is to showcase the Kingdom's sustainability endeavors to investors and market participants, emphasizing its commitment to environmental stewardship. The Ministry views this initiative as a crucial step in realizing the goals outlined in Saudi Vision 2030, particularly in terms of sustainable policies, investment development, and infrastructure planning and construction.
The establishment of the Green Financing Framework also positions the Kingdom as a regional leader in sustainable finance, catalyzing increased public and private investment in climate and environmental initiatives. It reflects the Kingdom's dedication to fostering a greener economy and reducing its carbon footprint.
This framework builds upon the Kingdom's pledge made in October 2021 to achieve net-zero emissions by 2060 through the Circular Carbon Economy approach. As part of this commitment, Saudi Arabia aims to contribute to the global effort of reducing greenhouse gas emissions by 278 million tons annually by 2030, as outlined in the Paris Agreement. The framework adheres to the Green Bonds Principles of the International Capital Market Association, ensuring transparency and alignment with international standards in sustainable finance.
Overall, the Kingdom's Green Financing Framework represents a significant milestone in its sustainability journey, signaling a concerted effort to transition towards a more environmentally conscious and resilient economy.
