The Emirates Global Aluminium (EGA) published its Green Finance Framework to assist decarbonization projects and activities that could help accelerate the transition to a low-carbon economy.
In a press release announcing the publication of the green finance framework, the aluminium producer also announced the acquisition of European speciality foundry Leichtmetall.
The release mentions that Leichtmetall was acquired in May and utilizes renewable energy to produce up to 30,000 tons of aluminium annually.
The facility was acquired using funds allocated from EGA’s “first green loan facility”, the release mentioned.
EGA has publicly announced that it is determined to achieve Net-Zero greenhouse gas (GHG) emissions by 2050. The company’s goals are in alignment with the UAE Net-Zero goals.
A green finance framework defines “eligibility and governance mechanisms” for bankrolling third-party institutions and funds that prioritize sustainability in their capital allocation.
The Green Finance Framework reinforces EGA’s sustainability objectives and broadens the spectrum of financing options available for eco-friendly ventures.
It could potentially drive down borrowing costs while enhancing transparency in financial transactions.
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According to the press release, “Citi and ING acted as the lead sustainability structuring banks”, while First Abu Dhabi Bank (FAB) acted as the sustainability structuring bank to assist EGA in developing the framework.
Abdulnasser Bin Kalban, CEO of EGA, said, “The aluminium EGA produces plays an essential role in the development of a more sustainable society. It is also important how sustainably it is produced. This is both an enormous opportunity and a significant challenge for EGA and our wider industry. “
He added, “Our Green Finance Framework enables us to access a deeper pool of liquidity to finance projects and initiatives that advance our decarbonisation goals. Our use of green financing for our recent acquisition of Leichtmetall is another first for EGA in our sustainability journey.”