Ministry of Finance Publishes Saudi Arabia’s Green Financing Framework

The Ministry of Finance has published the Kingdom of Saudi Arabia Green Financing Framework in one of the Financial Sector Development Program initiatives, to drive the Kingdom toward sustainability and net zero emissions through the Circular Carbon Economy approach.

The framework also highlights the Kingdom’s sustainability efforts to investors and market participants.

According to the ministry, the framework is a major step toward achieving the Saudi Vision 2030 goals for a more sustainable future, starting from policies and investment development to planning and building all kinds of infrastructure.

The Green Financing Framework is also proof of the Kingdom of Saudi Arabia’s regional leadership in sustainable finance, and works to catalyze more public and private financing of climate and environment initiatives.

The framework is established following the Kingdom’s October 2021 announcement that it works to achieve net zero emissions by 2060 through the Circular Carbon Economy approach. The Kingdom aims to help fulfill the commitment to reducing greenhouse gas emissions by 278 million tons annually by 2030, as per the Paris Agreement, under the Green Bonds Principles of the International Capital Market Association.