Etihad Rail Unveils Sustainable Finance Framework to Support UAE’s Net Zero 2050 Goals

Etihad Rail, the developer and operator of the UAE National Rail Network, has introduced its Sustainable Finance Framework. This comprehensive guide aims to link the company’s future financing with its ESG Strategy, focusing on clean transportation, green buildings, and pollution prevention and control.

Developed with input from industry experts and supported by First Abu Dhabi Bank and Standard Chartered Bank as co-ESG advisors, the framework ensures alignment with the Green Loan and Bond Principles. Additionally, the framework’s robustness was validated by a Second Party Opinion (SPO) from Det Norske Veritas (DNV).

The framework outlines a structured approach for evaluating financing for sustainable projects, detailing four key components: adherence to Green Loan and Bond Principles, clear criteria for the Use of Proceeds, a rigorous Project Evaluation and Selection process, and transparent Management of Proceeds and Reporting.

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Ali Tabbal, Chief Financial Officer, stated: "The introduction of our Sustainable Finance Framework demonstrates Etihad Rail’s commitment to embedding sustainable practices across our operations. Through responsible financial practices, we aim to drive positive environmental and social impacts in the region's transportation, logistics, and infrastructure sectors."

"This framework is integral to our broader ESG strategy, aligning directly with the United Nations’ Sustainable Development Goals. It offers a roadmap for integrating ESG considerations into investment decisions, helping companies generate long-term sustainable value."

By embedding environmental considerations into investment decisions, Etihad Rail is supporting the UAE’s Net Zero 2050 Strategy and contributing to the nation’s sustainable future vision. The framework also promotes collaboration and knowledge-sharing among industry peers, regulators, and investors, accelerating the transition to a more sustainable financial system.

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