UAE’s Etihad Rail has announced a new sustainable finance framework aimed at funding green investments in the transport and infrastructure sector. This framework, unveiled recently, is designed to align the rail developer’s future financing with its environmental, social, and governance (ESG) strategy.

The initiative is intended to offer expertise and insights to ensure compliance with green loan and bond principles. According to Ali Tabbal, the chief financial officer at Etihad Rail, the company is committed to promoting responsible financial practices that drive positive environmental and social impact across the transportation, logistics, and infrastructure sectors.

The sustainable finance framework was developed in collaboration with First Abu Dhabi Bank and Standard Chartered Bank, receiving validation through a second-party opinion from the leading international certifier Det Norske Veritas. The framework encompasses four essential components: adherence to international standards for green loans and bonds, allocation of proceeds to sustainable projects, rigorous evaluation and selection of projects, and transparent reporting to uphold accountability.

Etihad Rail emphasized that this initiative not only guides investment decisions but also encourages collaboration and knowledge-sharing among industry peers, regulators, and investors. Established in 2009, the Abu Dhabi-based rail firm is set to provide freight and passenger services upon completion. Its extensive 1,200 km-long network will connect from the Saudi Arabian border to Oman, with plans to integrate it into a broader scheduled network across the six-member Gulf Cooperation Council (GCC) countries.