Abu Dhabi's Tadweer launches comprehensive green finance framework to accelerate sustainable growth

Abu Dhabi’s Tadweer Group recently introduced its Green Finance Framework, positioning it quite deliberately as a key part of their overall strategy, really tied into their environmental, social, and governance (ESG) principles. Basically, this initiative is about weaving sustainability into the fabric of their future financing endeavors—encouraging investments that push forward a circular economy and responsible, environmentally conscious growth.

Developed in collaboration with major financial players like First Abu Dhabi Bank (FAB) and Standard Chartered Bank, the framework’s credibility is further backed by an independent second-party opinion from Moody’s, a globally recognized credit rating agency. This endorsement highlights that the framework is not only thorough and well-structured but also aligns with international standards—like the Green Bond Principles from the International Capital Market Association and the Green Loan Principles from the Loan Market Association.

Ali Al Dhaheri, who serves as the Managing Director and CEO of Tadweer, spoke about the launch, calling it a “pivotal step” towards embedding sustainability into the company’s core operations. He emphasized the group’s dedication to responsible growth and value creation through aligning future financing with ESG standards and the principles of a circular economy. Plus, he pointed out that partnering with prominent banks really shows how serious and globally compliant this framework is, boosting Tadweer’s position as a leader in green finance and sustainable investment.

The support from their banking partners was pretty enthusiastic too. Martin Treco, heading up Corporate and Institutional Banking at FAB, underlined the importance of backing projects that support clients’ sustainable goals—particularly those aiming for climate neutrality. He mentioned FAB’s role in advising Tadweer on structuring financing options designed to draw in investors focused on sustainability and to secure the funds necessary for environmental commitments. Likewise, Mohamed Salama from Standard Chartered, in charge of Corporate Banking Coverage across the UAE, Middle East & Pakistan, expressed pride in helping Tadweer develop this framework. He highlighted that it’s a shining example of Tadweer’s pioneering role in sustainability and hopes it inspires other regional companies to integrate environmental concerns into their financial strategies, ultimately promoting sustainable growth.

Now, the Green Finance Framework itself lays out a clear approach for evaluating and financing green projects, based on four main pillars inspired by green bond and loan standards. These include setting precise criteria for how proceeds are allocated to eligible green initiatives, rigorous project screening processes ensuring high environmental impact, management practices that enhance transparency and accountability, and ongoing use of data from Tadweer’s sustainability reports to bolster governance.

It’s also pretty central to Tadweer’s ESG plans and commitment to a circular economy. The framework includes specific mechanisms for environmental risk assessment and clear transparency when rolling out sustainability initiatives. Essentially, it reflects their continuous efforts to encourage companies to manage environmental risks better, explore sustainable financial opportunities, and effectively allocate capital toward environmental goals. Interestingly enough, it’s also designed to foster cooperation and knowledge exchange within the UAE’s still-developing green finance ecosystem—helping speed up the shift toward a more sustainable financial system regionally.

This effort lines up well with other notable sustainability projects in Abu Dhabi, like the groundbreaking waste-to-energy initiative funded by Standard Chartered in partnership with Tadweer and Emirates Water and Electricity Company. Announced earlier this year, this marks Abu Dhabi’s first large-scale waste-to-energy plant. It’s set to process roughly 2,700 tonnes of solid waste per day—an important move to cut down on landfill reliance and boost renewable energy, aligning with the UAE’s broader environmental goals. The project involves a Japanese consortium, including Marubeni Corporation and Hitachi Zosen Inova AG, and operates under a 30-year concession signed back in March 2024.

While details surrounding the financing of this waste-to-energy plant haven’t been publicly released, the fact that Standard Chartered is leading the funding underscores the UAE’s increasing appetite for green investment and highlights the strengthening of partnerships between government entities and international private companies. It’s all part of a bigger picture—where Abu Dhabi and the wider UAE are pushing to embed sustainability into infrastructure development and investment decisions.

In summary, Tadweer’s Green Finance Framework—alongside projects like the waste-to-energy plant—really showcase the UAE’s leadership in pioneering sustainable financial structures and impactful environmental initiatives. These efforts are vital steps toward building a circular economy and achieving a net-zero carbon future across the region.

Source: Noah Wire Services