In April, Masraf Al-Rayan launched Qatar’s first Sharia-compliant green deposit.
Qatar’s Commercial Bank says it is eager to issue green bonds, but only after ensuring that the designated money will be used in the pursuit of green and sustainable projects. That’s according to its Chief Executive Officer, Joseph Abraham who was speaking at a conference in Doha.
“There’s a huge pool of investor funds which are available, and I think if you are a credible institution with a credible track record and proper governance around it, automatically your bond will be effective,” Abraham said, as reported by Reuters.
Green bonds are designated for sustainability-conscious finance projects that benefit the environment, including green buildings.
The Gulf country’s relevant regulators and the stock market are closely eyeing the environmental, social and governance (ESG) cases, the CEO said. Qatar is seen moving towards developing sustainable methods of running the economy to boost a more green morale and work towards building a sustainable country.
Qatar’s position on green bonds
Qatar’s Finance Minister Ali Al-Kuwari confirmed the country’s plans to issue green bonds, in an interview with Bloomberg in late March. However, he noted the timing of its issuance is dependent on the market’s conditions.
His statement came after the news agency reported in January that Qatar held talks with international banks in an attempt to raise billions of dollars through green bonds.
While stressing Doha’s commitment to prioritising the use of clean energy sources, Al-Kuwari said: “At the end of the day, we believe that gas is a much cleaner energy source than oil. Part of any green bond issuance is you have to really specify where you’re going to spend the money and it has to be spent on green projects.”
Qatar’s green efforts
In April, Masraf Al-Rayan launched the country’s first green deposit in compliance with the Sharia Law.
The deposit is dedicated to financing ESG programs. Clients seeking to embark on a green approach to their businesses can allocate money to these sustainable deposits to finance different ESG projects.
In March, QatarEnergy updated its Sustainability Strategy in order to boost the country’s efforts in cultivating clean and affordable energy.
Under its revised strategy, the company is going to increase the carbon intensity of Qatar’s liquified natural gas facilities by 35% instead of the initial target of 25%. The intensity of its upstream facilities is also going to be lowered by 25% instead of 15%.
In February, Qatar National Bank in conjunction with United Kingdom-based HSBC launched a green energy-centred monetary tool in a bid to increase the short-term sustainable funding options for banks and companies.
Through the repurchase agreement, HSBC would borrow cash from QNB in exchange for green bonds. The borrowed money would then be used in initiatives that support the promotion of low-carbon emissions in projects.
Last year, the Gulf country announced plans to minimise 25% of its greenhouse gas emissions by the year 2030 as part of its ‘Climate Change Action Plan.’