Qatar has made a significant entry into the realm of green finance with its inaugural issuance of $2.5bn in green bonds.
According to ESG News, split into two tranches, the bond offering comprises a $1 billion five-year bond and a $1.5 billion ten-year bond, each carrying a premium above U.S. treasury bonds.
Finance Minister Ali Al-Kuwari underscored the symbolic importance of this green bond issuance, emphasizing its modest size as a statement of intent. He stated, “We don’t expect a big size, it’s going to be very small, just as I said to make a statement and I think what’s more important than this is we need to build a vision and a strategy for climate change in the financial sector.”
This strategic move towards green bonds aligns with Qatar’s broader agenda of addressing climate change and promoting sustainable development. Al-Kuwari reiterated this commitment, highlighting the issuance as a significant step towards underlining Qatar’s environmental initiatives.
The issuance of green bonds forms a pivotal component of Qatar’s overarching economic strategy, which includes the ambitious North Field Expansion project. Aimed at bolstering liquefied natural gas (LNG) production, the project seeks to elevate production capacity from 77 to 126 million tonnes per annum (mtpa) by 2026, reinforcing Qatar’s status as a global LNG leader.
In line with its national Climate Change Action Plan unveiled in 2021, Qatar has set a target to reduce greenhouse gas emissions by 25% by 2030. This commitment underscores the country’s dedication to sustainability and responsible environmental governance.
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