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Saudi Arabia to Host World’s Largest Sovereign Fund for Green Issuances

Saudi Arabia to Host World’s Largest Sovereign Fund for Green Issuances

Wednesday, 22 September, 2021 - 10:00
Governor of the Saudi Public Investment Fund, Yasir Othman Al-Rumayyan speaks during the fourth annual Future Investment Initiative in Riyadh, Saudi Arabia, January 27, 2021. REUTERS/Ahmed

The governor of the Saudi Arabia’s Public Investment Fund and Saudi Aramco chairman, Yasir Al Rumayyan, stressed Tuesday that the Kingdom is moving forward in reinforcing long-term sustainability.

The kingdom’s sovereign wealth fund will issue a green sukuk soon, affirmed Al Rumayyan.

“We will be the first sovereign wealth fund to issue green debt. Some of our portfolio companies have already issued green debt. The Red Sea [Development] Company issued green debt worth $3.7bn,” said Aramco’s chairman.

“At the level of [Aramco], we have reduced emissions by 50%, and we will reach 70% less emissions than other companies in the world,” Al Rumayyan told a virtual event on Tuesday.

"We're working with many partners from all over the world, domestically and internationally, to have better environmental, social and governance (ESG) compliance (in) all the things that we do," Al Rumayyan said.

Al Rumayyan said PIF was working with BlackRock (BLK.N) on the ESG framework.

More so, Saudi Arabia will announce its "Green Initiative" next month, followed by the "Middle East Initiative", which includes planting 50 billion trees, Al Rumayyan said. Of the 50 billion trees planted in the Middle East, 10 billion will be rooted in the Kingdom.

“We are working with many companies and partners to install solar panels, but since October 20, the Kingdom will announce the (Green Initiative for the Middle East), and we will work to plant 50 billion trees, in the Middle East, of which 10 billion trees will be planted in the Kingdom,” said Al Rumayyan.

He pointed out that Aramco, as the largest oil producer in the world, is working to reduce carbon dioxide emissions and enhance sustainability for more than 32 million Saudis under the age of 35.

According to Al Rumayyan, this endeavor calls for thinking about the future.

He pointed out that one of the most prominent trends in sustainability and renewable energy in Saudi Arabia is solar energy, which costs only two cents per kilowatt-hour.

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