APICORP, Hartree Sign $75M Islamic Facility for Voluntary Carbon Offsets

The first-of-its-kind facility in the MENA region will fund high-quality voluntary carbon offsets. Asharq Al-Awsat
The first-of-its-kind facility in the MENA region will fund high-quality voluntary carbon offsets. Asharq Al-Awsat
TT
20

APICORP, Hartree Sign $75M Islamic Facility for Voluntary Carbon Offsets

The first-of-its-kind facility in the MENA region will fund high-quality voluntary carbon offsets. Asharq Al-Awsat
The first-of-its-kind facility in the MENA region will fund high-quality voluntary carbon offsets. Asharq Al-Awsat

The Arab Petroleum Investments Corporation (APICORP) has signed a $75 million Murabaha agreement in favor of Hartree Partners Power & Gas Company (UK) Limited, an affiliate of Hartree Partners LP.

The first-of-its-kind facility in the MENA region will fund high-quality voluntary carbon offsets, which will be used to develop environmentally friendly projects worldwide. Each carbon offset represents the ownership of one ton of carbon dioxide equivalent (CO2e) which offsets corresponding emissions by the holder.

“Financial innovation plays a crucial role in ensuring a sustainable energy ecosystem. This Murabaha facility was created as part of our commitment to provide innovative financial solutions to enable a balanced energy transition, as well as support Arab countries' aspirations to reach net zero carbon emissions in line with the Paris Climate Agreement. The precedent-setting transaction serves as a major milestone for our vision of supporting the MENA region in its journey to sustainability,” said CEO of APICORP Khalid Ali Al-Ruwaigh.

Every year, it is estimated that more than 50 billion tons of greenhouse gases are emitted into the atmosphere. Robust voluntary carbon markets, where carbon credits are purchased voluntarily, have emerged as a cost-effective asset class enabling governments and corporations to immediately begin decarbonizing their footprints in line with the global effort to reach net zero emissions by 2050.

This particularly applies to sectors and industries where emissions are not yet fully abatable due to technological or cost feasibility. For investors, carbon offsets can also mitigate risks associated with energy transition by making their investment portfolios more resilient to evolving climate regulations.

Regulators and rating agencies are also increasingly taking interest in climate finance and sustainability reporting disclosures by banks.

“Banks and other financial institutions play an important role in the efforts to meet the Paris Agreement target because financing remains one of the most crucial challenges in the decarbonization chain. The facility’s Shariah compliance and syndication features can have major implications because they make it convenient for the regional market to adopt and enable additional banks to join and gain exposure to this asset class,” added Al-Ruwaigh.

APICORP’s facility will fund carbon offsets that are registered with the non-profit platform Verra, the largest global registry for nature-based offsets.

Stephen Hendel, Founding Managing Director of Hartree, said: “Robustness, reliability and integrity are at the heart of Hartree’s investments in the Carbon markets, and we thank APICORP for its expertise and leadership in structuring this unique Islamic facility.”



Abu Dhabi's Long-haul Carrier Etihad Airways Sees Record $476 ml Profit in 2024

An Etihad Airways plane lands at Heathrow during Storm Isha in London, Britain, January 22, 2024. REUTERS/Matthew Childs/File Photo
An Etihad Airways plane lands at Heathrow during Storm Isha in London, Britain, January 22, 2024. REUTERS/Matthew Childs/File Photo
TT
20

Abu Dhabi's Long-haul Carrier Etihad Airways Sees Record $476 ml Profit in 2024

An Etihad Airways plane lands at Heathrow during Storm Isha in London, Britain, January 22, 2024. REUTERS/Matthew Childs/File Photo
An Etihad Airways plane lands at Heathrow during Storm Isha in London, Britain, January 22, 2024. REUTERS/Matthew Childs/File Photo

Long-haul carrier Etihad Airways announced Wednesday it made a record $476 million profit in 2024, part of a financial rebound for the Abu Dhabi-based airline.

The airline had revenues of nearly $6.9 billion in 2024, compared to $5.5 billion in 2023. Its profit in 2023 was just $143 million.

Etihad attributed its higher profit to increased passenger numbers, a recovery in its cargo operations and cutting its costs. It flew 18.5 million passengers in 2024, up 32%. Its cargo revenues for the year were $1.1 billion, up 24%, The AP reported.

“These results are testament to the dedication of our people who have worked together for a purpose: delivering our strategy," CEO Antonoaldo Neves said in a statement. “Looking ahead, I am confident we will continue to be a financially strong airline delivering extraordinary customer experiences, fulfilling our shareholders' mandate and contributing to the long-term prosperity and success of the UAE.”

Etihad’s network now flies to 80 locations with a fleet of 97 aircraft.