The Saudi Public Investment Fund (PIF) has earmarked $19.4 billion for eligible green projects, with $5.2 billion allocated by June of this year.
As one of the largest sovereign wealth funds in the world and the investment arm of Saudi Vision 2030, PIF places significant emphasis on the utilities and renewable energy sectors, which are considered strategic. The fund also supports the Saudi Green Initiative and the National Renewable Energy Program under the Ministry of Energy.
On Friday, PIF published the second edition of its Investment Allocation and Impact Report, reaffirming its commitment to transparency and disclosure at various stages of its green financing initiatives. The allocated funds will be directed towards spending on renewable energy projects, green buildings, and sustainable water management.
According to the report, new eligible green projects will soon be added to PIF’s green financing portfolio, including a wide range of initiatives in renewable energy, sustainable water management, green buildings, pollution prevention, energy efficiency, sustainable management of living natural resources and land, and clean transportation.
The report also highlights that all eligible green projects contribute to the United Nations Sustainable Development Goals and are expected to deliver significant environmental benefits.
In October 2022, PIF issued the first green bonds from a sovereign wealth fund globally, including century-long green bonds. This issuance helps diversify the fund’s financing sources and supports green investments that positively impact the Saudi economy.
PIF has been rated “A1” by Moody’s with a positive outlook and “A+” by Fitch Ratings with a stable outlook.
