Abu Dhabi: Emirates Global Aluminium (EGA) has introduced its Green Finance Framework to support decarbonisation projects and initiatives for a low-carbon economy. This move includes funding the recent acquisition of European speciality foundry Leichtmetall with EGA’s first green loan facility.
The Green Finance Framework outlines eligibility and governance for financing from third-party institutions and funds that prioritize sustainability.
This framework supports EGA’s sustainability goals by providing access to diverse funding options, potentially lowering borrowing costs and increasing transparency. Citi and ING were the lead sustainability structuring banks, with First Abu Dhabi Bank (FAB) also supporting the framework’s development.
EGA aims to reach net zero greenhouse gas emissions by 2050, aligning with the UAE’s strategic initiative. Global aluminium demand is projected to grow by 50-80% by 2050, with recycled and low-carbon aluminium expected to account for most of the supply growth.
EGA’s acquisition of Leichtmetall, completed in May, uses renewable energy to produce up to 30,000 tonnes of aluminium billets annually in Germany, with 80% of input material being secondary aluminium.
Abdulnasser Bin Kalban, EGA’s CEO, emphasized the importance of sustainable production in advancing their decarbonisation goals. He noted that the Green Finance Framework allows EGA to access more financing options for sustainability projects. The use of green financing for acquiring Leichtmetall marks a significant step in EGA’s sustainability efforts.
In 2023, EGA introduced the UAE’s first ESG-linked supply chain finance program in the manufacturing sector, providing $73 million in financing to its suppliers. In 2022, EGA opened sustainable corporate bank accounts to ensure cash balances finance sustainability initiatives. Over the past 20 months, EGA deposited $76 million in these accounts, maintaining an average cash balance of $25 million.
MOST READ | Must know drinking water facts for everyone