ADNOC Secures $3 Billion Green Financing From JBIC To Accelerate Decarbonisation

Abu Dhabi National Oil Company (ADNOC) has secured a $3 billion (AED11 billion) green financing facility through an agreement with the Japan Bank for International Cooperation (JBIC). This follows a Heads of Agreement (HOA) signed between the two entities in January, reinforcing their long-standing partnership.

The signing ceremony was attended by Dr. Sultan bin Ahmed Al Jaber, Minister of Industry and Advanced Technology and Managing Director and Group CEO of ADNOC; Dr. Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade; and Ken Saitō, Japan's Minister of Economy, Trade and Industry. Khaled Al Zaabi, ADNOC Group Chief Financial Officer, and Kazuhiko Amakawa, Deputy Governor of JBIC, formalised the agreement at the ministry's headquarters in Tokyo.

Khaled Al Zaabi expressed satisfaction with the partnership, stating, "We are very pleased to once again partner with JBIC on ADNOC’s first green funding to accelerate our decarbonisation and energy transition initiatives. Proceeds of this credit facility will enable ADNOC’s strategy to support a just, orderly and equitable global energy transition. The agreement also marks the next milestone in the long-standing strategic energy relationship between the UAE and Japan, and we look forward to further collaboration with JBIC as ADNOC delivers against its ambitious growth strategy."

This credit facility is part of JBIC’s Global action for Reconciling Economic growth and Environmental preservation (GREEN) lending programme. It is partially supported by Japanese commercial banks. The funds will aid ADNOC in its efforts to reduce carbon intensity by 25 percent by 2030 while investing $23 billion (AED84.4 billion) to decarbonise operations.

ADNOC is recognised as one of the least carbon-intensive oil and gas producers globally. The company aims to achieve net zero emissions by 2045 and eliminate methane emissions by 2030. These goals are part of its broader strategy to invest in future energies such as hydrogen, geothermal, renewables, and carbon capture technologies.

Commitment to Decarbonisation

ADNOC is also a founding member of the Oil and Gas Decarbonisation Charter (OGDC), which includes International and National Oil Companies committed to achieving zero methane emissions by 2030 and net zero emissions by or before 2050.

The collaboration between ADNOC and JBIC signifies a significant step towards sustainable energy practices. It highlights the ongoing commitment of both organisations to environmental preservation while fostering economic growth.

With inputs from WAM