ADNOC signs $3bn green financing agreement with JBIC

Abu Dhabi National Oil Company (ADNOC) has signed an agreement with the Japan Bank for International Cooperation (JBIC) for a $3bn green financing facility, the company announced on July 4. This agreement follows the signing of a heads of agreement between the parties in January this year.

The credit facility is part of JBIC’s Global Action for Reconciling Economic Growth and Environmental Preservation (GREEN) lending programme and is partially supported by Japanese commercial banks.

Khaled Al Zaabi, ADNOC Group CFO, said, “Proceeds from 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.”

Earlier this year, ADNOC, the state-owned oil and gas company of the UAE, announced an increase in its allocation for decarbonisation and lower-carbon projects. The allocation has been raised from the previous target of $15bn to a new total of $23bn.

ADNOC aims to reduce its carbon intensity by 25% by 2030 while investing to decarbonise its operations and accelerate the growth of future energies, including hydrogen, geothermal, renewables, and carbon capture technologies. The state-owned company has also set out its ambition to achieve net zero by 2045 and zero methane emissions by 2030.