Green Finance Framework

As part of the global effort to combat climate change, the Kingdom of Saudi Arabia is committed to achieve its green agenda with the goal of reaching Net Zero Carbon emissions by 2060 and to achieve its Nationally Determined Contribution of reducing CO2 emissions by 278 million tons annually by 2030, with the year 2019 designated as the base year.

PIF is instrumental in supporting the Kingdom to achieve this green agenda, to accelerate the diversification of the domestic economy and to unlock new sustainable sectors. For example, PIF is committed to developing 70% of Saudi Arabia’s renewable energy target by 2030. PIF is also one of the six founding members of the One Planet Sovereign Wealth Fund initiative, which aims to accelerate efforts toward transition to a low greenhouse gas economy among sovereign wealth funds and asset managers.

As part of PIF’s role in realizing Saudi Arabia’s commitments, PIF has established its Green Finance Framework, which sets out its strategy and roadmap to catalyze the Kingdom’s green agenda and outlines the projects eligible for green financing in line with international standards.

Published alongside this document is a Second Party Opinion (an independent assessment of the Fund’s Framework) from DNV, an international accredited registrar and classification company. This confirms that PIF’s Green Finance Framework is aligned with the ICMA Green Bond Principles 2021 and the LMA Green Loan Principles 2021.

PIF may use this framework as the basis to issue green bonds, sukuk, loans and other debt instruments. In addition to alignment with the above principles, PIF may choose to seek certification in compliance with the requirements of the Climate Bonds Initiative Climate Bonds Standard.

For investor queries, please email: investors@pif.gov.sa