The Arab Petroleum Investments Corporation, or Apicorp, plans to allocate $1 billion towards green energy, particularly in the Mena region, said local reports on Monday, September 13.
The energy-focused multilateral development bank will invest the amount in green-energy projects and sustainable energy companies over the next two years, said the reports.
This is apparently with a view to concomitantly measure the ESG footprint of all its assets by end of 2023 through active engagement with its stakeholders.
Unveiling its new ESG policy framework, Apicorp reportedly aims to support energy transition in its member countries and beyond.
Currently, green assets are said to comprise more than 13 percent of the bank’s overall portfolio — equal to around $550 million in loans and direct investments.
The new framework reportedly also includes a due-diligence toolkit to measure the ESG impact when making financing and investment decisions.
The overall focus is said to be on supporting the proliferation of renewable energy sources and low-carbon technologies as well as forging more strategic partnerships to promote the sustainability agenda.
Apicorp is also expected to look to introduce green and sustainability bonds in the coming period.
This will apparently accelerate the adoption of sustainable business models within the energy sector and provide industry players with incentives to pursue energy diversification and sustainability practices.
