Emirates Global Aluminium (EGA), the UAE’s largest industrial entity beyond oil and gas, has unveiled its Green Finance Framework aimed at supporting decarbonisation projects and initiatives pivotal to transitioning towards a low-carbon economy. This move underscores EGA’s commitment to sustainability and facilitates access to diversified funding sources for loans and bonds, potentially reducing borrowing costs while enhancing transparency.
The framework outlines criteria and governance mechanisms for securing financing from institutions prioritising sustainability in capital allocation. Citi and ING served as lead sustainability structuring banks, with First Abu Dhabi Bank (FAB) supporting the framework’s development.
EGA’s acquisition of European speciality foundry Leichtmetall was entirely financed through its inaugural green loan facility, marking a significant milestone in its sustainability journey. Leichtmetall, based in Germany, produces up to 30,000 tonnes annually of aluminium billets using renewable energy, with secondary aluminium comprising 80% of its input material.
Abdulnasser Bin Kalban, CEO of Emirates Global Aluminium, emphasized the pivotal role aluminium plays in advancing sustainable societies and highlighted the importance of sustainable production practices. EGA aims to achieve net-zero greenhouse gas emissions by 2050, aligning with the UAE Net Zero by 2050 initiative.
In a pioneering move in the UAE’s manufacturing sector, EGA introduced the first ESG-linked supply chain finance programme in 2023, providing $73 million in financing to suppliers since its inception. Additionally, EGA established sustainable corporate bank accounts in 2022, directing $76 million towards financing sustainability initiatives across the economy over the past 20 months.
EGA continues to lead in sustainable practices, leveraging green finance to propel decarbonisation efforts and bolster environmental stewardship across its operations and supply chain.
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 launches its Green Finance Framework to support decarbonisation efforts and finances the acquisition of Leichtmetall with its inaugural green loan facility, advancing sustainability goals in the UAE and globally.){kind=link}