Emsteel presents the first green finance framework program

The funds will be used for environmental projects such as green steel, cement, solar energy and technology.

Emsteel, the parent company of Emirates Steel, has launched the first green finance framework to support environmental initiatives in the UAE and strengthen the global commitment to sustainable development and decarbonization, Kallanish reports.

Through this program, Emsteel and its subsidiaries will be able to raise capital through green bonds, loans, and medium-term notes (MTNs) in various currencies. The financing will be used exclusively for projects that meet strict environmental criteria: low-emission steel and cement production, solar energy and energy-efficient technologies.

“This is not just a financial instrument, but a strategic lever to accelerate our transition to a low-carbon economy,” said Emsteel Group CEO Saeed Humran Al Remeiti.

He emphasized that the program meets international green finance standards.

The framework program has been rated “Very Good” (SQS2) by Moody’s Ratings, which has strengthened investor confidence. The initiative was structured by ING as the lead bank for sustainable structuring and First Abu Dhabi Bank as a regional partner.

Emsteel also announced climate goals to reduce greenhouse gas emissions by 40% in the steel sector and 30% in the cement sector by 2030.

Emirates Steel is the only steel producer in the GCC to implement a green hydrogen pilot project in 2024. Emsteel operates 16 facilities with an annual capacity of 3.5 million tons of steel and 4.6 million tons of cement. The company is based in Abu Dhabi.

Emsteel increased its spending on innovation and investment by 127% from 2020 to 2024. The company has a 10% share in Abu Dhabi’s manufacturing sector and a 60% share of the UAE steel market, exporting to more than 70 countries.