Davos, Switzerland and Manama, Bahrain, 23 January 2024: Bapco Energies, the integrated energy company leading the energy transition in the Kingdom of Bahrain, has launched its Transition Finance Framework (“Framework”). The Framework will allow the Company to further its goals in line with Bahrain’s commitment to sustainability and climate action as pledged by His Royal Highness Prince Salman bin Hamad Al Khalifa, the Crown Prince and Prime Minister of the Kingdom of Bahrain, at COP26.
The Framework, published on the side lines of the World Economic Forum in Davos, will also allow Bapco Energies to raise financing geared towards its transition projects for certain categories as it endeavours to implement its transition strategy. These categories include Renewable Energy, Carbon Capture and Storage, No/Low Emissions Fuels, and Energy Efficiency amongst others.
The Framework was developed in close collaboration with Standard Chartered, which acted as the Company’s ESG advisor in the process. With Standard Chartered’s support, the Framework received a favourable Second Party Opinion from ISS Corporate Solutions. Bapco Energies was the first National Energy Company to publish a Sustainability-Linked Financing Framework launched in July 2023, which Standard Chartered also served as an advisor on.
Mark Thomas, Group Chief Executive Officer, Bapco Energies said, “Every conversation I’ve had so far at the World Economic Forum has included the need for urgent climate action, so it is fitting that we launch our Transition Finance Framework here. We are proud to be the first national energy company in the region publish this Framework and a favorable Second Party Opinion from ISS. This announcement, shortly after launching our Sustainability-Linked Finance Framework, showcases our commitment to actively contributing to global and local sustainability agendas, and to deliver a commercially viable energy transition to support the Kingdom's efforts of achieving Net-Zero by 2060."
Sunil Kaushal, Standard Chartered CEO, Africa and the Middle East said: “We are delighted to have collaborated with Bapco Energies on yet another framework, and to continue supporting Bahrain’s sustainability goals.” He added: “At Standard Chartered, we are committed to supporting our clients across our dynamic footprint as they venture into the sustainable finance market to meet their ESG ambitions, and we hope this is the first of many similar frameworks that we support our clients on across the region.”
Given Bahrain is a signatory to the Paris Agreement and Global Methane Pledge, Bapco Energies is committed to supporting the Kingdom’s sustainability efforts and has undertaken a materiality assessment to understand where it can best focus its actions and contribute to the United Nation’s Sustainability Development Goals (“UN SDGs”). Standard Chartered has a long-standing commitment to Sustainable Finance which is backed by a robust framework and approach to assessing, mitigating, and managing Environmental and Social Risk. The Bank continues to make and update sustainable finance commitments and has set a number of targets, including mobilising USD300 billion in sustainable finance by December 2030; achieving USD1 billion in Sustainable Finance income by 2025; and aiming to reduce the emissions associated with financing activities to net zero by 2050.