MUSCAT, JAN 10
Oman’s Ministry of Finance (MoF) has unveiled a new framework to help support the funding of projects and initiatives at the heart of the country’s energy transition and climate mitigation strategy.
The ‘Sustainable Finance Framework’ centres on the issuance of various instruments, such as Green Bonds, Social and Sustainability Bonds, Loans and sukuk designed to raise funding for projects aligned with Oman’s overarching commitments to Sustainability Development Goals (SDGs), Net Zero, and climate adaptation objectives.
“The Sustainable Finance Framework sets out how the Oman government intends to allocate financing towards specific environmental and social areas to mitigate the impacts of climate change, promote socioeconomic development and ensure a just transition to a resilient, low carbon economy. The proposed project categories are aligned with Oman’s National Strategies for Climate Change and Socioeconomic Development,” said the Ministry in an overview on the framework issued here on Wednesday.
As a first step in the roll-out of the framework, the Ministry says it plans to set up a high-powered ‘working group’ to oversee the delivery of the broad objectives of the framework.
Dubbed the ‘Sustainable Finance Working Group (SFWG), it will include representatives from the following ministries and government bodies: Ministry of Finance; Environment Authority; Ministry of Economy; Ministry of Energy and Minerals; Ministry of Transport, Communications and Information Technology; Ministry of Higher Education, Research and Innovation; Ministry of Education; Ministry of Health; Ministry of Agriculture, Fisheries and Water Resources; Ministry of Social Development; Ministry of Housing and Urban Development; Authority for Public Services Regulations; and Oman Sustainability Center. Part of the Working Group’s remit is to review projects that qualify for sustainable finance.
To ensure that any instrument that it issues meets with the highest international standards, the Ministry says its Sustainable Finance Framework has been aligned with an array of leading global institutions and benchmarks. The list includes: the International Capital Market Association (ICMA) Green Bond Principles, the ICMA Sustainability Bond Guidelines (SBG), the Loan Market Association (LMA) Green Loan Principles (GLP) and and LMA Social Loan Principles (SLP).
Significantly, the proceeds from any Sustainable Finance Instrument issued by the Finance Ministry will be allocated to finance new or re-finance Eligible Expenditures (Green and Social expenditures) that qualify for such funding support.
“Eligible Expenditures will include subsidies, grants, loans, support schemes, incentive mechanisms, investments expenditures, operating expenditures, tax expenditures and intervention expenditures, insofar as any expenditure contributes to MoF Oman’s climate change mitigation and adaptation policies and strategy for sustainable development,” the Ministry noted.
“The Eligible Expenditures may be made directly by MoF Oman or by state agencies, local authorities and government related entities, including but not limited to 1) Oman Water and Wastewater Services (Nama Water Services), 2) Oman Environmental Services Holding Company (be’ah) 3) Nama Power Water and Procurement Company (Nama PWP), 4) Authority for Public Services Regulations (APSR) and 5) SMEs Development Authority that fund such Eligible Expenditures typically through the allocated annual government budget and directed to each entity based on their submitted plan,” it further added.
Oman Observer is now on the WhatsApp channel. Click here
