UAE’s Barakah Plant: Asia & Africa’s First Green Loan Facility

The Barakah Nuclear Energy Plant’s AED8.89 billion refinancing, hailed as a Green Loan Facility, marks a pivotal step in reinforcing its vital role in rapidly decarbonizing the UAE’s power grid. Recognized as the first of its kind in the MENA Region and Asia, this financing arrangement with Abu Dhabi Commercial Bank PJSC (ADCB) and First Abu Dhabi Bank PJSC (FAB) underscores the plant’s commitment to sustainable energy practices. 

The Barakah Plant, operated by the Emirates Nuclear Energy Corporation (ENEC), stands at the forefront of the UAE’s green economy strategy, aiming to achieve Net Zero emissions by 2050. With its capacity to generate 40 terawatt-hours (TWh) of clean electricity annually and prevent the release of 22.4 million tons of carbon emissions, the plant’s impact on decarbonization is significant. 

This milestone not only positions the Barakah Plant as a pioneer in clean financing but also facilitates the In Country Value Program, contributing to the UAE’s Net Zero Economy objectives. The green loan status reflects the plant’s adherence to Environmental, Social, and Governance (ESG) principles, aligning with the United Nations Sustainable Development Goals. 

The successful completion of the refinancing, coupled with the participation of leading UAE banks, highlights the growing recognition of nuclear energy as a viable and sustainable source of electricity. Through initiatives like the Clean Energy Certificates program, the Barakah Plant stimulates local economic growth and promotes clean energy innovation. 

His Excellency Mohamed Al Hammadi, ENEC’s Managing Director and Chief Executive Officer, emphasized the transformative potential of nuclear energy in advancing the UAE’s clean energy agenda. The collaboration between ENEC, ADCB, and FAB sets a precedent for future green financing initiatives, driving the nation towards a sustainable and prosperous future. 

As the UAE continues its journey towards Net Zero emissions, partnerships like these play a crucial role in financing green projects and fostering economic resilience. With the Barakah Plant leading the charge, the UAE aims to emerge as a global leader in sustainable energy innovation, driving progress towards a cleaner and more sustainable future. 

Gavin Milne serves as Board Secretary and Executive Advisor at Emirates Nuclear Energy Corporation