APICORP plans to provide $1 bln for green energy in next two years

The Arab Petroleum Investments Corp. plans to allocate $1 billion for green energy projects and "sustainable energy companies" in the next two years as part of its efforts to support the energy transition.

The funds will be focused on the Middle East-North Africa region, APICORP, which was started to foster development of the Arab oil and gas industry, said in a Sept. 13 statement. Its "green assets" currently make up about 13% of the current total, or $550 million in loans and direct investments, a fourfold increase over the past five years, it said.

Last year, six of its 11 project finance commitments were in green energy or within the category of sustainable utility projects, and were all part of the $500 million countercyclical package it started in April to help the MENA energy sector deal with the COVID-19 and oil price volatilities. It also made its first direct investment in a wind energy project -- a 20% stake in the Jordan Wind Project Co.

APICORP will measure the environmental impact of its investment decisions "with a focus on supporting the proliferation of renewable energy sources and low-carbon technologies as well as forging more strategic partnerships to promote the sustainability agenda." It said it was also considering issuing green and "sustainability bonds" to encourage industry participants to pursue energy diversification.

"We want to support a transition to a low-carbon, climate-resilient economy by mitigating risks across our operations, supply chain and client transactions by embedding sustainable principles in our business practices," APICORP Chairman Aabed bin Abdulla Al-Saadoun said.