FERUARY 3, 2024
Oman charts path to green finance leadership
MUSCAT: Oman's commitment to sustainability takes a bold leap forward with its ambitious green finance plan. Aiming for 100% green financing for sustainable projects by 2040, the Sultanate of Oman is laying the groundwork for a comprehensive framework, acknowledging several key challenges that need to be addressed.
The Ministry of Finance leads the charge by building a Sovereign Sustainable Finance Framework and collaborating with the Muscat Stock Exchange to implement "Triple Governance" for listed companies, integrating environmental, social, and governance (ESG) factors.
The Central Bank of Oman is developing a dedicated framework for the banking sector, while the Oman Sustainability Center establishes a carbon credit trading system, incentivizing emission reduction. Even the Oman Investment Authority joins the effort with its own "Triple Governance" framework.
The plan outlines ambitious goals: increasing the share of green finance in sustainable projects from less than 1% in 2022 to 50% by 2025, 67% by 2030, and ultimately reaching 100% by 2040.
Several entities are driving the implementation: the Ministry of Finance, Capital Market Authority, Muscat Stock Exchange, Central Bank of Oman, Oman Investment Authority, and Oman Sustainability Center.
Oman's green finance ambitions are laudable and critical for the nation's future. Success hinges on collaboration between the government, financial institutions, and the private sector. Streamlining regulations, enhancing project compliance, and expanding green finance instruments are crucial steps on this journey. While achieving 100% green finance by 2040 remains a challenging target, the journey itself paves the way for significant environmental and economic progress in Oman.
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