Enviva And Al Jubail International Water’s Green Finance Framework

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S&P Global Ratings has published second party opinions for both Al Jubail International Water Co. LLC’s Green Loan Framework and Enviva’s Green Finance Framework.

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Enviva's Green Finance Framework

According to S&P Global Ratings, Enviva’s Green Finance Framework is fully aligned with the Green Bond Principles (2021) and the Green Loan Principles (2021). Enviva – a company that produces and sells utility-grade wood pellets used as a substitute for fossil fuels in energy generation – supplies power generators primarily in the U.K., EU, Caribbean, and Japan, and is working to expand the use of the pellets as a feedstock for industrial and transportation applications, including in hard-to-abate sectors.

  • Enviva’s Use of Proceeds was found to be ‘aligned’ with the applicable principles, given it commits to funding projects to expand renewable energy generation.
  • The company’s process for project evaluation and selection was found to be ‘strong’, as an ESG committee will evaluate and select the eligible projects, which all will undertake Enviva’s environmental and social policies.
  • On the reporting side, an allocation and impact report are expected to be published annually, earning Enviva a ‘strong’ reporting score.
  • The company’s ESG committee will also be responsible for the tracking, monitoring and allocation of proceeds from financing under the framework.

Al Jubail International Water Co.'s Green Loan Framework

In S&P Global Ratings’ view, Saudi Arabian project company Al Jubail International Water Co.’s (Al Jabail) Green Loan Framework is fully aligned with the Green Bond Principles (2021). Al Jubail is responsible for developing and financing the Jubail 3B Independent Water Project, a greenfield reverse osmosis seawater desalination plant partly powered by solar, potable water storage facilities, and a substation with overhead lines to connect to the grid.

  • Al Jubail International Water Co.’s commits to using the net proceeds of its instruments issued under the framework to solely fund the Jubail project, earning it a ‘strong’ Use of Proceeds score.
  • The company’s process for project selection was found to be ‘satisfactory’ according to the principles, as Al Jubail International Water Co. has been incorporated as a dedicated project company to develop and finance the project exclusively. As such, the project was already identified prior to the loan being issued.
  • The company’s reporting score was also found to be ‘satisfactory’, as environmental and social-impact assessments to inform an environmental and social management plan will be carried out, which Al Jubail International Water Co. will report on.

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