Japan Bank for International Cooperation (JBIC) has signed a heads of agreement with Abu Dhabi National Oil Company (Adnoc) to proceed with further discussions for financing under the bank‘s GREEN (global action for reconciling economic growth and environmental preservation) operations.

The agreement is aimed at building a consensus on JBIC providing a credit line to support Adnoc projects related to decarbonization and energy transition.

Adnoc, wholly owned by the Emirate of Abu Dhabi, aims to achieve net-zero emissions by 2045 through renewable energy, hydrogen and ammonia, carbon capture and storage (CSS), and other green energy initiatives.

As a supplier of crude oil to Japan for more than 40 years, Abu Dhabi is a strategic partner in the Asian country‘s energy resource strategy, JBIC says. Abu Dhabi has high potential in the fields of decarbonization and energy transition, as it has abundant resources for renewable energy and subterranean structures suitable for CCS.

The agreement also seeks to create opportunities for collaboration between Japanese companies and Adnoc.

As Japan's policy-based financial institution, JBIC provides financial support for sustainable development efforts by drawing on its various financial facilities and schemes for structuring projects, and by performing its risk-assuming function.