As part of Qatar's strategic plans and policies supporting sustainability, such as the Qatar National Vision 2030 and the Qatar Central Bank's ("QCB") ESG and Sustainability Strategy for the Financial Sector, the QCB has issued its Sustainable Finance Framework ("Framework"). The Framework applies to all banks operating in the State of Qatar, specifically aiming to establish principles of sustainable finance in accordance with international practices to promote responsible investment and lending.
The Framework introduces a set of principles, and definitions addressing several topics including sustainable finance, sustainability-linked finance, and Islamic-compliant sustainable finance, seeking to steer credit and investments toward environmentally and socially responsible projects. Examples of such projects include renewable energy, clean transportation, and affordable housing.
"Sustainable finance" is defined in the Framework as any type of credit (ordinary or Islamic compliant), or direct (such as bonds/sukuk) or indirect facilities (such as guarantee letters, or letters of credit) made available exclusively to finance, refinance, or guarantee, in whole or in part, new and/or existing eligible green, social, or sustainable projects.
One of the most important features of the Framework is its guidance on sustainability-linked credits, where loan terms vary depending on the borrower's ability to reach predefined sustainability performance targets. The Framework includes detailed processes for evaluating, reporting, and verifying the sustainability impact of such credits.
According to QCB Circular No. 2025/0001546, which accompanied the introduction of the Framework, banks are instructed to comply with the Framework from the Circular's date.
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