Repsol launches sustainable finance framework

Spanish energy company Repsol has launched what it says is the first sustainable financing framework of its kind, to accompany its energy transition. The company was assisted by HSBC and Natixis in devising the framework, it said June 14. It has been verified and certified by the ISS rating agency in line with the principles of transparency and best practices.

The framework incorporates instruments aimed at financing specific projects and at those linked to the company’s sustainability commitments to reach net zero by 2050.

The green bonds and transition bonds are both subject to the Green Bond Principles published by the International Capital Markets Association (ICMA). The funds raised with the former will be used to finance green projects eligible under the standards of the EU such as renewable energy or hydrogen.

The funds from the transition instruments will be allocated to additional activities and projects that also contribute to sustainable objectives and are part of Repsol's energy transition strategy. Repsol aims to cut carbon intensity by 12% by 2025, 25% by 2030, and 50% by 2040.

Repsol's strategic plan outlines a demanding roadmap, with more ambitious intermediate emission-intensity reduction targets advance towards the goal of zero net emissions by 2050. The plan establishes investments of €18.3bn ($22bn) over the period, of which 30%, or €5.5bn, will be allocated to low-carbon initiatives.