MARC Solutions has assigned a “Gold” Impact Assessment to Tadau Energy Sdn Bhd’s Green Finance Framework. The framework sets forth the guiding principles for Tadau Energy’s issuance of green financing to fund Eligible Projects that contribute towards environmental benefits.

Tadau Energy is a power generation company driving the adoption of photovoltaic and other renewable energy technologies, in the country’s transition to clean energy. The company operates a 50MWac solar project in Kudat, Sabah, under two 21-year power purchase agreements signed in 2016 with Sabah Electricity Sdn Bhd (SESB). Tadau Energy is responsible for supplying electricity generated by the solar plant to SESB. The arrangement has provided a dependable source of renewable energy to address the increasing demand in the region.

Proceeds raised from any green finance transactions in relation to the framework will be utilised to finance new or existing assets, investments, and expenditures within the following Eligible Categories:
• Renewable and/or Clean Energy
• Energy Efficiency
• Pollution Prevention and Control
• Environmentally Sustainable Management of Living Natural Resources and Land Use

We opine that the framework is aligned with the core components of the applicable guidelines, frameworks, and principles published by the Securities Commission Malaysia, ASEAN Capital Markets Forum, and the International Capital Market Association, among others.

The Gold assessment of the framework reflects the view that the use of proceeds raised from the green finance transactions would provide relevant environmental benefits that support five of the 17 United Nations Sustainable Development Goals.