World Construction Network

Daily Newsletter

08 August 2023

Daily Newsletter

The Saudi Fund for Development (SFD) has signed an agreement to finance the development of a solar energy plant project in Belize.

The new development loan agreement is valued at approximately $77m. It is part of the SFD’s efforts to support developing countries and Small Island Developing States to achieve sustainable development.

SFD CEO Sultan Al-Marshad and Belize Prime Minister John Briceño signed the agreement.

Al-Marshad said: “The project to construct a solar energy plant in Belize will support the health and well-being of the local population, and help provide direct and indirect job opportunities, which will contribute towards the socioeconomic growth of the country.

“This project reflects the importance that SFD places on mitigating climate change through smart and environmentally [friendly] projects.”

The funding will assist with the construction of a 60MW solar power plant and the supply and installation of solar panels.

The project will help minimise carbon dioxide emissions by 60,000 tons across the energy sector.

It is expected to boost the country’s economic and social growth.

The plant will also play a part in improving the stability of Belize's electrical network and reducing greenhouse gas emissions, thereby lessening the country's carbon impact.

Briceño said: “The solar project is timely, as Belize finds it necessary to expand its energy output because of a growing economy. More importantly, it is in line with the country’s energy policy that focuses on renewable energy.”

ESG 2.0 marks a shift towards stricter environmental rules

ESG is moving into a different era, which we call ESG 2.0. While ESG 1.0 was driven by voluntary corporate action, spurred by pressure from activist consumers and investors, ESG 2.0 is being driven by a new wave of government policies. The EU has taken the regulatory lead, with rules introduced or in the pipeline that will price emissions, regulate the use of the terms ‘ESG’ and ‘sustainability’ in marketing materials, and make ESG reporting mandatory. The US has taken a different approach, favoring less regulation and more financial support in the form of tax breaks for clean industry (renewables plus nuclear and hydrogen). China is planning to expand its emissions trading system to more sectors, decarbonize its heavy industry, and ramp up its use of renewables. The new policy direction is mainly motivated by the ambition to hit net zero emissions targets. But on top of this, governments are now competing for clean industry and trying to challenge China’s leadership on the production of the world’s green technologies such as solar panels and batteries, as well as the production and refinement of materials needed for energy transition such as lithium. These driving forces are leading to policy that will impact every sector, not just heavy industry, and will keep ESG near the top of the regulatory agenda over the longer term.