HSBC launches green auto loans in Bahrain

TDT | Manama

The Daily Tribune – www.newsofbahrain.com

HSBC has launched green auto loans for its customers in Bahrain, demonstrating its support for the local electric and hybrid car markets. One of the first banks in Bahrain to offer sustainable auto loans, the move reiterates HSBC Group’s commitment to the transition to a global net-zero economy and supporting customers in their sustainable transitions.

Shakofa Asghar, Head of Wealth and Personal Banking said: “Sustainable actions are more important now than ever before and it’s vital that banks support customers with competitively priced green finance, and to encourage more sustainable behaviours. Issuing green auto loans in Bahrain is a significant moment for customers looking to make more sustainable decisions.”

Unlike fuel-consuming vehicles, an electric automobile is powered entirely by battery. As the vehicle does not produce any exhaust fumes they are classified as having zero emissions. A hybrid automobile operates through multiple power sources working simultaneously. While most do feature a traditional combustion engine, they also contain a battery-powered electric motor which reduces fuel combustion, making them more energy-efficient than conventional vehicles.

In January 2021, HSBC formed a dedicated Sustainable and Transition Finance Team (STFT) in the Middle East to help institutions, corporates and individuals transition to a more sustainable economy.

Globally, HSBC has stated its ambition to align financed emissions from its portfolio of customers to the Paris Agreement goal of net zero by 2050 or sooner. HSBC is expecting to pro[1]vide between USD750 billion and USD1 trillion in sustainable financing and investment by 2030 to support its clients as they switch to more sustainable ways of doing business. The bank aims to be net-zero in its own operation by 2030.