Bahrain’s drive towards a circular carbon economy reached a major milestone yesterday as the Industry and Commerce Ministry officially awarded the prestigious ‘Green Factory Seal’ to 46 industrial establishments.
This represents a significant 53 per cent surge in participation compared to the programme’s inaugural year, signalling a rapid shift in the kingdom’s manufacturing landscape.
The initiative is a critical pillar of the ‘Blueprint Bahrain’ plan, which targets a 30pc reduction in emissions by 2035 and full carbon neutrality by 2060. By aligning with the Industry Sector Strategy (2022-2026), the programme aims to strengthen environmental compliance while simultaneously boosting the global competitiveness of local products.
Industry and Commerce Minister Abdulla bin Adel Fakhro praised the programme as a qualitative leap in public-private partnership. He said that the initiative reflects an advanced environmental awareness among participating factories and affirmed the ministry’s commitment to expanding the programme to ensure the sector is prepared for shifts in global supply chains.
Mr Fakhro delivers his address at the event
“The launch of the credit rating platform marks a qualitative leap in developing Bahrain’s financial infrastructure,” Mr Fakhro added. “It provides an additional pathway to financing and enhances the quality of credit decisions through objective indicators that strengthen transparency and trust in the market.”
To qualify for the seal, factories must adhere to rigorous environmental criteria. These standards include the successful reuse of at least 10pc of industrial waste within production cycles and sourcing a minimum of 10pc of their total energy requirements from renewable sources. Furthermore, establishments are required to implement carbon capture technologies or advanced greenhouse gas monitoring systems to ensure precise accounting of their environmental footprint.
Dr Khaled Al Alawi, assistant under-secretary for industrial development, told the GDN that the strategy has successfully shifted the focus from regulation to motivation.
“Our strategy is focused on incentivising the industry rather than relying solely on policing,” Dr Al Alawi explained. “The goal is to create a clear incentive for industries to go green. By obtaining the seal, factories gain access to discounted financing, expert consultancy, and global export support, ensuring that sustainability translates into a tangible competitive advantage.”
The official further highlighted that the eligibility criteria have been updated to reflect modern sustainability trends. The programme now includes incentives for factories that implement landscaping and afforestation within their industrial blocks, a move that was prominently highlighted during Bahrain Trees Week. This holistic approach ensures that sustainability translates into a tangible competitive advantage for local firms.
The ministry has secured high-level support from the private sector to ensure factories can move from theoretical commitment to practical implementation.
Yesterday, the Bank of Bahrain and Kuwait (BBK) signed up as a partner to provide specialised green financing solutions and interest rate reductions of up to 5pc for seal holders.
To address technical needs, KOBA Greentech also signed up as a provider of specialised energy audits and a 10pc discount on solar panel installations to help factories optimise their usage. Complementing these financial and technical benefits, Export Bahrain provides tailored facilitation solutions to help green exporters reach international markets more efficiently.
Additionally, the Bahrain Institute of Banking and Finance (BIBF), through its Sustainability Academy, offers specialised training programmes focused on carbon accounting and solar energy management. These collaborative efforts ensure that the Green Factory Seal supports Bahrain’s broader sustainability agenda and reinforces the kingdom’s role in global climate action.
avinash@gdnmedia.bh
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