The UAE Banks Federation has today (December 4) announced a significant initiative from the country's financial sector to collectively mobilise over AED1 trillion ($272 billion) in sustainable funding by 2030.
The announcement was made at an event, organised by the Central Bank of the United Arab Emirates (CBUAE), in cooperation with the COP28 Presidency, to facilitate global climate finance solutions and progress towards a sustainable future.
Held on Finance Day at COP28, it is aligned with the CBUAE’s strategy to lead sustainable finance efforts to enable climate action.
Bringing together global leaders of key international financial institutions to address global climate action and foster sustainable finance, the panel featured Kristalina Georgieva, Managing Director of the International Monetary Fund; Ravi Menon, Managing Director of the Monetary Authority of Singapore; and Mark Carney, UN Special Envoy for Climate Action and Finance.
These leaders underscored the crucial role of sustainable finance in global climate action and outlined steps to overcome challenges faced by different global regions.
During the keynote address, Khaled Mohamed Balama, Governor of the CBUAE, highlighted the key role of the financial system in developing green and sustainable finance with a focus on ensuring financial sector progress, advancing innovative solutions, and safeguarding resilience.
In addition, Balama stressed the importance of technology in achieving sustainable development objectives given the potential of sustainable finance to leverage digitalisation and innovation to enhance global transformation towards sustainability.
Abdul Aziz Al Ghurair, Chairman of the UAE Banks Federation, said the mobilisation of sustainable finance targets by the UAE banking sector advances the forward-looking sustainable finance ambitions of the UAE and sets the foundations for enabling sustainable transformation and climate action.
The CBUAE also emphasised the role of digitalisation and advanced technology innovations in driving global climate action and sustainable finance.
During the event, the CBUAE highlighted the solutions of the COP28 UAE TechSprint – a global initiative launched by the CBUAE in collaboration with the Bank for International Settlements, the COP28 Presidency, and the Emirates Institute of Finance, with the aim of advancing innovative technology solutions in sustainable finance to scale up climate action.
Dr Sultan bin Ahmed Al Jaber, Minister of Industry and Advanced Technology and COP28 President, said: "Active engagement from the financial sector is critical to realise our collective climate ambitions, ensuring that the crucial 1.5°C target remains within reach."
"Achieving net-zero emissions hinges on the strategic allocation of capital towards environmentally sustainable and climate-resilient investments. Today’s landmark announcement by UAE banks is a strong demonstration of the UAE’s commitment to lead by example and deliver actionable solutions to sustainability and the climate crisis," stated Al Jaber.
"The commitment signifies a united and proactive approach to setting ambitious targets for redirecting financial resources into green, responsible and sustainable solutions and technologies. This bold initiative sets a strong precedent for other global actors to step up and do the same. Collaboration on this scale is pivotal in creating the necessary momentum to confront the challenges ahead," he added.
Balama pointed out that this collaborative effort between the Central Bank of UAE and COP28 Presidency reinforces its commitment to advancing sustainable finance solutions on a global scale.
"It underscores the significant efforts in the UAE and globally towards sustainable finance mobilisation. As we navigate the challenges posed by climate change, it is imperative that the financial sector plays a pivotal role in fostering innovative solutions and ensuring resilience," he added.-TradeArabia News Service