Etihad Credit Insurance (ECI), the UAE’s Federal export credit company, has signed an agreement with Masdar, Abu Dhabi Future Energy Company, to work on initiatives aimed at supporting investment in renewable projects that will contribute to reducing carbon emissions.

In a Memorandum of Understanding (MoU) signed by Massimo Falcioni, CEO of ECI, and Mohamed Jameel Al Ramahi, CEO of Masdar, the two institutions have agreed to explore building together cost-effective insurance and financial guarantees to support Masdar’s global development ambition of achieving clean and renewable energy infrastructure development.

The agreement is a result of the shared objective of ECI and Masdar to solidify the position of the UAE as a global leader in sustainability initiatives and renewable energy and accelerate the diversification of the national economy. It is also in line with the objectives of the UAE Energy Strategy 2050, which aims to increase the contribution of clean energy in the total energy mix from 25 per cent to 50 per cent by 2050 and reduce carbon footprint of power generation by 70 per cent. The UAE signed the Paris Agreement in 2016, joining over 170 countries across the world.

Underscoring the importance of this collaboration in achieving a sustainable economy, Falcioni said: “ECI is immensely honoured to have undertaken this partnership with Masdar, as it will strengthen the position of the UAE as a global leader in addressing global warming. It is our common goal to help the UAE become a paradigm of sustainability, and rest assured we will strive to build a brighter, greener future together. Through this undertaking, ECI hopes to show support for the leaders’ vision of helping reduce the carbon emission.”

“While financing the energy transition will be a monumental undertaking, there is actually no shortage of capital to finance renewable energy projects in the majority of countries as clean energy solutions have a well-understood risk profile,” Al Ramahi said.