UAE participates in high-level workshop on Climate Finance

Mohamed Bin Hadi Al Hussaini, Minister of State for Financial Affairs, participated in a high-level workshop on climate finance issues to support a sustainable transition. The meeting was held on Sunday in Rabat, Morocco, on the sidelines of the Joint Annual Meeting of Arab Financial Institutions. The workshop aims to open communication channels with decision makers and stakeholders to draw a roadmap for managing climate challenges to ensure sustainability in the Arab countries.

The workshop included four dialogue sessions that were organised by the Arab Monetary Fund (AMF), the Arab Fund for Economic and Social Development, the International Monetary Fund (IMF), as well as the World Bank Group. Along with Al Hussaini, Khaled Mohammed Balama, Governor of the Central Bank of the UAE (CBUAE); Younis Haji Al Khoori, Undersecretary of Ministry of Finance; Ibrahim Obaid Al Zaabi, CBUAE’s Assistant Governor of the Monetary Policy and Stability Department; as well as several senior officials from the Ministry of Finance and the CBUAE.

Dr Abdulrahman Al Hamidy, Director General Chairman of the Board of Executive Directors of the Arab Monetary Fund (AMF); Bader Mohammed Al Saad, Director General and Chairman of the Board of directors of the Arab Fund for Economic and Social Development; Ferid Belhaj, World Bank Vice President for Middle East and North Africa; and Jihad Azour, Director of the Middle East and Central Asia Department at the International Monetary Fund; delivered the opening remarks.

During his speech, Mohamed Bin Hadi Al Hussaini stressed on the significance of the workshop, which serves as a pioneering platform that brings together governments and international and financial bodies to discuss and exchange cutting-edge climate finance solutions and thus support a sustainable transition.

He said: “At this stage, international and regional cooperation is key to benefit from various experiences and expertise to combat climate change and build multilateral partnerships to implement clean energy projects, by finding new resources to finance climate action, establishing innovative structures to reduce risks, and applying diversified financial tools.”

At the end of his speech, Al Hussaini invited all participants to the 28th Conference of the Parties to the UN Framework Convention on Climate Change (COP28), which will be hosted by the UAE at Expo City Dubai from November 30 to December 12, 2023.

The first session discussed whole-of-government and whole-of-economy approach in climate change action, the role of governments in mitigating risks and coordinating response operations, as well as a review of effective adaptation policies currently implemented. The session also delved into the knowledge gap related to climate issues and frameworks for achieving financial stability, and the suggested coordination mechanisms for coherent climate action between governments, financial, and private sector players, and the role of banks in this field. This is in addition to the policy-making mechanism to reduce greenhouse gas emissions.

The second session focused on climate risk assessment. It sought to identify its signs and analyse its various aspects such as the energy crisis, its measurement mechanisms and impact on financial stability, particularly in emerging markets, as well as assess the necessary measures to improve data quality in this area.

As for the third session, it reviewed carbon pricing, carbon markets, and the next generation of climate finance. This is in order to dive deeper into recent trends in climate finance. It also previewed the challenges in the region and mechanisms to deal with them, as well as the role of carbon credits in carbon pricing. Moreover, the session reviewed the initiatives aimed at achieving the transition to a green economy and the promotion of capital mobilisation. Lastly, it deliberated the policy and regulatory implications on the financial sector while linking the priorities in developing an ecosystem for carbon credit markets.

The fourth session discussed the role of regional and International Financial Institutions (IFIs) in supporting national climate change efforts and building sustainable development. It also reviewed lessons learned by regional and international financial institutions (IFIs) in supporting climate policies in the Arab countries, through both advisory services and affordable longer-term financing. The session also deliberated how best can IFIs cooperate with counterparts in Arab countries in developing a pipeline of strong climate-responsive investment projects, as well as the innovative instruments that IFIs can leverage in supporting increased energy efficiency.