Jamal Saleh, Director-General of the UAE Banks Federation, said that the total amount of green and sustainable finance in the country will grow significantly by the end of this year, with increased demand for financing large and innovative projects in the sustainability sector across the UAE and the region.

In a statement to the Emirates News Agency (WAM), Saleh noted that the financing provided by UAE banks is not limited to local projects, but also includes sustainable projects in other countries.

He explained that last year, green financing provided by 6 UAE banks exceeded Dhs190 billion, allocated to fund a variety of projects in renewable energy, waste-to-energy, and green technology.

Saleh explained that the strong growth in sustainable financing is the product of initiatives and directives from the Central Bank of the UAE (CBUAE) to promote green and sustainable financing, with sustainability set as one of its strategic priorities. It has also launched a number of initiatives that define the frameworks to ensure compliance with environmental, social, and governance (ESG) standards, he continued.

He explained that under CBUAE’s directives and general policies, the UAE Banks Federation is working to support the banking and financial sector in its drive to develop sustainable banking solutions in line with the UAE’s strategy to reduce emissions and achieve net zero by 2050, and the UN Sustainable Development Goals.

Separately, Meskerem Brhane, Regional Director for Sustainable Development, Middle East and North Africa for the World Bank, has affirmed the bank’s plans to increase climate financing for the Middle East and North Africa (Mena) region to $10 billion by 2025.

In statements to the Emirates News Agency (WAM) at COP28, Brhane said, “In the last three years, from 2021 to 2023 alone, the World Bank has provided $6.3 billion in climate financing for Mena.” She added that the funding supports both reducing net emissions and resilience projects, helping countries prepare for and respond to future natural disasters. “Last year, we provided $800 million in climate-related financing to Morocco, Jordan and Lebanon.”

Brhane stated that the World Bank had integrated climate into all its work across the Mena region and is on track to align 100 per cent of new operations with the goals of the Paris Agreement.

She noted that the World Bank’s Mena Climate Change Roadmap, which runs from 2021-2025, focuses on four key areas: food systems, water security, energy transition, and sustainable finance.

Regarding the UAE’s hosting of COP28, she said, “By hosting this event, the UAE signals its leadership in climate change, its ability to work with other countries to tackle global issues and its own ambition in this space.” The official added that the GCC countries can lead the global dialogue on energy transition and renewable energy deployment by further aligning their growth pathways with global climate action and decarbonisation trends.

She noted, “The GCC is already ahead in developing green and blue hydrogen projects.” The World Bank official said that by embracing green growth strategies, the region’s GDP could potentially grow to over $13 trillion by 2050.

She also highlighted that private sector investment is crucial for the success of climate initiatives in GCC countries. Significant investments will be needed to transform resource consumption, energy production, manufacturing processes, and other economic systems to achieve climate objectives.

She mentioned that the World Bank published the Country Climate and Development Reports for Mena countries to identify the most serious climate risks for a country and its potential impact on the country’s development. It also helps prioritise the most impactful actions to reduce greenhouse gas emissions and boost adaptation and resilience.

The ultimate goal is to help countries deliver on broader development goals in the face of climate change risk, she concluded.

Earlier, the Securities and Commodities Authority (SCA) disclosed recently that the total value of green and sustainability-linked bonds and Sukuk registered with the authority reached approximately Dhs15.45 billion during the first 11 months of 2023.

Speaking to the Emirates News Agency (WAM) during COP28, Mohamed Ali Al Shorafa, Chairman of the SCA Board, lauded the UAE for its commitment to sustainability approach, aligning with the vision of the late founding father, Sheikh Zayed bin Sultan Al Nahyan, and the directives of the wise leadership.

In this regard, Al Shorafa highlighted the authority’s decision to regulate the issuance of green and sustainability-linked bonds and Sukuk.