Abu Dhabi Global intends to launch a sustainable financing platform

Al-Khoury: 147 billion dirhams of UAE investments in clean and renewable energy

The "Sustainable Finance Forum" held its fourth virtual session on the sidelines of the "Abu Dhabi Sustainability Week", which concluded its activities.

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The "Sustainable Finance Forum" held its fourth virtual session, on the sidelines of the "Abu Dhabi Sustainability Week", which concluded its activities yesterday.

The Undersecretary of the Ministry of Finance, Younis Haji Al-Khoury, revealed that the UAE's net investments in clean and renewable energy have so far reached $40 billion (equivalent to 147 billion dirhams), at a time when the Abu Dhabi Global Market announced that it had become the first "carbon neutral" international financial center. In the world, it will launch its own sustainable financing platform.

sustainable energy

In detail, the Undersecretary of the Ministry of Finance, Younis Haji Al-Khoury, revealed that the UAE's net investments in clean and renewable energy have so far amounted to 40 billion dollars (equivalent to 147 billion dirhams), at a time when 160 billion dollars have been allocated for the same purpose during the next three decades, stressing The country's commitment to the carbon neutrality initiative, and the outcomes of the climate conference held at the United Nations recently.

Al Khouri added: “We will continue to implement aspects of the sustainability agenda, and we will work collectively with our partner ministries and public authorities in the UAE to assess their suitability to achieve the announced commitments,” noting that the Ministry of Finance will focus specifically on increasing the adoption of sustainable financing, and enabling Regulatory efforts that will direct capital towards investments with positive economic, social and environmental impact.

“Climate change poses significant long-term threats to almost every economic sector, therefore, our best opportunity is to mitigate these threats and strengthen our vigilance to include environmental and social governance, corporate governance, and sustainable financing as a fundamental pillar behind our endeavours.”

sustainable investments

For his part, Chairman of ADGM, Ahmed Jassim Al Zaabi, said: “Over the past two years, we have witnessed a huge increase in sustainable investments and climate-related pledges, with sustainable funds growing by 12% year-on-year, to reach $2.24 trillion by June 2021.” Noting that assets related to environmental, social and corporate governance standards in general constitute a third of global assets under management.

In his speech at the forum, he added that, in support of the UAE's commitments with regard to sustainability, the Abu Dhabi Global Market is working to strengthen its regulatory framework, policies and services as an international financial center, in an effort to promote sustainable investments, noting that the market's mission is to provide a progressive financial platform. and comprehensive support that supports long-term economic development and sustainable growth in the UAE.

He continued, "The objectives of the forum are in line with the (50 Principles) adopted by the UAE, as we affirm our pledge to achieve carbon neutrality by 2050, and the forum is a preparatory event for the (COP 28) conference to be held in the UAE in 2023."

Carbon neutral center

Al Zaabi stressed that the Abu Dhabi Global Market, in its institutional capacity, has become the first "carbon neutral" international financial center in the world.

He said, "We have offset carbon emissions in the market for 2021 by supporting the Indonesian Rimba Raya project, and we have also worked with the AirCarbon Exchange, a digital carbon exchange registered with the market, to advance our (carbon neutral) agenda."

Regulatory framework

Al Zaabi revealed that the Abu Dhabi Global Market is currently working to strengthen its regulatory framework, to integrate the requirements of environmental and social standards, corporate governance, and sustainable financing, as the enhanced framework will help investors identify sustainable investments, enable entities to reduce the risks posed by climate change to their business models, and expand The financial system to include more sustainable products and services.

He pointed out that the Abu Dhabi Global Market will provide clear standards for green financial products and services, such as green funds, green wallets, green bonds and green sukuk.

It will also encourage its registered entities to report climate change risks, as part of the ongoing efforts to disclose environmental, social and corporate governance standards.

financing platform

He said that the Abu Dhabi Global Market will launch its sustainable financing platform, with the aim of providing investors and stakeholders with immediate access to basic sustainable financing data, so that they can make informed investment decisions in the field of environmental, social and corporate governance standards, by better representing data and research, and understanding Ratings of these criteria better.

He confirmed that 18 new members joined the Abu Dhabi Declaration on Sustainable Finance, bringing the total number to 60 members.

He continued, "In evidence of our commitment to sustainability, the ADGM Academy launched a number of initiatives to develop talent, enhance expertise in sustainable finance, and launched programs such as the Executive Certificate in Sustainable Finance, and the Academy also presented a series of introductory sessions on sustainable finance."

Abu Dhabi Sustainability Week in numbers

- 175 countries represented.

- 4000 members of the participating delegations.

150 ministers.

- 1000 exhibitors.

- 3000 students.

Approximately 45,000 attendees.

10 international initiatives and events.

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