UAE banks pledge AED 1 trillion in green finance at COP28

The country’s banking federation is working closely with its partners on sustainability efforts to accelerate and advance sustainable development goals

The UAE Banks Federation (UBF) said banks in the country’s banking sector has collectively pledged to  mobilise more than $270 billion (AED1 trillion) in sustainable finance by 2030.

Abdulaziz Al Ghurair, Chairman of the UBF, announced the pledge at an event organised jointly by the Central Bank of the UAE (CBUAE) with the COP28 Presidency to support and facilitate global climate finance solutions and progress towards a sustainable future.

“The pledge to mobilise over AED 1 trillion in sustainable finance, represents the collective efforts of our leading national member banks and is a true testament to our financial sector’s commitment to and support of building a better future,” said Jamal Saleh, Director-General of UBF.

The country’s banking federation said it has been working closely with its partners on sustainability efforts to accelerate and advance sustainable development goals.

“Six of our UBF member banks have already taken significant strides in this regard, with over $52 billion (AED 190 billion) having been already targeted towards green projects, renewable energy, waste-to-energy, and green technologies,” Saleh added.

The UBF is also working closely on strengthening the principles and frameworks of green finance under the direct supervision of the CBUAE, which has adopted the principles of sustainability in the banking and financial sector.

The banking federation has played the central role in this initiative with its high-level ESG committee, which comprises specialist experts from UBF member banks.

“We are confident that our UAE banking sector can make significant contributions to the UAE’s National Climate Change Plan. UBF’s significance lies not only in its commitment to supporting sustainability, but also in its role as the platform for cooperation among all its UBF member banks,” said Saleh.

The UBF seeks to accelerate progress in this domain by fostering a business environment that encourages competitive, active and sustainable finance.

The UAE has adopted sustainability standards and principles in the banking and financial sector, with Abu Dhabi and Dubai’s Declarations for Sustainable Finance in years 2016 and 2019, as well as the Guiding Principles for Sustainable Finance to promote the development of a green financial market in year 2020, and the National Framework for Sustainable Finance in year 2021.