2023-08-21 22:06:58
The UAE Banks Federation revealed the success of the UAE banking and financial sector in achieving remarkable achievements in developing sustainable banking solutions, in line with the country’s strategy to reduce emissions and achieve climate neutrality by 2050 and with the United Nations Sustainable Development Goals.
And the union stated in a statement that the total “green financing” for six Emirati banks, namely: “First Abu Dhabi”, “Abu Dhabi Commercial”, “Emirates NBD”, “Dubai Islamic”, “Mashreq” and “Abu Dhabi Islamic”, amounted to more than 190. One billion dirhams ($51.8 billion) until the end of last year 2022, as these funds were allocated to various projects in the field of renewable energy, waste-to-energy conversion and green technology.
The Federation of Emirates Banks confirmed that the significant growth in total “green financing” from member banks comes as a result of the initiatives and directives of the Emirates Central Bank to promote green and sustainable financing, as the “Central” places sustainability among its strategic priorities, and launched a number of initiatives that set frameworks to ensure compliance with environmental and social governance. and institutional.
Jamal Saleh, Director General of the Emirates Banks Federation, said: “We affirm in the Emirates Banks Federation our full commitment to support the efforts of the UAE Central Bank in promoting sustainability practices, in line with the UAE’s strategy for climate neutrality 2050, and the United Nations sustainable development goals.”
He added: “Our banking and financial sector plays a major role in achieving these goals by financing projects that contribute to accelerating the transition to a sustainable smart economy, in addition to its commitment to environmental, social and institutional governance standards in its various operations.”
Saleh praised the partnership concluded by the federation with the Securities and Commodities Authority, to enhance cooperation in developing the financial sector, and to consolidate the country’s position as an attractive and main destination for managing assets and wealth.
Commenting on the country’s hosting of the Conference of the Parties to the United Nations Framework Convention on Climate Change (COP28), Saleh said: “We believe that the conference will provide a platform for discussions and collective action on climate change. The UAE will provide the best conditions for enhancing cooperation with stakeholders around the world, exchanging best practices and building partnerships to accelerate the implementation of sustainable financing initiatives. Banks and financial institutions that are members of the UAE Banks Federation will also play an important role in supporting the sustainability goals.
Saleh explained the main areas that the Federation of Emirates Banks will focus on in order to deepen and accelerate the shift to sustainable practices in the banking and financial sector, which are supporting green projects by providing financing and issuing green bonds, and working to promote sustainable practices and adopt an environmentally friendly lifestyle among customers and small and medium companies. suppliers and sellers. The federation and its member banks will also work to reduce and manage emissions efficiently, and disclose their impacts.
Green sukuk and bonds
The banking and financial institutions in the UAE are among the most prominent entities that initiated the issuance of green sukuk and bonds, the total market of which in the UAE amounted to regarding 62.4 billion dirhams (17 billion dollars) during the past years, with the aim of relying on institutional financing sources that contribute to reducing the negative effects on the climate. environment, and enhancing the sector’s role in achieving an integrated system for sustainable development, as well as providing returns for investors of those green sukuk and bonds.
1692658580
#billion #dirhams #total #green #financing #Emirati #banks
