UAE banks commit $51.8b in green financing

By Delisha Fernandes

UAE Banks Federation (UBF), a sole representative of banks in the UAE, has revealed the success of the UAE banking and financial sector in developing sustainable banking solutions.

According to UBF members, six major banks (FAB, ADCB, ENBD, DIB, Mashreq, and ADIB) have collectively dedicated over AED 190 billion ($51.8 billion) in green financing for various projects.

This move is in line with the UAE’s strategy to reduce emissions and achieve climate neutrality by 2050 and with United Nations Sustainable Development Goals.

The Federation highlighted the proactive role of the banking sector in combating climate change through green financing commitments and climate initiatives and said that providing green finance and issuing green-oriented funds has emerged as a powerful mechanism to meet sustainability commitments of various organisations in the UAE.

Jamal Saleh, Director General of UAE Banks Federation (UBF), said, “Sustainability is a top priority for us. While Central Bank of the UAE leads integrating it into the regulatory frameworks and advancing Islamic sustainable finance in the UAE, we at UBF are committed to supporting its goals in delivering necessary changes in our UAE finance sector. And, in line with National Climate Change Plan of the UAE 2050 and United Nations’ SDGs, our financial sector is playing a pivotal role in helping the UAE achieve net zero emissions.”

The UAE Banks Federation identified three major areas through which Federation members will drive the transformation of the financial sector. First, propelling green projects by providing funds and issuing green bonds. Second, by inculcating green practices among customers, SMEs, suppliers, and vendors by promoting eco-friendly operations and living. And, last, by measuring and efficiently managing every UBF member’s own carbon footprint and reporting the reductions achieved by the sector.