National banks in the UAE are playing a pivotal role in promoting sustainable financing and supporting climate neutrality initiatives, in line with the UAE government’s vision to promote sustainable economic growth and achieve net zero by 2050.

The banking sector’s significant role in combating climate change by providing green financing and supporting climate initiatives is summed up in the following report. The Emirates News Agency (WAM) will look into the proactive role of the banking sector in combatting climate change through green financing commitments and climate initiatives.

In light of the increasing significance of climate finance, national banks have achieved significant milestones. These include substantial investments in sustainable financing, support for the transition to a green economy, and pioneering efforts in the region. These achievements underscore the success of the national banking sector in developing sustainable banking solutions. These initiatives from national banks align with the UAE’s goal of enhancing the prominence of COP28 as a crucial milestone in addressing climate change challenges.

According to the UAE Banks Federation (UBF), six major banks (FAB, ADCB, ENBD, DIB, Mashreq, and ADIB) have collectively dedicated over AED 190 billion (US$51.8 billion) in green financing for various projects in renewable energy, waste-to-energy, and green technology by the end of 2022.

First Abu Dhabi Bank (FAB): FAB, a strategic partner in the COP28 conference, is aligned with the country’s vision of actively shaping a sustainable future. The bank has committed to providing $75 billion in green financing from 2022 to 2030, with over $20 billion already funded as of mid-2023.

FAB’s COP28 agenda encompasses six key areas: accelerating sustainable finance to bolster the UAE’s role as a prominent hub for green finance, supporting customers and partners in transitioning towards zero carbon emissions, promoting awareness of environmental, social, and corporate governance (ESG) practices within the SME sector, pioneering innovation in production processes and knowledge sharing to develop carbon markets, supporting ecosystem restoration and biodiversity preservation, and empowering individuals, from students to senior executives, to actively participate in environmental initiatives.

Abu Dhabi Commercial Bank (ADCB):  ADCB has joined the Climate Responsible Companies Pledge initiative, demonstrating its commitment to supporting the UAE’s climate action agenda and the strategic goal of achieving climate neutrality by 2050.

As part of the pledge, ADCB committed to taking a set of special measures to accelerate the expansion of its contribution to the strategic initiative to achieve net zero. These measures include developing an ambitious plan to reduce the Bank’s carbon footprint based on scientific foundations and continuing the current practices adopted by the Bank in measuring its greenhouse gas emissions and disclosing them.

Abu Dhabi Islamic Bank (ADIB)

ADIB’s new environmental, social and institutional governance strategy for the next three years aims to give priority to accelerating green financing and investment initiatives. ADIB has allocated $1.7 billion to finance sustainable projects within the framework of green financing.

Last year, ADIB developed a new sustainability framework comprising 6 pillars, each pillar containing specific areas, in line with national goals, including the UAE Net Zero by 2050 strategic initiative, Principles of the 50, the Climate Change National Plan, the National Green Economy for Sustainable Development and Abu Dhabi Economic Vision 2030.

Emirates NBD is participating in COP28 as a supporting partner of the process, with its aspiration to cooperate with all partners in a way that contributes to advancing meaningful and constructive dialogue and taking the necessary measures to work towards achieving the common ambition to address climate change and move to a climate-neutral and emissions-free future. With a commitment to support the UAE’s strategic initiative to achieve climate neutrality by 2050, to lead the country to become a sustainable, knowledge-based economy.

Emirates NBD’s sustainable and responsible business practices have had a direct and meaningful impact on the communities it serves, and the group continues its pioneering journey in building more inclusive and empowered societies. It has taken the lead in the region in providing carbon futures trading services, contributing to meeting the growing demand from companies to manage their carbon emissions and supporting the national strategy to achieve climate neutrality by 2050.

WAM