At the 28th United Nations Climate Change Conference (COP28) in Dubai, the UAE’s financial sector has committed to mobilizing over Dh1 trillion ($272.5 billion) in sustainable finance by 2030. This groundbreaking pledge highlights Dubai’s leadership in driving global climate initiatives and achieving the UAE’s Net Zero by 2050 targets, aligned with the Paris Agreement.
Khaled Mohamed Balama, Governor of the UAE Central Bank, emphasized the crucial role of the banking sector in supporting the nation’s economic and climate strategies. He highlighted the need for financial institutions to finance the transition of carbon-intensive sectors and the expansion of green projects, acknowledging the substantial challenges posed by current economic structures.
The UAE’s Net Zero by 2050 initiative aims to eliminate greenhouse gas emissions, demanding significant financial and structural changes. Addressing climate change is critical for sustainable global development, as reflected in the Climate Policy Initiative’s report showing a substantial increase in climate finance flows, reaching nearly $1.3 trillion annually in 2021-22.
To further this commitment, the UAE Central Bank introduced principles guiding Islamic finance institutions towards sustainable strategies and launched the COP28 UAE TechSprint to develop technological solutions for sustainability-related data challenges in local financial institutions.
Dr. Sultan Ahmed Al Jaber, Minister of Industry and Advanced Technology and COP28 President, highlighted the financial sector’s pivotal role in achieving climate goals. He noted that the Dh1 trillion commitment from UAE banks is a landmark step, showcasing Dubai’s proactive leadership in climate action and sustainable finance. Al Jaber emphasized that such collaborative efforts are essential to maintain the momentum needed to tackle global climate challenges and ensure the 1.5°C target remains within reach.
This initiative by Dubai’s financial sector underscores the city’s dedication to fostering a sustainable and resilient economic future, setting a precedent for global financial institutions.
