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Dubai-UAE: The Ministry of Climate Change and Environment (MOCCAE) hosted the third National Dialogue for Climate Ambition (NDCA), dedicated to the finance industry. Held under the theme ‘Financing the transition of the UAE to net zero by 2050’, the event brought together over 80 representatives of relevant public and private sector entities, including financial regulators, financial centers, banks, insurers, and asset managers.
The participants discussed the global sustainable finance perspective, reviewed the status of the local sectoral landscape, and explored innovative tools and mechanisms necessary to support the UAE’s journey to climate neutrality.
Her Excellency Mariam bint Mohammed Almheiri, Minister of Climate Change and Environment, said: “The UAE government is committed to translating the sustainable development vision of its wise leadership into reality, and this includes fulfilling the objectives of the UAE Net Zero by 2050 Strategic Initiative. However, the scale of the investment required is massive, and the partnership with the private sector is critical. Therefore, we have invited stakeholders from the financial sector to the table as part of our NDCA to explore opportunities to accelerate the decarbonization of high-priority sectors.”
The UAE is making great strides in developing the sustainable finance sector. In 2021, the country launched the UAE Sustainable Finance Framework that seeks to step up cooperation between the public and private sectors, and channel capital towards climate-resilient and environment-friendly investments.
Meanwhile, the Abu Dhabi Global Market (ADGM) Sustainable Finance Agenda sets out a roadmap to develop a sustainable finance hub in the UAE with the aim of promoting green and sustainable investments in the region.
Boosting the role of the private sector in this space, the Dubai Declaration on Sustainable Finance and the Abu Dhabi Sustainable Finance Declaration commit UAE-based financial institutions to contributing to the country’s green economy transition through financing sustainable projects.
In addition, the Dubai Sustainable Finance Working Group brings together financial regulators and financial markets in the UAE with the aim of creating a conducive ecosystem for sustainable finance. At the 26th UN Climate Change Conference (COP26) in November 2021 in Glasgow, the Group issued the UAE High-Level Statement on Sustainable Finance that cements the commitment of the country’s financial regulators and exchanges to supporting its net-zero ambition.
Running from May to October 2022, NDCA serves as a national platform to raise climate ambition and foster decarbonization efforts in hard-to-abate sectors, including manufacturing, cement, waste, transport, and energy. The finance sector has been added to the agenda as a key enabler of the net-zero transition. The Dialogue aims to establish a national sustainability outlook and inform the UAE Net Zero by 2050 Strategic Initiative.