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Six major UAE banks have collectively dedicated over 190 billion dirhams ($51.8 billion) last year in green financing for various projects in the fields of renewable energy, waste-to-energy, and green technology, according to the UAE Banks Federation (UBF).
Citing publicly available data, UBF has named the six financial institutions that include First Abu Dhabi Bank, Abu Dhabi Commercial Bank, Emirates NBD, Dubai Islamic Bank, Mashreq Bank and Abu Dhabi Islamic Bank, as companies that have been playing a proactive role in combating climate change.
The data further revealed that green financing commitments and the issuance of green-oriented funds have emerged as popular mechanisms employed by the banking sector to meet sustainability commitments in the UAE.
According to UBF, the country’s banks and financial institutions have initiated the issuance of green sukuk and bonds, whose total market in the UAE has been around AED 62.4 billion in recent years, with the aim of accessing institutional sources of financing that contribute to reducing the negative impact on the climate, as well as providing attractive returns for investors.
The UBF has also built an ESG steering committee to drive the green finance sector to work under the guidance of Central Bank of the UAE’s policy, to adopt sustainability principles in reserves management and monetary operation.
Jamal Saleh, the Director General of UBF, identified three major areas through which federation members will drive the transformation of the financial sector: through propelling green projects by providing funds and issuing green bonds; by inculcating green practices among customers, SMEs, suppliers, and vendors through eco-friendly operations and living; by measuring and efficiently managing every UBF member’s own carbon footprint and reporting reductions achieved.
(Writing by Bindu Rai, editing by Brinda Darasha)
