• The Group’s trading practices are fully aligned with the guidelines of the European Union’s Emission Trading System and the UK’s Emission Trading Scheme

Dubai:  Emirates NBD, a leading banking group in the MENAT (Middle East, North Africa and Türkiye) region, has taken the lead in the region in offering carbon future contracts trading, fulfilling growing demand from corporations to manage their carbon emissions offsetting and align with the UAE’s Net Zero action plan.

The Group aims to continue being at the forefront of the rapidly evolving carbon trading landscape in the region, providing clients with the flexibility to deal in carbon credits as they reach their sustainability goals. The 28th United Nations Climate Change Conference, also known as the Conference of the Parties of the UNFCCC, or COP28, will be held in the UAE. Ahead of COP28, the Bank’s carbon future contracts trading facility also gives clients access to a rapidly growing asset class with an estimated value of USD 850 billion across six global emission trading schemes.

Emirates NBD’s carbon contract trading is aligned with the guidelines set by the European Union's Emission Trading System (ETS) and the United Kingdom's Emission Trading Scheme, providing full transparency, credibility, and accountability. The ETS’s follow the ‘cap and trade’ system whereby companies are given a limit, or "cap," on the amount of greenhouse gases they can emit. If a company exceeds its limit, it is required to buy permits, called allowances, from others who have emitted less. This approach incentivises companies to reduce their emissions and promotes a shift towards cleaner technologies and practices to combat climate change. The UAE government is supporting the growth of carbon trading markets with plans to launch regulated carbon credit trading exchanges and clearing houses ahead of COP28. Also, the year 2023 is dedicated to sustainability in the UAE, under the theme ‘Today for Tomorrow’ and includes initiatives, activities and events that draw upon the UAE’s values of sustainability.

The launch of trading capability in compliance carbon markets will also enhance corporate access to sustainability-linked finance amid a growing demand in ESG-related financing. Green and sustainable financing in the UAE increased 32% year-on-year in 2022, according to the consulting firm Arthur D. Little. Meanwhile, green debt instruments from the Middle East and Africa are outpacing the segment’s global growth, with USD 24.55 billion in green and sustainable issued in 2021, a 532% increase compared to USD 3.8 billion in 2020.

Ahmed Al Qassim, Group Head of Wholesale Banking at Emirates NBD, said “We are proud to be taking the lead in facilitating client access to global compliance carbon markets ahead of the UAE’s hosting of COP28 in November. Through our Global Markets team, clients will be able to seamlessly tap global carbon credit markets to support their net zero ambitions and sustainability goals. Our clients’ engagement will also aid the growth of the region’s fast growing capital markets, attracting more global ESG investors as the UAE becomes a hub for climate change financing. Ahead of COP28, we will continue to provide a robust range of innovative green financing solutions to our regional and global clients as we collectively work to make the global energy transition a reality.”

Vijay Bains, Chief Sustainability Officer, Group Head of ESG at Emirates NBD said: “The launch of Emirates NBD’s carbon trading facility marks a significant achievement in granting access to the world’s most regulated carbon markets, in line with the 2023 Year of Sustainability, and the United Arab Emirates revised Nationally Determined Goal of a 31% reduction of business-as-usual emissions by 2030. Access to carbon markets in the form of credits and offsets will become increasingly crucial for organisations to meet their net zero ambitions and goals in a structured manner. The Group’s development of a carbon trading facility is also in line with the COP28’s goal of climate change mitigation, and the United Nation’s Sustainable Development Goal 13.”

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About Emirates NBD

Emirates NBD (DFM: Emirates NBD) is a leading banking group in the MENAT (Middle East, North Africa and Turkey) region with a presence in 13 countries, serving over 17 million customers. As at 31st December 2022, total assets were AED 742 billion, (equivalent to approx. USD 202 billion). The Group has operations in the UAE, Egypt, India, Turkey, the Kingdom of Saudi Arabia, Singapore, the United Kingdom, Austria, Germany, Russia and Bahrain and representative offices in China and Indonesia with a total of 879 branches and 4,130 ATMs / SDMs. Emirates NBD is the leading financial services brand in the UAE with a Brand value of USD 3.6 billion.

Emirates NBD Group serves its customers (individuals, businesses, governments, and institutions) and helps them realise their financial objectives through a range of banking products and services including retail banking, corporate and institutional banking, Islamic banking, investment banking, private banking, asset management, global markets and treasury, and brokerage operations. The Group is a key participant in the global digital banking industry with 97% of all financial transactions and requests conducted outside of its branches. The Group also operates Liv., the lifestyle digital bank by Emirates NBD, with close to half a million users, it continues to be the fastest-growing bank in the region.

Emirates NBD contributes to the construction of a sustainable future as an active participant and supporter of the UAE’s main development and sustainability initiatives, including financial wellness and the inclusion of people of determination. Emirates NBD is also an early supporter to Dubai Can sustainability initiative, a city-wide initiative aimed to reduce use of single-use plastic bottled water.

For further information on Emirates NBD, please contact:
Ibrahim Sowaidan
Senior Vice President
Head - Group Corporate Affairs
Emirates NBD
e-mail: ibrahims@emiratesnbd.com

Mahmoud Kassem
Director
Brunswick Group
e-mail: mkassem@brunswickgroup.com