ADFW 2023: Climate finance top of the agenda at the second edition of R.A.C.E. Sustainability Summit

28 new signatories signed, bringing the total count of signatories to 145
ADFW 2023: Climate finance top of the agenda at the second edition of R.A.C.E. Sustainability Summit
During the event, one of the key topics explored was whether Climate Finance.

The second edition of the R.A.C.E (Regulation, Awareness, Collaboration, Ecosystem) Sustainability Summit was held as part of Abu Dhabi Finance Week (ADFW) 2023. The event was presented by Abu Dhabi Global Market (ADGM) in partnership with HSBC. The summit aimed to reaffirm the UAE’s dedication to advancing the global sustainability agenda by hosting a series of discussions, insights, and forward-thinking solutions that will shape the future of finance.

During the event, one of the key topics explored was whether Climate Finance represents the largest capital reallocation in history. The conference sought to identify strategies to bridge the $11 trillion capital gap between the funding required to achieve net-zero emissions and the current availability of capital for such initiatives.

The summit focused on addressing various subjects, including financing the transition to a net-zero economy, climate finance, carbon markets, and sustainable capital markets. These discussions were led by influential figures from the financial and regulatory sectors through keynote addresses and panel discussions.

Read more: ADFW 2023: Abu Dhabi attracts 14 major financial institutions representing $450 bn

Shaping the future financial landscape

Simultaneously, the Global Financial Regulators Summit, a significant highlight of the event, presented the outcomes of a crucial gathering of global financial regulatory leaders, shedding light on the role regulators play in shaping the future financial landscape, particularly in relation to climate financing.

During the summit, Her Highness Sheikha Shamma bint Sultan bin Khalifa Al Nahyan, President and CEO of the UAE Independent Climate Change Accelerators (UICCA) and Founder of the Shamma bint Sultan Sustainability Initiatives Social Enterprise, delivered a keynote speech. She emphasized the importance of reframing the paradigm to highlight both the investment opportunities and risk mitigation aspects of climate finance in order to create global financial stability. Other notable speakers included Ronald P. O’Hanley, Chairman & CEO of State Street Corporation, who discussed the evolving strategies of asset managers in approaching transition finance, and H.R.H Prince Khaled bin Alwaleed bin Talal Al Saud, Founder & CEO of KBW Ventures, who spoke about impact investing for investors during a transitional era.

Major announcements

Furthermore, the event witnessed the participation of 28 new signatories for the Abu Dhabi Sustainable Finance Declaration, showcasing their commitment to sustainability and climate financing.

During the R.A.C.E. Sustainability Summit, several significant announcements were made. One of the key announcements came from NinetyOne, who expressed their intention to establish a presence at ADGM in 2024. Additionally, Independent Financial Services Group – Rothschild & Co., European asset manager Eiffel Investment Group, and TimeToAct announced that they had received In-Principle Approval (IPA) from the Financial Services Regulatory Authority (FSRA) of ADGM.

Other major announcements included, NewVest announcing the world’s first Private Green Energy Transition Funds Index (GET-PIF) which is set to be a capital gateway for private investments critical to supporting successful energy transition.

Another notable announcement was made by NewVest, who unveiled the world’s first Private Green Energy Transition Funds Index (GET-PIF). This index is designed to serve as a capital gateway for private investments that are crucial for supporting a successful energy transition.

Exploring innovative solutions

Commenting on the event, Emmanuel Givanakis, CEO of the FSRA of ADGM stated, “The second edition of R.A.C.E. Sustainability Summit at ADFW has reinforced the importance of the global financial community’s collective commitment to addressing climate change. We are proud to host an event that brings together global thought leaders and experts to explore innovative solutions for a more sustainable future. At ADGM, we see ourselves as an important driving force in the UAE’s journey towards a net-zero future by 2050 as we create an ecosystem with a robust regulatory framework that champions sustainable finance and climate transition. As we stand on the cusp of profound change, our unwavering commitment empowers both the public and private sectors to join forces in closing the green financing gap that expedites the transition to net zero while also shaping the sustainable financial landscape of the future alongside the COP28.”

Resounding success

The second edition of R.A.C.E. at Abu Dhabi Finance Week has demonstrated the increasing momentum within the financial industry to prioritize sustainability and address the urgent challenges posed by climate change. The conference showcased the unwavering commitment of global financial leaders to drive positive change and foster sustainable practices across the sector.

Furthermore, R.A.C.E. served as a vital precursor event for COP28, where crucial negotiations concerning Climate Finance were held. Building upon this foundation, ADGM (Abu Dhabi Global Market) plans to elevate the conversation to new heights at COP28, as they proudly assume the role of the official Principle Climate Finance Partner. Moreover, they will host the sixth edition of the Abu Dhabi Sustainable Finance Forum (ADSFF) on December 4th, 2023. This forum will bring together influential decision-makers and contributors to sustainable finance and ESG (Environmental, Social, and Governance) initiatives from around the world, facilitating meaningful discussions and collaborations that transcend global borders.

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