Abu Dhabi Global Market (ADGM), the financial center of the UAE’ capital, has been designated as the ‘Principal Climate Finance Partner’ for COP28, scheduled to take place in the UAE from November 30th to December 12th, 2023. This collaboration showcases ADGM’s strategic position as the foremost hub for climate finance in the region. ADGM has been actively supporting the mobilization and utilization of capital, as well as the development and implementation of innovative financial products and regulations, to make significant progress in addressing the estimated $11 trillion capital requirement for achieving net-zero emissions by 2050.
Read more: ADGM to host Abu Dhabi Sustainable Finance Forum at COP28
ADGM, in its role as the Principal Climate Finance Partner, will be hosting a series of strategic negotiations and interactive discussions within the blue and green zones, highlighting its vibrant climate finance ecosystem throughout COP28.
During COP28, ADGM will present the sixth edition of the Abu Dhabi Sustainable Finance Forum (ADSFF) in collaboration with Masdar, as a significant initiative within the Abu Dhabi Sustainability Week platform. This event, taking place on December 4th, 2023, will be featured on the thematic day focused on “Finance, Trade & Gender Equality.” The ADSFF is significant this year. It aligns with the UAE’s sustainability agenda. It serves as a global platform for influential international leaders to address the $11 trillion climate financing gap worldwide, representing the UAE and Abu Dhabi as a ‘Capital of Green Capital’.
Renowned global financial institutions
The upcoming forum will showcase esteemed C-level executives from prominent global financial institutions such as JP Morgan Chase, Morgan Stanley, BNP Paribas, General Atlantic, Tikehau Capital, Euroclear, Southbridge, and One Planet Sovereign Wealth Fund (OPSWF). The agenda is packed with important milestones, one of which is the revelation of the evolving investment strategies employed by Sovereign Wealth Funds in collaboration with OPSWF. Furthermore, there will be an exclusive interview focusing on Abu Dhabi’s emergence as a prominent hub for climate finance, along with a significant announcement from the Lord Mayor of the City of London.
Special insights
The event guarantees exclusive insights into the continuously changing regulatory environment concerning climate finance, with a specific emphasis on strengthening carbon markets and promoting innovative financing solutions. Participants can look forward to a captivating interview with the President of JP Morgan Chase, providing valuable insights into the strategic approach of one of the world’s largest banks towards facilitating the transition. This forum is positioned to deliver significant perspectives and the latest updates at the forefront of global finance.
Pivotal role
Commenting on the significance of COP28 and its participation, H.E Ahmed Jassim Al Zaabi, chairman of ADGM said, “We are honoured to take on the pivotal role of Principal Climate Finance Partner at COP28, a testament to our enduring commitment to sustainable finance and environmental stewardship. The upcoming gathering of world leaders in the UAE is poised to be a decisive moment, promising to be an impactful and inclusive ‘Conference of the Parties,’ emphasising inclusivity and solutions-driven dialogue. We look forward to actively contributing to COP28’s objectives and leaving a lasting legacy in climate finance in the UAE and beyond.”
New milestone
ADGM’s prominent presence at COP28 marks another significant achievement in its ongoing commitment to sustainability-focused initiatives. The international financial center has successfully introduced the region’s first comprehensive regulatory framework for Sustainable Finance. This framework encompasses extensive ESG disclosure requirements for relevant entities within ADGM, as well as regulations for funds, discretionary managed portfolios, bonds, and sukuks. These regulations aim to accelerate the UAE’s transition to net-zero greenhouse gas emissions.
In addition, a regulatory amendment implemented last year established environmental instruments as a distinct class of financial instruments. This amendment enables the inclusion of carbon offsets within ADGM’s regulatory framework, paving the way for the world’s first regulated voluntary carbon exchange, AirCarbon Exchange (ACX), in Abu Dhabi.
Strengthening the sustainability agenda
As part of its commitment to fostering collaboration and advancing the sustainability agenda in Abu Dhabi and the UAE, ADGM established the UAE Sustainable Finance Working Group (SFWG) in 2019. The SFWG comprises regulatory authorities, Federal Ministries, and exchanges from the UAE and actively works towards promoting sustainable finance initiatives. ADGM also takes the lead in driving the Abu Dhabi Sustainable Finance Declaration, which has garnered over 100 signatories.
These initiatives exemplify ADGM’s unwavering dedication to advancing sustainable practices and establishing a Green Financial Centre for the future. ADGM places a strong emphasis on incorporating environmental, social, and governance considerations into its operations and endeavors.
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