The Dubai International Financial Centre (DIFC) unveiled its Sustainable Finance Framework. This framework has received a positive Second Party Opinion review from S&P Global Ratings. Also, it establishes fundraising principles for investments in environmental and social projects, facilitating sustainable business operations.
To achieve the 2030 Agenda for Sustainable Development, a staggering amount of $3.3-4.5 trillion per year is estimated to be necessary globally. This has prompted the emergence of the sustainable debt market, which is experiencing rapid growth. The market’s expansion is fueled by strong investor demand and increasing expectations for governments and organizations to fulfill their sustainability commitments.
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DIFC remains committed to fostering the expansion of the sustainable debt market on Nasdaq Dubai. As of September 2023, DIFC’s Nasdaq Dubai has established itself as the largest ESG sukuk market globally. Moreover, it accounts for approximately 64 percent of the world’s dollar-denominated sustainable sukuk (amounting to $16.4 billion out of $25.8 billion) and 46 percent of the world’s all-currencies sustainable sukuk (equivalent to $17.5 billion out of $38.3 billion).
Strategic alignment
The framework is in strong alignment with DIFC’s Strategy 2030, which aims to shape the future of finance. It is also fully supportive of the Dubai Economic Agenda D33, which seeks to drive economic growth, foster innovation, and encourage environmentally friendly and energy-efficient businesses. In addition, the framework is in line with the UAE Sustainable Goals 2030, emphasizing DIFC’s commitment to sustainability and contributing to national sustainability objectives.
S&P Global Ratings, the appointed entity for conducting the Second Party Opinion (SPO) on the DIFC Sustainable Finance Framework, has expressed “strong” opinions regarding the framework’s project evaluation and selection processes, as well as its reporting mechanisms.
Future Sustainability Forum
Furthermore, on October 4, DIFC inaugurated “The Forum,” the first-ever Future Sustainability Forum, at the Ritz-Carlton, DIFC. The event witnessed participation from over 1,000 industry leaders and changemakers representing 30 countries.
In anticipation of COP28, the Forum serves as a platform to highlight DIFC’s vision of promoting global solutions to address climate financing needs in emerging markets. Over the course of two days, the Forum brings together distinguished industry leaders, decision-makers, and innovators from across the globe to delve into strategies for the financial sector to take the lead in tackling climate change.
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