National banks in the UAE continue to play a key role in promoting green finance and supporting climate neutrality initiatives. These are geared to align with UAE’s net-zero goals by 2050.
The banking sector is launching green financing commitments and climate initiatives due to the increasing significance of climate finance.
National banks’ initiatives also support the UAE’s goal of enhancing the prominence of COP28 as a crucial milestone in addressing climate change challenges.
According to the UAE Banks Federation (UBF), six major banks (FAB, ADCB, ENBD, DIB, Mashreq, and ADIB) have collectively dedicated over $51.8 billion in green financing for various projects in renewable energy, waste-to-energy, and green technology by the end of 2022.
First Abu Dhabi Bank (FAB)
FAB is a strategic partner at the COP28 conference. The bank has committed to providing $75 billion in green financing from 2022 to 2030, with over $20 billion already funded as of mid-2023.
FAB’s COP28 agenda encompasses key areas such as supporting customers and partners in transitioning towards zero carbon emissions, promoting awareness of environmental, social, and corporate governance (ESG) practices within the SME sector, and pioneering innovation in production processes and knowledge sharing to develop carbon markets.
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Abu Dhabi Commercial Bank (ADCB)
ADCB has joined the Climate Responsible Companies Pledge initiative with measures including developing an ambitious plan to reduce the Bank’s carbon footprint based on scientific foundations and continuing the current practices adopted by the Bank in measuring its greenhouse gas emissions and disclosing them.
Abu Dhabi Islamic Bank (ADIB)
ADIB has allocated $1.7 billion to finance sustainable projects within the framework of green financing.
Last year, ADIB developed a new sustainability framework comprising 6 pillars, including the UAE Net Zero by 2050 strategic initiative, Principles of the 50, the Climate Change National Plan, the National Green Economy for Sustainable Development and Abu Dhabi Economic Vision 2030.
Emirates NBD (ENBD)
Emirates NBD is a supporting partner at COP28. Its sustainable and responsible business practices have had a direct and meaningful impact on the communities it serves. It has taken the lead in the region in providing carbon futures trading services, contributing to meeting the growing demand from companies to manage their carbon emissions and supporting the national strategy to achieve climate neutrality by 2050.
As part of its efforts to achieve climate neutrality, Emirates NBD recently signed the UAE Climate-Responsible Companies Pledge initiated by the UAE Ministry of Climate Change and Environment, in line with the commitment to support the country’s decarbonization efforts.
Dubai Islamic Bank (DIB)
In June 2023, Dubai Islamic Bank issued its second sustainable sukuk worth $1 billion, the largest issuance by a banking institution in the region and the largest sustainable issuance ever by a financial institution in the Middle East. This demonstrates Dubai Islamic Bank’s leadership in the Islamic and sustainable finance sector and its commitment to the UAE’s preparations for COP28.
Mashreq
Mashreq is a supporting partner of COP28 and has already provided $20 billion in sustainable financing in the first half of 2023 and is on track to achieve its goal of providing $30 billion by 2030.
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