Green Financing Projects Were Allocated Nearly $52 Billion by 6 UAE Banks in 2022

Six prominent banks in the UAE collectively allocated more than 190 billion dirhams ($51.8 billion) in green financing during the past year for projects spanning renewable energy, waste-to-energy, and green technology sectors, as stated by the UAE Banks Federation (UBF).

Referring to publicly accessible data, the UBF identified the six financial institutions as First Abu Dhabi Bank, Abu Dhabi Commercial Bank, Emirates NBD, Dubai Islamic Bank, Mashreq Bank, and Abu Dhabi Islamic Bank. These banks have demonstrated proactive engagement in addressing climate change.

The data also unveiled that green financing commitments and the issuance of green-focused funds have emerged as prevalent strategies within the banking industry to align with sustainability targets in the UAE.

UBF noted that the nation’s banks and financial entities have initiated green sukuk and bonds issuance, constituting a market worth approximately AED 62.4 billion. This initiative seeks to access institutional financing sources that contribute to climate impact mitigation while offering appealing returns for investors.

Furthermore, UBF has established an ESG steering committee to oversee the green finance sector's activities in line with the Central Bank of the UAE's policies. This involves integrating sustainability principles into reserves management and monetary operations.

Jamal Saleh, UBF's Director General, outlined three primary avenues through which federation members will propel the financial sector's transformation: supporting green projects through fund provision and green bond issuance; promoting eco-friendly operations and lifestyle choices among customers, SMEs, suppliers, and vendors; measuring and efficiently managing carbon footprints of UBF members while reporting achieved reductions.

Source: Zawya