A net zero economy is now thought to be the only way out of the current global sustainability crisis, with annual financing and capital requirements of approximately US$3.5 trillion. As companies and countries strive to make credible progress toward their net zero commitments, they must develop strategic resilience in a volatile world.
To comply with its pledge to climate change mitigation and sustainable finance, the UAE has implemented a series of significant measures, including ratifying the Paris Agreement in 2016, developing the UAE Vision 2021, the Green Agenda 2015-2030, the National Climate Change Plan 2017-2050, and implementing related guidelines for specific sectors. From winning the bid to host COP 28 to launching the strategic initiative Net Zero 2050, the UAE is determined to exponentially raise its green investments.
The UAE government’s Energy Strategy 2050, which aims to boost clean energy’s contribution to the total energy mix from 25% to 50% by 2050 and reduce the carbon footprint of power generation by 70%, offers a significant opportunity for green finance investment. The country anticipates investing more than AED 80 billion (USD 22 billion) in green investment by 2050. Green financing can account for up to 2% of a leading institution’s profit. If the UAE banking sector gained 2% of net profit from green finance, the expected benefits would be a whopping AED 780 million (USD 210 million) per year. Green finance can result in long-term economic sustainability by incorporating climate change mitigation and adaptation factors into financial systems.
The main challenge, however, is navigating the economic and societal adjustments with the appropriate governance, institutions, and commitment. The MENA region’s green and sustainability-linked debt issuance reached $6.4 billion in the first half of 2021, exceeding the total for the entire year of 2020, which was $4.7 billion. The Energy Strategy 2050 will necessitate a significant pipeline of renewable projects, which would lend itself to the UAE government issuing a sovereign green bond. Thus, more and more investors are incorporating Environmental, Social and Governance (ESG) elements into their investment decision-making process, making ESG particularly prevalent regarding securing capital, both debt and equity.
At the ESG & Green Finance Forum 2022, we will bring together policymakers, regulators, government entities, and banks, among others, to discuss, debate, and develop strategies to successfully incorporate environmental, social, and governance (ESG) components in organizations, as well as the best ways to leverage the UAE’s exponential growth in green finance.
Join us on an expedition of extraordinary business opportunities at the ESG & Green Finance Forum 2022 on 29th November at Conrad Hotel, Etihad Towers, Abu Dhabi.
WHO SHOULD ATTEND
Eng. Faisal Ali Rashid
Dubai Supreme Council of Energy
Hani Abdel Razek
Chief Investment Officer
Manager Net Zero Advisory
Karim El Jisr
Chief Sustainability Officer
SPONSORS AND PARTNERS
SPONSOR WITH US
Here’s why you should partner with us: