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UA E NET ZERO BY 2050 - fo c u s o n ban ki n g
Monday, Januar y 16, 2023
UAE Net Zero target will be achieved before 2050: UAE Banks Federation Promoting green projects and practices among customers, SMEs, suppliers and vendors to be part of the group’s activities By Suneeti Ahuja-Kohli
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he vision for the UAE leadership to achieve net zero carbon emissions by 2050 will require a shift. However, like all other initiatives that have been announced and accomplished by our leadership, this goal too will be achieved well before 2050, says Jamal Saleh, Director General of UAE Banks Federation. “Currently, green finance is still in the early stages in the UAE. There are a few green sukuks, and just a handful of banks who are involved in this space on a voluntary basis,” says Saleh, adding, “However, I see this scaling up considerably; similar to the growth that we have seen in Islamic banking. “We now have seven fully fledged Islamic banks in the UAE, four of which are featured among the top 20 global banks in terms of asset size. And, the UAE has established the first Islamic bank globally. Hence, I see the same replication, with green financing taking off well in the UAE.” Talking about the role of the
banking industry in helping the UAE achieve net zero emissions, Saleh says, “There are three main channels through which our UBF member banks will be helping the economy achieve net zero emission targets. First, by fostering and promoting green projects. Second, promoting green practices among individual customers, SMEs, suppliers, and vendors. And, last, by measuring and efficiently managing every member bank’s own carbon footprint.” Banks are stewards of economic transformation. And, our banking industry can play a seminal role in tapping significant opportunities in the UAE, in particular, and the region, in general. There is a growing interest in projects with a strong Environmental, Social, and Governance (ESG) angle. In the first half of 2021, green financing linked to sustainability projects in the Middle East and North Africa (MENA) reached $6.4 billion, exceeding the amount raised through the whole of the year before, according to Bloomberg’s H1-2021 Capital Markets League Table. Shoring up support at the international level, the United Nations has convened a Net-Zero Banking