NBAD commits $10b to sustainable activities over next 10 years

$48tr required in the next 20 years to meet global energy demand

Staff Report

National Bank of Abu Dhabi (NBAD) yesterday committed to lend, invest and facilitate a total of $10 billion of financing within the next 10 years to projects focused on environmentally sustainable activities.

The commitment, which is a first for a GCC bank, supports the research from NBAD’s: ‘Financing the Future of Energy Report’, which identified a funding gap of $48 trillion required in the next 20 years to meet global energy demand, with renewables playing a critical role in the energy mix of the future.

“The world is heading towards a very significant funding gap for energy globally. This is particularly true across the West-East Corridor, the rapidly growing super-region that stretches from Africa through the Middle East to Asia — and filling it is going to be a big task. As the leading bank in the Middle East, we want to make a real contribution to the region’s ability to rise to the energy challenge,” said Alex Thursby, Group CEO of NBAD.

NBAD established a dedicated Sustainable Business team in August 2015, under the leadership of Nathan Weatherstone, to evaluate and create new financing products that will support the development of renewable energy and sustainable businesses — this commitment forms the first of these initiatives.

The team will embark on an engagement programme with key regulators, policymakers and industry players to capture up to date market trends and promote continued partnership between the financial sector and environmentally sustainable businesses.

Nathan, Head of Sustainable Business Banking at NBAD, commented: “Our research has identified that there is approximately $640 billion of investment required for renewable energy projects across the West-East Corridor. But sustainable business is wider than just renewables and includes activities like clean transportation, sustainable water, waste management and energy efficient real estate. The scale of the opportunity is significant and today we commit NBAD to an ambitious but much needed goal,” said Weatherstone.