UAE INCREASES NET-ZERO EFFORTS WITH CLIMATE FINANCE GATHERING
▶ Environment Minister Mariam Al Mheiri leads green investment event ahead of Cop28
The Ministry of Climate Change and Environment has hosted a special event to accelerate the country’s journey to net-zero emissions by 2050.
The session, held as part of the National Dialogue for Climate Ambition, highlighted gaps in climate finance for decarbonisation of the economy.
It urged everyone – particularly in private sector financial entities – to increase green finance to support the UAE’s vision to build a sustainable economy, the ministry said.
The dialogue, an initiative led by the ministry, aims to promote climate action through stronger collaboration, including with the private sector.
It is a series of industry-specific assemblies aimed at raising climate ambitions in the nation’s journey to net zero – which means not adding to the quantity of greenhouse gases in the atmosphere.
This session, on Monday, was attended by Mariam Al Mheiri, Minister of Climate Change and Environment.
It brought together 100 participants from the banking, insurance, investment, financial services and consulting sectors and various ministries.
Coming only months before the UAE hosts the UN climate summit Cop28 – starting on November 30 – Ms Al Mheiri emphasised the importance of collaboration to raise ambition for climate finance. This is vital to implement the goals of the 2015 Paris Agreement.
The agreement, which was signed by about 200 countries, aims to limit global temperature rises to 1.5°C above pre-industrial levels, and to keep them well below 2.0°C.
Climate finance is crucial in funding renewable power such as wind or solar.
How countries are implementing the accord and what more needs to be done to achieve its aims will be discussed in a “global stocktake” at the 13-day Cop28 gathering at Expo City Dubai.
“One of the key elements of UAE’s vision for Cop28 is to raise ambition and collective action towards mitigation [cutting emissions], adaptation [coping with climate change], loss and damage and climate finance,” said Ms Al Mheiri.
“The UAE believes scaling up climate finance is crucial for system- wide transformation, and this can be achieved through strong partnerships that will support the nation’s journey to net zero by 2050.
“The participation of all sectors is essential in tackling the challenge, with perceived risks in green investments – such as a relatively long payback period – hindering green finance investments.”
Ms Al Mheiri said these perceptions must be addressed – with the UAE demonstrating to other countries that investing in green projects is an investment in the world’s future.
“Together, we must create new financial products and services that promote sustainability and resilience and work towards a strategy that aligns with the interests of all stakeholders,” she said.
Ms Al Mheiri pointed to the UAE’s successes in clean energy projects – such as Masdar City in Abu Dhabi and Noor Abu Dhabi Solar Park.
She noted the significant green finance behind Etihad Rail, which will transform the UAE’s transport sector and reduce the country’s carbon dioxide emissions by up to 2.2 million tonnes annually.
“With environmental, social and governance emerging as the cornerstone for responsible business, government entities and the private sector, including the finance industry, can rally their efforts to raise ambition for climate finance,” said Ms Al Mheiri.
“Investors and financial markets increasingly demand an effective ESG plan and a path to net-zero carbon emissions as part of their analysis process to identify material risks and growth opportunities.”
Panellists at the event included Alexandros Severis and Girish Narula from Intercontinental Exchange, Shargiil Bashir from First Abu Dhabi Bank, Zoe Knight from HSBC, Faisal Al Shimmari from Mashreq Intercontinental Exchange, and Oliver Phillips from Standard Chartered Bank.