18 October 2023 

The U.S.- U.A.E. Business Council hosted a luncheon conversation on the topic of sustainable finance of green projects in the developing world at the Ritz Carlton in Dubai on 18 October 2023.  Mercedes Vela Monserrate, Finance Sector Lead for the COP28 Presidency, provided keynote remarks on the U.A.E.’s goals and objectives for COP28 in this area. She was joined by a panel of financial sector leaders from Bank of America, HSBC, Mashreq, and Standard Chartered Bank who provided their perspectives on the issue. The event took place just ahead of COP28, which the U.A.E. will host at Expo City in Dubai beginning on 30 November. 

Ms. Vela Monserrate said the U.A.E.’s  main objective is to position sustainable finance and participation of the business community at the center of the COP28 discussion. She encouraged mobilizing climate finance through innovative technology and global best practices. She further underscored the U.A.E.’s goal of making climate finance more affordable, accessible, and available. She noted that critical to this discussion will be agreeing on a transition from a taxonomy of old economy to new green economy language and how to discuss these projects.  She underscored that this COP must be about countries delivering pledges as opposed to simply making new commitments. 

Leading representatives of private sector financial services companies then joined the stage for a panel discussion moderated by Business Council President Danny Sebright. Arshad Ghafur, President for the MENA region at Bank of America, noted that the greatest opportunities in sustainable finance are in nuclear power, hydrogen, and carbon capture. He praised the U.A.E.’s leadership role with regard to hosting COP28. 

Alyson Henshaw, Managing Director and Chief Commercial Officer for MENAT Global Banking at HSBC, outlined that challenges to sustainable finance adoption are mobilizing capital, high cost, and subsidies. She also spoke about the importance of public private partnerships — government plays a critical role.

Faisal Al Shimmari, Head of ESG and Corporate Strategy at Mashreq, gave insights on the most important factors that banks consider when assessing the bankability of green projects, and how banks can creatively derisk green finance projects. He underscored the need to focus on the social aspects of sustainable finance, such as poverty reduction.  

Khaldoun Hajaj, Executive Director of Government Affairs for Africa and the Middle East at Standard Chartered Bank, discussed ways businesses can make their green projects more attractive to banks, and he warned against greenwashing. He recommended that there be a strong business case for investors interested in sustainable finance.  He also lauded the increased government capacity on sustainable finance and the fundamental role the U.A.E. is playing in this emerging sector.    

This event is part of a series of events that the Business Council is hosting on the “Road to COP28.” The Business Council will convene another sustainable finance focused event during Abu Dhabi Finance Week immediately before the beginning of COP28. For more information please contact Graham Reitman at greitman@usuaebusiness.org.