30 November 2023
The U.S.-U.A.E. Business Council hosted a closed-door discussion on sustainable finance in the Chairman’s Boardroom of ADGM as a part of Abu Dhabi Finance Week 2023. The discussion among leading U.S. and U.A.E. financial institutions and key stakeholders took place on the first day of COP28, and was a sequel to an event the Business Council hosted last month with Mercedes Vela Monserrate, Head of Finance Sector Partnerships at COP28, and speakers from Bank of America, HSBC, Mashreq, and Standard Chartered. Shargiil Bashir, Chief Sustainability Officer at First Abu Dhabi Bank (FAB), led today’s discussion, which focused on overcoming the challenges of sustainable finance and the role of policies and regulations in incentivizing investment in sustainable projects, including through public-private partnerships.
Mr. Bashir highlighted the importance of accessibility to finance for nascent sustainable technologies, and the significant role that banks and investment firms play in climate action, as the financial sector has touchpoints across all industries. He noted the need for global alignment on taxonomy related to sustainable finance to ensure that regulatory requirements across jurisdictions are aligned, providing reliable “swim lanes” to relevant industries and financial institutions. He previewed the discussions that will take place during COP28 on sustainable finance and explored possible outcomes of these talks, noting that there will likely be some significant announcements, including on more alignment between commercial and multilateral development banks. He elaborated on the progress that industry has made towards fighting climate change, including through the Net Zero Banking Alliance of which FAB is a member, noting that the steps industry has taken over the past two years represents more progress than the past decade.
Other attendees discussed tangible ways to operationalize the significant capital commitments they have made towards sustainable finance, including several international banks in attendance that have committed trillions of dollars towards climate finance over the next decade. Attendees also discussed ways to incentivize investment in green projects and technologies, particularly in those that would not be eligible for traditional financing, and the importance of developing new regulatory standards and embedding these standards within internal practices. Companies in attendance also discussed the need for cross-industry collaboration to support and advise companies as they transition to sustainable business models. They also emphasized the need to educate and de-mystify reporting requirements in order to bring more SMEs in line with sustainability goals.
Sustainable finance will be a key theme of COP28 and will be the theme of specific focus on December 4th. The U.A.E. is seeking to make sustainable finance more affordable, accessible, and available, particularly for critical infrastructure projects in the developing world. The Business Council will continue to monitor and report on progress within this topic at COP28.
For more information on this event or the Business Council’s COP28 programming, please contact Graham Reitman at greitman@usuaebusiness.org or click here.
