Wam photo file
The implementation of the deliverables will be done through legislative and non-legislative means.
The UAE Sustainable Finance Task Force, made up of numerous federal and local regulators and exchanges in the UAE chaired by Abu Dhabi Global Market (ADGM), released a high-level statement on sustainable finance detailing their commitment meet the UAE’s sustainability goals and the Net-Zero 2050 aspires as the top country in the MENA region.
The statement was released on the sidelines of the 26th United Nations Climate Change Conference (COP26), chaired by the United Kingdom and in partnership with Italy, where the United Arab Emirates is a committed partner that strives protect the environment, reduce emissions and create sustainable economic opportunities.
The statement follows on from the United Arab Emirates Group of Principal Regulators which began its work in 2019. It builds on the commitments set out in the United Arab Emirates Guiding Principles on Sustainable Finance, released in 2020, which serve to guide the implementation and integration of consistent sustainable practices. among UAE financial entities, contributing to the health and resilience of the country’s economy.
The UAE Sustainable Finance Task Force that issued the statement is now operating in a broader forum to scale up sustainable finance policy development in the UAE. It includes the UAE Ministry of Economy, UAE Ministry of Finance, UAE Special Envoy for Climate Change Office, UAE Ministry of Climate Change and Environment. Arab Emirates, Central Bank of the United Arab Emirates, Securities and Commodities Authority, ADGM, Dubai Financial Services Authority, Abu Dhabi Securities Exchange, Dubai Financial Market and Nasdaq Dubai.
The declaration establishes a clear and indispensable roadmap for participating authorities to contribute to the UAE’s sustainable development and climate change goals, outlined in global frameworks, such as the Paris Agreement, the United Arab Emirates’ Sustainable Development Goals. United Nations, which the UAE fully supports, and the UAE’s Net Zero by 2050 strategic initiative.
The declaration describes three key results that the UAE authorities will strive to achieve to give concrete expression to these international commitments. Deliverables include: a focused study to encourage consistent standards of environmental, social and governance information disclosure across the United Arab Emirates, examine how to strengthen good corporate governance by companies in the Arab Emirates united to contribute to the conduct of the sustainable development program and, above all, to develop a taxonomy of the United Arab Emirates which constitutes a major step defining the path of the economic transition towards sustainable development.
The implementation of the deliverables will be achieved through both legislative and non-legislative means and in coordination with the authorities on the monitoring and technical support required to integrate sustainability into regulatory frameworks.
The guidance set out in the statement follows the establishment of the UAE Sustainable Finance Task Force in 2019, which now includes a range of UAE regulators, exchanges, government agencies and ministries. Arab Emirates responsible for developing environmentally sustainable financial policies.
The declaration is also a step forward in the development by the authorities of the UAE Guiding Principles on Sustainable Finance, which serve to guide the implementation and integration of consistent sustainable practices among UAE financial entities, contributing to the health and tenacity of the national economy. Ahmed Jasim Al Zaabi, President of ADGM, said: “Tackling the impact of climate change has never been more critical, and financial regulators must work together to establish norms and standards that support the development of a sustainable economy with long-term value returns. As key regulators of the UAE, we at ADGM are tasked with establishing strong frameworks that drive greater adoption of sustainable finance, to support the country’s ambitious net zero goal. Together with our fellow regulators and exchanges, ADGM issued this statement to underscore its commitment to catalyze climate action as we collectively seek to support the growth of the UAE economy. We are confident that the implementation of the guidelines set out in this declaration will have a significant impact on the fulfillment by the United Arab Emirates of its various global commitments on sustainable development. “
Ministers and senior officials affirmed the high-level commitment to achieving the UAE’s sustainability goals.
Mariam bint Mohammed Almheiri, Minister of Climate Change and Environment, said: “Among the many areas MOCCAE focuses on in its commitment to respond to climate change, sustainable finance remains one of the crucial pillars supporting the development of a successful, green environment and resilient economy. The significant investment in clean and renewable energy sources that will be required to implement the strategic Net Zero by 2050 initiative in the UAE over the next three decades only underscores the critical importance of sustainable finance. . We are keen to collaborate with our colleagues from other ministries, regulatory authorities and exchanges on the integration of sustainable finance practices and the creation of an environment conducive to market growth.
Younis Haji Al Khoori, Undersecretary of the Ministry of Finance, said: “Mitigating the impact of climate change on key economic sectors is a prerequisite for building resilient and sustainable economies. At the Ministry of Finance, we are committed to designing sustainable finance policies to contribute to the UAE’s net zero goal and support sustainable economic and social development, which is a key pillar for the next 50 years. We are delighted to be a part of this initiative, which echoes our commitment to contribute to the UAE’s climate change goals and reaffirms our commitment to maintain a strong, secure, sustainable and green economic environment in the UAE. ” – Wam
