COP28 Summit: UAE Banks Federation Pledge $272 Billion For Sustainable Financing

The UAE Banks Federation (UBF), an organisation that represents 52 lenders in the Emirates, has pledged to provide Dh1 trillion ($272 billion) in sustainable financing during the COP28 Summit that Expo City Dubai is hosting for a couple of weeks until December 12.

The landmark commitment is aimed at addressing the UAE’s aim to reach its net zero goal by the middle of the century, said UBF Chairman Abdulaziz Al Ghurair on Monday during a finance-themed day at the annual climate conference.

Crucial Announcements At COP28 Summit

COP28 has offered UBF “a remarkable platform”, allowing it to unite and deliver on a sustainable finance objective, he noted. “Our aim aligns seamlessly with the UAE government’s climate agenda and Year of Sustainability,” he further mentioned.

The crucial announcement adds to the series of climate change finance pledges by the UAE during the COP28 Summit. The event marked an early success on its first day as participants reached a historic agreement to operationalise the Loss and Damage Fund.

The Emirates will commit $100 million to the Fund. Other countries making notable commitments include $100 million from Germany, £40 million for the Fund and £20 million for other arrangements from the UK, $10 million from Japan and $17.5 million from the US.

The Fund is aimed at compensating countries disproportionately affected by the climate emergency. Loss and Damage is essential even if climate mitigation goals are met because a “locked-in” level of warming is already impacting particularly vulnerable communities.

UAE Investing More In Renewables Than In Hydrocarbons

In another important move, Abu Dhabi has planned to set up an independent think tank and research hub, the Global Climate Finance Centre. The aim is to address the root causes currently preventing investment to help make climate finance accessible.

Read More: How COP28 Can Help Break The Link Between Climate Change And Raging Conflicts?

The COP28 Summit is expected to convene more than 70,000 participants. During a panel session at the conference, Suhail Al Mazrouei, the UAE’s Minister of Energy and Infrastructure, said the country is investing more in renewable energy than in oil and gas.