Sustainability financing is the support and facilitation by a financial institution for sustainable development. It creates value in economic, environmental, and social terms. It also ensures and improves today’s and tomorrow’s economic efficiency, prosperity, and competitiveness. It also means to protect and restore natural ecological systems and enhance cultural diversity and social well-being. In sustainability financing, business or investment decisions are taken for the lasting benefit of clients and society.
The UAE government is fully committed to making the country.
The objectives’ main focus is renewable energy, but the proposals also focus on energy efficiency, low carbon, waste, and water management.
The United Arab Emirates is the only country with a strategic plan for a green economy, including food, transport, energy, and infrastructure. Financial institutions, mainly banks, can play a leading role in financing sustainability projects.
The biggest bank in the region, the National Bank of Abu Dhabi (NBAD), has undertaken multiple projects in this regard. The bank brought together a dedicated Sustainable Business team in August 2015 to recognize, assess, evaluate, and recommend innovative financing projects to support the development of renewable energy and sustainable businesses.
NBAD collaborates with global consultancy PwC and the University of Cambridge for clean energy. NBAD has also committed to Finance Corporation standards on social and environmental sustainability and the World Bank Group’s environmental, health, and safety procedures.for environmentally sustainable activities. NBAD is also the first bank in the region to sign up for the Equator Principles, a voluntary set of guidelines based on International
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Banks can contribute to sustainability through responsible lending, risk management, sector policies, energy-related credit portfolios, and green bonds. Green bonds, in particular, increase investors’ demands for engagement in environment-associated opportunities. Many green startups and companies seek investment, and investors can integrate sustainability into their portfolio allocation for greater long-term profitability. It’s a win-win situation for all – banks, people, investors, and government.
Although UAE’s sustainable future faces many challenges, the country’s sustainability mission can only be achieved through mutual interest, collaboration, and interest of all stakeholders. The government is committed to acceleratingng toward national and regional green growtpathways andds the much-needed new world of clean energy. Through clear policies and a bright vision, the UAE is on the right path to becoming a positive force in sustainability through strong support from the the region’s banking sector.