UAE Strengthens Support For Sustainable Finance And Global Climate Goals

Mohamed Hadi Al Hussaini, Minister of State for Financial Affairs, has reiterated the UAE's dedication to sustainable finance. He emphasised collaboration with Brazil, the current G20 Chair, to meet climate finance objectives. Al Hussaini stressed that finance remains crucial for enabling climate action.

During his speech at the COP28-G20 Conference on Sustainable Finance in Rio de Janeiro on 24th July, Al Hussaini announced the UAE's strategy to bridge the financing gap. This includes UAE banks offering sustainable financing by 2030 and contributing to the International Monetary Fund for resilience and sustainability, aiding countries vulnerable to climate change.

Al Hussaini highlighted that the UAE is the largest contributor to the GFMR trust fund. He noted that during COP28 last year, a global consensus was reached on limiting temperature rise to 1.5°C. This requires a fair transition from fossil fuels and setting global targets to triple renewable energy and double energy efficiency by decade's end.

"During the COP28 conference, hosted by the UAE last year, a global consensus was reached on the need to limit the temperature rise to 1.5°C. This requires a fair and orderly transition away from fossil fuels, with global targets set to triple renewable energy and double energy efficiency by the end of the decade. To achieve these objectives, we will need to mobilise all sources of public, private, and charitable funding," stated Al Hussaini at the COP28-G20.

The minister mentioned that launching the Global Climate Finance Framework at COP28 received support from many G20 members. He praised collaboration with high-level experts who provided a roadmap for implementing this framework. Finance ministries play a key role in leading this transition towards climate investments.

Al Husseini pointed out that reviewing multilateral climate funds under Brazil's presidency is essential for promoting accessible and affordable financing. "We hope that COP28 and G20 will establish a robust foundation for future COP conferences, which will be essential for propelling climate finance progress," he added.

Role of Multilateral Development Banks

The conference included discussions on creating a renewable financial structure for sustainable finance. Topics covered unlocking investment opportunities for climate action, expanding concessional financing, and enabling private-sector financing. The role of multilateral development banks in mobilising financial resources was also discussed.

The UAE participated in the third G20 Finance Ministers and Central Bank Governors (G20 FMCBG) meeting through its Ministry of Finance and Central Bank representatives. The delegation was led by Mohamed Bin Hadi Al Hussaini and included several key officials such as Ibrahim Obaid Al Zaabi and Ambassador Majid Al Suwaidi.

Sustainable Finance Roadmap

Brazil has guided the G20’s agenda on sustainable finance through its Sustainable Finance Working Group (SFWG). This group aims to advance implementing a Sustainable Finance Roadmap—a detailed plan guiding G20 efforts on climate and sustainable finance over multiple years.

This roadmap focuses on four main priorities: improving access to international environmental funds; fostering reliable transformation plans; establishing sustainability reporting standards; and accommodating diverse stakeholder needs including SMEs, developing countries, and emerging markets.

The conference saw participation from notable figures like Samir Sharifov from Azerbaijan; Fernando Haddad from Brazil; Marina Silva from Brazil; Sri Mulyani Indrawati from Indonesia; Marsha Caddle from Barbados; along with senior representatives of multilateral development banks.

Al Hussaini concluded by stating that achieving these goals demands shifting towards climate investments which present significant opportunities for economic growth. An international framework is needed to distribute finance effectively in developing countries while mitigating investment risks.

With inputs from WAM