COP28 threw down marker on climate finance, now banks get to play their part

COP28 threw down marker on climate finance, now banks get to play their part

As COP28 culminates in Dubai and the international community returns home following 13 intense days of climate talks, we must reflect on the insights gleaned from this conference, which will hold profound implications for businesses and banks.

We witnessed the urgency, challenges, and opportunities of the sustainable transition, gathering valuable insights that extend beyond the financial industry.

The conference illuminated the pressing need for sustainable finance, with estimates indicating a required $4 trillion to $5 trillion annually by 2030 for global clean energy investments, which might be doubled - or even tripled - if we include the requirements of social finance. The financial industry has recognised its responsibility to enable the transition to a more sustainable economy and its unique position to facilitate it.

Financing commitments

One of the key highlights of COP28 is the commitment by the UAE Banks Federation to pledge Dh1 trillion in sustainable financing by 2030, which signals a collective determination in the sector to align with the government's climate ambition.

Mashreq’s remarkable commitment to facilitating Dh110 billion in sustainable finance by 2030, builds on years of sustainable finance deployment, supporting projects like water initiatives in Egypt, the UAE, Qatar, Saudi Arabia and Bahrain.

Another notable