During COP27 in Sharm El-Sheikh, Egypt, the UAE Ministry of Climate Change and Environment (MoCCAE) and the Global Green Growth Institute (GGGI) co-hosted a fireside discussion on their Green Bond and Sukuk Programme.
As part of the UAE’s efforts to encourage the expansion of sustainable finance in the nation, the Ministry announced the release of a new situation analysis report on the green bond and Sukuk market during the session.
Essa Al Hashmi, Assistant Under-Secretary, Sustainable Communities Sector-Ministry of Climate Change and Environment, served as the discussion’s moderator, and Mercedes Vela Monserrate, Head of Sustainable Finance at Abu Dhabi Global Market, served as the discussion’s main speaker (ADGM).
“MOCCAE works with its strategic partners to create awareness among major finance and investment players about the relevance of green bonds and Sukuk as effective financial instruments to boost sustainability,” Al Hashmi added.
“The sustainable finance industry is expanding at a rapid pace. The UAE is one of the most active nations in the region when it comes to issuing green bonds and Sukuk, and the UAE Green Bond and Sukuk Programme Development: Situation Analysis Report aims to strengthen the supportive environment for sustainable finance operations, the expert continued.
According to the survey, the larger financial services community may still not fully understand green financial instruments despite their rising adoption. By outlining the foundations of green bonds and Sukuk as well as the present market circumstances in the UAE, the document aims to fill in any information gaps.
Additionally, it makes suggestions for how the domestic sustainable financing market might be developed further.
The study encourages investments in low-carbon, environmentally sound, and climate-resilient projects and expands on the UAE Sustainable Finance Framework, which was introduced in January 2021.
The overall value of the domestic market for green Sukuk, bonds, and loans has risen to almost $17 billion during the last few years. The global market for green Sukuk was projected to be worth $1 trillion in 2020.
The research discusses the present process for issuing green bonds and Sukuk and elaborates on their capacity to offer thorough and affordable financing. Additionally, it links parties with concrete, bankable projects with major funding organizations like pension funds.