His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai has said that COP28 will be the most important event hosted by the nation in 2023. DIFC agrees.
DIFC’s commitment to sustainability began long before the UAE was announced as the host of COP28. As early as 2019, DIFC, along with other partners such as DFM, spearheaded the establishment of the Dubai Sustainable Finance Working Group (DSFWG) – the first group of its kind that has set out a roadmap to achieve the sustainability objectives of the UAE and develop sustainable finance policies for the emirate. Through the DSFWG, we have been integrating Environmental, Social and Governance (ESG) best practice across Dubai’s finance sector with the goal of creating the most sustainable financial hub in the region.
In the pursuit of net zero goals and the transition to a clean energy future, new forms of capital and exchange are emerging to fund climate action, reinforcing the pivotal role of the finance industry in influencing sustainable outcomes.
Purpose-driven investments that integrate sustainability considerations and deliver positive environmental and social impact are shaping the future of finance today and driving the industry forward. We are increasingly seeing how finance sector participants are actively taking the shared responsibility in building a sustainable, inclusive, and resilient global economy to support full-scale transformations of communities and nations.
If the 26th edition of the UN Climate Change Conference (COP26) in Glasgow, Scotland, marked the onset of the finance industry’s plunge in spearheading efforts in the fight against climate change, COP27 in Sharm El Sheikh, Egypt, witnessed a major leap forward as nations agreed to create a breakthrough Loss and Damage Fund to deliver much-needed resources to support vulnerable countries hit hard by climate disasters.
Against this backdrop, climate finance will once again take centre stage at the upcoming COP28 hosted by the United Arab Emirates in November 2023. The economic case for inclusive climate action will take centrestage as financial institutions and their stakeholders share the determined, impactful actions taken to bridge emissions and adaptation gaps.
All eyes will be on the innovative strategies of the UAE and how it will lead the energy transition. The UAE’s push for bold climate action led to it becoming the first in the region¹ to announce a Net Zero by 2050 target and at COP27, it also announced how to achieve the goal, through the National Net Zero by 2050 Pathway².
As a growing hub for energy transition companies, the UAE is attracting increased inward investment to scale up its competitiveness through innovations and technologies of the Fourth Industrial Revolution (4IR) and artificial intelligence (AI) as it enters a new era of sustainable development and economic diversification. The adoption of 4IR strategies have led to the emergence of climate-controlled greenhouses, aquaculture facilities and vertical farms in the UAE, and technology will continue to pave the way for more food security initiatives, innovative agriculture, and smart farming.