DIFC Commits To Sustainability, Spreads Awareness Of COP 28

COP28 will be the most important event hosted by the nation in 2023.

 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.

"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," stated the report.

The report further said that 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 on the shared responsibility of building a sustainable, inclusive, and resilient global economy to support full-scale transformations of communities and nations,"  His Highness Sheikh Mohammed bin Rashid Al Maktoum stated.

It is noteworthy that through DIFC, the financial services sector emerged as the first industry to launch a program that aligns with the UAE government’s COP28 agenda.

Against this backdrop, climate finance will once again take centre stage at the upcoming COP28, which will be hosted by the United Arab Emirates in November 2023.

According to the report, the economic case for inclusive climate action will take centre stage as financial institutions and their stakeholders share the determined, impactful actions taken to bridge emissions and adaptation gaps.

As the report further advances, 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 being the first in the region1 to announce a Net Zero by 2050 target, and at COP27, it also announced 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 Fourth Industrial Revolution (4IR) and artificial intelligence (AI) innovations and technologies as it enters a new era of sustainable development and economic diversification, according to the report.

The adoption of 4IR strategies has led to the emergence of climate-controlled greenhouses, aquaculture facilities, and vertical farms in the UAE.

Technology will continue to pave the way for more food security initiatives, innovative agriculture, and smart farming.

"The role of financing becomes increasingly critical in the transition to a climate-neutral, resource-efficient, and resilient economy." "For DIFC, a financial hub driving the future of finance in the UAE and the wider Middle East, Africa, and South Asia region, this path to net zero represents both a challenge and opens a world of new opportunities," said the report.

DIFC believes their path to COP28 has commenced and includes a year-long partnership with the Global Ethical Finance Initiative (GEFI) that aims to drive change across the world’s financial industry.

"Together, we are bringing the global finance community together to advance thinking and action relating to climate and ESG principles through four core workstreams, which are: delivering net zero, unlocking Islamic finance, financing nature and biodiversity, and financing sustainable development goals."

It is noteworthy that through DIFC, the financial services sector emerged as the first industry to launch a program that aligns with the UAE government’s COP28 agenda.

DIFC is building momentum and enhancing knowledge and awareness of COP28 and climate finance with a 12-month training program—the Climate Finance Training Series, offered jointly by DIFC Academy and GEFI—which is highlighted in the report.

As stated in the report, their goal is to help finance practitioners understand the COP process, global trends in climate finance, and best practise approaches to developing and implementing net-zero strategies.

"By raising awareness of the impact of investment decisions on people and the planet, we are encouraging our 30,000+ strong community to shift their attention to sustainability impacts and make ESG-related decisions when assessing business transactions."

"Today, sustainability is embedded in the heart of all initiatives we undertake." "DIFC has been awarded LEED certification for several years when developing new buildings."

DIFC strongly feels it will continue to achieve LEED accreditation for upcoming projects such as DIFC Living and Innovation Two.

They will also continue to promote the benefits of a diverse workforce and initiatives that reduce energy and conserve resources.

As the report concluded, as they look to usher in the next wave of innovation and drive value creation in the UAE economy, they will remain committed to fulfilling sustainability objectives to steer growth and resiliency and generate better outcomes for our people and the planet.