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COP28: UAE’s biggest bank FAB to provide half a trillion dirhams in green finance in 7 years

New target is an 80% increase over the bank’s 2021 commitment

First Abu Dhabi Bank (FAB), the UAE's largest bank, on Tuesday said it would lend, invest and facilitate over Dh500 billion ($135 billion) by 2030 in sustainable and transition financing to combat threats posed by climate challenges, the lender said during the COP28.

The new target, which is an 80 per cent increase over the bank’s 2021 commitment of Dh275.4 billion, is the largest sustainable finance commitment made by any Mena bank to date.

The commitment by the UAE’s largest bank represents over half of the combined pledge of Dh1 trillion made by UAE banks towards sustainable finance announced by the UAE Banks Federation on Finance Day at COP28.

The bank will expand its target to include transition financing projects and early-stage innovative climate solutions.

Sheikh Tahnoon bin Zayed Al Nahyan, Chairman of FAB, said the bank is deeply integrated into the UAE’s ambition on climate change and net zero, placing sustainability at the heart of social and economic progress.

“We believe in the urgency to scale investments and financing, as the foundation of climate action. In setting even more ambitious sustainable finance targets by 2030, we are expanding our commitment. Our objectives will accelerate the decarbonisation journey while supporting the UAE vision and regional, and global net zero agenda,” he said.

Hana Al Rostamani, group CEO of FAB, said they aim to unlock 80 per cent more resources for transition finance.

“From now until the end of this decade, we will deliver meaningful impact by deploying finance, advisory, and innovation at scale to ensure we meet climate ambitions across the region, where we will support more sustainable projects, engage more clients in their transition journeys, and advance the UAE’s development as a green finance hub,” she said.

Since 2021, FAB has facilitated over Dh100 billion as of September-end 2023 in sustainable projects towards renewable energy, clean transportation, green buildings and social projects.

These include three solar-energy projects that replace nearly two million tons of CO2 emissions annually, the equivalent of energy used by 250,000 homes; seven green buildings with Estidama 2 pearl design ratings; and a wastewater plant that treats 430,000 m3 of wastewater a day.

FAB’s sustainable finance projects since 2021 are diversified across geographies, with 57 per cent in the UAE, 21 per cent in Saudi Arabia, 11 per cent in Singapore, 5 per cent in Bahrain, and the remainder in Europe, the Americas and South Asia. Over 86 per cent has been disbursed through conventional financing; and 14 per cent via Islamic financing.