Another day, another bid for sustainable finance: The UAE’s leading financial hub Abu Dhabi Global Market (ADGM) has launched a sustainable finance regulatory framework under a bid to boost the country’s sustainable finance ecosystem ahead of COP28, according to a statement. The framework includes rules on sustainability-oriented investment funds, managed portfolios, and bonds, as well as requirements for environmental, social, and governance (ESG) disclosures by the hub’s companies.

What we know: ADGM will introduce a designation to products and services that meet its minimum standards for net zero transition, and introduce a “designation mark” to be used in marketing materials and client communications. “The framework for green and climate transition funds and portfolios, green and sustainability-linked bonds and sukuks is a significant step in enabling capital to be channeled towards financing the transition to net zero,” the statement notes.

What they said: “We believe our regulatory framework for sustainable finance is the most comprehensive in the Middle East and South Asia region, and comparable in scope and content with the most comprehensive regulatory frameworks globally,” ADGM Chairman Ahmed Jasim Al Zaabi said. "Our requirements, particularly those which set minimum standards for sustainability-focused products and services, will help to channel capital into projects and activities that advance the country's transition to net zero.”

REMEMBER- Interest in green and sustainable finance issuance has been on the rise in the region in recent months ahead of COP28 in the UAE. The MENA region reported a 532% y-o-y rise in green and sustainable finance to USD 24.55 bn in 2021, up from USD 3.8 bn a year earlier, a report by consultancy Arthur D Little read. The UAE saw a 32% y-o-y increase in its green and sustainable finance issuance last year.

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