RIO DE JANEIRO: Mohamed Hadi Al Hussaini, the UAE’s Minister of State for Financial Affairs, has once again pledged the UAE’s support for sustainable finance and climate action. He talked about working with Brazil, the current G20 chair, to meet climate finance goals. Al Hussaini stressed that finance is essential for climate action.
He shared that the UAE plans to close the financing gap by having UAE banks offer sustainable financing by 2030. The UAE will also contribute to the International Monetary Fund to help countries vulnerable to climate change. The UAE is the largest contributor to the GFMR trust fund.
Al Hussaini made these comments at the COP28-G20 Conference on Sustainable Finance in Rio de Janeiro, Brazil, on 24th July. This conference was part of the G20 finance ministers and central bank governors’ meetings, co-organised by COP28 and Brazil.
Attendees included ministers from Azerbaijan, Brazil, Indonesia, and Barbados, as well as senior representatives from multilateral development banks.
At the conference, Al Hussaini mentioned that during COP28 in the UAE last year, there was a global agreement to limit temperature rise to 1.5°C. To achieve this, there’s a need to move away from fossil fuels and increase renewable energy and energy efficiency. Funding from public, private, and charitable sources is crucial.
Al Hussaini highlighted that shifting towards climate investments is not only necessary but also an opportunity for economic growth. He called for an international framework to distribute finance in ways that reduce investment risks in developing countries.
The launch of the Global Climate Finance Framework at COP28 received strong support, and Al Hussaini praised the collaboration with high-level experts to implement this framework. He emphasized that finance ministries are crucial in leading the transition to climate investments.
He also noted that the G20’s review of multilateral climate funds this year, led by Brazil, is vital for making financing more accessible and affordable. He expressed hope that COP28 and the G20 would lay a solid foundation for future climate finance progress.
The conference covered topics like creating a renewable financial structure, unlocking investment opportunities for climate action, and expanding concessional financing. It also discussed how multilateral development banks can be more effective in mobilising financial resources for national contribution plans.
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The UAE’s Ministry of Finance and the Central Bank of the UAE participated in the third G20 Finance Ministers and Central Bank Governors meeting for finance and empowering climate action. The UAE delegation included key figures like Mohamed Bin Hadi Al Hussaini, Ibrahim Obaid Al Zaabi, Ambassador Majid Al Suwaidi, Ali Abdullah Sharafi, and Thuraiya Hamed Alhashmi.
Under Brazil’s leadership, the G20’s Sustainable Finance Working Group is pushing forward the Sustainable Finance Roadmap. This plan focuses on improving access to international climate funds, supporting fair and reliable transformation plans, and creating sustainability reporting standards that meet the needs of all stakeholders, including small and medium-sized enterprises, developing countries, and emerging markets.
