Under the patronage of His Highness Sheikh Mansour bin Zayed Al Nahyan, Deputy Prime Minister and Minister of Presidential Affairs, the Central Bank of the UAE is organizing a Climate Forum and a meeting of the Coalition of Finance for Greening in Abu Dhabi on June 26.
The organization of these two-day events reflects the Central Bank’s firm commitment to enhancing its integral role in promoting sustainable finance and leading the transition toward a more sustainable financial system, in line with the UAE’s vision to achieve climate neutrality by 2050.
The forum will bring together leading financial figures, decision-makers, international experts in sustainable finance and climate risk, as well as senior officials from regulatory bodies, central banks, and international financial institutions. Discussions will center on ways to integrate climate policies into risk management and investment strategies, explore effective solutions to bolster the financial sector’s resilience against future climate and environmental challenges, and establish frameworks for regional and international collaboration in legislation, financial policies, and sustainable Islamic finance. This effort aims to enhance the synergy between the public and private sectors and underscores the UAE’s growing position as a regional and international hub for leading the global dialogue on the future of sustainable finance.
The agenda for the meeting of the Coalition of Finance for Greening includes significant discussions focused on several aspects related to “greening” monetary policy frameworks, incorporating the impacts of climate change into policy formulation and operations, along with reviewing recent developments and future plans of the Coalition.
Since its establishment in 2017, the Coalition has over 160 members representing central banks and regulatory authorities.
According to Khaled Mohammed Balama, Governor of the Central Bank of the UAE, the Climate Forum and the Coalition meeting mark a significant milestone, particularly amidst the global transformations in economic policies and the growing climate challenges.
The Central Bank continues to reinforce its pivotal role in leading the path toward financial sustainability, in alignment with the UAE’s leadership vision to achieve climate neutrality by 2050 through the enhancement of green finance infrastructure and developing regulatory frameworks that support the integration of climate risks into the financial sector, thereby strengthening its resilience and stability while achieving the desired balance between economic growth and sustainability.
Memorandum of Understanding
In another development, the Central Bank of the UAE has signed a memorandum of understanding with CIPS, the operator of the Cross-Border Interbank Payment System in China. This agreement aims to enhance cooperation in payment systems, improving the efficiency of cross-border payments between the UAE and the People’s Republic of China.
The memorandum was signed by Saif Al Dhaheri, Assistant Governor of the Central Bank for Banking Operations and Support Services, and Yang You, Vice President of CIPS, in the presence of several senior officials from both parties.
Through this memorandum, both parties will collaborate on designing and launching initiatives that enhance the utilization of their payment infrastructure for conducting cross-border transactions between the two countries more smoothly and cost-effectively. They will also work to develop and strengthen their cooperation in risk management and compliance by exchanging expertise to improve the security, safety, robustness, and stability of cross-border payment infrastructures.
Saif Al Dhaheri noted that the memorandum of understanding supports the efforts of both countries to develop strategic partnership relations and enhance financial, commercial, and investment cooperation, in alignment with the vision of the UAE leadership. He added that the parties look forward to keeping pace with the latest developments in payments, leveraging technology and innovation to drive economic and commercial growth, develop the financial services sector in both countries, create innovative financial solutions for cross-border payments, facilitate transactions, and reduce costs. This effort ultimately aims to expand promising opportunities for sustainable development and achieve shared interests between the two friendly nations.