Abu Dhabi Global Market Proposes Sustainable Finance Regulations to Support UAE Net Zero Aims

As the United Arab Emirates strives to reach net zero, a financial center is proposing a sustainable financial regulatory framework to support it.

financial center Abu Dhabi Global Market (ADGM) has published a consultation document on the proposed Sustainable Financial Regulatory Framework. This paper aims to outline measures to enable the growth of a sustainable financial ecosystem in the UAE capital. It also plans to help countries reach net zero emissions of greenhouse gases.

The framework covers rules for sustainability-oriented investment funds, portfolios and bonds. The paper also includes a framework for environmental disclosure by ADGM companies.

The proposal aims to grow a vibrant, prosperous and sustainable financial hub within Abu Dhabi. ADGM explained that by developing sustainable financial hubs, it can play a role in supporting the allocation of capital to economic activity and helping achieve net zero emissions targets both locally and globally. .

Abu Dhabi Global Market Proposal

Several Regulatory framework As ADGM seeks to cover different areas, it is suggested that:

• A green investment fund framework to direct funds to environmentally sustainable activities. This includes a framework in which more climate change investment funds will direct money to entities looking to reduce greenhouse gas emissions.
• Regulation of Green and Climate Portfolio Management Services
• Regulations for Green Bonds and Sustainability Linked Bonds Offered at ADGM Financial Center
• Building on ADGM’s current disclosure requirements to create the most comprehensive ESG disclosure framework in the country
• ADGM will begin covering disclosures by publicly traded companies, regulated financial services companies, and large private commercial entities.

If approved, these frameworks will advance the ADGM’s sustainability agenda. Such regulations exist to facilitate the transition to net zero. Providing transparency to protect the interests of investors is another advantage of such regulation.

Establishment of a powerful financial center

Ahmed Jassim Al Zahbi, the ADGM Chair explained the importance of the proposal. he said:

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ADGM is dedicated to fostering a sustainable financial ecosystem with significant efforts and resources. We are already seeing results, as evidenced by the upcoming launch of a new carbon exchange and clearinghouse.This proposed regulatory framework will allow the Middle East, Africa and South Asia (MEASA ) strengthens our position as the leading sustainable financial hub in the region.

With an internationally recognized regulatory framework and proximity to many of the world’s largest sovereign wealth funds, institutional investors and private wealth, ADGM is well positioned to reach net zero for the UAE (and globally). attempt”

The ADGM proposed framework aims to establish minimum standards for a wide range of sustainability-oriented investment products and services. The financial center expressed its belief that setting standards would increase transparency and investor confidence in the green certification of such products and services. The overarching aim appears to be to advance the goal of making the financial center a leader in sustainable finance.