Abu Dhabi announces $10bn support for climate projects

The National Bank of Abu Dhabi has announced new investment of $10 billion for environmental projects during the World Future Energy Summit in the United Arab Emirates.

The financing pledge, a first for a Gulf Council Country bank, was announced on Monday and is intended to support recent research presented in the NBAD’s recent report, Financing the Future of Energy Report.

The study identified a funding gap of $48 trillion that is required over the next 20 years to meet global energy demand.

Alex Thursby, Group CEO of NBAD, said: “The world is heading towards a very significant funding gap for energy globally… This is particularly true across the West-East Corridor, the rapidly growing super-region that stretches from Africa through the Middle East to Asia – and filling it is going to be a big task.”

The National Bank of Abu Dhabi established a dedicated Sustainable Business team in August 2015 which is designed to “evaluate and create new financing products that will support the development of renewable energy and sustainable businesses.”

The new $10 billion investment pledge will see the Sustainable Business team begin an engagement programme with policy makers, regulators, and industry players, “to capture up to date market trends and promote continued partnership between the financial sector and environmentally sustainable businesses.”

Thursby added: “As the leading bank in the Middle East, we want to make a real contribution to the region’s ability to rise to the energy challenge. We believe that even in the current climate of low oil prices, the transition towards more renewable sources in the energy mix will continue because the underlying drivers are long term and strong…It is for this reason that we have made this commitment of $10 billion today. Through our Sustainable Business team we hope to become a positive force in the banking sector in the region, accelerating the transition to a much needed new world of energy.”