The Sustainable Finance Working Group publishes its fourth statement

Abu Dhabi, 18 December / WAM / The Sustainable Finance Working Group in the UAE issued its fourth statement confirming the country’s firm commitment to promoting sustainable finance in line with existing initiatives, including the National Green Agenda 2015-2030, the National Climate Change Plan 2017-2050, and the strategic initiative to achieve climate neutrality by 2050.

According to a press release issued today, the issuance of the fourth statement embodies the proactive approach adopted by the UAE in the field of sustainable development, as a continuation of the important steps adopted by the country to implement the Climate Change Law and develop plans aimed at reducing greenhouse gas emissions.

Since issuing the third statement, the working group has taken practical and tangible steps to strengthen and activate the efforts emerging from its work streams.

The working group includes national regulatory authorities concerned with financial services, ministries, and financial markets, and its work is coordinated by the Financial Services Regulatory Authority of the Abu Dhabi Global Market.

The fourth statement reviews the progress made across the working group’s four core work streams, which include: corporate governance, disclosures, the UAE Sustainable Finance Classification, and climate transition planning.

With regard to sustainability-based corporate governance, the “Principles for Effective Management of Climate-related Financial Risks” framework, issued in November 2023, provides a comprehensive approach to integrating climate risks into the business strategies and risk management frameworks of financial institutions. As for sustainability-related disclosures, the “Sustainability-Related Disclosure Principles for Reporters” for 2024 aims to enhance transparency and consistency in environmental, social and corporate governance reporting, at the entity or product level. Either, by identifying the essential aspects related to the scope, timelines, and disclosure obligations, in order to achieve alignment of local practices with global standards, including the standards of the International Sustainability Standards Council.

The third track concerns the UAE Sustainable Finance Classification, as the working group continues to evaluate the strategic design of a classification system that is in line with the requirements of the UAE market and is characterized by interoperability at the international level, while the fourth track is “Climate Transition Planning.” The recently issued “Climate Transition Planning Principles” based on the consultation paper published in 2025 provide a regulatory framework for financial institutions and companies in the UAE to prepare, govern, and disclose reliable information regarding climate transition planning strategies, while integrating the transition within governance frameworks. Scenario analysis and risk management.

The transition principles aim to direct financial flows towards activities consistent with the country’s climate goals, in line with global best practices.

The principles emphasize the importance of the pivotal role of boards of directors and senior management in assuming responsibility and accountability for climate transition planning, and the necessity of integrating climate considerations into the overall business strategy and long-term financing plans.

It also highlights the importance of collecting data, indicators and scenario analysis by financial institutions as essential elements to ensure compatibility between transition plans and climate goals.

The working group develops sector-specific regulatory requirements, while maintaining the flexibility to adapt to evolving international standards.

The principles published by the working group establish a national reference framework for integrating climate and sustainability considerations across the financial services, corporate and market sectors.

His Excellency Khaled Mohammed Al-Amaa, Governor of the Central Bank of the United Arab Emirates, said that the Central Bank of the UAE confirms its commitment to its leadership role in the sustainable finance group, which embodies the vision of the wise leadership, enhances the country’s sustainable economic approach, and supports its efforts towards green transformation, in line with the climate neutrality strategy 2050, and the national goals for sustainable development.

He stressed the continuation of work to support these efforts by strengthening proactive policies, integrating climate risks into governance and oversight frameworks, and developing a flexible and strong financial system that maintains the stability of the financial system, and consolidates the UAE’s position as a leading global financial center and an active partner in global sustainable development.

His Excellency Ahmed Jassim Al Zaabi, Chairman of the Department of Economic Development – Abu Dhabi and Abu Dhabi Global, said that the fourth statement of the Sustainable Finance Working Group represents a clear shift from ambition to implementation, which confirms the UAE’s leadership in the field of sustainable finance. Through strong regulatory frameworks, effective cooperation, and continuous engagement with markets, the UAE continues to translate national goals into a financial system consistent with its climate commitments and its long-term economic vision.

His Excellency Younis Haji Al Khouri, Undersecretary of the Ministry of Finance, said that the Ministry of Finance confirms its commitment to ensuring that financial policies and frameworks fully support the country’s long-term goals in the field of sustainability.

He stressed the commitment to an orderly and just transition towards achieving the country’s goal of reaching climate neutrality and continuing cooperation at the intergovernmental level to achieve this common goal and enhance the UAE’s global leadership in the field of sustainable finance.

His Excellency Waleed Saeed Al Awadhi, CEO of the Securities and Commodities Authority, said that the newly issued transition principles and the achievements contained in the fourth statement of the working group are clear evidence of the UAE’s commitment to the sustainable development of its financial markets.

He added: The transition principles will contribute to enabling financial institutions and companies to confidently align their business strategies with the UAE’s climate ambitions, thus promoting the building of a resilient, future-oriented, and globally competitive market.

Mark Steward, Chairman of the Dubai Financial Services Authority, confirmed that the “Climate Transition Planning Principles” recently issued by the working group constitute a milestone that embodies an important stage in the development of the sustainable financing system.

• For more: Follow Khaleejion 24 Arabic, Khaleejion 24 English, Khaleejion 24 Live, and for social media follow us on Facebook and Related