Emirates Development Bank, the state-owned lender which provides financing for the UAE's priority sectors, has joined the International Renewable Energy Agency's programme aimed at accelerating the achievement of net-zero goals.
The Abu Dhabi-based lender is now part of the Alliance for Industry Decarbonisation, signifying its commitment to contribute to national and global efforts to cut emissions from industries, EDB said on the sidelines of the UAE Climate Tech conference on Thursday.
EDB has a mandate to provide Dh30 billion ($8.2 billion) in financing support to 13,500 companies in the renewables, manufacturing, technology, health care and food security sectors by 2026.
"We recognise the importance of investment in renewable and clean energy technologies to achieve net zero emissions by 2050," said Ahmed Al Naqbi, chief executive of EDB.
"We are fully dedicated to scaling up our finance solutions, deploying significant resources and stimulating innovation to support the transition to cleaner sources of energy and deeply cut industrial emissions."
The world's push towards a more sustainable future highlights the need for climate financing, which is considered critical in helping governments and organisations achieve climate-change goals.
Global investments in energy transition technologies must quadruple to $35 trillion by 2030 to stay in line with commitments made under the Paris climate agreement, Abu Dhabi-based Irena said in a March report.
Investments in renewable energy technologies reached a record $1.3 trillion last year, but that figure must rise to about $5 trillion a year to meet key Paris accord targets, it said.
In the same month, Irena reported that a record 295 gigawatts of renewable energy capacity was added around the world in 2022, up nearly 10 per cent from the year before.
The UAE, in particular, is investing heavily in clean energy projects and has announced several initiatives as it seeks to reach net-zero emissions by 2050.
In April, the UAE Ministry of Climate Change and Environment hosted a special event to accelerate the country’s journey to that goal.
The session, held as part of the country's National Dialogue for Climate Ambition, highlighted the gaps in climate finance for decarbonisation of the economy and urged everyone — particularly in private-sector financial entities — to increase green finance to support the UAE’s vision to build a sustainable economy.
Mobile and digital technology can also help to cut about 40 per cent of the required carbon dioxide emissions in the industrial world's top emitters in the next 10 years, London-based industry body GSMA said recently.
"We believe EDB will play a critical role in accelerating the UAE's green efforts by providing financing for the much-needed renewables and energy efficiency projects," said Gauri Singh, deputy director general of Irena.