Green economy is world’s ‘logical solution’ for 21st century, says top Abu Dhabi official

This green economy It is a “logical solution” in the 21st century, and a perfect and dynamic regulatory environment is an inevitable requirement for its development, Chairman Abu Dhabi Department of Economic Development (Supplementary) It is said.

“In Abu Dhabi, our recently announced industrial strategy and forthcoming economic strategy will focus on how we integrate green and circular elements to drive growth and diversification in a responsible and planned manner,” Mohamed Al Shorafa told delegates Abu Dhabi Financial Week in the capital on Thursday.

“We urge everyone to join us and work with us to accelerate our ongoing transformational agenda.”

Mr Al Shorafa said the push for a green economy could prove to be an “important public and private sector interconnector” as both parties could collaborate to “influence the public policies and procedures needed to leverage sustainability” and capitalize on green growth opportunities.

Efforts to develop a greener and more sustainable economy have gained new momentum as the world continues to emerge from the economic slowdown caused by the pandemic.

The UAE, which will host Cop28 next November, is leading global sustainable development efforts.

The UAE and the US signed a strategic partnership this month to invest $100 billion to produce 100 GW of clean energy Globally by 2035.

As part of the partnership, the two countries are establishing an expert group to identify priorities, remove potential obstacles and measure progress towards the goals.

In September, the Global Alliance to Build a Coalition of Countries Prioritizing Climate Action and Sustainable Development was launched at World Green Economy Summit in dubai.

The UAE, the second largest economy in the Arab world, has committed to net zero carbon emissions In line with the goals of the Paris Agreement by 2050.

Domestically, the UAE has launched several programs to drive policy and regulatory transformation towards net-zero emissions targets. The country is investing AED600 billion (US$163.5 billion) in new renewable energy projects as part of efforts to achieve its ambitious climate action agenda.

The UAE Central Bank estimates that the UAE’s economy, which rebounded strongly from the pandemic-induced slowdown in 2021, has picked up pace this year and will grow by 5.4% in 2022.

Emirates NBD, Dubai’s largest bank, expects the economy to grow 7% in 2022, putting the country on track for its fastest annual growth since 2011, when output rose 6.9%.

The development of the future and green economy is part of the government’s 50-year development agenda as it seeks to continue its diversification efforts and capitalize on new growth opportunities.

Issam Abousleiman, World Bank Director for the Gulf Cooperation Council, told delegates that regionally, countries in the six GCC economies have the potential to generate additional economic growth between now and 2030 if they pursue green growth opportunities. Add 3 to 6 percent growth.

The combined economic output of the GCC countries is approximately US$2 trillion. By 2050, if the Gulf countries “business as usual”, it will reach 6 trillion US dollars. However, if they seize green growth opportunities, their total economic output could increase to $13 trillion, he added.

The Middle East and North Africa region alone has a climate finance gap of around $230 billion, which will require “high focus” on increasing “access to sustainable finance” with the engagement of the private sector and governments, Deputy Minister Younis Al Khoori told the UAE Finance Ministry , told delegates on Thursday.

“Research shows that in the GCC alone, green finance could help unlock an estimated $2 trillion in economic growth opportunities and over a million jobs,” he said.

For the world, “hoping to limit temperature rise to 1.5°C above pre-industrial levels is widely believed to cost $5 trillion to $6 trillion a year between now and 2050”, Chuka Umunna, JPMorgan Europe , Middle East and Africa ESG leaders told a panel.

“For example, in Europe, between now and 2030, the European Capital Markets Institute predicts that it will cost about $11 trillion to put Europe on a net-zero emissions trajectory.”

However, raising this cash through the public sector alone is not feasible.

He said there was a “massive gap” and that the financial sector, especially banks such as JPMorgan, would play an important role.

“That’s why we’ve made some really significant commitments, arguably the biggest of any bank in the world, in this area, because we need to do our part,” Mr Umona said.

“It’s in the interest of our shareholders.”

Updated: November 17, 2022, 4:05pm