National Bank of Abu Dhabi is committing US$10 billion in financing over the next 10 years towards the clean energy sector.
It will "lend, invest and facilitate" this amount, in total, to projects "focused on environmentally sustainable activities" to help meet rising energy demand around the world over the next 20 years, which will partly be met by renewable sources, the bank said.
"We believe that 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," said Alex Thursby, the chief executive of NBAD.
The financing will be geared toward the wholesale side, meaning projects must be more than $100 million, and fall in line with global green bond principles as set by the International Capital Market Association.
This will cover renewable energy, climate change, clean technology, water, decarbonisation technology to green infrastructure and real estate.
“Wholesale is really where you should start, but later you could see personal financing of kits for rooftop solar,” said Mr Thursby.
He said the initial funding would be focused on the Mena region, but there is the potential for a drive later into Malaysia and Indonesia, part of the bank’s West-East Corridor of opportunities in emerging markets.
This comes at a time when the renewable energy sector is growing more than ever before, particularly in the region. And a lack of financing is one of the most talked about obstacles facing the industry.
According to Nathan Weatherstone, the head of sustainable business banking at NBAD, the lender “has identified that there is approximately $640bn of investment required for renewable energy projects across the West-East Corridor”.
The bank released a report in March that said a funding gap of $48 trillion would need to be met over the next two decades to meet global energy demand.
This is expected to rise by 37 per cent between 2013 and 2035, driven mainly by emerging economies, according to data from BP.
NBAD also found that nearly a fifth of its customers had involvement in sustainable activities, which led to the sustainable business division being launched in August.
“On one hand we’re reacting to what we think is an opportunity and on the other we’re reacting to what our clients are demanding,” said Mr Weatherstone.
The bank plans to work closely with regulators, policymakers and the renewable energy industry “to capture up-to-date market trends”.
The bank is exploring the issuance of a green bond which would be the first of its kind in the region.
“We will do a green bond in the near future, and we’ll learn a lot doing it,” said Mr Thursby.
“Through our sustainable business banking 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.”
lgraves@thenational.ae
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Price, base / as tested: Dh173,250 / Dh178,500
Engine: 5.0-litre V8
Power: 395hp @ 5,000rpm
Torque: 555Nm @ 2,750rpm
Transmission: 10-speed automatic
Fuel consumption, combined: 12.4L / 100km
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Starring: Colin Farrell, Cristin Milioti, Rhenzy Feliz
Creator: Lauren LeFranc
Rating: 4/5
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FIXTURES
All kick-off times UAE ( 4 GMT)
Friday
Sevilla v Levante (midnight)
Saturday
Athletic Bilbao v Real Sociedad (7.15pm)
Eibar v Valencia (9.30pm)
Atletico Madrid v Alaves (11.45pm)
Sunday
Girona v Getafe (3pm)
Celta Vigo v Villarreal (7.15pm)
Las Palmas v Espanyol (9.30pm)
Barcelona v Deportivo la Coruna (11.45pm)
Monday
Malaga v Real Betis (midnight)
UPI facts
More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions
Avengers: Endgame
Directors: Anthony Russo, Joe Russo
Starring: Robert Downey Jr, Chris Evans, Scarlett Johansson, Chris Hemsworth, Josh Brolin
4/5 stars
BEETLEJUICE BEETLEJUICE
Starring: Winona Ryder, Michael Keaton, Jenny Ortega
Director: Tim Burton
Rating: 3/5
How to protect yourself when air quality drops
Install an air filter in your home.
Close your windows and turn on the AC.
Shower or bath after being outside.
Wear a face mask.
Stay indoors when conditions are particularly poor.
If driving, turn your engine off when stationary.