Abu dhabi: The UAE Sustainable Finance Working Group today issued its fourth statement, reaffirming the nation's strong commitment to advancing sustainable finance in alignment with existing initiatives. This includes the UAE Green Agenda 2015-2030, the National Climate Change Plan 2017-2050, and the UAE Net Zero by 2050 Strategic Initiative.
According to Emirates News Agency, the release of the fourth statement reflects the UAE's proactive approach to sustainable development, complementing significant steps adopted by the UAE to implement the Climate Change Law and develop plans aimed at reducing greenhouse gas emissions. Since the issuance of the third statement, the Working Group has taken actual actions to strengthen and operationalise efforts across its workstreams.
The Working Group comprises national financial regulators, ministries, and financial markets, and is coordinated by the Financial Services Regulatory Authority of ADGM. The fourth statement outlines progress across the Working Group's core workstreams, including Sustainability-Driven Corporate Governance, Sustainability-Related Disclosures, UAE Sustainable Finance Taxonomy, and Climate Transition Planning.
The 'Principles for Effective Management of Climate-Related Financial Risks,' issued in November 2023, provide a comprehensive approach for integrating climate risks into business strategies and risk management frameworks within financial institutions. Additionally, the 'Sustainability Disclosure Principles for Reporting Entities,' launched in 2024, aim to enhance transparency and consistency in ESG reporting.
The Working Group continues to evaluate the strategic design of a taxonomy tailored to the UAE market needs, ensuring interoperability at the international level. The newly issued 'Climate Transition Planning Principles,' based on the consultation paper published in 2025, provide a structured framework for UAE financial institutions and corporates to prepare, govern, and disclose credible information on climate transition strategies.
Khaled Mohamed Balama, Governor of the Central Bank of the UAE, highlighted the leadership role of the Central Bank within the Sustainable Finance Working Group, emphasizing the commitment to supporting the green transition in line with the UAE Net Zero by 2050 Strategy. Ahmed Jasim Al Zaabi, Chairman of Abu Dhabi Department of Economic Development and ADGM, noted that the fourth statement marks a shift from ambition to execution, reaffirming the UAE's leadership in sustainable finance.
Younis Haji Al Khoori, Under-Secretary of the UAE Ministry of Finance, expressed commitment to ensuring financial policies and frameworks support the nation's sustainability objectives. Waleed Saeed Al Awadhi, CEO of the Securities and Commodities Authority, stated that the newly issued transition principles demonstrate the UAE's commitment to sustainable development of its financial markets. Mark Steward, CEO of the Dubai Financial Services Authority, added that the Climate Transition Planning Principles mark a significant milestone in developing the sustainable finance ecosystem.
Looking ahead, the Working Group will focus on supporting the implementation of the principles it has issued, ensuring their practical application across UAE markets. Future efforts will be guided by proportionality, international alignment, and ongoing stakeholder consultation to effectively achieve climate and sustainability objectives.