COP28: Climate finance center inaugurated in Abu Dhabi
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Dubai: Abu Dhabi will host the newly launched Global Climate Finance Center (GCFC) at Abu Dhabi Global Markets (ADGM) in partnership with nine founding members including the World Bank, HSBC and asset managers BlackRock and Ninety One.
The centre, described as an independent think tank and research centre, will analyze the barriers to investment in low carbon projects and develop the financial frameworks to overcome them. The GCFC was launched on the first day of the climate conference by COP28 President Dr Sultan Al Jaber. It will be based in ADGM.
Ahmed Jasim Al Zaabi, Chairman of the Abu Dhabi Department of Economic Development (ADDED), announced the list of GCFC partners during the COP28 edition of Abu Dhabi Sustainability Week on Monday. ADDED also unveiled a new circular economy framework to drive sustainable industrial growth.
The framework also aims to achieve a 50 percent reduction in waste from industrial processes. “It will also cover key sectors to ensure 100 percent by 2030,” Al Zaabi said.
The role of the GCFC in climate finance
He said: “GCFC will unlock new financial flows into the region as Abu Dhabi becomes a key market for climate finance. “It will become a global leader in research and innovation policy for climate finance.”
Al Zaabi also confirmed that, as a private sector think tank, the GCFC would provide research, stakeholder engagement and capacity building to develop global financial frameworks that catalyze high-growth, low-carbon investments.
Earlier this year, ADGM introduced the region’s first sustainable finance regulatory framework, accelerating the growth of a climate finance ecosystem.
“Carbon offsets are now under the ADGM regulatory framework, bringing the world’s first voluntary carbon exchange, AirCarbon, to Abu Dhabi, and 145 global institutions are now signatories to the Abu Dhabi Sustainable Finance Declaration, he said. Al Zaabi.
However, this must go hand in hand with real financing, said the head of ADDED. “More than half of the financing needed for the transition must come to the private sector. That is why we welcome the launch of Alterra, the $30 billion fund launched by the United Arab Emirates,” he added. Alterra, which also falls under the ADGM purview, seeks to close the climate finance gap by raising and investing a corpus of up to $250 billion of institutional and private capital by 2030.
New circular economy policy
ADDED’s circular economy framework, according to Al Zaabi, will accelerate Abu Dhabi’s transition to a sustainable economy. He added that the policy would empower the industrial sector towards responsible production and consumption in waste management, parts sourcing and manufacturing.
The framework aims to achieve a 50 percent reduction in industrial process waste, at least 40,000 tonnes a year, and will cover key sectors to ensure 100 percent compliance by 2030, with 100 percent compliance within the plastic manufacturing sector by 2025, he explained. .
The policy also includes 100 percent recovery and reuse of scrap in the metal and plastic industries, which will have a positive impact on sub-sectors such as electronics, electricity, assembly products, machinery, metal products manufactured and more.
The Industrial Circular Economy Policy Framework is overseen by the Bureau of Industrial Development (BID), the arm of ADDED to develop and regulate the industrial sector. It is expected to be implemented in the second quarter of 2024.
Schemes for the manufacturing sector.
ADDED offers incentive schemes for industrial entities to encourage them to adopt the policies. Specialized monitoring, reporting and verification schemes, including audits, inspections and enforcement, will be implemented to ensure that all industries adopt circular economy practices.
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