Abu Dhabi Global Market (ADGM) today announced the immediate implementation of a comprehensive sustainable finance regulatory framework, solidifying its position as a leading sustainable financial hub and supporting the UAE’s transition to net-zero greenhouse gas emissions.
This robust framework sets rules for sustainability-oriented investment funds, managed portfolios, bonds, and requirements for environmental, social and governance (ESG) disclosures by ADGM companies.
It covers green and climate transition funds and portfolios, green and sustainability-linked bonds and sukuks, aiming to channel capital towards net-zero transition.
ADGM will assign a designation to products and services that meet its stringent minimum standards, and allow its “designation mark” to be used in marketing materials and client communications. This will provide investors with confidence and catalyze green transition investments.
The framework was warmly welcomed by His Excellency Dr. Sultan Al Jaber, President Designate of COP28 UAE, who said, “ADGM’s initiative will play a vital role in mobilizing capital for the transition to net-zero not only in the UAE but also in EMDEs, and will enable increased green transactions from local and global financial institutions.”
The initiative was also hailed by His Excellency Ahmed Jasim Al Zaabi, Chairman of Abu Dhabi Global Market. He emphasized, “Our requirements will help to channel capital into projects and activities that advance the country’s transition to net zero.
Their engagement will continue to be essential as ADGM actively supports the UAE’s progress towards its goal of net zero by 2050 and the continuing development of Abu Dhabi’s green falcon economy.”
ADGM also plans a post-implementation review in 2025, relying on stakeholder input to further refine its regulatory framework. The framework and its stakeholders are bolstered by knowledge acceleration initiatives such as the School of Sustainable Finance and the Research Centre at the ADGM Academy.
The new sustainable finance regulatory framework is complemented by several ongoing ADGM initiatives, including the Abu Dhabi Sustainable Finance Declaration with over 100 signatories, and the regulation of carbon offsets, which distinguish ADGM as a premier hub for sustainable finance.
BusinessNewsAsia