The Central Bank of the UAE (CBUAE) has collaborated with the Bank for International Settlements (BIS), the Emirates Institute of Finance (EIF) and the COP28 Presidency to launch a new global initiative to help scale sustainable finance and combat climate change.
The initiative, COP28 UAE TechSprint, will aim to encourage financial innovators and developers from global private and public sector entities to fast-track innovative technology solutions to help address challenges in green and sustainable finance. COP28 UAE TechSprint launches prior to the UAE’s hosting of COP28 later this year.
The new global initiative will look to utilise the likes of artificial intelligence (AI), blockchain, the internet-of-things (IoT), and sensor technologies to significantly address three problem areas:
- AI solutions for sustainable finance reporting, verification, and disclosure in the financial services industry.
- Blockchain solutions for auditing and enhancing transparency, traceability, and accountability in sustainable finance.
- IoT and sensor technology solutions for sustainable finance to ensure informed assessments of impact or risk.
Addressing remaining gaps in the green finance market
Khaled Mohamed Balama, governor of CBUAE and chairman of EIF, said: “In line with the vision of the UAE’s leadership, and its endeavours to address the challenges of climate change; we value the partnership with COP28 UAE and the BIS in launching this international initiative aimed at encouraging innovators across the globe to leverage financial technology in developing new green and sustainable finance solutions.”
Dr Sultan bin Ahmed Al Jaber, Minister of Industry and Advanced Technology and COP28 President Designate, also commented: “Tackling climate change requires available, accessible and affordable finance.
“By introducing advanced technological solutions that support the development of sustainable finance standards and instruments, we can help foster investor confidence and better ensure that capital reaches those who require it the most. COP28 looks forward to working with its partners to drive real solutions to scale up climate action and fast-track sustainable finance initiatives around the world.”
Agustín Carstens, general manager of the BIS, said: “Combating climate change is more urgent than ever. It calls for a profound change in the way economies operate and grow. To finance the needed transformation, investors need certainty that their funds are channelled to their intended uses. Technologies that promote the timely measurement and disclosure of climate-related information are part of the solution.
“The BIS Innovation Hub has explored how to apply technologies such as AI, blockchain and internet-of-things to green finance instruments and climate-related disclosure. This TechSprint in collaboration with the COP28 UAE, the CBUAE and EIF will also complement these efforts to address remaining gaps in the green finance market.”