- ADGM today implemented the Sustainable Finance Regulation. The framework comprises the region’s most comprehensive ESG disclosure requirements and a regulatory framework for funds, discretionary portfolios, bonds and sukuk aimed at accelerating the UAE’s transition to net-zero greenhouse gas emissions. ing.
- This framework will complement ADGM’s existing carbon offset regulations and will facilitate the establishment of the world’s first regulated carbon offset exchange and clearing house in ADGM.
- These measures reflect ADGM’s position as a major sustainable financial hub in the year the UAE hosts COP28.
- The new regulations will take effect immediately, reflecting the vital importance of advancing the green agenda in Abu Dhabi, the UAE and around the world.
ABU DHABI, United Arab Emirates, July 4, 2023 /PRNewswire/ — Abu Dhabi Global Markets (ADGM) today announced the immediate implementation of a sustainable finance regulatory framework following significant support received through public consultation. announced implementation, strengthening its position as a leading sustainable financial institution. A financial hub and a natural center for sustainable financial activity. The framework includes rules for sustainability-oriented investment funds, managed portfolios and bonds, as well as environmental, social and governance (ESG) disclosure requirements by ADGM companies. The measure will accelerate the growth of a sustainable financial ecosystem in the jurisdiction and support the UAE’s transition to net zero greenhouse gas emissions.
Green and Climate Change Funds and Portfolios, Green and Sustainability Bonds and Sukuk Frameworks are important steps in enabling capital to be channeled to finance the transition to net zero. To recognize products and services that support the transition, ADGM gives designations to products and services that it claims meet its robust minimum standards. You are also permitted to use ADGM’s Designated Marks in marketing materials and customer communications. The Designated Mark gives investors a level of confidence that their products and services meet ADGM’s minimum standards and motivates them to direct their funds towards the green transition.
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The ADGM’s focus on stakeholder engagement has resulted in a Feedback Statement that reflects the meaningful feedback received and addresses key issues raised through its response to the Consultative Papers and engagement with relevant stakeholders. was also issued. Overwhelming support for the proposal from industry, including stakeholders who have indicated plans to launch products under the proposed framework, has led to one of the region’s first and most comprehensive sustainable financial frameworks. It embodied the ADGM’s intention to move forward.
This feedback statement not only reflects how industry engagement helped shape the framework implemented, but also the implementation that ADGM will implement in 2025 as part of its further development and development efforts. It also provides a clear indication of the areas to be explored in later reviews. Going forward, we will improve the regulatory framework. ADGM will continue to rely on input from stakeholders to shape its ecosystem into a world-class hub for sustainable finance and a key enabler to advance the UAE’s net-zero strategic initiative.
This framework and its stakeholders are further supported by knowledge acceleration initiatives such as the Graduate School of Sustainable Finance and the Research Center of the ADGM Academy.
COP28 Presidency Candidate H.E. Dr. Sultan Al Jaber United Arab Emirates “We wholeheartedly welcome the ADGM regulatory framework on sustainable finance. Addressing the issue is one of the top priorities of the COP28 presidency,” he said. As the transformation progresses, it is necessary to shift gears to mobilize private funds. ”
“ADGM is highly commendable for advancing such an important initiative and striving to establish a global hub for sustainable finance. “It will play a key role in mobilizing funds for the transition to zero.” This will enable increased green trading by local and global financial institutions. ”
“We also welcome the ongoing work of the Sustainable Finance Working Group chaired by ADGM and comprised of UAE regulators, federal ministries and exchanges. joint efforts to advance sustainability, steps to require corporate governance focused on sustainability, and development of a green taxonomy for the UAE.”
“Finance is the key to turning good intentions into real results. We need a regulatory framework and other initiatives.”
His Excellency Ahmed Jassim Al Zahbi, Chairman of Abu Dhabi Global Markets “In the year the UAE hosts COP28, the ADGM proudly joins the actions of the country’s leaders in declaring this year the year of sustainability,” he said. We believe that the regulatory framework for The East and South Asia region, which rivals the world’s most comprehensive regulatory frameworks in scope and content. ”
“Our requirements, particularly those that set minimum standards for products and services with a focus on sustainability, will help direct capital towards projects and activities that advance the country’s net-zero transition. appreciates market participants’ feedback: “The relationship between ADGM and stakeholders in our sustainable financial ecosystem is important. and their continued engagement is essential to actively support the continued development of Abu Dhabi’s Green Falcon economy.”
The new sustainable finance regulatory framework is further supported by several ongoing ADGM initiatives, including the Abu Dhabi Sustainable Finance Declaration, which has over 100 signatories, and the ADGM Academy’s School of Sustainable Finance. Regulatory changes to the capital markets framework last year by the ADGM FSRA introduced environmental products as a type of financial instrument and placed carbon offsets under its regulatory framework, creating the world’s first regulated voluntary carbon exchange platform. AirCarbon Exchange will be established. financial center.
These strategic efforts, combined with sustainability-focused fund, portfolio, fixed income and sukuk regulatory frameworks, ESG disclosure and carbon offset regulatory requirements, distinguish ADGM as a leading hub for sustainable finance.
Click here for laws and guidance. here.
Click for Feedback Statement here.
For more information on ADGM’s sustainable finance and ESG efforts, please click here. here.
About Abu Dhabi Global Markets (ADGM)
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Source: Abu Dhabi Global Market (ADGM)
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