fbpx Decarbonizing through regulations in finance in the UAE - GITEX Impact

It is found that while the European Union (EU) stands as one of the front runners in embedding ESG principles including decarbonization into financial frameworks, the United Kingdom (UK) is balancing the growth and climate stewardship of its financial institutions to support sustainable economic growth in the medium and long term. By providing guidance, the United Arab emirates (UAE) has laid a strong foundation of support for its financial institutions to make sustainable investments. On the other hand, the United States (US) has historically taken a market- led approach to ESG, emphasizing voluntary responses rather than regulatory mandates. Canada is regulating its financial sector to influence its industry towards sustainability. The country’s approach to push ESG requirements for financial institutions is based on the fact that banks form a large chunk of the economy and shaping this sector would have profound effects on the entire economy.