The Central Bank of the UAE opened its second Climate Forum, outlining measures to integrate climate considerations into financial regulation, monetary policy and reserve management. Governor Khaled Mohamed Balama highlighted preparations for a climate risk stress test, implementation of the Climate-related Financial Risk Management Regulation and the use of sustainable sukuk in monetary policy operations, enabling banks to refinance more than USD 100 billion of sustainable assets. Sustainable bonds account for an average 5% of the central bank’s foreign reserves, which totaled USD 257 billion at the end of September. The forum also examined the potential underpricing of climate risks, transition finance and the role of digital money and financial technology in sustainable payment and settlement systems. The central bank has become the first in the Middle East and North Africa to co-chair a Network for Greening the Financial System workstream, leading its work on central bank operations. The Central Bank of the UAE will hold its inaugural Climate Research Seminar on Oct. 9 with the London School of Economics and Political Science’s Centre for Economic Transition Expertise, covering climate risk modeling, sustainable investment and policy approaches to the net-zero transition.
Central Bank of the UAE opens second Climate Forum and outlines climate risk measures
The Central Bank of the UAE opened its second Climate Forum and outlined preparations for a climate risk stress test, implementation of its climate risk regulation and sustainable sukuk refinancing for more than USD 100 billion of sustainable assets. Sustainable bonds represent an average 5% of its USD 257 billion in foreign reserves, while the central bank has also become the first in the Middle East and North Africa to co-chair a Network for Greening the Financial System workstream.