UAE Sustainable Finance Working Group Issues Fourth Statement

News Details

UAE Sustainable Finance Working Group Publishes Fourth Statement During Abu Dhabi Finance Week 2025

Thursday, 18 December 2025

• Statement Highlights Progress Across Four Key Pillars: Corporate Governance, Disclosures, UAE Sustainable Finance Taxonomy, and Climate Transition Planning The UAE Sustainable Finance Working Group (“the Working Group”) today issued its fourth statement, reaffirming the nation’s strong commitment to advancing sustainable finance in alignment with existing initiatives. This includes the UAE Green Agenda 2015–2030, the National Climate Change Plan 2017–2050, and the UAE Net Zero by 2050 Strategic Initiative.

The release of the fourth statement reflects the UAE’s proactive approach to sustainable development, complementing significant steps adopted by the UAE to implement the Climate Change Law and develop plans aimed at reducing greenhouse gas emissions. Since the issuance of the third statement, the Working Group has taken actual actions to strengthen and operationalize efforts across its workstreams. The Working Group comprises national financial regulators, ministries, and financial markets, and is coordinated by the Financial Services Regulatory Authority of ADGM.

The fourth statement outlines progress across the Working Group’s core workstreams:

• Workstream 1: Sustainability-Driven Corporate Governance:
  The “Principles for Effective Management of Climate-Related Financial Risks,” issued in November 2023, provide a comprehensive approach for integrating climate risks into business strategies and risk management frameworks within financial institutions.

• Workstream 2: Sustainability-Related Disclosures:
  The “Sustainability Disclosure Principles for Reporting Entities,” launched in 2024, aim to enhance transparency and consistency in ESG reporting at both entity and product levels. These principles define material aspects related to scope, timelines, and disclosure obligations, aligning local practices with global standards, including those of the International Sustainability Standards Board (ISSB).

• Workstream 3: UAE Sustainable Finance Taxonomy:
  The Working Group continues to evaluate the strategic design of a taxonomy tailored to UAE market needs, ensuring interoperability at the international level. In 2023, the Working Group issued the “Summary of General Principles for the UAE Sustainable Finance Taxonomy,” guiding development efforts with a color-coded (traffic light) system and minimum social safeguards.

• Workstream 4: Climate Transition Planning:
  The newly issued “Climate Transition Planning Principles,” based on the consultation paper published in 2025, provide a structured framework for UAE financial institutions and corporates to prepare, govern, and disclose credible information on climate transition strategies. These principles emphasize integrating transition planning into governance frameworks, scenario analysis, and risk management.

The transition principles aim to direct financial flows toward activities aligned with the UAE’s climate objectives, in line with global best practices. These underscore the critical role of boards and senior management in ensuring accountability for climate transition planning and integrating climate considerations into overall business strategy and long-term financing plans.

The principles also highlight the importance of data collection, indicators, and scenario analysis by financial institutions to ensure alignment between transition plans and climate goals. The Working Group may introduce sector-specific regulatory requirements while maintaining resilience to adapt to evolving international standards. These principles establish a national reference framework for embedding climate and sustainability considerations across financial services, corporates, and markets.

H.E. Khaled Mohamed Balama, Governor of the Central Bank of the UAE, said:
“The Central Bank of the UAE reaffirms its leadership role within the Sustainable Finance Working Group, reflecting the vision of our wise leadership and strengthening the nation’s sustainable economic approach. We remain committed to supporting the green transition in line with the UAE Net Zero by 2050 Strategy and the national sustainable development goals. Our efforts focus on advancing proactive policies, integrating climate risks into governance and supervisory frameworks, and building a resilient financial ecosystem that safeguards stability and reinforces the UAE’s position as a leading global financial hub and an active partner in global sustainable development.”

H.E. Ahmed Jasim Al Zaabi, Chairman of Abu Dhabi Department of Economic Development (ADDED) and ADGM, stated: “The fourth statement of the UAE Sustainable Finance Working Group marks a clear shift from ambition to execution, reaffirming the UAE’s unwavering leadership in sustainable finance. Through robust regulatory frameworks, effective collaboration, and continuous market engagement, the UAE is translating national climate objectives into a financial ecosystem aligned with its climate commitments and long-term economic vision. As the fastest-growing international financial centre, ADGM is proud to lead these efforts, strengthening investor confidence and positioning the UAE as a global reference point for sustainable and transition finance.”

H.E. Younis Haji Al Khoori, Undersecretary of the UAE Ministry of Finance, said: “The UAE Ministry of Finance remains committed to ensuring that financial policies and frameworks fully support the nation’s long-term sustainability objectives. The UAE Sustainable Finance Working Group has played a pivotal role in advancing the sustainable finance agenda and aligning national efforts with global best practices. We reaffirm our commitment to an orderly and just transition toward achieving the UAE’s Net Zero goal and will continue cross-government collaboration to achieve this shared objective and strengthen the UAE’s global leadership in sustainable finance.”

H.E. Waleed Saeed Al Awadhi, CEO of the Securities and Commodities Authority (SCA), said: “The newly issued transition principles and the achievements outlined in the Working Group’s fourth statement clearly demonstrate the UAE’s commitment to sustainable development of its financial markets. These principles will enable financial institutions and corporates to confidently align their business strategies with the UAE’s climate ambitions, fostering a resilient, future-ready, and globally competitive market. The fourth year underscores SCA’s steadfast commitment to advancing the sustainability agenda, embedding climate considerations, enhancing transparency, and promoting sound governance at the core of our regulatory frameworks.”

Mark Steward, CE of the Dubai Financial Services Authority (DFSA), added: “The recently issued Climate Transition Planning Principles mark a significant milestone, reflecting an important stage in the development of the sustainable finance ecosystem. The DFSA is proud to take practical steps to support the implementation of all foundational workstreams, enhance market alignment, and reinforce the UAE’s leadership in sustainable finance. By aligning with international standards and developing credible transition finance, these principles will help build a transparent and resilient financial system within DIFC, supporting the UAE’s long-term sustainability.”

Looking ahead, the Working Group will focus on supporting the implementation of the principles it has issued, ensuring their practical application across UAE markets. Future efforts will be guided by proportionality, international alignment, and ongoing stakeholder consultation to effectively achieve climate and sustainability objectives.

To access the full fourth statement and principles, click here .

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