National Bank of Abu Dhabi (NBAD) has committed to lend, invest and facilitate a total of $10 billion of financing within the next 10 years to projects focussed on environmentally sustainable activities.
The commitment, which is a first for a GCC bank, supports the research from NBAD’s ‘Financing the Future of Energy Report’, which identified a funding gap of $48 trillion dollars required in the next 20 years to meet global energy demand, with renewables playing a critical role in the energy mix of the future. The report was launched at the Global Financial Markets Forum 2015 in Abu Dhabi.
Alex Thursby, Group CEO of NBAD, said: “The world is heading towards a very significant funding gap for energy globally. This is particularly true across the West-East Corridor, the rapidly growing super-region that stretches from Africa through the Middle East to Asia – and filling it is going to be a big task. As the leading bank in the Middle East, we want to make a real contribution to the region’s ability to rise to the energy challenge. We believe that even in the current climate of low oil prices, the transition towards more renewable sources in the energy mix will continue because the underlying drivers are long term and strong. It is for this reason that we have made this commitment of $10 billion today. Through our Sustainable Business team we hope to become a positive force in the banking sector in the region, accelerating the transition to a much needed new world of energy.”
NBAD established a dedicated Sustainable Business team in August 2015, under the leadership of Nathan Weatherstone, to evaluate and create new financing products that will support the development of renewable energy and sustainable businesses – this commitment forms the first of these initiatives. The team will embark on an engagement programme with key regulators, policy makers and industry players to capture up to date market trends and promote continued partnership between the financial sector and environmentally sustainable businesses.