Green Finance in Middle East

Green finance is among the most important enablers that would boost innovation and increase the adoption of green solutions and practices across different industrial sectors. Green finance, which has grown by leaps and bounds in recent years, provides public well-being and social equity while reducing environmental risks and improving ecological integrity.

Middle East is making good progress towards green growth and low-carbon economy. “The latest regional trends highlight the need for green financing mechanisms to support transition to green economy”, said Ruba Al-Zu’bi, CEO of EDAMA. “While green may be the obvious feasible and sustainable approach, access to finance makes it more appealing for small and medium enterprises and to individuals to promptly take the right decision”, she added.

Jordan is one of the earliest proponents of green finance in the Middle East. “Green finance in Jordan is being offered through public channels, such as the Jordan Renewable Energy and Energy Efficiency Fund (JREEEF), commercial banks, micro-finance institutions as well as International Financial Institutions”, said Ruba.  “Most of green finance mechanisms are supported by technical assistance, awareness-raising and targeted marketing activities, all ofwhich are crucial to success of green projects”, she said.

In the GCC, the National Bank of Abu Dhabi (NBAD) is gearing up to launch a $500 million green bond, the first in the region. This green bond will provide a boost to renewable energy and energy efficiency sectors, and is expected to catalyze sustainable development projects in the GCC.

National Bank of Abu Dhabi has the distinction of being the first issuer of green bonds in the Middle East

To sum up, green finance will act as a major enabler for local, regional and international financing needs of green projects. The upcoming COP22 in Marrakesh is expected to provide impetus to climate change mitigation and adaptationprojects across the Middle East region. The key to success, according to Ruba Al-Zu’bi, will be market readiness, effective governance frameworks, capacity-building and technology transfer.

About Salman Zafar

Salman Zafar is the Founder of EcoMENA, and an international consultant, advisor, ecopreneur and journalist with expertise in waste management, waste-to-energy, renewable energy, environment protection and sustainable development. His geographical areas of focus include Middle East, Africa, Asia and Europe. Salman has successfully accomplished a wide range of projects in the areas of biomass energy, biogas, waste-to-energy, recycling and waste management. He has participated in numerous conferences and workshops as chairman, session chair, keynote speaker and panelist. Salman is the Editor-in-Chief of EcoMENA, and is a professional environmental writer with more than 300 popular articles to his credit. He is proactively engaged in creating mass awareness on renewable energy, waste management and environmental sustainability in different parts of the world. Salman Zafar can be reached at salman@ecomena.org or salman@bioenergyconsult.com
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