The product comprised the region’s most comprehensive and effective ESG disclosure requirements and a regulatory framework for funds, discretionary managed portfolios, bonds, and sukuks. Following the announcement, the new regulations are set to take effect immediately as they reflect the critical importance of developing the green agenda in Abu Dhabi, the UAE, as well as multiple regions around the world.
The implementation of the regulatory framework followed information and data received through public consultation. It also provided information and rules on sustainability-oriented investment funds, managed portfolios, and bonds, as well as requirements for environmental, social, and governance disclosures by ADGM companies. The measure prioritises the acceleration of the development process of a sustainable finance ecosystem in the jurisdiction and supports UAE’s transaction to net zero greenhouse gas emissions.
In order to recognise products and solutions that are aiding the transition, ADGM will offer customers a designation on those that claim to meet the minimum standards required by the framework. It will also permit ADGM’s `designation mark` to be leveraged in marketing materials, as well as customer communication and support. The initiative will focus on mobilising capital for transactions to net zero in EMDEs as well, allowing increased green payments and transactions from local and global financial institutions.
Additionally, a feedback statement was issued, for reflecting the opinions that are received and for addressing the key issues through associated stakeholder engagements and in response to the consultation paper. The feedback statement offered a clear indication of the areas that the Abu Dhabi Global Market will examine during a post-implementation review that is planned to be undertaken in 2025.
Following this release, ADGM aims to further develop the framework in the future, while relying on input from its stakeholders. The information will also be used to develop the region’s ecosystem into a hub for sustainable finance and to accelerate the UAE’s net zero strategic initiative. It will also be used by ADGM in order to offer its expertise and solutions for the UAE’s aim to become net zero by 2050, as well as for the development of Abu Dhabi’s green falcon economy.
The framework complements the already existing regulation of carbon offsets implemented by ADGM, which facilitates the establishment of the regulated carbon offsets exchange and clearing house in the market. Moreover, the new sustainable finance regulatory framework was also improved with the data and information provided by several ongoing initiatives of ADGM, such as the Abu Dhabi Sustainable Finance Declaration or the School of Sustainable Finance at the ADGM Academy.
Every day we send out a free e-mail with the most important headlines of the last 24 hours.
Subscribe now