DIFC unveils decarbonisation strategy with ‘net zero by 2045’ goal

The Dubai International Financial Centre (DIFC) has unveiled its decarbonisation strategy, reinforcing its commitment to becoming a leader in sustainability and climate action within the region.

Speaking at the second edition of the Future Sustainability Forum 2024, DIFC outlined its ambitious plan to achieve Net Zero by 2045, a full five years ahead of the UAE’s 2050 climate goals.

The announcement, made during the highly anticipated event that brought together over 3,000 industry leaders, government officials, and sustainability experts, underscores DIFC’s vital role in supporting the UAE’s Net Zero 2050 initiative and accelerating the country’s green transition.

The strategy outlines a comprehensive approach to reducing emissions across DIFC’s operations, construction projects, and supply chain, with a strong emphasis on real emissions reductions.

DIFC is determined to meet its climate targets without relying on carbon offsetting or trading, setting a new standard for financial hubs globally.

Alongside the decarbonisation strategy, DIFC launched its inaugural Sustainability Progress Report, titled “Building a Sustainable Future: DIFC’s Path to Impact”, providing a detailed roadmap of the centre’s sustainability achievements and plans for the coming years.

Essa Kazim, governor of DIFC, emphasised the importance of collaboration in addressing climate change.

“The Future Sustainability Forum serves as a critical platform that enables global collaboration, knowledge sharing, and finding practical solutions for climate change and sustainable development,” Kazim said.

“In light of COP29 outcomes, we are pleased to announce DIFC’s Decarbonisation Strategy, where we are setting new standards for environmental leadership. We remain at the forefront of solidifying Dubai’s position as the leading sustainable financial city in the region,” he added.

Kazim added, “We are setting a new benchmark for decarbonisation within global financial centres and aim to achieve Net Zero in 2045, five years ahead of the UAE’s targets.”

Forum highlights: Driving green innovation and collaboration

The Future Sustainability Forum 2024 served as a major platform for high-level discussions on achieving global net-zero targets, advancing sustainable finance, and fostering green innovation.

The forum featured over 500 global investors, more than 100 distinguished speakers, and a wealth of industry insight into the future of sustainability in finance.

The forum also hosted the Climate Tech World Cup, a competition designed to spotlight and accelerate innovative environmental solutions.

Finalists in the competition included leading start-ups such as Acklo, Baynunah Watergeneration Technologies, Green Worms, and Sirius Energy, who presented cutting-edge technologies aimed at tackling some of the world’s most pressing environmental challenges.

The event took place amid the ongoing international climate dialogue catalysed by the outcomes of COP29, the latest in the series of global climate conferences, which emphasised the need for accelerated progress toward the 1.5°C climate target.

As part of the UAE’s leadership role, DIFC has continued to strengthen its position as a hub for sustainable finance, innovation, and climate action.

DIFC’s role in sustainable finance and green bonds

DIFC’s commitment to driving sustainability goes beyond its internal operations. The centre is playing a key role in the UAE’s rapidly growing sustainable finance market, which has seen record levels of green, social, and sustainability-linked bond issuances.

According to Bloomberg’s Capital Markets League Tables, issuances in the MENA region reached $24bn in 2023, driven largely by the UAE and Saudi Arabia. The UAE alone issued $10.7bn in green bonds, up 170 per cent from the previous year, underscoring its growing leadership in sustainable finance.

The DIFC Sustainable Finance Catalyst, launched during COP28, is another cornerstone initiative aimed at scaling sustainable financial flows from Dubai to $100bn in 2030. The Catalyst supports start-ups and innovations in the sustainable economy, with the added ambition of integrating AI-driven sustainability knowledge hubs.

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