The National Bank of Abu Dhabi (NBAD) has committed to provide $10bn to finance various renewable energy projects and other sustainable activities over the next decade.
The bank stated that it would lend, invest and facilitate the amount in financing clean technology projects across the West-East corridor that extends from Africa, through the Middle East to Asia.
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Last year, NBAD, in collaboration with the University of Cambridge and PwC and Masdar, released a ‘Financing the Future of Energy Report’, which mentioned that a sum of $48 trillion was needed over the next two decades to fulfil global energy demand and more than half of the demand was projected to be renewable.
NBAD group CEO Alex Thursby 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.
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By GlobalData"It is for this reason that we have made this commitment of $10bn 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."
The bank, in its research, found that around $640bn of investment would be needed for renewable energy projects throughout the West-East corridor.
However, NBAD has recognised bigger scope for sustainable activities including clean transportation, sustainable water, waste management and energy efficient real estate than renewable energy projects.
According to Bloomberg New Energy Finance data, the United Arab Emirates (UAE) generates majority of its power from oil and gas-based sources.
Currently, the country has shifted its focus to renewable energy sources and in last November, Dubai announced its plan to generate 25% of its energy from solar sources by 2030.
Image: NBAD commits $10bn to develop renewable energy and environmentally sustainable projects. Photo: courtesy of pakorn/ FreeDigitalPhotos.net
