Emirates Steel Arkan, one of the largest publicly traded steel and building materials manufacturers in the region, has signed a Memorandum of Understanding (MoU) with First Abu Dhabi Bank (FAB) to collaborate on activities related to commodity trading, carbon credits and sustainable investments and deposits.
The signing took place on the sidelines of COP28 between Stephen John Pope, group CFO, Emirates Steel Arkan, and Sameh Al Qubaisi, group head of global markets, FAB.
As part of the MoU, the parties will collaborate on existing and future Emirates Steel Arkan projects to identify effective strategies for hedging and trading carbon credits generated by the Group’s projects. Emirates Steel Arkan and FAB will also look to strengthen and expand their respective capabilities in the areas of sustainability-linked and green financing as well as carbon markets. This move comes in line with the Group’s commitment to supporting decarbonising in hard-to-abate sectors at COP28, through working with all stakeholders to achieve tangible emission reductions, reflecting the vision of the UAE and the COP28 Presidency.
Saeed Alghafri, CEO of Emirates Steel, said: “As we join forces with FAB today, we reflect on our commitment to make a lasting impact on hard-to-abate sectors and contributing to the transformative journey towards sustainable practices and carbon neutrality. This collaboration will enable us to optimise our carbon credit trading strategy and will also contribute to the development of a regional carbon market, which is key for the successful implementation of the Nationally Determined Contributions (NDC) under the framework of the Paris Agreement. At Emirates Steel Arkan, we aim to further strengthen our resolve to reduce emissions, promote industry-wide sustainable practices, and minimise the climate and environmental impact of the steel and building materials sectors – in line with the UAE’s strategic initiative to achieve climate neutrality by 2050 and realise the objectives of COP28.”
AlQubaisi said: “FAB launched its carbon trading desk with the vision to drive effective collaboration across the global economy and advance the UAE’s carbon capabilities and decarbonisation ambitions. Our partnership with Emirates Steel Arkan reflects that collaboration, as it enables the UAE’s steel sector with more possibilities to minimise its environmental impact through carbon credits, commodity trading, and sustainable financing and investments. As a catalyst of the UAE’s climate future, FAB will continue to provide credible solutions for the UAE’s priority industries and support national, regional, and global net-zero carbon goals.”
FAB launched its dedicated carbon trading desk, part of its global markets offering, in May 2023 in line with the bank’s mission to expand its carbon capabilities. Introduced during the UAE Year of Sustainability to support national, regional and global net-zero carbon goals, the FAB carbon desk provides carbon trading and financing options, facilitates strategic carbon-related transactions, and promotes the development of high-quality carbon credits and offsets for its corporate and investment banking clients.
Emirates Steel Arkan said that collaboration is paramount to realising its ambitious sustainability goals and will be making several announcements throughout COP28. Through partnerships, the group aims to accelerate its decarbonisation roadmap and enable a forward-thinking industry where shared expertise and collective efforts contribute to achieving a greener tomorrow.