Abu Dhabi, 05 December 2023: First Abu Dhabi Bank (FAB), the UAE’s largest bank and one of the world’s largest and strongest financial institutions, has further demonstrated its commitment to global energy transition by signing a Memorandum of Understanding (MoU) agreement with French energy multinational ENGIE’s business entity ‘Global Energy Management and Sales’ (GEMS) to advance their respective capabilities in financial decarbonisation solutions.
ENGIE is a global leader in low-carbon energy and services, including renewables, committed to accelerate the transition towards a carbon-neutral world through reduced energy consumption and more environmentally friendly solutions. The agreement, signed during the COP28 climate conference in the UAE, establishes a framework for collaboration between FAB and ENGIE GEMS in several areas related to energy transition and decarbonisation.
Areas of cooperation within the MoU include derivatives or financing solutions related to energy, carbon, renewables, battery energy storage systems, green products, and credit risk management. Focussing on environmental markets, FAB and ENGIE expect to enter into spot trading or long-term forward purchase agreements.
Varun Gujral, CEO GEMS APAC at ENGIE, said, “ENGIE GEMS is proud to partner with First Abu Dhabi Bank on advancing decarbonisation solutions. This MoU marks a significant milestone as ENGIE GEMS and FAB join forces to strengthen our capabilities in driving the energy transition across the Middle East and beyond. Through the synergy of our institutions, we are committed to supporting our clients on their decarbonisation journey, exemplifying our shared dedication to a greener and more resilient future.”
Sameh Al Qubaisi, Group Head of Global Markets at FAB, said, “Market-led solutions, such as trading in high-quality carbon credits, will play an essential role in the UAE, regional and global net-zero transition, providing industries with practical tools for achieving decarbonisation targets. FAB is pioneering the use of innovative financial instruments to support decarbonisation within our region, building on our leadership in green finance. Our partnership with ENGIE accelerates the growth of the FAB Carbon Desk as part of our Global Markets offering, contributing to our clients’ net-zero ambitions.”
The non-exclusive agreement builds on the capabilities of the dedicated FAB Carbon Desk, which provides carbon trading and financing options, facilitates strategic carbon-related transactions, and promotes the development of high-quality carbon credits and offsets for corporate and investment banking clients.
Launched in May this year, the dedicated desk expands on FAB’s carbon trading capability, first offered in 2021, providing tailored carbon solutions within the GCC region and throughout FAB’s global network, and actively sourcing, originating, and trading high-quality carbon credits.