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FAB joins forces with ENGIE at COP28 to enhance decarbonisation solutions

FAB joins forces with ENGIE at COP28 to enhance decarbonisation solutions
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Abu Dhabi – Mubasher: First Abu Dhabi Bank (FAB) has teamed up with French energy multinational ENGIE by signing a memorandum of understanding (MoU) agreement during the 28th UN Climate Change Conference of the Parties (COP28) to advance their capabilities in financial decarbonisation solutions, according to a press release.

The MoU forms a partnership framework between FAB and ENGIE in different areas related to energy transition and decarbonisation, such as derivatives or financing solutions related to energy, carbon, renewables, battery energy storage systems, and green products.

The fields of cooperation will further include credit risk management in relevant derivative transactions and payment facilities.

As for carbon markets, the two sides are forecast to enter into spot trading or long-term forward purchase agreements for carbon credits and renewable energy certificates, in addition to other environmental products.

CEO of Global Energy Management and Sales (GEMS) APAC at ENGIE, Varun Gujral, said: “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.” 

It is worth mentioning that the signed agreement builds on the capabilities of FAB Carbon Desk, which offers carbon trading and financing options as well as facilitates strategic carbon-related transactions.

FAB Carbon Desk which was launched in May 2023 also endorses the development of high-quality carbon credits and offsets for corporate and investment banking clients.

The UAE lender’s collaboration with ENGIE follows agreements FAB’s deals with Blue Carbon and Masdar in October this year for the supply of high-quality carbon credits.

FAB is also participating in the recently launched carbon credits trading pilot programme by Dubai Financial Market (DFM) which will allow institutional investors to buy and sell until 11 December 2023.

It is worth highlighting that during the first nine months (9M) of 2023, the UAE listed bank generated a net income worth AED 12.41 billion.