Emirates Steel Arkan, a major steel and building materials manufacturer in the region, has forged a Memorandum of Understanding (MoU) with First Abu Dhabi Bank (FAB) to collaborate on various initiatives involving commodity trading, carbon credits, sustainable investments, and deposits.
Strategic Collaboration:
The MoU formalized between Stephen John Pope, Emirates Steel Arkan’s group CFO, and Sameh Al Qubaisi, FAB’s group head of global markets, occurred during COP28.
This collaboration aims to align with the UAE’s vision and COP28 Presidency objectives by focusing on sustainable practices, decarbonization, and emission reductions in challenging sectors.
Objectives and Focus Areas:
Emirates Steel Arkan and FAB will work jointly on existing and future projects to devise effective strategies for trading carbon credits generated by Emirates Steel Arkan’s initiatives.
The partnership also intends to bolster sustainability-linked and green financing capabilities while exploring opportunities within carbon markets.
Commitment to Emission Reductions:
Saeed Alghafri, CEO of Emirates Steel, emphasized the company’s commitment to reducing emissions, promoting sustainable practices, and mitigating environmental impact in alignment with the UAE’s climate goals.
The collaboration aims to optimize carbon credit trading strategies and contribute to a regional carbon market development, supporting the Nationally Determined Contributions (NDC) under the Paris Agreement.
FAB’s Carbon Trading Desk:
FAB’s establishment of a dedicated carbon trading desk in May 2023 aligns with its commitment to expanding carbon capabilities.
This initiative provides carbon trading and financing solutions, facilitating strategic transactions and fostering the development of high-quality carbon credits for clients across corporate and investment banking sectors.
Forward-Thinking Sustainability Approach:
Emirates Steel Arkan highlights the significance of collaboration in realizing sustainability goals and plans to announce additional initiatives during COP28.
The group aims to accelerate decarbonization efforts through strategic partnerships, fostering a forward-thinking industry committed to a greener future through shared expertise and collective endeavors.
