News

Report calls for green bonds to push GCC’s net zero agenda

net zeroThe green and sustainable debt market should be the driving force of the GCC’s net zero agenda, according to a recently published report. The report from Boston Consulting Group (BCG), titled ‘Financing a Net-Zero Middle East’, states that the issuance of green bonds has grown rapidly in the region despite a lack of regulation. For example, in 2021, issuance rose by four times the previous year. At the same time, there is a growing need for financing and investment in technologies and services focused on decarbonisation and climate transition if companies in the region are to meet their net-zero targets. However, according to BCG, the absence of regulatory imperatives in the region means many companies do not feel sufficiently compelled to either address their own sustainability challenges or invest in sustainable ventures. This is where the burgeoning green bond market comes in, according to BCG. "Regulators and policymakers could address this challenge by establishing carbon prices that adequately represent the cost of greenhouse gases and are aligned with international carbon price levels,” stated Shelly Trench, managing director and partner at BCG and co-author of the report. “In addition, they could create financial and other incentives to support decarbonisation and develop environmental and industrial policies that align with climate objectives," stated Trench. The report also makes three recommendations for GCC’s banks and funds in order to develop the green bond and climate financing market - provide financing for non-bankable green projects with lower risk-adjusted returns or higher investment risks; develop risk mitigation instruments to improve risk-adjusted returns for private capital investment; and work with policymakers and regulators on the reforms needed to scale up climate finance. ©2023 funds global mena

Opinion

Change brings progress and long-term opportunities in Saudi Arabia

Saudi_ArabiaNaomi Waistell, an emerging markets fund manager at Polar Capital, analyses change in Saudi Arabia – a hydrocarbon country with green ambitions and which is set on a major economic...

New income streams

Romil_PatelAlthough it is awash with oil and, therefore, capital, the Gulf region is at a critical juncture: it must diversify its...

Executive Interviews

INTERVIEW: ‘Financing is the blood of Iran’s economy’

Amid a fresh wave of American sanctions, Romil Patel spoke to Meysam Hamedi, director of financial markets and instruments at Iran’s Securities & Exchange Organization (SEO).

INTERVIEW: Totally mega

In 2016, global consulting firm PWC forecast the emergence of five global ‘megatrends’ in the next two decades. Stephen Anderson, its Middle East clients and markets leader, talks about their...

INTERVIEW: Protecting the investment

Rasmala’s trade finance fund recently passed $100 million in assets. Doug Bitcon, head of credit strategies, explains why he has to be hands-on.

EXECUTIVE INTERVIEW: A natural interest in the topic

Since 2016, Guillermo Ortiz has been a chairman of Latin America’s BTG Pactual. The former central banker of Mexico talks to Nick Fitzpatrick.

Roundtables

Middle East Investor Roundtable 2020: Dimensions of diversification

Investors in the Middle East consider the tools that will be needed to navigate the Covid-19 crisis, the continued appetite for dividend and why it’s all about tech. Chaired by Romil Patel.

South Africa asset management roundtable: Global rebound on ice

Experts discuss the investment implications of the coronavirus pandemic, a delayed rebound in global growth and dealing with South Africa’s energy issues head on. Chaired by Romil Patel in Cape Town.

South African roundtable: Taking the bull by the horns

Our panel discusses Chinese investment in Africa, financial institutions’ contribution to economic sustainability and regulatory concerns. Chaired by Romil Patel in Cape Town.

ROUNDTABLE: Hooked to the global caravan

With the MENA region at a tipping point, our panellists talk about economic diversification, the impact of regulation and the delayed Saudi Aramco listing. Chaired by Romil Patel in Dubai.