NBAD commits $10b finance for renewable energy projects

Abu Dhabi - National Bank of Abu Dhabi research had identified a funding gap of $48 trillion in the next 20 years to meet global energy demand.

The National Bank of Abu Dhabi (NBAD) has committed to lend $10 billion in the next 10 years to projects focused on environmentally sustainable activities.
NBAD research had identified a funding gap of $48 trillion in the next 20 years to meet global energy demand, with renewables playing a critical role in the future energy mix.
Last year, NBAD had launched the 'Financing the Future of Energy Report', at the Global Financial Markets Forum 2015 in Abu Dhabi. The report found that $48 trillion was required over the next 20 years to close the global energy gap.
Nathan Weatherstone, head of sustainable business banking at NBAD, said: "Our research has identified that there is approximately $640 billion of investment required for renewable energy projects across the West-East corridor."
Alex Thursby, Group CEO of NBAD, said the world is heading towards a significant funding gap for energy globally.
"This is particularly true across the West-East corridor, the rapidly growing super-region that stretches from Africa through the Middle East to Asia - and filling it is going to be a big task," he said.
"We want to make a real contribution to the region's ability to rise to the energy challenge. We believe that even in the current climate of low oil prices, the transition towards more renewable sources in the energy mix will continue because the underlying drivers are long-term and strong. It is for this reason that we have made this commitment of $10 billion today."
NBAD established a sustainable business team in August 2015 to evaluate and create new financing products that will support the development of renewable energy and sustainable businesses.
The team will engage with regulators, policy makers and industry players to capture market trends and promote partnership between the financial sector and environmentally sustainable businesses.
- haseeb@khaleejtimes.com