Approximately $40 billion of retail investor capital could be mobilised towards climate investments in the UAE by 2030, according to the findings of a new study by Standard Chartered.
The Sustainable Banking Report 2023 further identified a global potential of $3.4 trillion for climate investing, based on investor interest in 10 growth markets across Asia, Africa, and the Middle East.
Within climate investing in the UAE, $23 billion could flow into mitigation – energy storage, energy efficiency and renewables are set to attract the most capital. Another $17 billion could be mobilised towards adaptation including resilient infrastructure, food systems and the blue economy, the report stated.
The research further showed 93% of investors in the UAE are interested in climate investing, and 87% of them want to increase capital flows towards climate.
However, multiple barriers, which vary by investor segments, are holding them back from translating their interest into investment, the report adds, stating financial institutions, regulators, companies and individuals must make a concerted effort to establish a wider range of climate assets to drive greater retail participation.
The report adds that asset managers and banks must also work to innovate new climate assets to match emerging investor interests, such as biodiversity and the blue economy.
(Writing by Bindu Rai, editing by Seban Scaria)