Emirates Steel Arkan, a leading steel and building materials manufacturer, has signed a Memorandum of Understanding (MoU) with First Abu Dhabi Bank (FAB) to collaborate on various initiatives related to commodity trading, carbon credits, and sustainable investments and deposits. The agreement, formalized on the sidelines of COP28, underscores the commitment of both entities to contribute to the transformative journey towards sustainable practices and carbon neutrality.
Stephen John Pope, Group CFO of Emirates Steel Arkan, and Sameh Al Qubaisi, Group Head of Global Markets at FAB, participated in the signing ceremony. The collaboration aims to identify effective strategies for hedging and trading carbon credits generated by Emirates Steel Arkan’s projects. Additionally, the partnership seeks to enhance capabilities in sustainability-linked and green financing, as well as carbon markets.
Emirates Steel Arkan and FAB are aligned with the UAE’s commitment to decarbonizing hard-to-abate sectors, a key focus of COP28. The collaboration reflects their shared vision of achieving tangible emission reductions and supporting the Nationally Determined Contributions (NDC) under the Paris Agreement.
Saeed Alghafri, CEO of Emirates Steel, emphasized the commitment to making a lasting impact on hard-to-abate sectors and contributing to sustainable practices. The collaboration aims to optimize carbon credit trading strategies and contribute to the development of a regional carbon market, aligning with the UAE’s strategic initiative to achieve climate neutrality by 2050.
Sameh Al Qubaisi from FAB highlighted the bank’s role in driving effective collaboration across the global economy and advancing the UAE’s carbon capabilities and decarbonization ambitions. FAB’s carbon trading desk, launched in May 2023, provides carbon trading and financing options, supports strategic carbon-related transactions, and promotes the development of high-quality carbon credits.
Emirates Steel Arkan, through strategic collaborations and partnerships, aims to accelerate its decarbonization roadmap. The group envisions a forward-thinking industry where shared expertise and collective efforts contribute to achieving a greener tomorrow. Additional announcements related to sustainability goals are expected from Emirates Steel Arkan throughout COP28.
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