The UAE’s National Bank of Abu Dhabi (NBAD) has committed to lend $10bn over the next ten years for projects related to renewable energy and sustainable activities.
The bank’s ‘Financing the Future of Energy Report’ forecasts that $48tn is required to in the next 20 years to meet global energy needs.
NBAD CEO Alex Thursby said: "The world is heading towards a very 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.
"As the leading bank in the Middle East, we want to make a real contribution to the region’s ability to rise to the energy challenge."
Besides energy, the funds are also likely to be invested in sustainable business initiatives such as clean transportation, sustainable water, waste management and energy efficient real estate.
NBAD sustainable business banking head Nathan Weatherstone said: "Our research has identified that there is approximately $640bn of investment required for renewable energy projects across the West-East Corridor."
NBAD established the Sustainable Business Banking team in August 2015 to evaluate and create new financing products that will support the development of renewable energy and sustainable businesses.
Thursby added: "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 $10bn today. Through our Sustainable Business team we hope to become a positive force in the banking sector within the region, accelerating the transition to a much needed new world of energy."
Image: National Bank of Abu Dhabi, UAE. Photo: courtesy of Ijanderson977 / Wikipedia.