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The Central Bank of the UAE will organise the second edition of the Climate Forum in Abu Dhabi this week the Emirates News Agency reported. The gathering will convene regulators financial institutions policymakers and global experts to discuss integration of climate risks into financial oversight and strategies for building sector resilience. Sessions are expected to cover adaptation finance in emerging markets along with policies that accelerate the transition to sustainable systems in alignment with national goals. This event builds directly on regulatory steps the bank has taken since its inaugural session.
The first Climate Forum took place in June 2025 under the patronage of His Highness Sheikh Mansour bin Zayed Al Nahyan according to a WAM report. That gathering opened with remarks from CBUAE Governor Khaled Mohamed Balama and included the Minister of Climate Change and Environment plus the Chairman of the UAE Banks Federation. Discussions centred on embedding climate considerations within regulatory structures and exchanging practices to support the UAE Net Zero by 2050 initiative. A subsequent CBUAE report described the inaugural event as a milestone for regional leadership in sustainable finance.
Following the 2025 forum the Central Bank issued a dedicated regulation on climate-related financial risk management that took effect in 2025 its rulebook states. The framework requires banks and insurance companies to identify measure and mitigate physical and transition risks across short medium and long-term horizons. It builds on principles for effective risk management released in 2023 and sustainability disclosure standards introduced in 2024. Institutions must now incorporate these risks into governance risk appetite and strategic planning.
The UAE Banks Federation has pledged more than AED 1 trillion in sustainable finance by 2030 according to remarks delivered at the first forum. A CBUAE assessment found that the inaugural event reinforced collaboration between domestic and international stakeholders on climate-related financial disclosures and stress testing. Such commitments form part of wider efforts to align the financial sector with the National Climate Change Plan. The second forum will review implementation progress on these targets.
Central banks worldwide have intensified focus on scenario analysis and stress testing for climate risks a pattern mirrored in CBUAE guidance. The upcoming Abu Dhabi meeting is expected to examine how these tools can be scaled across GCC institutions while addressing data gaps that still constrain accurate risk measurement. Participants will also consider the role of green and sustainable products in meeting both regulatory requirements and market demand. Outcomes from the first forum have already informed several updates to supervisory expectations.
In opening the 2025 forum Governor Khaled Mohamed Balama underlined the strategic value of continued dialogue on these issues. “The forum reaffirmed the importance of effective dialogue and close collaboration among key stakeholders in addressing climate-related financial risks advancing sustainable finance and exchanging best practices to strengthen the resilience of the financial system and accelerate climate action” a CBUAE statement distributed via the Emirates News Agency said. The second edition will carry forward this agenda as the UAE maintains its position at the forefront of regional sustainable finance initiatives.
