Abu Dhabi International Market (ADGM) concluded Abu Dhabi Finance Week (ADFW) by positioning the emirate because the definitive “Capital of Inexperienced Capital,” mobilising sovereign wealth and regulatory innovation to bridge the hole between digital belongings and the net-zero transition .
The ultimate day of the occasion moved past theoretical local weather diplomacy, focusing as an alternative on the granular mechanics of capital deployment, regulatory frameworks, and the convergence of institutional credit score markets with decentralised finance (DeFi).
Salem Mohammed Al Darei, CEO of ADGM Authority, opened the discussion board by describing Abu Dhabi as a “centre of gravity” for sustainable finance . He outlined a strategic mandate to direct the emirate’s large accumulation of sovereign capital towards high-impact options, performing as a bridge between the developed markets of the International North and the high-growth economies of the International South .
The Convergence of Crypto and Local weather
In a transfer that seeks to resolve the long-standing pressure between digital belongings and environmental influence, the Sustainable Bitcoin Protocol (SBP) accomplished the inaugural transaction of a tokenized power transition asset derived from Bitcoin . Executed on Coinbase Mission Diamond throughout the ADGM RegLab, this pilot permits miners to confirm and monetize clear power use .
Brad Van Voorhees, CEO of SBP, defined that the protocol converts verified clear compute right into a tradeable monetary instrument, creating a brand new incentive construction for institutional traders to carry Bitcoin whereas complying with strict ESG mandates . The transaction concerned Zero Two, a digital belongings infrastructure firm backed by ADQ, signaling sovereign assist for utility-driven crypto belongings .
Institutional DeFi and Liquidity
Addressing the effectivity of institutional credit score markets, SemiLiquid unveiled its Programmable Credit score Protocol (PCP) . This infrastructure layer allows establishments to activate credit score in opposition to digital belongings held in custody with out transferring the collateral, successfully fixing the counterparty danger that has traditionally frozen the market .
Rico van der Veen, co-founder and CEO of SemiLiquid, described the protocol because the “lacking rail” establishments want, merging the belief of conventional finance with the effectivity of programmable belongings . The launch follows a pilot involving Franklin Templeton, Zodia Custody, and Avalanche, demonstrating how yield-bearing tokens can be utilized as collateral whereas remaining safe in a professional custodian’s account .
Architecting a New Regulatory Commonplace
Beneath the business bulletins, the discussion board solidified the foundations that can govern sustainable finance within the area. The UAE Sustainable Finance Working Group (SFWG) endorsed the brand new “Ideas for Local weather Transition Planning” beneath Workstream 4 .
These rules characterize a maturation of the market, transferring past easy carbon measurement to advanced transition planning. By offering a standardised handbook for monetary establishments, UAE regulators purpose to stop “paper decarbonisation”—the place banks merely dump high-carbon belongings reasonably than serving to purchasers transition—and guarantee credibility and transparency in reporting .
Girls in Finance: Leaders in Movement
Parallel to the technical discussions, the occasion highlighted the pivotal position of feminine management in accelerating the inexperienced transition. The ‘Girls in Finance Discussion board’ hosted the “Leaders in Movement: Girls Driving Monetary Innovation” session, positing that range is a driver of alpha reasonably than only a reporting metric .
Linda Fitz-Alan, Registrar and Chief Government of ADGM Courts, exemplified this management. As a member of the Advisory Council of Masdar’s WiSER platform, she continues to champion the mixing of gender range into the very best institutional constructions of the monetary centre .
A Coalition of the Prepared
The day concluded with a major growth of the Abu Dhabi Sustainable Finance Declaration, which welcomed new signatories to deliver the whole rely to 180 establishments .
Whereas voluntary, the declaration acts as a strong signaling mechanism, making a coalition of banks, asset managers, and insurers publically dedicated to integrating ESG into their core enterprise fashions. This essential mass creates a “community impact,” making certain that main gamers stay aligned with the UAE’s Internet Zero 2050 nationwide technique .
