DFSA Launches Climate Transition Planning Principles for Financial Institutions
The Dubai Financial Services Authority (DFSA) and members of the UAE Sustainable Finance Working Group (SFWG) have launched a public consultation on new draft 'Principles for Climate Transition Planning,' aiming to strengthen the UAE's sustainable finance framework.
The proposed principles are designed to guide financial institutions in building robust, transparent, and forward-looking climate transition strategies. These strategies align an organisation's goals, governance, risk management, and operations with its climate commitments.
The framework outlines eight core areas: setting transition objectives, governance, integration into strategy and risk management, metrics and targets, data and customer engagement, reporting and transparency, implementation, and regular review.
The DFSA stated that the principles are intended to be applied proportionately across a broad range of financial entities, offering flexibility to adapt to evolving international standards.
By incorporating climate-related risks and opportunities into core business decisions, the initiative is expected to support more resilient financial planning, promote sustainable product development, and contribute to national and global climate goals.
The consultation represents another step in the SFWG's efforts to align the UAE's finance sector with its broader sustainability ambitions.
News Source: Emirates News Agency
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Hi Dubai
2 days ago
- Hi Dubai
DFSA Launches Climate Transition Planning Principles for Financial Institutions
The Dubai Financial Services Authority (DFSA) and members of the UAE Sustainable Finance Working Group (SFWG) have launched a public consultation on new draft 'Principles for Climate Transition Planning,' aiming to strengthen the UAE's sustainable finance framework. The proposed principles are designed to guide financial institutions in building robust, transparent, and forward-looking climate transition strategies. These strategies align an organisation's goals, governance, risk management, and operations with its climate commitments. The framework outlines eight core areas: setting transition objectives, governance, integration into strategy and risk management, metrics and targets, data and customer engagement, reporting and transparency, implementation, and regular review. The DFSA stated that the principles are intended to be applied proportionately across a broad range of financial entities, offering flexibility to adapt to evolving international standards. By incorporating climate-related risks and opportunities into core business decisions, the initiative is expected to support more resilient financial planning, promote sustainable product development, and contribute to national and global climate goals. The consultation represents another step in the SFWG's efforts to align the UAE's finance sector with its broader sustainability ambitions. News Source: Emirates News Agency
Zawya
3 days ago
- Zawya
The DFSA joins United Arab Emirates' authorities in launching consultation on Principles for Climate Transition Planning
Dubai, United Arab Emirates: The Dubai Financial Services Authority (DFSA), together with other members of the United Arab Emirates (UAE) Sustainable Finance Working Group (SFWG), has today launched a public consultation on draft 'Principles for Climate Transition Planning' (the Principles). This marks a further step in the SFWG's ongoing efforts to enhance the UAE's sustainable finance ecosystem. The draft Principles are designed to help financial institutions develop credible, transparent, and effective climate transition plans. These plans are forward-looking strategies that align an organisation's objectives, governance, risk management, and operations with their climate goals. The draft Principles cover eight key areas: setting transition objectives; governance; integration into strategy and risk management; metrics and targets; data and customer engagement; reporting and transparency; implementation; and review and updates. The proposed Principles are intended to apply proportionately across a wide range of financial institutions and are designed to remain flexible and forward-looking to reflect the evolving nature of global standards. By embedding climate risks and opportunities into financial decision-making, transition planning enhances firms' risk management, informs strategic and product development, and supports broader climate policy objectives. How to submit feedback The consultation is open to all the DFSA's stakeholders. Feedback is particularly welcomed from firms developing or enhancing their transition plans, as well as firms already engaged in climate-related risk management and disclosure practices. To read the draft Principles, click here. To submit your feedback, click here. The deadline for submissions is close of business on 16 July 2025. About the UAE Sustainable Finance Working Group The SFWG was established in 2019 to support the UAE's economic transition to address climate change and encourage the adoption of best practices around sustainability at the national level, aligned with the UAE's Green Agenda 2015–2030. Its members include: Financial regulators – Central Bank of the UAE, Securities and Commodities Authority, Financial Services Regulatory Authority of Abu Dhabi Global Market, Dubai Financial Services Authority; Ministries – Ministry of Finance, Ministry of Climate Change and Environment, Ministry of Economy, the Office of the UAE's Special Envoy for Climate Change; and UAE exchanges – Abu Dhabi Securities Exchange, Dubai Financial Market, and Nasdaq Dubai. Since its inception in 2019, the SFWG has issued several key publications: Guiding Principles on Sustainable Finance in the UAE (2020), committing to developing standards for the financial sector to integrate Environmental, Social and Governance (ESG) factors into corporate governance, strategy, and risk management. Principles for the Effective Management of Climate-related Financial Risks (2023), addressing the oversight and allocation of responsibilities for climate-related financial risks, their integration into strategy-setting, risk management frameworks, capital and liquidity planning, and scenario analysis exercises; and Principles for Sustainability-related Disclosures (2024), supporting financial firms in the UAE in preparing high-quality and relevant sustainability disclosures. For further information, please contact: Corporate Communications Dubai Financial Services Authority (DFSA) Level 13, The Gate, West Wing Dubai, UAE Email: DFSAcorpcomms@ About DFSA The Dubai Financial Services Authority (DFSA) is the independent regulator of financial services conducted in and from the Dubai International Financial Centre (DIFC), a purpose built financial free zone in Dubai. The DFSA's regulatory mandate covers asset management, banking and credit services, securities, collective investment funds, custody and trust services, commodities futures trading, Islamic finance, insurance, crowdfunding platforms, money services, an international equities exchange and an international commodities derivatives exchange. In addition to regulating financial and ancillary services, the DFSA is responsible for administering Anti-Money Laundering and Combating the Financing of Terrorism legislation that applies to regulated firms and Designated Non-Financial Businesses and Professions in the DIFC. Please refer to the DFSA website for more information.
Arabian Business
4 days ago
- Arabian Business
DFSA tokenisation regulatory Sandbox receives 96 global applications from six countries
The Dubai Financial Services Authority (DFSA) has announced the next phase of its Tokenisation Regulatory Sandbox, beginning engagement with firms selected to join its Innovation Testing Licence programme. The DFSA, which regulates the Dubai International Financial Centre, allows entities to test financial products and services under a controlled environment through its regulatory sandbox. The Authority launched its Innovation Testing Licence in 2017 and continues to build a market that aligns with the needs of traditional and non-traditional financial institutions, investors, and entrepreneurs, the authority said in a statement. DFSA tokenisation Sandbox attracts interest from UK, EU, Canada, Singapore and Hong Kong The DFSA introduced its Investment Token regime in 2021 to regulate tokens used as investment instruments. It implemented a Crypto Token regime in 2022 as a framework for classifying, recognising, and governing crypto tokens. In June 2024, the DFSA refined its approach with amendments including streamlined token-recognition criteria and the first approvals of stablecoins. The DFSA's Tokenisation Regulatory Sandbox launched in March 2025 and received 96 expressions of interest from across the United Arab Emirates, United Kingdom, European Union, Canada, Singapore, and Hong Kong. The expression of interest process provided the DFSA with insight into the diversity and maturity of tokenisation models being developed. Applications included proposals to tokenise financial assets and instruments, such as bonds including Islamic bonds or sukuk, units in a fund including money market funds and property funds, and the trading and safe custody of those assets. The initiative attracted interest from established financial institutions exploring tokenisation use cases and start-ups looking to scale digital asset solutions in a regulated environment. 'The global interest in our Tokenisation Regulatory Sandbox signals the importance of, and growing appetite for, responsible innovation, and recognises the appeal of DFSA's regulatory approach to innovation. As a regulator, our role is to support innovation and its positive contribution to the financial markets in ways that maintain market integrity and protect the public interest within the DIFC. By working closely with local and global firms through the sandbox, we are encouraging responsible innovation and helping to ensure that new ideas are tested against regulatory expectations,' Charlotte Robins, Managing Director, Policy & Legal said. Following a review, applicants were assessed based on their business model, clarity of use case, and readiness to test. Some firms were invited into the sandbox for testing under the Innovation Testing Licence, while others were considered suitable for full authorisation under existing rules due to the maturity of their operations and experience in other regulated jurisdictions. The DFSA will work with the firms selected for the Innovation Testing Licence to develop testing plans. Sandbox participants will begin trials within a controlled environment in the coming weeks. The outcomes from this cohort will help inform regulatory policy and refinements to the DFSA's digital assets and innovation frameworks. The DFSA's Tokenisation Regulatory Sandbox supports the DIFC's position as a hub for digital finance and aligns with Dubai's Economic Agenda D33, which aims to make Dubai one of the world's top four financial hubs by 2033.
