OpEd: Energy financing's dual mandate of security and sustainability

Zawya

4 days ago

Energy markets are entering a new era — one where financial institutions must balance two equally vital priorities: energy security and sustainable growth.
At Mashreq, we have long understood this dual imperative. Sustainability is deeply embedded in our growth strategy, fully aligned with UBF's bold pledge of AED 1.0 trillion by 2030. Sustainability at Mashreq is closely aligned with the UAE's national ambitions — including the Net Zero by 2050 strategic initiative and the commitment to reduce greenhouse gas emissions by 47 pecent by 2035, relative to 2019 levels. This national vision serves as our north star, shaping how we deploy capital, design solutions, and support our clients on their own sustainability journeys.
We also know that the global context is evolving. Shifting political dynamics, particularly in the U.S., have introduced new uncertainties. Recent moves by some international banks to step back from earlier climate alliances reflect a more fragmented market.
At the same time, energy security has reasserted itself as a top global priority. Supply chain disruptions and inflationary pressures have reinforced the importance of reliable energy flows. Today, energy finance must respond to this reality.
This is not a contradiction. It is a necessary balancing act. Financial institutions must support clients in securing energy resilience, while keeping pace with global market expectations for sustainability.
At Mashreq, ESG-driven finance solutions are central to our offering. They deliver responsible, long-term value while helping clients future-proof their businesses in a rapidly changing landscape. By investing in innovation, people, and future-ready solutions, we are enabling clients to navigate this complex environment.
A recent example is our leadership in structuring export-linked financing for Turkish energy trader BGN. Built in partnership with the UAE's export credit framework, the transaction addresses both energy security imperatives and market competitiveness — a model we see growing in demand.
Our commitment to sustainable finance also includes initiatives such as Climb2Change and a suite of green financing options.
How can banks build a more sustainable future? At Mashreq, our answer lies in actionable, market-relevant solutions — driven by a 'Rise Responsibly' ethos. This ethos underpins everything we do, embedding ESG across our operations and enabling clients to adapt to shifting global trends.
Meanwhile, the East of Suez energy ecosystem — spanning Abu Dhabi, Dubai, and Fujairah — is now a mature, globally competitive hub. One area still ripe for development is capital availability to fully fuel its growth.
Here again, Mashreq is proactive. Our dedicated energy and commodities business — one of the UAE's largest — is well-positioned to drive this next wave. With more global banks now establishing Gulf-based desks, the region is poised for even greater dynamism.
Looking forward, success in energy finance will demand adaptability. Banks must help clients navigate both energy security and sustainability priorities. Those that do so with agility and expertise will lead.
At Mashreq, we will continue to finance projects that build energy resilience, while enabling clients to remain competitive in global markets increasingly shaped by responsible business standards.
(The author is Head of Energy and Commodities, Mashreq. Any opinions expressed in this article are the author's own)
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