Experts Discuss Best Approach to Attracting Green FDI

Experts Discuss Best Approach to Attracting Green FDI

The UN Sustainable Development Goals (SGDs) were signed by 193 countries outlining the key 17 targets which counties need to achieve by 2030. This has led nations to focus on attracting “Green & Sustainable” forms of investments. However, there is, still, a lack of transparency on the real impact of “Green investment”. Therefore, when making investments, investors are increasingly looking at policies that are clear on a county's green agenda and the strategies put forward by policymakers to achieve their set targets.  

This is the gist of the panel that will be hosted by the Annual Investment Meeting 2022 on March 29th, 2022, at Dubai Exhibition Centre, EXPO 2020 Dubai, under the title of “Sustainable Investing – Discussing the Best Approach in Attracting Green FDI”. 

That said, let’s dive deeper to know what this high-level gathering will discuss.  

FDIs & SDGs | Do They Mix? 

The renowned panelists at the session will start by highlighting that FDIs are playing a tremendous role in driving global economic growth and helping the world to recover in the wake of the tough COVID-19 crisis.  

Importantly, the session speakers will highlight the UN Sustainable Development Goals (SGDs). In 2015, the United Nations General Assembly adopted the 2030 Agenda for Sustainable Development that includes 17 Sustainable Development Goals (SDGs). Building on the principle of “leaving no one behind”, the new Agenda emphasizes a holistic approach to achieving sustainable development for all. The 17 sustainable development goals (SDGs) to transform our world are:  

  1. GOAL 1: No Poverty 
  2. GOAL 2: Zero Hunger 
  3. GOAL 3: Good Health and Well-being 
  4. GOAL 4: Quality Education 
  5. GOAL 5: Gender Equality 
  6. GOAL 6: Clean Water and Sanitation 
  7. GOAL 7: Affordable and Clean Energy 
  8. GOAL 8: Decent Work and Economic Growth 
  9. GOAL 9: Industry, Innovation and Infrastructure 
  10. GOAL 10: Reduced Inequality 
  11. GOAL 11: Sustainable Cities and Communities 
  12. GOAL 12: Responsible Consumption and Production 
  13. GOAL 13: Climate Action 
  14. GOAL 14: Life Below Water 
  15. GOAL 15: Life on Land 
  16. GOAL 16: Peace and Justice Strong Institutions 
  17. GOAL 17: Partnerships to Achieve the Goal 

As a result, countries all over the world have, since then, had an increased focus on attracting “Green and Sustainable” forms of investments. Also, many Investment Promotion Agencies (IPAs) have either launched a new 2020-2025 strategy or updated their existing one with green growth as a common theme.  

What is Green Investment? 

In reply to the headline question, the panelists at the AIM 2022’s 3rd FDI & FPI Pillar Session will explain that green investing is the type of investment that aims to support business practices that have a favorable impact on the natural environment, or, in other words, it’s the investment that focuses on investing in projects that are committed to the conservation of natural resources, pollution reduction, or other environmentally-conscious business practices.  

And, it’s becoming a positive trend, with many investors across the globe now seeking to buy green mutual funds, green ETFs, green bonds, green index funds, or hold stock in environmentally-friendly businesses to support green initiatives. 

So, what about ROI?   

The session panelists will demonstrate that although profits do not constitute the only motive for green investors, there is a lot of evidence that green investing may mimic or sometimes beat the returns of more traditional assets. 

AIM 2022’s 3rd FDI & FPI Pillar Session  

The Panelists at the AIM 2022’s 3rd FDI & FPI Pillar Session are Ana Draskovic, Director & Head of Business Development Group, European Bank for Reconstruction and Development (EBRD); Dr. Massimiliano Castelli, Managing Director, Head of Strategy & Advice, Global Sovereign Markets, UBS Asset Management; and Ibrahim Al-Zu'bi, Chief Sustainability Officer, Majid Al Futtaim Holding. 

They will draw attention to the current status quo - where there is a lack of transparency on the real impact of green investment. Large-scale manufacturers and industrial players are feeling increasing economic pressure on them to address the problem of their immense carbon footprint.  

Accordingly, the speakers will emphasize that when making investments, companies all over the world are increasingly looking at policies that are clear on a county's green agenda and the strategies put forward by policymakers to achieve their set targets.  

 

Moreover, the panelists will provide useful insights that develop a solid framework to outline how countries can make their green agenda clear to achieve the ultimate object - attract sustainable investments.