'Balance Between Economic Growth And Sustainability Is Crucial'

(MENAFN- The Peninsula) Deepak John | The Peninsula

Doha, Qatar: Finding a harmonious balance between economic growth and sustainability is crucial as they represent the two fundamental sides of the equation, said Qatar Central bank (QCB) Governor H E sheikh Bandar bin Mohammed bin Saoud Al Thani during the inauguration of the Arab banking conference 2024, yesterday.

The Arab Banking Conference 2024 is being held under the auspices of QCB and organised by the Union of Arab Banks under the theme entitled, 'Sustainable Development Requirements & the Role of Banks' which will run until today.

Delivering the keynote address, Sheikh Bandar bin Mohammed bin Saoud Al Thani called for responsible actions, including the implementation of effective mechanisms to achieve this balance and leveraging cutting-edge technology to mitigate carbon emissions.

He also advocated for increased investment in sustainable projects.

Underscoring the importance of the conference in addressing sustainable development challenges he empasised that such discussions are essential for shaping the future trajectory of our global community.

Minister of Finance, H E Ali bin Ahmed Al Kuwari; QCB Governor H E Sheikh Bandar bin Mohammed bin Saoud Al Thani with dignitaries during the Arab Banking Conference 2024.

During the speech, QCB Governor highlighted the extraordinary advancements, attributing them to breakthroughs in science, technological innovation, industrial revolution and unprecedented developments in healthcare.

These progressions have significantly improved human quality of life, with global per capita GDP increasing more than tenfold over the past two hundred years.

Despite these achievements, he acknowledged that this unprecedented growth has led to discernible climatic changes that impact our daily lives.

The Governor said,“While the global community strives to make substantive progress toward the 2030 sustainable development goals, we face ongoing challenges that could hinder the attainment of these objectives and potentially stifle global economic growth.”

Addressing the role of banks in fostering sustainable development, QCB Governor praised their essential role in financing the economy and supporting development initiatives.

“Banks have historically played a crucial role in financing the economy, and they are uniquely positioned to enhance long-term economic, social, and environmental well-being by channelling resources into projects that are economically viable and have a positive impact on development,” he noted.

He highlighted the potential for growth through the issuance of sustainable financial products such as green bonds and the application of financial technology to meet broader sustainability goals.”

QCB Governor emphasised that banks, as key partners in development, must support and adopt practices aligned with sustainable growth requirements.

This includes considering the impact of environmental, social, and governance (ESG) factors in their internal capital and liquidity assessment frameworks.

Regarding the challenges to achieving sustainability goals, he noted that they are centred around the availability of high-quality data, the establishment of effective frameworks to achieve the goals, and the level of stakeholder support.

Sheikh Bandar bin Mohammed bin Saoud Al Thani stressed the role of regulatory bodies in creating an enabling environment to facilitate the transition to a sustainable economy.

He also highlighted Qatar's commendable progress in this domain, reflecting its commitment to advancing ESG and sustainability in the financial sector.

“We are responsible for creating the right environment in order to transition to a sustainable economy. Qatar is committed to enhance the ESG in the financial sector” he stated.

QCB launched recently the 'ESG & Sustainability Strategy and Principles for the Financial Sector' based on three pillars: managing climate, environmental, and social risks within the financial sector; encouraging capital investments in sustainable finance; and incorporating ESG and sustainability practices into the Bank's internal operations.

QCB Governor called for a unified effort to achieve the sustainable development goals, which remain a steadfast and collective aim for a more resilient and prosperous future.

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