Meed | Carbon accounting body launches in Mena

Carbon accounting body launches in Mena

24 October 2024

Germany-headquartered Partnership for Carbon Accounting Financials (PCAF) has launched a unit focusing on the Middle East and North Africa (Mena) region.

UAE-based Emirates NBD and First Abu Dhabi Bank will co-chair PCAF Mena.

The co-chairs, along with the PCAF secretariat, are expected to foster collaboration among the nine other Middle Eastern financial institutions that have already committed to PCAF, “creating a harmonised and unified platform for regional cooperation and knowledge sharing”.

It added that the region's financial institutions are in a particularly important position to support the transition “as the world shifts towards more sustainable alternatives to oil and gas”.

PCAF is a global initiative that provides a standardised framework for financial institutions to measure and disclose the carbon emissions associated with their loans and investments.

It focuses on attributing emissions to a financial institution in proportion to the economic activity they finance.

The methodology tailors the calculation of carbon emissions for different asset classes, such as listed equity, corporate bonds, project finance, and mortgages.

Each class has specific formulas and data requirements to ensure accurate reporting.

According to PCAF, the standard is used by over 530 financial institutions around the world to measure and report the emissions associated with their financial activity before they can set reduction targets and move ahead in their decarbonisation journey.

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Jennifer Aguinaldo