In an exclusive interview with Marina Bird, Managing Director of ESG News Corp, Mercedes Vela Monserrate, CEO of the Global Climate Finance Center (GCFC) during Abu Dhabi Finance Week, outlined how the UAE is positioning itself as a global hub for climate finance. 

The GCFC, established during COP28, is pioneering efforts to drive accountability, foster innovation, and address critical gaps in climate financing worldwide. With a focus on emerging markets and developing economies, and cutting-edge climate tech, the GCFC is breaking new ground.

Mobilizing Climate Capital for Change

One of the core missions of the GCFC is to bridge the gap between climate goals and actionable financing. “The GCFC was founded to ensure accountability for initiatives launched during COP28 and to build a robust ecosystem for climate finance in the UAE,” Vela Monserrate explained.

The GCFC hosts the Secretariat for three key initiatives:

1. Global Climate Finance Framework: A collective effort signed by 15 countries accounting for 40% of global GDP. It aims to make climate finance available, accessible and affordable globally.
2. Africa Green Investment Initiative: Using blended finance and other de-risking models, this initiative aims to deploy $4.5 billion into 50 GW of clean energy projects in Africa.
3. Innovate for Climate Tech: Focused on integrating climate tech and venture capital, this initiative collaborates with major players like Microsoft, Hub71 and Masdar to scale up AI-driven climate solutions.

Building Capacity and Scaling Up Investment in Emerging Markets

Vela Monserrate emphasized the need for fit-for-purpose regulatory frameworks, policies, and governance structures to support climate finance innovation. By advising competent authorities, the GCFC aims to provide clarity, reduce risks, and instill confidence among investors.

Additionally, the GCFC serves as a collaboration platform for private, public, and philanthropic institutions, bringing together diverse stakeholders to align their efforts. “The lack of a coordinated approach has hindered progress. We’re here to change that by fostering meaningful partnerships,” Vela Monserrate said.

The third focus is on capacity building, particularly in emerging markets. “The challenge isn’t a lack of capital but a lack of bankable projects,” she noted. The GCFC works to build technical expertise and increase the pipeline of viable projects in regions where they are needed most.

UAE’s Leadership in Climate Finance

The UAE’s ambition to become a global hub for climate finance is underpinned by initiatives like the Abu Dhabi Sustainable Finance Declaration and the country’s focus on regulatory advancements. The GCFC leverages these foundations while advancing its three priority areas: transition finance, carbon markets, and de-risking instruments.

Vela Monserrate highlighted the significance of the annual meeting hosted during Abu Dhabi Sustainability Week, where progress on initiatives is shared. “We are building an entire ecosystem in collaboration with international stakeholders such as ADIB, the World Bank, GFANZ, First Abu Dhabi Bank, HSBC, and ADGM, among others,” she shared.

The Opportunity of Our Time

When asked about the future of climate finance, Mercedes Vela Monserrate was optimistic. “We need to shift the narrative – climate finance is the greatest investment opportunity of our time,” she asserted. To unlock this potential, Vela Monserrate emphasized three key ingredients: mobilization, impact, and performance. “Every dollar invested must deliver clear outputs, and we need the right regulatory frameworks and incentives to scale these innovative financial products.”

As the world faces an urgent need for action, the Global Climate Finance Center, under the leadership of Mercedes Vela Monserrate, is charting a bold course to redefine how climate finance is structured, mobilized, and delivered. By fostering innovation, building capacity, and creating a unified ecosystem, the GCFC is setting a global standard for sustainable finance.

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