Qatar has undertaken several initiatives over the past few years to nurture a green economy, QCB noted and said local banks now issue green bonds and offer green loans and mortgages as part of adopting green initiatives in their business practices.
In 2020, QNB issued green bonds of $600mn that are listed on the London Stock Exchange, QCB noted in its latest Financial Stability Review.
Some of the banks in Qatar have already adopted green initiatives in their business practices as they issue green bonds (to finance green projects) and offer green loans/ mortgages (provide discounts on loan fees or interest rates that are certified as energy-efficient and environment-friendly) and green credit cards (convert part of all cardholder spending into donations to environmental efforts).
Environmental development is one of the four pillars (Pillar 4) of the Qatar National Vision 2030, the review said.
Qatar topped the Mena region Energy Transition Index 2021, published by the World Economic Forum.
The report benchmarks some 115 countries based on the performance of their energy systems across the three dimensions: economic development and growth, environment sustainability and energy security and access and their readiness towards moving towards secure, sustainable, affordable and inclusive energy systems.
The Second Strategic Plan for Financial Regulation (SSP-2) published collaboratively by the three domestic regulators in 2018 had highlighted the need to promote sustainable investment and green finance.
With support from Qatar Financial Markets Authority, the Qatar Stock Exchange launched its online platform Sustainability and
Environmental-Social-Governance (ESG) Dashboard to enable listed companies to communicate their ESG and sustainability performance.
The 2015 Paris Agreement on Climate Change provides a framework for meaningful progress on climate change, QCB said.
Taking this into consideration and recognising the damage that climate change can cause, countries around the world have been focusing on securing a green economy. Leading global central banks are working on green issues, QCB noted.
The financial stability monitoring framework of the Federal Reserve has the flexibility to incorporate elements of climate-related risks.
In June 2020, the Bank of England published its climate-related financial disclosure that highlights their approach to assessment and management of climate-related risks.
The European Central Bank has decided to invest part of its resources in green bond funds.
The Bank of Japan has sought to include climate change risks among the key themes in its bank examinations, beginning 2021.
International organisations have also been urging countries to move towards a green economy. Inclusive green growth was advocated by the World Bank as early as 2012.
The IMF has observed that combining steadily rising carbon prices with a green infrastructure push can boost global GDP and generate significant employment.
In this regard, the IMF has outlined a well-defined action plan, including a Climate Indicators Dashboard (CID) to provide cross-country assessment of climate-related indicators.
The Bank for International Settlements (BIS) Innovation Hub on green finance has been working on issues relating to the interaction between technology, sustainability and finance.
As economies focus on recoveries after the Covid-19 pandemic, the emphasis is placed on “building back better”, including the move towards a greener economy, QCB said.
“Countries will need to develop strategies, taking into consideration their strengths and weaknesses, as the world moves towards a green future,” QCB noted.    
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