National Bank of Abu Dhabi (NBAD), the biggest lender in the UAE, plans to lend $10bn in the next 10 years to energy sector. The funding will be channelled into renewables projects focussed on environmentally sustainable activities.

The commitment to lend supports NBAD’s energy sector research report, which has identified a funding gap of $48 trillion required in the next 20 years to meet global energy demand, with renewables playing a critical role in the energy mix of the future.

The bank has already established a dedicated team to look at sustainable energy business in August 2015. The team run by Nathan Weatherstone is tasked with evaluating and creating new financing products that will support the development of renewable energy.

“The world is heading towards a very significant funding gap for energy globally. We believe that even in the current climate of low oil prices, the transition towards more renewable sources in the energy mix will continue,’’ NBAD’s group chief executive, Alex Thursby said in the statement. “ It is for this reason that we have made this commitment of $10bn today.’’