UAE's leadership in clean energy consolidated qualitatively in COP28

The UAE has established encouraging rules for investment in clean and renewable energy, has taken the lead regionally, and is ranked among the largest countries in the world investing in clean energy projects to enhance sustainability and preserve natural resources for the benefit of future generations. 

The UAE has established its leading position in the renewable energy sector and its active role in advancing the growth of this sector in the world in line with the directions of the UAE leadership in spreading clean technologies and renewable energy solutions on a large scale, strengthening global efforts in the field of climate action, and advancing the implementation of the UAE Strategic Initiative to achieve climate neutrality by the year 2050. 

The Conference of the Parties to the United Nations Framework Convention on Climate Change (COP28), which will be hosted by the UAE from November 30 to December 12 of this year in Dubai Expo City, will represent a qualitative step in the future of clean and renewable energy, in addition to highlighting the UAE’s projects and investments in the sector that do not stop at the local and global levels, as the state is keen to assist countries in establishing vital and sustainable projects in which clean energy solutions are adopted.

Pioneering efforts
The UAE is leading global efforts in the clean and renewable energy sector through its strategies and investments in this field, as the year 2017 witnessed the launch of the Emirates Energy Strategy 2050, which is the first unified energy strategy in the country based on supply and demand.

The strategy aims to increase the share of clean energy in the total energy mix from 25 percent to 50 percent by 2050, and reduce the carbon footprint of power generation by 70 percent, thus saving 700 billion dirhams ($190 billion) by 2050. It also seeks to increase the efficiency of companies’ and individuals’ consumption of energy by 40 percent.

The strategy aims to reach an energy mix that combines renewable, nuclear and clean energy sources to meet the economic requirements in the country. The UAE also aims to invest 600 billion dirhams ($163 billion) by 2050 to meet the growing demand for energy and drive sustainable growth for the country's economy.

Climate neutrality
In 2021, the UAE announced a strategic initiative to achieve climate neutrality by 2050, becoming the first country in the Middle East and North Africa region to launch this strategic initiative.

The UAE's announcement of the goal of achieving climate neutrality by 2050 is the culmination of the country's efforts and its march to work for the climate at the local and global levels during the past three decades since joining the United Nations Framework Convention on Climate Change in 1995, as the UAE has adopted since that time a set of legislation and many measures aimed at reducing emissions and providing sustainable solutions in line with best practices in all vital sectors, including energy, industry, and agriculture.

The declaration to achieve climate neutrality by 2050 is in line with the goals of the Paris Climate Agreement to motivate countries to prepare and adopt long-term strategies to reduce greenhouse gas emissions and limit the rise in global temperatures below 1.5-2 degrees Celsius compared to pre-industrial levels.

Promoting cooperation 
The UAE continues its world-leading efforts in cooperation with its partners around the world to enhance energy security and spread clean technology applications. In this context, the UAE and South Korea agreed last January to establish a comprehensive strategic energy partnership (CSEP) in an effort to enhance cooperation in the main energy sectors, which include oil, gas, strategic storage, renewable energy, hydrogen, and hydrogen derivatives. 

The two countries affirmed that this strategic partnership provides a common platform to enhance cooperation in clean energy fields, such as the production and use of hydrogen and ammonia, the use of clean energy infrastructure, and the development of industrial ecosystems for renewable energy.

Energy security 
In July 2022, the UAE and France signed a comprehensive strategic partnership agreement in the field of energy that focuses on enhancing energy security, providing it at reasonable costs, and reducing emissions, in addition to advancing effective climate action. 

The agreement includes direct investment in developing energy resources, with a special focus on energy security and efficiency projects, clean technologies, and transformation in the energy sector.

Strategic partnership with the United States
In November 2022, the strategic partnership between the UAE and the United States was launched to invest $100 billion to implement clean energy projects with a production capacity of 100 gigawatts around the world by 2035, including a wide range of existing practical initiatives and promising technologies, as well as mobilizing and stimulating support from both public and private sectors, and the deployment of clean energy investments in both developed and developing economies.

In January 2023, the UAE and the United States announced the launch of the first phase of the strategic partnership between the two sides to invest $100 billion to implement clean energy projects around the world. The first phase included allocating $20 billion to finance clean and renewable energy projects with a production capacity of 15 gigawatts in the United States before the year 2035.

Proven track record
The UAE has supported the implementation of many infrastructure and clean energy projects globally and has also promoted the deployment and use of renewable energy solutions in developing countries, as it has invested in renewable energy projects in 70 countries with a total value of approximately $16.8 billion.

The Abu Dhabi Fund for Development also has a proven track record in supporting the renewable energy sector, as the fund contributes to supporting the UAE's efforts aimed at promoting the spread of renewable energy projects in developing countries and strengthening international efforts to meet climate challenges and work to reduce carbon emissions harmful to the environment.

The fund's pioneering journey in supporting renewable energy projects began in 1974, as its efforts contributed to financing more than 75 strategic projects in many countries around the world, with financing values exceeding 4 billion dirhams ($108 million).

These strategic projects were reflected in the provision of sustainable societies for the beneficiary countries, whose residents enjoy safe and reliable supplies of energy. Those projects worked to improve the quality of life and access to a clean environment free of carbon emissions.

 
The beneficiary countries were also able to reduce the use of fossil fuels, in addition to saving thousands of job opportunities for their citizens, which was positively reflected in achieving the development process in a way that guarantees a more sustainable future for later generations.

The efforts of the UAE in concluding international partnerships in the field of spreading renewable energy solutions go back a long time. In 2013, the Abu Dhabi Fund for Development launched an initiative to finance renewable energy projects in developing countries, in cooperation with the International Renewable Energy Agency (IRENA), at a value of $350 million to support IRENA member states and enable them to provide an advanced infrastructure that keeps pace with the requirements of sustainable development, enhances production capacity, and meets the growing demand for electricity and water according to the highest quality levels.

As part of the initiative, the fund financed about 26 projects with a capacity of 265 megawatts, benefiting 21 countries. The initiative also contributed to providing approximately 88,000 job opportunities, and the total beneficiaries of the initiative reached 4.5 million people as of January of this year.
In 2013, the “Partnership Fund Initiative between the UAE and the Pacific Island Countries” was launched. The fund contributed to financing renewable energy projects within the initiative at a value of $50 million. Eleven projects were implemented, and the total energy produced reached 6 megawatts. The projects saved $3.7 million in fuel import costs, while the volume of carbon dioxide emissions decreased annually by 8,447 kt.

The fund also financed renewable energy projects within the “Partnership Fund Initiative between the UAE and the Caribbean Islands Countries,” which was launched in 2017 with a value of $50 million, benefiting 16 islands with a capacity of 9.43 megawatts of total energy produced.

The Abu Dhabi Fund for Development is keen to establish sustainable partnerships, so it worked in cooperation with its strategic partners from international organizations and national institutions to enhance joint efforts to accelerate the pace of climate action.

The Renewable Energy Transition Accelerator Financing Platform (ETAF) was launched in cooperation with IRENA on the sidelines of the COP26 climate conference and is concerned with financing and investing in renewable energy projects.

The Abu Dhabi Fund for Development is the first development institution to join the platform and provides $400 million in financing. The platform aims to reach a total financing of $1 billion by 2030. The global platform supports reducing the challenges facing developing countries by securing the necessary financing and expertise, and it contributes to promoting the spread of renewable energy projects using the best solutions and innovative technologies.

Environmentally friendly projects
Today, the UAE has the capacity to produce the least expensive solar energy in the world, and it is the first country in the region to use nuclear energy to generate electricity. 

The UAE is also focusing on increasing its investments in innovative renewable energy sources by building the first green hydrogen project on an industrial scale in the region, which was launched in May 2021, along with the expansion of blue hydrogen production to support efforts to create a diversified mix of energy sources.

The number of major environmentally friendly energy projects in the UAE completed and under construction reached 11, with a value of 159 billion dirhams ($43 billion) by the end of 2022.

The volume of the UAE's production of clean and environmentally friendly energy during the year 2021 reached 7,035.75 megawatts, which reflects the country's efforts in the field of clean energy, as it is one of the world's leading countries in relying on renewable energy.

Leading international projects
The Emirate of Abu Dhabi has many clean and renewable energy production projects that are world-leading. The value of investments in the electric power generation sector in the emirate for the year 2021 amounted to about 18 billion dirhams ($4 billion) in various energy sources, and it is expected that the volume of investments until 2025 will reach 50 billion dirhams ($13 billion). 

Abu Dhabi also aims to double the volume of investments to reach about 80 billion dirhams ($21 billion) by 2050, as investments in clean and renewable energy constitute more than two-thirds of the total investments in the sector.

Masdar Company
Today, the Abu Dhabi Future Energy Company (Masdar) is one of the fastest growing renewable energy companies in the world, as it is currently active in more than 40 countries distributed on six continents, and the company invests in projects around the world with a total value exceeding $30 billion.

Masdar has expanded its portfolio of clean energy projects to reach a total production capacity of more than 20 gigawatts, which is enough to supply 5.25 million homes with energy.

These projects contribute to reducing the emissions of more than 30 million metric tons of carbon dioxide annually, which is equivalent to removing 6.5 million cars from the road.

The year 2022 witnessed the launch of a number of renewable energy projects and the signing of agreements to develop future projects in many countries, including Egypt, Turkmenistan, Jordan, Azerbaijan, Kazakhstan, Indonesia, the Seychelles, Kyrgyzstan, and others.
Masdar targets a portfolio of projects with a total production capacity of more than 100 gigawatts and one million metric tons of green hydrogen by 2030.

Ambitious strategy
Last January, the Abu Dhabi National Oil Company (ADNOC) announced an ambitious new strategy to advance progress in efforts to reduce the emissions of its operations worldwide, and the company allocated 55 billion dirhams ($14 billion) to develop a group of projects across the value chain of its various operations by 2030.

These projects will include implementing investments in clean electric energy, carbon capture and storage, increasing reliance on electricity to operate its operations, improving energy efficiency, and developing new measures that enhance the company's efforts in the field of reducing gas flaring.

Private sector
Dubai is one of the leading cities in the development of the renewable and clean energy sector and the first to devise modern methods to enhance the efficiency of the energy sector, rationalize the consumption of natural resources, and find alternative solutions to traditional energy in order to support sustainable development in the emirate.

Dubai provides a clear regulatory framework to encourage the private sector, international investors, and developers to participate in clean and renewable energy projects under the IPP system. 

The Dubai Electricity and Water Authority (DEWA) has attracted investments of about 40 billion dirhams through the independent product system, which encourages value-added partnerships between the public and private sectors.

The Mohammed bin Rashid Al Maktoum Solar Energy Complex, which is being implemented by DEWA, is the largest project to produce solar energy in one location in the world, according to the independent producer system, and its production capacity will reach 5,000 megawatts by 2030, with a total investment of 50 billion dirhams ($13 billion).

When completed, the complex will contribute to reducing more than 6.5 million metric tons of carbon emissions annually. The capacity of the solar energy projects that have been operated in the complex is 1,627 megawatts, using photovoltaic solar panel technology.