Even a year ago, the idea of an Opec member and leading Middle East oil and gas exporter declaring a net-zero carbon target was nearly unthinkable. But speculation grew from the start of this year that such a goal was plausible, likely, even preferable. Last Thursday, the UAE announced it would reach net-zero emissions by 2050.
The UAE joins the EU, UK, Norway, the US and several other countries in setting a mid-century date; China aims at 2060. This does not mean that the UAE will cease producing or exporting oil and gas by then, or that its emissions will drop to zero. But it does mean that release of carbon dioxide and other greenhouse gases should fall precipitously and any that remain will be compensated by directly drawing carbon from the atmosphere.
The announcement may draw scepticism from some quarters. Numerous countries are already falling well short of their goals or have little credible plan to get there. The UAE, with a large per-capita carbon footprint today because of its high income, climate, petroleum resource endowment and path of industrial development, may seem to have further to go than most.
Yet the UAE could find its path to net zero easier than many others. The pattern of emissions is relatively simple, unlike for instance the US, Europe or China, with their huge and disparate geographies, cultures, farming and legacy buildings and infrastructure.
Taking Abu Dhabi as an example, about 27 per cent of greenhouse gases come from electricity generation, 22 per cent from the petroleum industry, 25 per cent from other industries, 17 per cent from transport, 7 per cent from waste and 2 per cent from agriculture.
Balancing the UAE’s electricity grid with solar power is much easier than for Europe’s renewables, the continent currently struggling into an impending winter crisis. The sun’s energy here is abundant, predictable, and most available when most needed – in the summer midday, for air-conditioning. Instead of weeks’ worth of storage, batteries with enough capacity to run overnight are good enough. Beefed-up grid connections with neighbours will take advantage of different weather and sunset times.
So, electricity can be cleaned up entirely with a mix of the new solar and nuclear facilities, batteries, and gas-fired plants fitted with carbon capture and storage or adapted to burn hydrogen. That clean electricity can then be used to power battery cars, metro and rail systems. Electricity also drives the new reverse osmosis desalination plants, more efficient and flexible than thermal methods.
Industries can run on a combination of hydrogen and electricity. Adnoc’s “Project Lightning” is connecting its offshore platforms to use grid electricity.
Shipping, with Fujairah the world’s second-biggest port for refuelling, can look to hydrogen-based synthetic fuels. The trickiest sector is long-range aviation, with the UAE being a global air travel hub. Again, probably hydrogen is the answer, with Airbus hoping to have a hydrogen plane in commercial service by 2035.
This clear path to net-zero presents the country with three big opportunities. The first is to make the domestic economy carbon-frugal. This will protect its local environment and global reputation. It will also save on energy waste. It can open a whole suite of opportunities for local businesses that then go global: energy efficiency and smart buildings, architecture and agriculture for hot, arid climates, renewable desalination, local solar installation and many more.
The second is to become a centre for producing low-carbon goods for the world. The energy-intensive aluminium industry already concentrates in locations with low electricity prices, such as the Gulf, Iceland and Siberia, but also in coal-heavy China. The UAE can replicate that in a low-carbon way, using its abundant cheap solar power and gas with carbon capture to manufacture not just aluminium, but also steel and chemicals.
The production of low-carbon hydrogen and derivatives has attracted rapidly-growing interest in the UAE, with Dewa’s green hydrogen demonstration at the Dubai Expo now joined by large planned sites at Ruwais and Khalifa Port in Abu Dhabi. Europe and east Asia can be ready customers.
The third is to make the UAE a locus for carbon capture and storage. The well-known geology offers huge rock formations kilometres underground that can safely store centuries worth of CO2. As well as trapping its own emissions, the country can offer a service to others such as Japan or South Korea. And most exciting is the potential to extract CO2 directly from the atmosphere, compensating for residual emissions, and reversing the effect of two centuries of global fossil fuel combustion.
Far-off targets are all very well, but they need to be matched with concrete progress, year by year, to show that a country is realistically on-track.
Customers abroad create some business imperatives. Most notably, the EU plans to impose tariffs on high-carbon imports. Companies such as Microsoft, Google, Amazon, British Airways, Ford and Cemex, many heavy users of electricity, fuel, cement, steel and aluminium, have their own net-zero commitments.
UAE state-owned companies can be directed to move towards carbon-neutrality. Private businesses need clear guidance, sensible regulations, and the opening of opportunities to contribute. Individuals can be helped with systems such as home efficiency retrofits, electric vehicle charging and waste recycling. An economy-wide carbon price would save on other taxes and help make low-carbon options profitable.
The UAE has taken a bold and praiseworthy step. Now it needs to show that it can deliver, while seizing the business potential of the transition.
Robin M. Mills is CEO of Qamar Energy, and author of The Myth of the Oil Crisis
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if you go
The flights
Emirates have direct flights from Dubai to Glasgow from Dh3,115. Alternatively, if you want to see a bit of Edinburgh first, then you can fly there direct with Etihad from Abu Dhabi.
The hotel
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Located in the heart of Mackintosh's Glasgow, the Dakota Deluxe is perhaps the most refined hotel anywhere in the city. Doubles from Dh850
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Events and tours
There are various Mackintosh specific events throughout 2018 – for more details and to see a map of his surviving designs see glasgowmackintosh.com
For walking tours focussing on the Glasgow Style, see the website of the Glasgow School of Art.
More information
For ideas on planning a trip to Scotland, visit www.visitscotland.com
Specs
Engine: Dual-motor all-wheel-drive electric
Range: Up to 610km
Power: 905hp
Torque: 985Nm
Price: From Dh439,000
Available: Now
SPECS
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More on Quran memorisation:
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
More from Neighbourhood Watch
Which honey takes your fancy?
Al Ghaf Honey
The Al Ghaf tree is a local desert tree which bears the harsh summers with drought and high temperatures. From the rich flowers, bees that pollinate this tree can produce delicious red colour honey in June and July each year
Sidr Honey
The Sidr tree is an evergreen tree with long and strong forked branches. The blossom from this tree is called Yabyab, which provides rich food for bees to produce honey in October and November. This honey is the most expensive, but tastiest
Samar Honey
The Samar tree trunk, leaves and blossom contains Barm which is the secret of healing. You can enjoy the best types of honey from this tree every year in May and June. It is an historical witness to the life of the Emirati nation which represents the harsh desert and mountain environments
Children who witnessed blood bath want to help others
Aged just 11, Khulood Al Najjar’s daughter, Nora, bravely attempted to fight off Philip Spence. Her finger was injured when she put her hand in between the claw hammer and her mother’s head.
As a vital witness, she was forced to relive the ordeal by police who needed to identify the attacker and ensure he was found guilty.
Now aged 16, Nora has decided she wants to dedicate her career to helping other victims of crime.
“It was very horrible for her. She saw her mum, dying, just next to her eyes. But now she just wants to go forward,” said Khulood, speaking about how her eldest daughter was dealing with the trauma of the incident five years ago. “She is saying, 'mama, I want to be a lawyer, I want to help people achieve justice'.”
Khulood’s youngest daughter, Fatima, was seven at the time of the attack and attempted to help paramedics responding to the incident.
“Now she wants to be a maxillofacial doctor,” Khulood said. “She said to me ‘it is because a maxillofacial doctor returned your face, mama’. Now she wants to help people see themselves in the mirror again.”
Khulood’s son, Saeed, was nine in 2014 and slept through the attack. While he did not witness the trauma, this made it more difficult for him to understand what had happened. He has ambitions to become an engineer.
Western Region Asia Cup T20 Qualifier
Sun Feb 23 – Thu Feb 27, Al Amerat, Oman
The two finalists advance to the Asia qualifier in Malaysia in August
Group A
Bahrain, Maldives, Oman, Qatar
Group B
UAE, Iran, Kuwait, Saudi Arabia
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RESULTS
Cagliari 5-2 Fiorentina
Udinese 0-0 SPAL
Sampdoria 0-0 Atalanta
Lazio 4-2 Lecce
Parma 2-0 Roma
Juventus 1-0 AC Milan
RedCrow Intelligence Company Profile
Started: 2016
Founders: Hussein Nasser Eddin, Laila Akel, Tayeb Akel
Based: Ramallah, Palestine
Sector: Technology, Security
# of staff: 13
Investment: $745,000
Investors: Palestine’s Ibtikar Fund, Abu Dhabi’s Gothams and angel investors
Karwaan
Producer: Ronnie Screwvala
Director: Akarsh Khurana
Starring: Irrfan Khan, Dulquer Salmaan, Mithila Palkar
Rating: 4/5
Third Test
Day 3, stumps
India 443-7 (d) & 54-5 (27 ov)
Australia 151
India lead by 346 runs with 5 wickets remaining
Profile Periscope Media
Founder: Smeetha Ghosh, one co-founder (anonymous)
Launch year: 2020
Employees: four – plans to add another 10 by July 2021
Financing stage: $250,000 bootstrap funding, approaching VC firms this year
Investors: Co-founders
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Our Time Has Come
Alyssa Ayres, Oxford University Press
Brief scoreline:
Manchester United 2
Rashford 28', Martial 72'
Watford 1
Doucoure 90'
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Result
Crystal Palace 0 Manchester City 2
Man City: Jesus (39), David Silva (41)
GOLF’S RAHMBO
- 5 wins in 22 months as pro
- Three wins in past 10 starts
- 45 pro starts worldwide: 5 wins, 17 top 5s
- Ranked 551th in world on debut, now No 4 (was No 2 earlier this year)
- 5th player in last 30 years to win 3 European Tour and 2 PGA Tour titles before age 24 (Woods, Garcia, McIlroy, Spieth)
THE BIO:
Sabri Razouk, 74
Athlete and fitness trainer
Married, father of six
Favourite exercise: Bench press
Must-eat weekly meal: Steak with beans, carrots, broccoli, crust and corn
Power drink: A glass of yoghurt
Role model: Any good man
Manchester City transfers:
OUTS
Pablo Zabaleta, Bacary Sagna, Gael Clichy, Willy Caballero and Jesus Navas (all released)
INS
Ederson (Benfica) £34.7m, Bernardo Silva (Monaco) £43m
ON THEIR WAY OUT?
Joe Hart, Eliaquim Mangala, Samir Nasri, Wilfried Bony, Fabian Delph, Nolito and Kelechi Iheanacho
ON THEIR WAY IN?
Dani Alves (Juventus), Alexis Sanchez (Arsenal)
Australia men's Test cricket fixtures 2021/22
One-off Test v Afghanistan:
Nov 27-Dec 1: Blundstone Arena, Hobart
The Ashes v England:
Dec 8-12: 1st Test, Gabba, Brisbane
Dec 16-20: 2nd Test, Adelaide Oval, Adelaide (day/night)
Dec 26-30: 3rd Test, Melbourne Cricket Ground, Melbourne
Jan 5-9, 2022: 4th Test, Sydney Cricket Ground, Sydney
Jan 14-18: 5th Test, Optus Stadium, Perth
The Voice of Hind Rajab
Starring: Saja Kilani, Clara Khoury, Motaz Malhees
Director: Kaouther Ben Hania
Rating: 4/5
David Haye record
Total fights: 32
Wins: 28
Wins by KO: 26
Losses: 4