Solar power plants, such as this one in Seville, Spain, will form part of the the UAE's bid to curb climate emissions. Ryan Carter / Crown Prince Court - Abu Dhabi
Solar power plants, such as this one in Seville, Spain, will form part of the the UAE's bid to curb climate emissions. Ryan Carter / Crown Prince Court - Abu Dhabi
Solar power plants, such as this one in Seville, Spain, will form part of the the UAE's bid to curb climate emissions. Ryan Carter / Crown Prince Court - Abu Dhabi
Solar power plants, such as this one in Seville, Spain, will form part of the the UAE's bid to curb climate emissions. Ryan Carter / Crown Prince Court - Abu Dhabi

Why the UAE is well positioned to go beyond its net-zero targets by 2030


Robin Mills
  • English
  • Arabic

Net-zero is not only a destination but a journey. The UAE has just made the first third of its climb steeper, which should make for an easier ascent later and more chance of reaching the summit. With the eyes of the climate world on the country as November’s Cop28 conference draws near, the next seven years will be decisive.

Under 2015’s Paris Agreement, each country is supposed to submit a “Nationally Determined Contribution”, explaining how it will reduce greenhouse gas emissions, and otherwise limit climate change and deal with its effects. This NDC should be updated every five years with greater levels of stringency. The UAE issued a second NDC in September, and has just released an update with major increases in ambition and detail.

With its latest announced targets, the UAE aims to show that a major oil and gas-exporting country, with an economy still largely powered by hydrocarbons, in a hot, arid region, a federal system of government, with rapid population and economic expansion, can make rapid progress on decarbonisation.

Credible plans and solid progress to date will increase the chances for successful negotiations in November and blaze a trail for other states with similar issues.

Overall emissions from a significantly larger economy will be 182 million tonnes of carbon dioxide equivalent, down from 208 million tonnes in the earlier version of the second NDC, 225 million tonnes in 2019, and 301 million tonnes in 2030 in a “business-as-usual” case with no climate action.

The population is expected to grow by 14 per cent and the economy by 24 per cent between 2019 and 2030. The reduction target is therefore more ambitious in per-person or per-GDP terms and compared to countries with stable or shrinking populations.

The targets cover every major emitting sector. Electricity generation will double but carbon dioxide emissions per kilowatt-hour will halve. Industry will see major expansion, but its emissions will drop 5 per cent. Transport kilometres travelled will also go up, but total emissions will drop slightly. Emissions from waste will rise a little.

So, the major burden of cuts falls on buildings, where emissions should fall 56 per cent, and agriculture, down 22 per cent.

To achieve these ambitions, the UAE will have to pull every worthwhile lever. Key elements include decarbonising electricity and water generation with nuclear, solar, batteries and the use of more efficient reverse osmosis desalination instead of thermal methods. In fact, with all but 3.8 gigawatts of clean generation accounted for already, it is likely the UAE will go well beyond its existing target of 19.8 gigawatts by 2030.

This lower-carbon power sector reduces the emissions assigned to industries such as oil and gas, and aluminium, which have signed up to zero-carbon electricity supplies. Cement plants will switch inputs, and employ carbon capture and storage. Iron and steel plants will run on hydrogen, and the government will preferentially procure low-carbon steel and cement. The government will offer “contracts for difference” to pay companies for the increased cost of carbon capture facilities.

Public transport will expand, with metros in Abu Dhabi and some cities of the Northern Emirates, more focus on the “last mile”, walkability and cycling, and the expansion of the Etihad Rail national network for freight and passengers. Interestingly, the NDC suggests financial incentives for users of electric battery vehicles.

Waste will be reduced by a “circular economy” approach, recycling and waste-to-energy to reduce landfill. Building energy use will be cut with retrofits, new cooling methods, tighter standards for appliances and stronger codes for new construction. Agriculture will see reductions in water use through new technologies.

The capture of atmospheric carbon dioxide will also increase via an increase in planting mangroves in coastal environments, and a pilot for direct air capture by 2030.

Although not strictly a required part of an NDC, what the UAE will do beyond its borders is also important. International aviation and shipping have their own targets through their global governing bodies, and the UAE will produce hydrogen-based fuels such as methanol, ammonia and e-kerosene to drive them.

Clean energy company Masdar will deploy more than 100 gigawatts of renewables by 2030, most of which will be outside the UAE, including its existing investments and partnerships in the US, UK, Africa, Central Asia and elsewhere. As is known elsewhere, Adnoc plans to increase its oil and gas production to meet international market demand, which has to fit within the global carbon budget.

Three points in particular are novel and important: financial support for carbon capture, incentives for electric vehicles, and the trial of direct air capture.

A national carbon dioxide pipeline network will likely be needed to support carbon capture on numerous different industries. Hydrogen and its derivatives will become common and familiar fuels. The expansion of public transport and walkability will make living, working and holidaying in the UAE quite different.

The plan offers business possibilities of all kinds, from expanding renewable energy, upgrading building, introducing new technologies for water-saving and cooling, to selling and charging electric cars, making and using hydrogen, and many more.

This will be most successful when it gives opportunities to as wide a range of companies as possible, from the national giants such as Adnoc, Dewa and Masdar, to small businesses and start-ups.

The world of climate tech is increasingly competitive. Regional neighbours face many similar challenges – being a trailblazer may be tough and risky, but offers the greatest rewards. Some things will not work out, while other unexpected opportunities emerge.

2030 is not far away for such an ambitious plan – but for the sake of a liveable country and planet, it is one foothill to conquer on the way to the net-zero summit of 2050.

Robin M. Mills is CEO of Qamar Energy, and author of The Myth of the Oil Crisis

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Company profile

Name: Tratok Portal

Founded: 2017

Based: UAE

Sector: Travel & tourism

Size: 36 employees

Funding: Privately funded

In the Restaurant: Society in Four Courses
Christoph Ribbat
Translated by Jamie Searle Romanelli
Pushkin Press 

The%20specs
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GAC GS8 Specs

Engine: 2.0-litre 4cyl turbo

Power: 248hp at 5,200rpm

Torque: 400Nm at 1,750-4,000rpm

Transmission: 8-speed auto

Fuel consumption: 9.1L/100km

On sale: Now

Price: From Dh149,900

Who's who in Yemen conflict

Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government

Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council

Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south

Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory

Intercontinental Cup

Namibia v UAE Saturday Sep 16-Tuesday Sep 19

Table 1 Ireland, 89 points; 2 Afghanistan, 81; 3 Netherlands, 52; 4 Papua New Guinea, 40; 5 Hong Kong, 39; 6 Scotland, 37; 7 UAE, 27; 8 Namibia, 27

The major Hashd factions linked to Iran:

Badr Organisation: Seen as the most militarily capable faction in the Hashd. Iraqi Shiite exiles opposed to Saddam Hussein set up the group in Tehran in the early 1980s as the Badr Corps under the supervision of the Iran Revolutionary Guards Corps (IRGC). The militia exalts Iran’s Supreme Leader Ali Khamenei but intermittently cooperated with the US military.

Saraya Al Salam (Peace Brigade): Comprised of former members of the officially defunct Mahdi Army, a militia that was commanded by Iraqi cleric Moqtada Al Sadr and fought US and Iraqi government and other forces between 2004 and 2008. As part of a political overhaul aimed as casting Mr Al Sadr as a more nationalist and less sectarian figure, the cleric formed Saraya Al Salam in 2014. The group’s relations with Iran has been volatile.

Kataeb Hezbollah: The group, which is fighting on behalf of the Bashar Al Assad government in Syria, traces its origins to attacks on US forces in Iraq in 2004 and adopts a tough stance against Washington, calling the United States “the enemy of humanity”.

Asaeb Ahl Al Haq: An offshoot of the Mahdi Army active in Syria. Asaeb Ahl Al Haq’s leader Qais al Khazali was a student of Mr Al Moqtada’s late father Mohammed Sadeq Al Sadr, a prominent Shiite cleric who was killed during Saddam Hussein’s rule.

Harakat Hezbollah Al Nujaba: Formed in 2013 to fight alongside Mr Al Assad’s loyalists in Syria before joining the Hashd. The group is seen as among the most ideological and sectarian-driven Hashd militias in Syria and is the major recruiter of foreign fighters to Syria.

Saraya Al Khorasani:  The ICRG formed Saraya Al Khorasani in the mid-1990s and the group is seen as the most ideologically attached to Iran among Tehran’s satellites in Iraq.

(Source: The Wilson Centre, the International Centre for the Study of Radicalisation)

Dubai Bling season three

Cast: Loujain Adada, Zeina Khoury, Farhana Bodi, Ebraheem Al Samadi, Mona Kattan, and couples Safa & Fahad Siddiqui and DJ Bliss & Danya Mohammed 

Rating: 1/5

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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.”

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What sanctions would be reimposed?

Under ‘snapback’, measures imposed on Iran by the UN Security Council in six resolutions would be restored, including:

  • An arms embargo
  • A ban on uranium enrichment and reprocessing
  • A ban on launches and other activities with ballistic missiles capable of delivering nuclear weapons, as well as ballistic missile technology transfer and technical assistance
  • A targeted global asset freeze and travel ban on Iranian individuals and entities
  • Authorisation for countries to inspect Iran Air Cargo and Islamic Republic of Iran Shipping Lines cargoes for banned goods
Paatal Lok season two

Directors: Avinash Arun, Prosit Roy 

Stars: Jaideep Ahlawat, Ishwak Singh, Lc Sekhose, Merenla Imsong

Rating: 4.5/5

COMPANY PROFILE

Company name: Blah

Started: 2018

Founder: Aliyah Al Abbar and Hend Al Marri

Based: Dubai

Industry: Technology and talent management

Initial investment: Dh20,000

Investors: Self-funded

Total customers: 40

'Nope'
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Updated: July 17, 2023, 4:14 AM