Abu Dhabi, which accounts for nearly all of the UAE's oil production, is updating its policies to hasten the switch to low-carbon energy consumption. AFP
Abu Dhabi, which accounts for nearly all of the UAE's oil production, is updating its policies to hasten the switch to low-carbon energy consumption. AFP
Abu Dhabi, which accounts for nearly all of the UAE's oil production, is updating its policies to hasten the switch to low-carbon energy consumption. AFP
Abu Dhabi, which accounts for nearly all of the UAE's oil production, is updating its policies to hasten the switch to low-carbon energy consumption. AFP

Business

Energy

Abu Dhabi to issue clean energy certificates to encourage decarbonisation

The permits are tradeable financial instruments that can be used as credits to claim environmental and social benefits

Jennifer Gnana
Jennifer Gnana

August 29, 2021

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Abu Dhabi's Department of Energy will issue clean energy certificates as part of a new regulatory policy aimed at decarbonising the energy sector and permitting trading in renewable and nuclear energy attributes.

These certificates serve as proof of electricity produced from a renewable source, declaring that each renewable energy plant generated and added 1-megawatt hour of electricity to the grid.

The energy attribute certificates are voluntary, tradeable financial instruments and can be used as credits to claim environmental and social benefits accruing from low-carbon energy consumption.

Anyone wishing to obtain a clean energy certificate can be a participant, who can then purchase and sell the clean energy certificates in whole or in part to end customers, the Department of Energy said.

"This allows anyone, from large corporations to smaller environmentally conscious businesses, to benefit from the system, regardless of their level of consumption. Anyone can buy certificates that guarantee that the electricity they consume does not emit carbon dioxide," the department said.

Abu Dhabi, which accounts for nearly all of the UAE's oil production, is updating its policies to hasten the switch to low-carbon energy consumption.

The UAE, Opec's third-largest oil producer, is looking to raise its share of clean energy generation. The country aims to increase the share of clean energy to 44 per cent by 2050, and plans to invest Dh600 billion by mid-century into growing its renewable energy capacity.

Abu Dhabi is also developing more renewable energy projects, including the world's largest solar plant at Al Dhafra with a total capacity of 2 gigawatts, as part of the UAE's efforts to increase clean energy capacity.

The unveiling of the clean energy certificate initiative supports "the overall integrity of measuring, reporting and accreditation requirements for the issuance and management of such certificates while ensuring alignment with international practices and additional domestic criteria", said Mohamed Al Falasi, Undersecretary of the Abu Dhabi Department of Energy.

Earlier this month, the department said it was streamlining tariffs for electric vehicle charging as the adoption of cleaner forms of transport picks up.

A monthly tariff of Dh92 ($25.05) will be added to the bills of EV users in Abu Dhabi from August 26 until a sub-meter is installed for the charging units.

While you're here

Indoor cricket in a nutshell
Indoor Cricket World Cup - Sept 16-20, Insportz, Dubai

16 Indoor cricket matches are 16 overs per side
8 There are eight players per team
9 There have been nine Indoor Cricket World Cups for men. Australia have won every one.
5 Five runs are deducted from the score when a wickets falls
4 Batsmen bat in pairs, facing four overs per partnership

Scoring In indoor cricket, runs are scored by way of both physical and bonus runs. Physical runs are scored by both batsmen completing a run from one crease to the other. Bonus runs are scored when the ball hits a net in different zones, but only when at least one physical run is score.

Zones

A Front net, behind the striker and wicketkeeper: 0 runs
B Side nets, between the striker and halfway down the pitch: 1 run
C Side nets between halfway and the bowlers end: 2 runs
D Back net: 4 runs on the bounce, 6 runs on the full

KILLING OF QASSEM SULEIMANI
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Main report
Europe’s rearming plan
  • Suspend strict budget rules to allow member countries to step up defence spending
  • Create new "instrument" providing €150 billion of loans to member countries for defence investment
  • Use the existing EU budget to direct more funds towards defence-related investment
  • Engage the bloc's European Investment Bank to drop limits on lending to defence firms
  • Create a savings and investments union to help companies access capital

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.”

Tips from the expert

Dobromir Radichkov, chief data officer at dubizzle and Bayut, offers a few tips for UAE residents looking to earn some cash from pre-loved items.

  1. Sellers should focus on providing high-quality used goods at attractive prices to buyers.
  2. It’s important to use clear and appealing photos, with catchy titles and detailed descriptions to capture the attention of prospective buyers.
  3. Try to advertise a realistic price to attract buyers looking for good deals, especially in the current environment where consumers are significantly more price-sensitive.
  4. Be creative and look around your home for valuable items that you no longer need but might be useful to others.
Updated: August 29, 2021, 10:42 AM
EnergyOilGasAbu Dhabi