The UAE and US on Sunday said they would allocate $20 billion to fund 15 new gigawatts of clean and renewable energy projects in the US before 2035, in the first wave of investment under their $100 billion clean energy partnership.
The investments will be led by the UAE’s Masdar and a consortium of US private investors, it was announced at a briefing on Sunday for business and climate leaders during Abu Dhabi Sustainability Week.
This first wave of investments under the Partnership for Accelerating Clean Energy will be "financed through $7 billion in cash equity from the private sector that will catalyse $13 billion through US debt financing and other instruments", a statement said.
The two nations signed a strategic partnership in November 2022 to invest $100 billion to produce 100 gigawatts of clean energy globally by 2035.
It will cover a wide range of proven and emerging technology, include private and public sector support, and reach broadly into developed and developing economies.
The UAE and US also announced the formation of an expert group to govern Pace, led by Dr Sultan Al Jaber, President-designate of Cop28 and Minister of Industry and Advanced Technology, and Amos Hochstein, US special presidential co-ordinator for global infrastructure and energy security.
The bilateral body will be composed of public and private sector representatives from both countries.
“Already one of the world’s largest renewable energy investors and developers, the UAE is joining forces with the US under Pace to supercharge a just energy transition, enhance energy security and demonstrate that climate action can unlock economic opportunities,” said Dr Al Jaber, who is also chairman of Masdar, and managing director and group chief executive of Adnoc.
“As the international community prepares to take stock of global climate progress at Cop28 in the UAE, this multi-sectoral partnership is a transformative step to advance mitigation and adaptation through the pragmatic investment and deployment of clean energy projects across the US, UAE and emerging economies around the world.
"We are confident that this partnership will provide a new model of co-operation that unites global efforts on the path to Cop28 towards achieving meaningful progress."
Majid Al Suwaidi, director general of Cop28, and David Livingston, senior adviser to US special envoy for climate John Kerry, have been appointed as deputy co-chairs of the expert group.
Members of the group will convene monthly to provide guidance across the four strategic pillars of Pace: clean energy innovation, deployment and supply chains; carbon and methane management; nuclear energy; and industrial and transport decarbonisation.
As one of the most active investors in US clean and renewable energy projects, the UAE, through Masdar, has backed 10 clean energy projects totalling more than 1.75 gigawatts across California, Texas, New Mexico and Nebraska, the statement said.
The Emirates is investing Dh600 billion ($163.5 billion) in clean and renewable energy projects over the next three decades as it aims to achieve net-zero emissions by 2050.