The UAE, the Arab world’s second-largest economy, is investing "way more" in renewable energy than in oil and gas, Minister of Energy and Infrastructure Suhail Al Mazrouei said on Monday.
The Emirates' investments in clean energy surpass the investments in hydrocarbons, but funding oil and gas projects is necessary to avoid high prices going into the transition, Mr Al Mazrouei said during a panel session at the Cop28 climate summit.
If not done correctly, higher oil and gas prices could “hinder” the transition to clean energy in many countries where affordability is crucial, he said.
Mr Al Mazrouei urged countries to not “eliminate” any source of energy.
“Let’s fight one enemy, which is the emissions. So, if we can capture carbon dioxide from any source and remove it, that source becomes clean.”
The UAE, Opec's third-largest producer, has been investing heavily in clean energy projects, ranging from nuclear to solar, to achieve net-zero emissions by 2050.
The state-owned energy company, Adnoc plans to become carbon neutral by 2045.
On Saturday, 50 oil and gas companies, including Saudi Aramco, ExxonMobil and Shell, signed the Oil and Gas Decarbonisation Charter (OGDC), which calls for net-zero emissions by 2050 or before, as well as near-zero upstream methane emissions by the end of the decade.
The pledge does not include the emissions from the fuel they sell, also called Scope 3 emissions.
David Turk, deputy secretary at the US Department of Energy, said the commitments to reduce methane emissions in the oil and gas sector were “long overdue” but added that he hoped to see a greater focus on Scope 3 emissions.
“For many companies, Scope 3 is 10 times as big as Scope 1 and Scope 2 combined, so again, we need to ask ourselves tough questions [and] we need to focus on where the emissions are,” said Mr Turk, who was part of the same panel.
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President Sheikh Mohamed and UN Secretary General Antonio Guterres hold a meeting at the Cop28 summit in Dubai. Photo: UAE Presidential Court -
Participants walk among flagpoles on day four of the Cop28 summit in Dubai. Getty Images -
Britain's former prime minister Tony Blair at the summit. AP -
Joseph Vipond from the Canadian Association of Physicians for the Environment crosses the Blue Zone. Getty Images -
David Miliband, president and chief executive of the International Rescue Committee, addresses a session at Cop28. Getty Images -
Delegates are photographed in the Blue Zone on the fourth day of Cop28. Pawan Singh / The National -
Participants walk at Expo City Dubai. EPA -
Sheikh Abdullah bin Zayed, Minister of Foreign Affairs, Microsoft co-founder Bill Gates, Tanzanian President Samia Hassan and Reem Al Hashimy, Minister of State for International Co-operation, attend the Reaching the Last Mile Forum held alongside Cop28. Reuters -
Cop28 visitors ride a train in the Green Zone at Expo City Dubai. Pawan Singh / The National -
Visitors in the Green Zone at Expo City Dubai. Pawan Singh / The National -
Visitors ride an electric cart in the Green Zone. Pawan Singh / The National -
Located in the Sustainability District, the Green Zone will host a wide variety of events and workshops until the final day of Cop28 on December 12. Pawan Singh / The National -
Visitors at the water feature in the Green Zone. Pawan Singh / The National -
Members of the public ride electric scooters in the Green Zone. Khushnum Bhandari / The National -
People arrive for the fourth day of the Cop28 summit at Expo City Dubai. EPA -
A welcome sign at the Cop28 venue. AP -
People walk through the site near Al Wasl Dome. AP -
Eleni Myrivili, global chief heat officer at UN Habitat, with former US secretary of state Hillary Clinton and Indian social worker Reema Nanavaty at the Resilience Hub. AP -
Al Gore, environmentalist and former US vice president, presents the Climate Trace global greenhouse gases emissions database on day four of Cop28. Getty Images -
Elizabeth Yee and John Kerry, US Special Presidential Envoy for Climate, at a session at the US Centre. AP -
About 200 countries are taking part in the Cop28 talks. Khushnum Bhandari / The National -
Pope Francis records a video message to be broadcast during the inauguration of the Faith Pavilion, at Casa Santa Marta, in the Vatican. Reuters -
Dr Tedros Ghebreyesus, Director General of the World Health Organisation, speaks at the Health Day opening session. Getty Images -
Attendees arrive at the Cop28 summit. AP -
The Voice Action hub for peaceful protesters at Cop28, Expo City, Dubai. Khushnum Bhandari / The National -
The Expo City farm, which will remain in operation after Cop28 ends. Khushnum Bhandari / The National
Methane, the second-largest contributor to climate change, is a greenhouse gas that warms up more than 80 times faster than carbon dioxide.
The oil and gas industry is estimated to account for up to a quarter of human-caused methane emissions.
Meanwhile, the top executive at Spanish energy company Cepsa said the energy transition would not be possible without incentivising demand.
Maarten Wetselaar, the company’s chief executive, said emissions abatement would not happen without demand incentives and carbon pricing.
“If you don't incentivise demand, it is very hard to subsidise your way into the energy transition because it will eventually be unaffordable at $3 Henry Hub,” Mr Wetselaar said.
“That is fundamentally very cheap energy [and] even subsidised hydrogen will struggle to compete.”
Natural gas, considered a low-carbon alternative to crude oil, is set to become even cheaper with many large projects set to come online over the next few years.
In a later session, Mohamed Al Ramahi, Masdar’s chief executive, said the Abu Dhabi-based clean energy company would continue investing in more renewable energy projects in the Global South.
“For the next 10 years, we will be tripling renewable energy. Some of that capital will go to the Global North, [but] we have the Global South as the top priority and we will continue deploying more capital [there],” Mr Al Ramahi said.
The Global South, home to countries such as India, Brazil and Indonesia, has access to cheap and abundant renewable energy but funding for projects has lagged behind due to lack of government support and private capital.
