Rafael Grossi, the head of the International Atomic Energy Agency, was in London on Monday to launch a new report on nuclear fusion. AP
Rafael Grossi, the head of the International Atomic Energy Agency, was in London on Monday to launch a new report on nuclear fusion. AP
Rafael Grossi, the head of the International Atomic Energy Agency, was in London on Monday to launch a new report on nuclear fusion. AP
Rafael Grossi, the head of the International Atomic Energy Agency, was in London on Monday to launch a new report on nuclear fusion. AP

UN nuclear energy chief wants to be 'part of the solution' at Cop28


Tim Stickings
  • English
  • Arabic

The nuclear power sector will use Cop28 in Dubai to position itself as “part of the solution” in tackling climate change, the head of the UN’s atomic watchdog told The National on Monday.

Rafael Grossi, the director general of the International Atomic Energy Agency, expressed his hope that nuclear fusion could be up and running in time for 2050 climate deadlines.

Mr Grossi hailed “momentous achievements” in fusion as he unveiled an IAEA report in London on what one UK minister called the “holy grail” of clean energy.

Britain will put new funding into training and research on fusion as the world “reawakens to the potential” of nuclear technology, said Andrew Bowie, under-secretary of state for nuclear and networks.

Existing nuclear fission plants are hailed by the industry as stable, low-carbon sources of electricity, while opponents raise concerns over safety and radioactive waste.

With debate raging over whether nuclear plants should be put in the same “green” bucket as renewables such as wind and solar, Mr Grossi told reporters that climate discussions were no longer a “nuclear-free” zone.

Asked by The National about expectations for Cop28, he said the annual UN climate summits were “a very important place where the IAEA has been trying to be more present and more visible”.

In Dubai “we are going to be affirming very clearly that nuclear is part of the solution”, Mr Grossi said.

“We do not have a beauty contest approach in these things. We are not peddling nuclear just for nuclear. We believe that nuclear is playing an excellent role in providing clean energy.”

The UAE’s presidency of Cop28 has made “fast-tracking the energy transition” one of four key themes of the summit, along with finance, inclusivity and livelihoods.

Dr Sultan Al Jaber, Cop28’s President-designate and UAE Minister of Industry and Advanced Technology, told a Brussels meeting in July that the world “needs to use every emission-busting tool available, including nuclear”.

Fusion prospects

The longer-term hope is that nuclear fusion – a similar process to the one that powers our Sun – can be harnessed to produce colossal amounts of energy, ideally with less of a radioactive waste problem.

Technology has been in development for decades and the London conference heard “significant technological challenges remain ahead”. Fusion needs temperatures above 100 million °C, using vast amounts of energy.

The world will continue after 2050, and it will need clean energy
Rafael Grossi

Until recently, fusion had always cost more energy than it produced, but the first ever net “energy gain” was made in 2022 and repeated on a larger scale in July this year.

The UK hopes to get a prototype fusion plant up and running by 2040, with views differing on whether the technology will arrive in time for 2050 net zero goals.

“Of course we want to see it before that and I think there is a very good chance … there is a solid basis to think that if we get it right, then fusion could also be part of the combo,” Mr Grossi said.

But either way “it would be counter-intuitive if not outright silly to say we’ve reached the deadline in 2050 so now we don’t need it any more,” he said.

“The world will continue after 2050, and it will need clean energy on a massive scale beyond that date.”

Nuclear fusion unleashes vast quantities of energy in a process similar to that which powers the Sun. AP
Nuclear fusion unleashes vast quantities of energy in a process similar to that which powers the Sun. AP

Referring to the “old quip” that fusion will always be the energy of the future, Mr Grossi said this was “not any more” the case, as he welcomed the recent breakthroughs.

“The ambition is to bring fusion energy to the economy, to make it part of the energy mix of the not too distant future,” he said.

The UK is home to one of the world’s leading fusion experiments, a pan-European initiative known as the Joint European Torus. but Jet is set to be decommissioned after 40 years, as Britain pursues its own post-Brexit projects.

A £650 million ($792 million) fusion package announced on Monday will put some money into a prototype UK plant known as Step, as well as offering hundreds of training places in the fusion industry.

Mr Bowie said the UK government “is serious about the future of fusion”, which he described as the “holy grail of energy production”.

He said the goal of “unlimited, clean, safe energy” was “no longer a theoretical dream but a very real prospect”.

Company profile

Name: Back to Games and Boardgame Space

Started: Back to Games (2015); Boardgame Space (Mark Azzam became co-founder in 2017)

Founder: Back to Games (Mr Azzam); Boardgame Space (Mr Azzam and Feras Al Bastaki)

Based: Dubai and Abu Dhabi 

Industry: Back to Games (retail); Boardgame Space (wholesale and distribution) 

Funding: Back to Games: self-funded by Mr Azzam with Dh1.3 million; Mr Azzam invested Dh250,000 in Boardgame Space  

Growth: Back to Games: from 300 products in 2015 to 7,000 in 2019; Boardgame Space: from 34 games in 2017 to 3,500 in 2019

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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.”

A little about CVRL

Founded in 1985 by Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, the Central Veterinary Research Laboratory (CVRL) is a government diagnostic centre that provides testing and research facilities to the UAE and neighbouring countries.

One of its main goals is to provide permanent treatment solutions for veterinary related diseases. 

The taxidermy centre was established 12 years ago and is headed by Dr Ulrich Wernery. 

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Publisher: EA Sports

Consoles: PC, PlayStation 4/5, Xbox Series X/S

Rating: 3/5

UAE currency: the story behind the money in your pockets
The President's Cake

Director: Hasan Hadi

Starring: Baneen Ahmad Nayyef, Waheed Thabet Khreibat, Sajad Mohamad Qasem 

Rating: 4/5

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Updated: October 16, 2023, 12:40 PM