The prospects for renewable energy look good in 2021. The mood around the world has shifted. At opposite ends of the Earth, China has adopted a target to cut net carbon emissions to zero by 2060, while US President Joe Biden rejoined the Paris Agreement on his first day in office. And here in the UAE, the number of renewable projects and amount of new capacity brought online in 2020 will continue to accelerate.
In the world of business, clean energy firms are taking financial markets by storm, as shown by Tesla recently joining the S&P 500 share index as one of its largest members. Meanwhile, tax credits and subsidies have allowed renewable technologies to scale-up significantly in many parts of the world, helping to drive down their costs. Solar and onshore wind farms are now the cheapest new electricity options for up to two-thirds of the global population, according to BloombergNEF.
That’s not all. The 11th Session of the International Renewable Energy Agency (Irena) Assembly announced the foundation of the UN High-Level Dialogue on Energy. The meeting will be the first major UN discussion on energy in over four decades and will give the global community a chance to address progress on the way towards Sustainable Development Goal 7, which was set by the UN in 2015 to ensure access to sustainable energy for all. As the renewable revolution takes hold, we have a historic opportunity to progress to decarbonised power systems in a manner that brings universal access to energy.
Joe Biden walks past solar panels while touring the Plymouth Area Renewable Energy Initiative in Plymouth, New Hampshire, in 2019. Reuters
Following the Dialogue, which happens in September, all eyes will turn to November's UN Cop26 climate negotiations in the UK. This year, countries are expected to unveil more ambitious climate commitments to support faster progress on the Paris Agreement. A renewable, energy-efficient transition must be at the heart of these plans.
With all of this in mind, 2021 is a year of optimism.
We are particularly keen to monitor exciting redesigns of power systems. A charge often laid against renewables is that they provide an intermittent power source because of their reliance on potentially unreliable weather.
This has been a challenge, but rapidly developing battery technology and reductions in cost now offer solutions. We could also see the emergence of national smart grids that connect regions and territories. This could level the playing field between renewables and other energy sources.
2021 will be a year of problem-solving and solutions, especially as governments invest in green recovery plans to create jobs and cut emissions across the board. Renewable energy deals will increase in 2021 as companies and governments seek ways to meet climate targets.
The 11th Session of the Irena Assembly, which took place virtually from January 18-21, explored this area. Entitled “Covid-19 – Energy Transition”, discussions focused how ideas around a green recovery should inform the future work of the agency. With participation of heads of state, ministers, multilateral organisations and the private sector, the 11th Assembly in the words of its Director General, Francesco La Camera, reassessed “long-standing assumptions, perceived barriers and default decisions” to energy transition that protects out collective future.
Francesco La Camera, director-general of the International Renewable Energy Agency. Victor Besa/The National
2021 will be a year of problem-solving, as governments invest in green recovery plans to create jobs and cut emissions
Certain themes emerged from the virtual discussions, ones that the assembly agreed would shape the way we work in 2021, a year which many believe could see renewables cement their position as the de facto energy source of the future. Chief among these topics was “convergence and collaboration”.
Given this context, the potential for increased demands in renewable energy signals a possible inflection point. Combined with the electrification of transport systems, heavy industries and oil and gas’s increased participation in the electricity value chain, areas of convergence are emerging. This will bring more innovation to prompt new business models that advance the energy transition.
Another area worth keeping an eye on in the coming year is hydrogen. As we accelerate decarbonisation, many industry stakeholders are looking to hydrogen production and storage to complement wind and solar’s role in cutting carbon emissions. What’s more, green hydrogen’s potential to store energy throughout the seasons could be another reason behind a possible spike in interest.
The time has come for “being renewable” to become less of a corporate buzzword and more of an action point. US tech giants, including Amazon, Google, Apple, Microsoft and Facebook, have for the past five years put renewables front and centre of their corporate social responsibility programmes. We can expect, and should demand, that our corporate cultures ingrain a sense of renewable responsibility in everyone.
Dr Nawal Al-Hosany is a permanent representative of the UAE to the International Renewable Energy Agency
Damilola Ogunbiyi is chief executive and special representative of the UN Secretary General for Sustainable Energy for All and Co-Chair of UN Energy
Global state-owned investor ranking by size
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United States
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China
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UAE
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Japan
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Norway
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Canada
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Singapore
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Australia
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Saudi Arabia
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South Korea
Which honey takes your fancy?
Al Ghaf Honey
The Al Ghaf tree is a local desert tree which bears the harsh summers with drought and high temperatures. From the rich flowers, bees that pollinate this tree can produce delicious red colour honey in June and July each year
Sidr Honey
The Sidr tree is an evergreen tree with long and strong forked branches. The blossom from this tree is called Yabyab, which provides rich food for bees to produce honey in October and November. This honey is the most expensive, but tastiest
Samar Honey
The Samar tree trunk, leaves and blossom contains Barm which is the secret of healing. You can enjoy the best types of honey from this tree every year in May and June. It is an historical witness to the life of the Emirati nation which represents the harsh desert and mountain environments
The biog
Hometown: Cairo
Age: 37
Favourite TV series: The Handmaid’s Tale, Black Mirror
Favourite anime series: Death Note, One Piece and Hellsing
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
What is hepatitis?
Hepatitis is an inflammation of the liver, which can lead to fibrosis (scarring), cirrhosis or liver cancer.
There are 5 main hepatitis viruses, referred to as types A, B, C, D and E.
Hepatitis C is mostly transmitted through exposure to infective blood. This can occur through blood transfusions, contaminated injections during medical procedures, and through injecting drugs. Sexual transmission is also possible, but is much less common.
People infected with hepatitis C experience few or no symptoms, meaning they can live with the virus for years without being diagnosed. This delay in treatment can increase the risk of significant liver damage.
There are an estimated 170 million carriers of Hepatitis C around the world.
The virus causes approximately 399,000 fatalities each year worldwide, according to WHO.
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Discounts on sales price of off-plan units
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DLD registration fee can be paid through banks or credit cards at zero interest rates
