An updated national energy strategy from the United Arab Emirates (UAE) is to funnel $54 billion of investment towards renewable energy, as the country looks to meet its net zero by 2050 pledge, Sheikh Mohammed bin Rashid Al Maktoum (Sheikh Mohamed), the prime minister of UAE announced on Twitter.
If successful, the strategy will triple the UAE’s renewable energy output over the next seven years, with the intention of attracting innovation and investment in the sector from international partners.
The prime minister did no disclose to what extent the recent initiative will be funded by private cash.
Alongside the announcement, Sheikh Mohamed also announced the appointment of Mohamed Hassan Alsuwaidi, the CEO of Abu-Dhabi-based investment firm ADQ and deputy chairman of renewable energy firm Masdar as investment minister.
While the UAE can boast Masdar City, a sustainable urban community in the centre of its capital Abu Dhabi, 30% of the nation’s GDP is directly linked to its oil and gas industry.
Green bond surge
The UAE's issuance of green and sustainable Sukuk bonds has surged to record levels over the past two years, from $605m in 2021 to $8.5bn in 2022. Among others, green energy firm Masdar plans to raise between $500m and $700m for green energy projects. Other big issuers are Abu Dhabi Commercial Bank and First Abu Dhabi Bank.
The recent policy shift follows the nation’s Partnership for Accelerating Clean Energy (PACE) deal signed with the United States in November of last year, which looks to attract $100 billion of commercial investment with the aim of producing 100GW of clean energy by 2035.
Hydrogen is to be key part of the new national energy strategy. Sheikh Mohammed bin Rashid Al Maktoum, prime minister, said: “[The UAE] has adopted our national strategy for hydrogen - which has recently emerged as one of the most important types of clean energy - and the plan aims to consolidate the country's position as a producer and exporter of low-emission hydrogen over the next seven years by developing supply chains to develop this industry.”
The UAE's Council of Ministers meeting also approved an updated national policy for electric vehicles, which includes building a national network for EV chargers, regulating the electric vehicle market, and stimulating related industries to ensure reduced emissions and energy consumption.
The UAE is due to host this year’s COP climate event, held in the capital city of Abu Dhabi in November and December of this year.
Sultan Al Jaber has faced criticism for acting as COP chair while also being the head of Abu Dhabi's National Oil Company. He previously pledged to 'supercharge' the global climate finance space.
