Soheir El Sherbiny‏‏

Sanya Abdelqader‏‏

The COP28 Climate Conference in the UAE is gaining major importance amid growing international interest in climate change issues, especially with the increasing global environmental challenges of recent years. In this regard, the UAE is working toward a successful conference, whether in terms of the initiatives it has launched to reduce the nation’s carbon footprint, or in terms of contributing to climate action in line with the global trend aimed at achieving net carbon emissions.Various InitiativesIn light of the significant signs of climate change around the world, many governments are eager to take practical steps to combat its impact. In preparation for hosting COP28, the UAE has been at the forefront of countries that have adopted sustainability as a key theme of their development strategies. In this framework, the country has pursued several major initiatives, most notably the following:1. Dubai Clean Energy Strategy: The country’s interest in clean energy is not new or solely related to its hosting of the international event. In November 2015, the UAE launched the Dubai Clean Energy Strategy, in which the state aims to produce 75% of its energy needs from clean sources by the year 2050, as well as to make Dubai a global center for clean energy and the green economy.In this context, the strategy consists of five main pillars: infrastructure, legislation, funding, capability and skills building, and an environmentally friendly energy mix. The infrastructure component includes initiatives such as the Mohammed bin Rashid Al Maktoum Solar Energy Park, the world’s largest generator of solar energy from a single site, with a production capacity of 5,000 megawatts by the year 2030, and total investments of AED 50 billion.2. COP28 UAE Technical Acceleration Initiative: In September 2023, the UAE Central Bank, the Bank for International Settlements, the UAE Institute of Finance, and the Presidency of the Conference of the Parties (COP28) launched a global initiative called the COP28 UAE Technical Acceleration Initiative. Its goal is to stimulate innovation and develop solutions and advanced projects to expand the scope of sustainable funding to meet actual climate change challenges. This initiative coincides with the UAE’s hosting of the Conference of the Parties (COP28), with the goal of encouraging the participation of innovators and developers in the technology and financing fields, and relevant global institutions from the public and private sectors, in accelerating the pace of innovative technological solutions to meet the challenges of green, sustainable funding.3. Emirati interest in green projects: The UAE is the best-performing market in the MENA region on the Green Hydrogen Suitability Index, driven by a strong base of infrastructure and expertise in hydrocarbon production and expansion of renewable energy sectors. Against that backdrop, the country has formulated a hydrogen policy and a strategic regulatory framework for developing this sector. According to the draft policy, the market aims to become a worldwide leader in the production and use of green hydrogen by producing up to one million tons of green hydrogen annually by the year 2030. The UAE also plans to produce hydrogen for export, thus laying the foundation for a future global green hydrogen trade network, with Europe as one of its main markets.In this light, the UAE recently launched its "National Sustainability" campaign in conjunction with preparations for the Conference of the Parties to the UN Framework Convention on Climate Change (COP28). The UAE seeks to achieve climate neutrality goals in line with the country’s national trends and strategic plans.4. Launch of two initiatives to support the UAE’s goal of achieving net zero energy: In the context of supporting its efforts to increase local capacity for clean energy production and absorption, the UAE has launched two initiatives. The first is the UAE’s National Geospatial Platform for Future Energy. Presumably, the platform will track and measure the progress made in implementing the UAE Energy Strategy 2050, which aims to increase the share of clean energy projects to 50% of the total energy mix in the country by the year 2050, through ongoing updating and analysis of data concerning clean energy projects throughout the country.The UAE’s second initiative, "Beyond Food"—a new joint initiative of the UAE and the International Renewable Energy Agency (IRENA)—aims to provide people in low-resource communities around the world with access to sustainable energy for cooking, in collaboration with Nama Women Advancement Establishment. The partnership also seeks to expand and attract more key actors working on this issue, as well as to increase the funding necessary to promote the spread of clean cooking solutions while putting this issue at the forefront of the global development agenda.5. Strengthening the chances of success of the Masdar Initiative: The emirate of Abu Dhabi has allocated more than USD 15 billion to renewable energy programs through the Masdar Initiative, primarily based on technology development with an added commercial aspect with regard to renewable energy, energy efficiency, CO2 management and monetization, and water usage and desalination.Thanks to the UAE’s commitment to sustainability, the International Renewable Energy Agency (IRENA) opened its permanent headquarters in Masdar City, Abu Dhabi, in June 2015.The Masdar Initiative consists of four main elements: (1) an innovation center to support the application, commercialization, and adoption of sustainable energy technologies; (2) the Masdar Institute of Science and Technology, concerned with research and programs focusing on the development of clean and sustainable energy technology; (3) a development company focused on the commercialization of emissions reduction solutions and clean development mechanisms based on the Kyoto Protocol; and (4) a special economic zone to host institutions investing in renewable energy technology.6. Masdar’s success in its first green bond issuance: The Abu Dhabi Future Energy Company (Masdar) announced the successful completion of its first green bond issuance, valued at USD 750 million in 10-year unsecured bonds. It was met by an extremely strong appetite from regional and international investors, with the order book peaking at USD 4.2 billion, i.e., an oversubscription of 5.6 times. The price tightened by 35 basis points between launch and final terms, and allocation was finalized at a split of 87.5% to international investors and 12.5% to MENA investors.This bond is the first part of a program to raise up to USD 3 billion in bonds to meet Masdar’s equity funding commitments for new renewable energy projects at home and abroad. Masdar seeks to grow its global portfolio to 100 gigawatts of energy by the year 2030.7. Emirati funding of an initiative to support clean energy projects in Africa: In September 2023, the UAE launched a USD 4.5 billion funding initiative to promote the clean energy sector in Africa, in light of a call from African leaders to establish clear and improved political and regulatory frameworks to open up long-term investments. The Abu Dhabi Fund for Development and Etihad Credit Insurance are expected to begin the program with USD 1 billion to provide financial assistance for infrastructure needs, and USD 500 million in credit insurance to eliminate risks and attract private capital. Meanwhile, Masdar has pledged to provide USD 2 billion in equity and is set to disburse an additional USD 8 billion in project funding. It has also set a goal to provide 10 gigawatts of clean energy in Africa by the year 2030.8. Emirati launch of a global initiative to decarbonize the waste sector: In October 2023, the Ministry of Climate Change and Environment signed a memorandum of understanding with the Abu Dhabi Waste Management Company (Tadweer) to launch "Waste to Zero," a global initiative to mobilize the world to increase waste decarbonization efforts and create a circular economy platform. This initiative is within the framework of the Year of Sustainability and preparations to host COP28. "Waste to Zero" aims to promote the UAE’s role in leading the global movement and to contribute to international efforts to achieve the goal of reducing emissions by 43% by the year 2030. The initiative encourages countries to adopt modern technology-based solutions, decarbonize various sectors, including the waste sector, and drive efforts to promote the circular economy.9. Introduction of nuclear energy initiative on climate neutrality: In September 2023, the World Nuclear Association, in collaboration with the Emirates Nuclear Energy Corporation, launched the "Net Zero Nuclear" initiative during the World Nuclear Symposium in London. The initiative aims to enhance the role of nuclear energy at COP28, as well as to call on decision-makers to triple global nuclear energy production capacity by the year 2050.10. Launch of state institutions specialized in developing clean technology: Over the years at the state level, the UAE has invested in infrastructure development at clean technology development institutions and bodies, such as Masdar City, the Dubai Electricity and Water Authority Innovation Center, the Sharjah Entrepreneurship Center (Sheraa), and the Clean Energy Research Center at Khalifa University. In the framework of strengthening the country’s educational and technology system for supporting innovation and skills, the UAE is also interested in encouraging and adopting skills and staff, as demonstrated by the launch of internationally recognized local universities and global institutions that have local branches in the UAE. Moreover, the country clearly supports clean technology start-ups, which have attracted USD 70.1 billion in funding.Issues RaisedThe aforementioned initiatives are part of the UAE’s efforts to make COP28 a success and lend it further momentum. In this respect, several key climate issues are expected to dominate the discussions, with the host country expecting the participation of 70,000 experts, diplomats, decision-makers, and others. The following issues may be highlighted: 1. Strict measures for methane gas emissions: COP28 is likely to be able to establish strict measures for carbon emissions, in light of many countries’ eagerness to limit methane gas emissions—including China, the top country in methane gas emissions, which intends to include methane gas limits in its national plan for the first time. Furthermore, the European Union has agreed to impose strict limits on methane gas emissions resulting from fossil fuels, including imports. This suggests the potential for consensus on a number of measures regarding this issue at COP28.2. Mechanisms to bridge the gap in climate funding: Considering the failure of developed countries to fulfill their pledge of providing at least USD 100 billion to address the damage arising from climate change, the climate summit is expected to see fresh proposals for reaching a new collective goal for funding climate issues, especially with developing countries demanding more pledges to assist poor countries and those harmed by the effects of climate change.It is worth noting that the loss and damage agreement reached during COP27 renewed hope for many low-income countries suffering from the effects of climate change. However, it left several unanswered questions about who will finance the fund and who will be eligible to receive funds. Thus, it is expected that the issue of funding climate effects will be among the most pertinent issues, and that those questions will be answered with a full and specific explanation of how the loss and damage fund will be financially activated and what mechanisms will achieve the fair distribution of financial resources to those affected by climate change.3. Ways to reduce dependence on fossil fuels: How to eliminate fossil fuels is expected to be a major topic of discussion at the climate conference. This may be a difficult issue because it is related to the question of whether fossil fuels will be replaced gradually or rapidly, without relying on them as a future source of energy. The sensitivity of this situation lies in the fact that fossil fuels are heavily relied on as a source of global energy security. For example, fossil fuels still make up nearly 80% of global energy supplies, meaning that rapid and intemperate abandonment of fossil fuels is a threat to global energy security and a point that must be raised during the discussions.4. Evaluation of the achievement of the 2015 Paris Agreement goals: The forthcoming COP28 climate summit is expected to evaluate the pledges of signatory countries to the 2015 Paris Agreement with regard to containing global warming by maintaining a temperature of 1.5 degrees Celsius. The talks will also likely include discussions about how to address the failure of countries to achieve the goal of containing global warming and set forth a road map that includes "solution paths" for various sectors, regions, and parties.5. Adoption of recommendations for regulating decarbonization processes: Presumably, the countries participating in COP28 will provide recommendations for regulating decarbonization processes, especially given governments’ current awareness of the value of emissions reduction projects within their borders. However, this requires consensus among countries on carbon pricing mechanisms, particularly countries invested in the carbon markets, so that no competition or conflict of interest occurs.Ultimately, the policies taken by the UAE over the past years reveal, in one way or another, trends toward promoting global climate action and encouraging various international parties to stimulate mutual cooperation in order to multiply policies and movements to confront climate challenges. The UAE’s initiatives may catalyze the success of the COP28 events, but this will also require the parties participating in this conference to agree among themselves and find solutions to the main issues on the conference agenda.

How Has the UAE’s Interest in Climate Action Increased?