The United Arab Emirates (UAE) and the Middle East as a whole are undergoing a remarkable transformation in their energy sector, reflecting the sustainable energy goals of the global energy industry. This report investigates the Gulf’s renewable energy industry and its regulatory environment through the eyes of various experts in the field.
In a region historically dominated by fossil fuels, the UAE, and other Gulf Cooperation Council (GCC) countries have embarked on an ambitious course towards a sustainable and environmentally responsible energy future.
As the first country in the region to ratify the Paris Agreement, the first to commit to an economy-wide reduction in emissions and the first to announce a Net Zero by 2050 strategic initiative, the UAE is committed to raising ambition in this critical decade for climate action.
This report investigates the dynamic landscape of the UAE’s energy sector, analysing the evolving regulatory framework, the integration of ESG principles in both the public and private sectors, the emergence of clean energy regulations in the GCC, and the exploration of cutting-edge clean energy technologies.
The report also provides insight from industry experts on the potential improvements in GCC regulations, as well as discusses the importance of ESG requirements in both public and private sectors and the critical role of clean energy initiatives in the diversification of GCC economies.
To conclude, the report will shed light on the significance of the upcoming COP28 conference hosted in the UAE in November 2023. We will investigate the outcomes of previous COPs and provide a preview of what to expect from COP28, as highlighted by energy experts and leaders.
COP28, short for the Conference of the Parties, represents a critical moment in global transformative climate action.
Member countries convene every year to determine the ambition and responsibilities and identify and assess climate measures. At COP21 in 2015, the world agreed to limit global warming to 1.5°C compared to pre-industrial levels by 2050. Science tells us emissions must be halved by 2030 to remain on target. We only have another seven years to meet that goal.
At the Glasgow COP26, for the first time in the history of COP events, finance was one of the major topics discussed at a COP. Participants agreed that both the public and the private sectors have available or transferable funds to allocate to the global energy transition and achieve net-zero emissions.
The most recent initiative and the most talked about by legal professionals is the recent announcement by the Saudi government that green bonds would be issued in compliance with ESG goals. The National Debt Management Center (NDMC) declared that green bonds will likely become their main funding avenue to back renewable energy projects.
The Abu Dhabi Sustainable Finance Declaration initiative in the UAE has been open to private and public companies since 2019. Its purpose was to design guidelines for organizations to reduce their carbon footprint with the support of banks, and it proved to be an important milestone in the country’s push towards renewable power.
However, the foundations for green finance are still being built. Legal professionals and investors are looking forward to expanding this area, which should promote trade in the industry.
COP28 UAE will be a milestone moment when the world will take stock of its progress on the Paris Agreement. It is a prime opportunity to rethink, reboot, and refocus the climate agenda. It will bring the world together at a critical moment for global transformative climate action.
H.E. Dr. Sultan Ahmed Al Jaber, President-Designate for COP28 UAE, says, “I will strive to build consensus amongst parties to drive climate action. Together, we will prioritize efforts to accelerate emissions reductions through a pragmatic energy transition, reform land use, and transform food systems. We will work to mobilize solutions for vulnerable countries, operationalize loss and damage, and deliver the most inclusive Conference possible.
The COP Program reflects the sectors and topics raised by stakeholders during consultations, including new action areas like health, trade, relief, recovery, and peace. The thematic days programming also incorporates four cross-cutting themes that underpin effective, interconnected delivery: Technology & Innovation, Inclusion, Frontline Communities, and Finance.
COP28 will be the first to put global health on the climate agenda. In his closing remarks at the UNGA SG Summit, H.E. Dr. Sultan Ahmed Al Jaber added, “Climate change does not recognize political divisions or national boundaries. It affects everyone, everywhere.”
What can we expect from COP28?
In Tech & Innovation, COP28 aims to act as a catalyst, mobilizing the ecosystem of governments, corporates, multilateral, academia, investors, and startups to drive step-change in the development and deployment of climate solutions to bring the world back to a 1.5C trajectory and reduce suffering for the most impacted populations and ecosystems.
Finance will emerge as a pivotal cross-cutting theme, intricately intertwined with Climate Transition & Adaptation. Mobilising financial resources and innovative funding mechanisms will be paramount in realizing the sustainable transformation needed to combat climate change.
Finally, COP28 is focused on bringing everyone together (including youth, entrepreneurs, gender groups, and indigenous people) to one table in a more inclusive process than previous COPs – ensuring that the next generation has the correct skill set to flourish and create conditions they need at a future COP.
As the UAE and its GCC counterparts navigate the complex landscape of the energy transition, this report offers a comprehensive analysis of the current state of affairs, shedding light on the path forward and the pivotal role these countries play in shaping a sustainable energy future for the entire world.
We hope this report will inspire you to join us in achieving our sustainable energy goals.
