The United States and the United Arab Emirates (UAE) agreed to invest $100 billion in developing 100 gigawatts of clean energy.
The parties approved the “Partnership for Accelerating Clean Energy” (PACE) during the Adipec energy conference in Abu Dhabi. It is built on four general pillars: developing clean energy innovation and supply chains, reducing carbon and methane emissions, nuclear energy, and decarbonizing industry and transportation.
“The cooperation comes within the framework of the close friendship between the UAE and the United States of America (and) affirms the commitment of both sides to work to enhance energy security and advance progress in climate action,” said the UAE government.
“Today, President Biden again demonstrated his deep commitment to ensuring a global clean energy future and long-term energy security as the United States and the United Arab Emirates (UAE) announced a robust partnership to ensure the swift and smooth transition toward clean energy and away from unabated fossil fuels,” the White House stated.
According to the US government, the agreement marks yet another milestone in the country’s climate agenda. The countries expect to complete the plan by 2035. Following that, the countries will appoint an expert group to oversee the deal’s operations.
The group’s central role is to “identify priority projects, remove potential hurdles, and measure PACE’s progress in achieving its goal of catalyzing $100 billion in the financing, investment, and other support and deploying globally 100 gigawatts of clean energy.”
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UAE and its priority
The UAE exports enormous amounts of oil to the market. However, unlike many other countries that utilize fossil fuels, the UAE produces oil using non-fossil fuel energy resources. Furthermore, the country is home to the world’s largest single-site solar power plant. The UAE will host the COP 28 climate summit in 2023.
Sultan Al Jaber, CEO of Abu Dhabi National Oil Company (ADNOC), stated that the company intends to produce as much energy as possible while emitting as little carbon as possible.
“If we zero out hydrocarbon investment due to natural decline, we would lose 5 million barrels per day of oil each year from current supplies. This would make the shocks we have experienced this year feel like a minor tremor,” he added.
“It is not oil and gas, or solar, not wind or nuclear, or hydrogen. And it is oil and gas and solar, and wind and nuclear, and hydrogen. It is all of the above, plus the clean energies yet to be discovered, commercialized and deployed,” the CEO explained.
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To end fossil fuel
Policymakers vilify the use of fossil fuels, claiming that their abuse would result in disaster. According to UN Secretary-General Antonio Guterres, countries should quit supporting and investing in fossil-fuel-based energy production. He also stated that governments should strictly ban fossil fuel exploration.
The decline in investments in non-fossil fuel-related productions serves as the main issue. Furthermore, the United Nations Conference on Trade and Development projected a decrement in investments in climate change adaptation and mitigation.
Photo Credit: Özkan Bilgin
Source: CNBC
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