Opportunities in the UAE to finance real-world change

With just five months to go before COP28, this annual summit will be organized by United Arab Emirates Already beset by global dismissals and mistrust.

At the same time, achieving climate transition in emerging and developing countries has never been more urgent. By 2030, 90% of the growth in new emissions will come from these regions. We have to find a way to fill the $20,000 funding gap to bend this emissions curve and support emerging markets. Other COPs have failed to do so. But can petro-states commit to net-zero emissions and deliver on their ambitious climate change agenda?

See also:- UAE attitude towards COP28 ‘very worrying’

Criticism of this session of the COP has been amplified as this year marks a milestone in the wake of the 2015 Paris Agreement. This will be the first official assessment of progress towards the global 1.5-degree Celsius target, the so-called “global stocktake”. This puts enormous pressure on the shoulders of the UAE.

this is not the first time Fossil fuels Rich countries hosted the event. Mexico hosted COP13 in 2007, the same year oil production peaked. Canada, the world’s fourth largest oil producer, is the host for 2005.Poland, 10th^{the th} The world’s largest coal producer, it has hosted three COPs – 14, 19 and 24. Countries rich in fossil fuels have historically hosted the summit.United Nations Framework Convention on Climate Change¹ These countries are selected through a formal process of evaluating proposals from COP members. There are good reasons why the root of the problem should feature heavily at the negotiating table. They are also the key to the solution. This is the essence of the transition – actively reducing emissions by reducing carbon rather than removing it.

The grievances surrounding COP28 did not end with the UAE being the host country – the appointment of Dr Sultan Al Jabar as COP president was also questioned.Most recently, he was publicly called to resign as COP president because he was deemed unfit to deliver on credible or transparent commitments police agenda. The unease stems from Dr. Sultan’s dual role as president of the Conference of the Parties and chief executive of the state-owned oil company ADNOC. This criticism appears to be fair on the surface, but it is actually fair. Building global momentum for climate goals while growing the oil and gas business is incompatible.

However, such remarks do not acknowledge Dr Sultan’s full expertise – he is not just an oil and gas leader. He was CEO of Masdar, the Abu Dhabi government’s renewable energy company, from its inception in 2006 until 2014. Currently, he still serves as the chairman of the company. Under his leadership, Masdar became a major global leader in the development of renewable energy projects, investing more than US$30 billion in 40 countries to build 20 GW of new generation capacity with a target of 100 GW by 2030.zoom experience clean energy in developed and emerging market countries. His transition expertise should be valued, not belittled, when we consider the enormity of the task ahead. But the test will be what he and the Emirates will ultimately be able to achieve.

previous commitment

The world is looking for bold, catalytic solutions after the recent Conference of the Parties made a lot of promises but failed to make meaningful progress. From the infamous $100 billion deal at COP15 to the JET-P deal launched at COP26, developing countries have lost faith in the commitments of their developed allies. Less than 20% of the $2 trillion needed to reduce global emissions and support climate change adapt And compensation for the loss and damage in these areas is flowing. In 2020, most climate finance is raised in the form of commercial debt, rather than low-cost or concessional debt. There’s a reason the needle isn’t moving.this Financial Times The editorial board recently stated: “The world cannot afford to waste another COP”. precisely. This is COP28, not COP1. We have 27 opportunities to make meaningful progress on emissions and 13 opportunities to close the climate finance gap. Both components will come under scrutiny and must be balanced during a “global stocktake”.

This backdrop provides the UAE with a moment to show the world what leadership on the climate finance agenda really looks like.A key pillar of the UAE’s roadmap to accelerate economic development is the “Net Zero 2050” strategic initiative, for which they have earmarked US$15 billion for energy transition Complete the project by 2030. Translating this into real flows while mobilizing developed country resources and institutional capital is crucial. Emerging market transformation requires two types of capital.

First, catalytic preferential capital reduces risk through first loss or guarantee. Providing this increases the number of bankable projects and reduces the risk of private investment. Second, commercial capital is needed to achieve scale. The UAE is doing both, with regional coordination for a profitable transformation. This could be a perfect match for the world’s climate goals and broader emerging markets.

What the UAE does with this opportunity is in their hands. How we choose to support them in realizing this opportunity is up to us as the public.