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ABU DHABI, 28th February, 2023 (WAM) — Executives from “difficult-to-abate” industries have called for increased financing to support decarbonization efforts after the release of a landmark report outlining the Up to a third think they have enough budget to do so, and more than half have yet to set a net zero target.
Reducing emissions from hard-to-abate industries such as cement, steel, aluminum, petrochemicals, shipping, aviation, heavy industry and manufacturing is critical to efforts to combat climate change, with industry and transport accounting for almost half of global emissions.
Masdar, organizer of the Abu Dhabi Sustainability Week (ADSW), in partnership with FT Longitude, today released the findings of the ‘Hard to Die, Ready to Begin’ survey, furthering the discussion of the decarbonisation push in the UAE by identifying the biggest barriers and what is needed Greater action ahead of the 28th Conference of the Parties to the United Nations Framework Convention on Climate Change (COP28).
Although challenging, the report finds that half of senior industry leaders are more confident in achieving net-zero emissions in their operations today than they were a few years ago.
Dr Sultan bin Ahmed Al Jaber, Minister of Industry and Advanced Technology, Chairman-designate of COP28 and Chairman of Masdar, said: We know the results will show a huge gap between where we are and where we need to be. The UAE is committed to addressing this issue and regaining momentum to achieve the 1.5 target. In this regard, addressing carbon emissions in hard-to-reduce sectors is a priority. There is no net-zero emissions pathway that does not include the decarbonization of these important industries. “
Despite optimism across the industry and the emergence of innovative new technologies to capture and store carbon, reliable financing remains a major barrier to accelerated progress for many senior executives. Despite the strides the industry has made over the past decade, 60% of organizations surveyed in Europe, Asia Pacific, the Middle East and North America still have not set decarbonization targets, with leaders of these organizations citing a lack of reliable funding as a The main obstacle to the achievement of the goal. Eighty-three percent of executives in the Middle East and 62 percent in Asia Pacific highlighted that they are taking steps to reduce emissions, but have not yet set a target date for completion. Furthermore, only 30% of senior executives say their budgets are able to meet decarbonization needs, and more than 50% are concerned about the impact of global economic headwinds on decarbonization investments.
Ahead of COP28, the UAE presidency has made it clear that access to financing and capital will be a priority, noting that both government and private sector partners need to commit the resources needed for transformative action. This includes investing in the breakthrough technologies and innovations needed to drive this ambition, such as carbon capture and storage, and other forms of decarbonisation.
In addition to financing barriers, the report also highlights differences in the technologies available to accelerate decarbonization. Despite progress in recent years, the study outlines gaps in “frontier” technologies available at commercial scale, slowing the pace of accelerated decarbonization efforts in energy-intensive industries.
Mohamed Jameel Al Ramahi, CEO of Masdar, said: “Building on the important momentum gained during ADSW 2023, this report is an important tool to drive the decarbonization of hard-to-abate industries. Global collaboration between partners continues to play a leading role. We intend to seize the opportunity for utility-scale renewable energy and focus our investments on cutting-edge technologies such as sustainable aviation fuel and green hydrogen to help drive progress ahead of COP28. and beyond to accelerate global progress.”
In addition to calling for greater industry collaboration, the report highlights the importance of increased public sector support and calls on governments around the world to provide innovative incentives in funding, legislation and taxation to support national net-zero emissions targets. As highlighted in the report, only 24% of senior executives expect to receive funding from government funds or incentives, while 41% believe that without more incentives and funding, they will not be able to achieve their goals in the domestic market. Net zero emissions target.
The release of today’s report comes ahead of the UAE’s preparations to host COP28 later this year. This global event will be an important milestone in driving dialogue and inclusive solutions across all sectors, including those that are difficult to eliminate. COP28 brings together key players in the sector with the aim of accelerating climate action and delivering concrete outcomes and solutions to climate change.
As COP Chair-Elect, Dr Al Jaber emphasized the need to address gaps by bringing together public and private partners in a “COP for Action and a COP for All”. The UAE is firmly committed to an inclusive approach to climate action that includes industry leaders, civil society, academia, women, youth and indigenous peoples.
In addition to COP28, “hard to weaken, ready to start” will help discussions at the upcoming International Energy Week in London and S&P CERA Week in Houston, Texas.
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