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The World Bank will sign a $1.5 billion investment deal with the Abu Dhabi Development Fund on Monday, said Makhtar Diop, head of the World Bank’s International Financial Cooperation Department. In the Energy Transition in Emerging Markets.
“The future of the world’s energy and climate increasingly depends on the successful transition of emerging economies to cleaner energy systems” announced by the International Energy Agency.
Notably, emerging countries account for a third of global energy invest. “The energy transition is one of our top concerns,” “For the Middle East, energy transition is business, change and opportunity,” said Carlos Gasco, Director of Energy Policy at the UAE Ministry of Energy.
Emerging markets and developing countries are responsible for global gas emissions, But given the scale of the climate challenge, the amount of money currently spent on transitioning these countries to low-carbon energy is insufficient.
As Makhtar Diop said at the World Government Summit: “I signed a $1.5 billion platform with the Abu Dhabi Development Fund today, We co-invest with them in the emerging countries of the energy transition.”
The Capital Mobilization in Emerging Market and Developing Economies report provides an overview of the current state of investment in the energy transition. Investment in renewable energy capacity has increased by 40% in 2021 compared to previous years. Meanwhile, investment in fossil fuel burning capacity has fallen by 25% over the past five years, while renewables have increased by 15%. These investments will continue to grow as public and private subsidies are received.
It is worth noting that the amount of capital invested in the transition of these countries can have a significant impact on emerging markets. Developing countries facing significant revenue losses from fossil fuel exports will have to adjust their economies and public finances to the new low-carbon economy, or face economic and market pressures. This will be a major problem for emerging markets, which previously had little export savings.
The Middle East is vying for a place as an energy supplier in the energy transition The United Arab Emirates is emerging as a major player in terms of hydrogen hubs.
Claude Mourey, Hydrogen and Alternatives Director MENA, said: “Hydrogen is becoming an increasingly attractive option for a carbon-free future”.
The largest oil exporting region in the world is the Middle Eastbut it has an ultimate goal of becoming a major exporter of clean, green hydrogen energy, an element expected to play an important role in reducing energy carbon emissions.
Jamila Matar, head of the League of Arab States’ Energy Department and renewable energy advocate, called for regional development efforts Promote energy cooperation between Arab countries and their neighbours.
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