The UAE’s Energy Strategy involves a $54 billion investment

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The United Arab Emirates has released additional information regarding its national energy and hydrogen strategies, aiming to enhance employment opportunities, stimulate economic growth, and promote sustainability.

The UAE Minister of Energy and Infrastructure, Suhail bin Mohammed Al Mazrouei, has announced the updated UAE Energy Strategy 2050 and the National Hydrogen Strategy. These initiatives, approved by the UAE Cabinet, aim to assist the country in achieving its climate and net-zero objectives by 2050. Implementing these strategies will necessitate significant financial investments and yield considerable environmental advantages for the UAE, the region, and the global community.

Al Mazrouei stated that both strategies aim to create a prosperous, climate-safe, and energy-secure future for the nation while contributing to the global agenda for environmental sustainability. These strategies align with the objectives of the ‘We the UAE 2031’ Vision, the Circular Economy Policy 2031, the National Strategy for Wellbeing 2031, and the UAE Net Zero by 2050 Strategic Initiative. The launch of these strategies is particularly timely as it coincides with the Year of Sustainability and the preparations for hosting the 28th United Nations Climate Change Conference of the Parties (COP28).

He added, “The United Arab Emirates is an exemplary model for adopting policies and strategies that shape a more sustainable future domestically and globally. We have been responsible for revising the UAE Energy Strategy 2050 to expedite the transition to clean energy and increase the proportion of clean energy sources in our energy mix. We aim to achieve climate neutrality by 2050 and realize our vision of sustainable development.”

“This strategy outlines a comprehensive national program that seeks to balance meeting the growing energy demand while ensuring the preservation of natural resources for future generations. It aims to stimulate a surge in clean energy production and facilitate a robust energy transition, which will serve as an economic driver and a significant contributor to the country’s GDP.”

The UAE is committed to working with the international community to address global warming. They have ratified the Paris Agreement early and are hosting COP28.

In line with the updated objectives of the UAE Energy Strategy 2050, the country plans to invest between AED150bn and AED200bn ($41bn to $54bn) by 2030 to meet energy demand and support economic growth.

The strategy aims to improve energy efficiency and reduce carbon emissions to promote environmental sustainability. These efforts are expected to result in AED100bn ($27bn) in savings and the creation of 50,000 new green jobs by 2030.

The National Hydrogen Strategy is a long-term plan to position the UAE as a leading producer and supplier of low-carbon hydrogen by 2031. This is crucial for achieving the UAE’s goal of net zero emissions by 2050 and advancing the global hydrogen economy.

The updated UAE Energy Strategy 2050 aims to increase renewable energy deployment and improve energy efficiency. It aligns with the UAE’s commitment to the Paris Agreement and the UN Sustainable Development Goals.

The strategy includes initiatives to promote solar and nuclear energy, drive research and development in renewable technologies, and attract domestic and international investments in the UAE’s renewable energy sector. By implementing this strategy, the UAE aims to become a global leader in the energy transition. They aim to achieve a grid emission factor of 0.27 kg CO2/kWh by 2030, lower than the worldwide average, and ultimately achieve net zero emissions in the energy and water sectors by 2050.

The strategy aims to triple the share of renewable energy by 2030 and increase the proportion of clean energy capacity in the overall energy mix to 30 percent by 2030.

The National Hydrogen Strategy aims to establish hydrogen oases and explore future ones to solidify the UAE’s position as a reliable producer and supplier of clean energy. This strategy includes enhancing hydrogen production capacities, fostering the domestic market, developing regulatory frameworks and policies, strengthening regional collaboration, and investing in research and development.

The strategy also focuses on economic growth, intending to create thousands of jobs in the hydrogen sector by 2050. Additionally, it aims to reduce emissions in sectors that are difficult to decarbonize, such as heavy industries, land transport, aviation, and sea freight, by 25 percent by 2031.

In 2017, the UAE introduced its Energy Strategy 2050, the country’s first unified energy strategy based on supply and demand. The strategy has been updated through collaboration with stakeholders to incorporate advancements in the energy sector and ensure access to reliable, sustainable, and affordable energy.

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