The UAE is leading the transformation of the hydrocarbon economy as the world contemplates a transition to a net-zero energy system by 2050.

By Xische Editorial, May 26, 2021

Dramatic advancements in renewable energy are fundamentally transforming the global energy landscape. The cost of renewable energy sources like solar and wind power has reduced exponentially over the last two decades. Electric vehicles are becoming more and more popular in key markets like China and the United States. As more people switch to renewable energy sources, the cheaper the technology and infrastructure will become. Yet, this shift towards renewables alone might not be enough to reach net-zero emission targets laid down by the Paris Agreement on climate change. More drastic measures are on the cards. 

In an explosive new report that claims to be the world’s first comprehensive study of how to transition to a net-zero energy system by 2050, the International Energy Agency (IEA) argued that all investment into new fossil fuel supply projects should cease immediately. On its face, this sounds like an aggressive move but the IEA noted that a transformation into a renewable energy economy is well underway and doesn’t require any additional fossil fuel supply projects to reach its goal. 

There were other bracing declarations in this landmark report. As reported in Yahoo News, the IEA argued that to solve the climate crisis, “human beings must stop using gasoline-powered cars within 14 years, abandon the pursuit of new coal mines, end oil exploration and set about a total transformation of the energy systems that underpin our economies." These are drastic measures but the IEA makes a strong case for why they are needed. Let’s review a couple of their key findings in the report. 

To reach net-zero emissions by 2050, annual clean energy investment worldwide will need to more than triple by 2030 to around $4 trillion. This will “create millions of new jobs, significantly lift global economic growth, and achieve universal access to electricity and clean cooking worldwide by the end of the decade”. 

In concert with the aforementioned measures, huge declines are required in the use of coal, oil, and natural gas. Steps include halting sales of new internal combustion engine passenger cars by 2035 and phasing out all unabated coal and oil power plants by 2040. The gap left by these fossil fuel reductions means we need to refocus our attention on electricity usage. 

That’s because electricity will play a key role across all energy sectors, from transport and buildings to industry. In some ways, electricity is the new oil. Electricity generation will need to reach net-zero emissions globally in 2040 and be well on its way to supplying almost half of total energy consumption. This will require huge increases in electricity system flexibility – such as batteries, demand response, hydrogen-based fuels, hydropower, and more – to ensure reliable supplies.

As one of the world’s leading hydrocarbon producers, the UAE is actually taking steps to achieve net-zero emissions goals. Far from ignoring reports such as the IEA’s recent study, the UAE is leading the transformation of the hydrocarbon economy. In December 2020, the UAE announced new targets to limit greenhouse gas emissions over the next decade in line with the Paris Agreement on climate change. The announced targets were to cut emissions by nearly a quarter by 2030 by increasing clean power capacity through solar and nuclear energy. 

Moreover, the UAE wants to leverage its position as a leading oil producer to become a leading exporter of clean energy. This will be achieved through the creation of massive solar projects in the country and, perhaps more importantly, the export of knowledge about the technologies needed to push the renewable revolution forward. This week, the UAE asked to host the prestigious COP 28 international conference on climate change in 2023. 

The annual Conference of Parties (COP) is the decision-making body responsible for monitoring and reviewing the implementation of the United Nations Framework Convention on Climate Change. Foreign Minister Sheikh Abdullah Bin Zayed told WAM that “the UAE has demonstrated a proven track record in progressive climate action and multilateral cooperation that makes it an ideal convener for COP 28.” 

We can’t stop the shift to renewable energy and the planet will benefit from clean energy. The best path forward is to leverage the innovation taking place in the renewable energy sector and ensure that countries like the UAE maintain their position of leadership in this new chapter. It’s time to build on the work of the IEA and create a new energy future today.