The United Arab Emirates and the US on Sunday said they would pledge $20 billion to fund 15 new gigawatts of clean and renewable energy projects in the US before 2035 in the first investment wave under their $100 billion clean energy partnership provide energy.
The investments will be led by UAE-based Masdar and a consortium of US private investors, announced Sunday at a briefing for business and climate leaders during Abu Dhabi Sustainability Week.
This first wave of investments under the Clean Energy Accelerator Partnership will be “funded by $7 billion in cash from the private sector, which will catalyze $13 billion through U.S. debt financing and other instruments,” the statement said.
The two nations signed a strategic partnership in November 2022 to invest $100 billion to produce 100 gigawatts of clean energy worldwide by 2035.
It will cover a wide range of established and emerging technologies, encompassing private and public sector support and reaching out widely to developed and developing countries.
The United Arab Emirates and the United States also announced the formation of a Pace Governance Expert Group, led by Dr Energy Security.
The bilateral body will be composed of representatives from the public and private sectors of both countries.
“The UAE, already one of the world’s largest investors and developers of renewable energy, joins forces with the US in Pace to advance a just energy transition, improve energy security and demonstrate that climate action can create economic opportunities,” said dr Al Jaber, who is also Chairman of Masdar and Managing Director and Group Chief Executive of Adnoc.
“As the international community prepares to take stock of global climate progress at Cop28 in the UAE, this multi-sector partnership is a transformative move to advance mitigation and adaptation through pragmatic investment and deployment of clean energy projects in the US, December 2019 UAE and emerging countries boost economies around the world.
“We are confident that this partnership will provide a new collaborative model that unifies global efforts toward Cop28 to make meaningful progress.”
Cop28 Director-General Majid Al Suwaidi and David Livingston, Senior Advisor to US Special Envoy for Climate Issues John Kerry, have been appointed deputy co-chairs of the panel.
Group members will meet monthly to provide guidance on Pace’s four strategic pillars: innovation, engagement and clean energy supply chains; carbon and methane management; nuclear energy; and decarbonization of industry and transport.
As one of the most active investors in clean and renewable energy projects in the US, the UAE has supported 10 clean energy projects totaling more than 1.75 GW in California, Texas, New Mexico and Nebraska through Masdar, the statement said.
The Emirates is investing Dh600 billion (US$163.5 billion) in clean and renewable energy projects over the next three decades to achieve net-zero emissions by 2050.
Updated Jan 16, 2023 3:21 am