The world needs to stop the consumption of fossil fuels instead of “pointing fingers” at oil and gas producers, according to the director general of the International Renewable Energy Agency.
“When you say phase down or phase out, it seems like you are pointing the finger at the producing countries,” Francesco La Camera told The National at the Cop28 summit in Dubai.
His remarks come as the climate conference enters its seventh day and talks intensify about a potential phase out or phase down of fossil fuels.
However, he also said countries should introduce policies to shift demand from fossil fuel products to cleaner energy.
“If you put in the market 11 terawatts [of renewable energy] by 2030 … this means that you will decrease the supply [of other energy sources],” Mr La Camera said.
The GCC countries can use existing resources to develop renewable energy technology to tackle climate change as well as diversify their economies, the Irena said in a report on Wednesday.
Solar photovoltaic (PV) power, which costs less than $0.20 per kilowatt hour (kWh), is now the least-cost option for power production in the region, outpacing natural gas, liquefied natural gas, oil, coal and nuclear power, the Abu Dhabi-based agency said.
A significant drop in production costs alongside an abundance of solar and wind resources in the GCC create opportunities for the emergence of innovative energy solutions such as green hydrogen.
Oil-rich Gulf countries have built all their renewable energy capacity within the past decade, based almost entirely on solar power.
Installed capacity grew to more than 5,600 megawatts last year, from 191 megawatts in 2013, Irena said.
Despite substantial growth and improved cost competitiveness of solar energy, renewable energy's share in the electricity mix makes up only 3 per cent of the region's generation capacity.
The UAE, the Arab world’s second-largest economy, hosts more than 60 per cent of the region’s renewable energy capacity amid rising investment in new projects.
However, many countries in the region are planning to boost crude production over the next few years to benefit from higher oil prices, a move that some critics say is incompatible with the goals of the Paris Agreement.
So far, 123 countries have signed the global renewables and energy efficiency pledge, which commits states to tripling renewable energy generation capacity to at least 11,000 gigawatts by the end of the decade, Mr La Camera said.
However, India and China – two of the world’s largest renewable energy markets – have abstained from the pledge.
“Probably, they are waiting to see how much finance will be in the final document before agreeing on that,” Mr La Camera said.
“Honestly, there are no issues in [them] joining because the pledge of the tripling renewable energy is just what is said in the Paris Agreement,” he said.
From a political standpoint, India and China want developed countries to make a more “engaged effort” to supporting the transition in emerging markets, the Irena chief said.
Total solar PV capacity in China, the world’s second-largest economy, is projected to pass 1,000 gigawatts by the end of 2026, compared with 500 gigawatts by the end of this year, Rystad Energy said in a report in September.
India, the world's fifth largest economy, aims to produce 500 gigawatts of non-fossil fuel capacity by 2030 to meet half of its energy demand through renewables.
Irena fund exceeds target
Financial pledges to the Irena’s energy transition accelerator financing (Etaf) platform reached $4.05 billion, surpassing its original target for Cop28 “more than fourfold”.
In the latest round, the European Bank for Reconstruction and Development committed up to $1 billion to the platform, while the International Finance Corporation pledged up to $1 billion, and HSBC offered up to $200 million in support.
The platform, which was set up in 2021 with support from the UAE, aims to scale up renewable energy projects in developing countries, while also bringing benefits to communities through enhanced energy access and security.
“We have been calling for this Cop to get the financial institutions to give priority to the funding of the infrastructure needed, especially in Africa [and] in the developed world,” Mr La Camera said.
He also said that institutional capital as well as public support would be required to channel more funds into energy transition projects in developing economies.
Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
The specs: Lamborghini Aventador SVJ
Price, base: Dh1,731,672
Engine: 6.5-litre V12
Gearbox: Seven-speed automatic
Power: 770hp @ 8,500rpm
Torque: 720Nm @ 6,750rpm
Fuel economy: 19.6L / 100km
Aayan%E2%80%99s%20records
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A cheaper choice
Vanuatu: $130,000
Why on earth pick Vanuatu? Easy. The South Pacific country has no income tax, wealth tax, capital gains or inheritance tax. And in 2015, when it was hit by Cyclone Pam, it signed an agreement with the EU that gave it some serious passport power.
Cost: A minimum investment of $130,000 for a family of up to four, plus $25,000 in fees.
Criteria: Applicants must have a minimum net worth of $250,000. The process take six to eight weeks, after which the investor must travel to Vanuatu or Hong Kong to take the oath of allegiance. Citizenship and passport are normally provided on the same day.
Benefits: No tax, no restrictions on dual citizenship, no requirement to visit or reside to retain a passport. Visa-free access to 129 countries.
ZAYED SUSTAINABILITY PRIZE
Brighton 1
Gross (50' pen)
Tottenham 1
Kane (48)
'Manmarziyaan' (Colour Yellow Productions, Phantom Films)
Director: Anurag Kashyap
Cast: Abhishek Bachchan, Taapsee Pannu, Vicky Kaushal
Rating: 3.5/5
SPECS
%3Cp%3EEngine%3A%20Supercharged%203.5-litre%20V6%0D%3Cbr%3EPower%3A%20400hp%0D%3Cbr%3ETorque%3A%20430Nm%0D%3Cbr%3EOn%20sale%3A%20Now%0D%3Cbr%3EPrice%3A%20From%20Dh450%2C000%0D%3Cbr%3E%3C%2Fp%3E%0A
The specs: 2018 Nissan 370Z Nismo
The specs: 2018 Nissan 370Z Nismo
Price, base / as tested: Dh182,178
Engine: 3.7-litre V6
Power: 350hp @ 7,400rpm
Torque: 374Nm @ 5,200rpm
Transmission: Seven-speed automatic
Fuel consumption, combined: 10.5L / 100km
Company Fact Box
Company name/date started: Abwaab Technologies / September 2019
Founders: Hamdi Tabbaa, co-founder and CEO. Hussein Alsarabi, co-founder and CTO
Based: Amman, Jordan
Sector: Education Technology
Size (employees/revenue): Total team size: 65. Full-time employees: 25. Revenue undisclosed
Stage: early-stage startup
Investors: Adam Tech Ventures, Endure Capital, Equitrust, the World Bank-backed Innovative Startups SMEs Fund, a London investment fund, a number of former and current executives from Uber and Netflix, among others.
Islamophobia definition
A widely accepted definition was made by the All Party Parliamentary Group on British Muslims in 2019: “Islamophobia is rooted in racism and is a type of racism that targets expressions of Muslimness or perceived Muslimness.” It further defines it as “inciting hatred or violence against Muslims”.
Results
6.30pm: Maiden Dh165,000 (Dirt) 1,600m
Winner: Celtic Prince, David Liska (jockey), Rashed Bouresly (trainer).
7.05pm: Conditions Dh240,000 (D) 1,600m
Winner: Commanding, Richard Mullen, Satish Seemar.
7.40pm: Handicap Dh190,000 (D) 2,000m
Winner: Grand Argentier, Pat Dobbs, Doug Watson.
8.15pm: Handicap Dh170,000 (D) 2,200m
Winner: Arch Gold, Sam Hitchcott, Doug Watson.
8.50pm: The Entisar Listed Dh265,000 (D) 2,000m
Winner: Military Law, Antonio Fresu, Musabah Al Muhairi.
9.25pm: The Garhoud Sprint Listed Dh265,000 (D) 1,200m
Winner: Ibn Malik, Dane O’Neill, Musabah Al Muhairi.
10pm: Handicap Dh185,000 (D) 1,400m
Winner: Midnight Sands, Pat Dobbs, Doug Watson.
WHAT ARE NFTs?
Non-fungible tokens (NFTs) are tokens that represent ownership of unique items. They allow the tokenisation of things such as art, collectibles and even real estate.
An NFT can have only one official owner at one time. And since they're minted and secured on the Ethereum blockchain, no one can modify the record of ownership, not even copy-paste it into a new one.
This means NFTs are not interchangeable and cannot be exchanged with other items. In contrast, fungible items, such as fiat currencies, can be exchanged because their value defines them rather than their unique properties.
The currency conundrum
Russ Mould, investment director at online trading platform AJ Bell, says almost every major currency has challenges right now. “The US has a huge budget deficit, the euro faces political friction and poor growth, sterling is bogged down by Brexit, China’s renminbi is hit by debt fears while slowing Chinese growth is hurting commodity exporters like Australia and Canada.”
Most countries now actively want a weak currency to make their exports more competitive. “China seems happy to let the renminbi drift lower, the Swiss are still running quantitative easing at full tilt and central bankers everywhere are actively talking down their currencies or offering only limited support," says Mr Mould.
This is a race to the bottom, and everybody wants to be a winner.
