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How Oil Rich UAE may become The First Petrostate go Net-Zero

Hypercars whiffing away at super-fast speeds across 18-lane highways amidst ginormous glass skyscrapers and uber-luxury malls set against the backdrop of gleaming desert dunes is the portrait painted of Dubai and Abu Dhabi by the oil-backed economy of the United Arab Emirates. The pretty picture that boasts opulence and luxury does little in the way of sustainability. Supercars run on gas-thirsty V8 or W16 engines and glass towers demand insane amounts of energy to keep them cool in UAE’s scorching heat which often crosses 50 degrees Celsius! The very thing that has enabled the incredible growth of this state, oil, stands as the greatest threat to its sustainability goals. The leadership of UAE, however, understands that in order to stay relevant in an emission-free world, zero is the way to go. Thus, UAE is expected to announce its 2050 Net Zero target ahead of the COP26 climate summit at Glasgow in November.

Current state of affairs

The UAE is projected to produce close to 200 million metric tons of CO2 in the year 2021.Per capita emissions figures near 20 tonnes and that’s one of the highest in the world. For perspective, Afghanistan, a developing nation has a per capita emissions value of 0.2 tonnes, and the US which is one of the biggest emitters in the world has a per capita emissions figure of 15. According to the Climate Action Tracker, an independent institution that tracks the effectiveness of climate policies on a global scale, the United Arab Emirates climate action has a rating of ‘Highly Insufficient’.

The UAE has implemented several projects with the aim of limiting Greenhouse Gas emissions. A number of solar park projects have been set up and the government has also invested significantly in nuclear power. The Al Dhafra Solar power plant in Abu Dhabi is set to become the largest solar power plant in the world. UAE Energy strategy 2050 aims to increase the total contribution of renewable energy to 50% of the nation’s needs. The government has also taken steps to improve the efficiency of its building sector (one of its biggest emitters), through green building mandates. Energy service companies in the region also take up substantial projects to improve building energy efficiency. As commendable as these efforts are, they are still inadequate considering the global goal of limiting global warming to 1.5 degrees by 2050.

Electricity production is the biggest source of CO2 emissions in the country making up almost 50% of the total mix. Construction, manufacturing, and transportation sectors come next. Although demand response schemes exist, none have been fruitful as energy prices are still very cheap owing to the low prices of fuels. Consumers simply don’t have the incentive to save energy as low rates encourage unchecked consumption. In Abu Dhabi, commercial users can get electricity for as low as 5 US cents (.2 AED) per kWh. Some residential customers can get it for less than 2 cents per unit!
Even though the UAE is known for its love for cars, the EV market is still in a nascent stage in the country. While EV sales make up a very small percentage of total vehicles sales today, the potential for growth is enormous. EV policy in the country must adapt to accelerate the transition to electric cars.

Sector-wise carbon emissions in UAE

Climate summit bid-2023

The nation has launched the bid to host the UN Climate Change Conference (Cop28) in Abu Dhabi. It aims to showcase the steps it has taken to combat climate change while welcoming over 30,000 delegates. South Korea is also in the bid to host, and it has already set a net-zero goal for 2050. Putting out a net-zero target will certainly help UAE’s campaign. Besides, there is ever greater pressure to adopt clean energy policies as the west moves to green economic models.

Fine print of the target

In order to line up with the global push to reduce emissions, UAE is considering setting a target of net zero carbon by the year 2050.UAE has always been the first in the region to push ambitious goals. A move like this will persuade neighboring petrochemical states to adopt more aggressive climate targets. While a net zero declaration is a great step in the right direction, it does not solve all problems. The country will still be able to export vast amounts of oil abroad and will continue to produce fossil fuels. Country-specific targets do not include emissions produced in other nations using the oil procured from UAE.

Endnote

Current policy execution lacks the momentum required to achieve the global limit of 1.5 degrees of warming. Going net zero will involve massive shifts in the way energy is produced in the region. Fossil fuel-based electricity production will take a step back for greener alternatives. Investments will seek to utilize yet another resource that the area is abundantly blessed with, sunlight. The economy will see greater diversification, and this consequently will strengthen the political stability of the emirates.  The UAE has come a long way since the first barrel of oil was extracted. From a lifeless desert, the nation has risen to the top ranks of the world. It is time now to let go of the oil shackles and embrace a clean future.