US and UAE partner to mobilise $100bn for 'clean energy' deal
The United States has partnered with the United Arab Emirates to "catalyse" $100b to accelerate the transition to clean energy, the White House announced on Tuesday.
The partnership will look to develop 100 gigawatts of clean energy by 2035.
The deal, titled, "Partnership for Accelerating Clean Energy" (Pace), in which the two governments signed a memorandum of understanding in Abu Dhabi during the Adipec energy conference, will consist of four pillars which include the development of clean energy innovation and supply chains; managing carbon and methane emissions; nuclear energy; and industrial and transport decarbonisation.
In a statement, the White House said both the US and UAE were “taking a bold step toward the resilient, affordable clean energy future the world needs”.
Through Pace, the “scalable development” of low-emission energy sources will be emphasised, the White House said.
“The President appreciates the hard work by both countries to negotiate this important framework,” the statement read. “This is just the latest demonstration of the deep strategic relationship our countries share, and of the broader US commitment to promoting economic prosperity, security, and stability in the Middle East region.”
The money will be raised through "clean energy financing in both countries as well as robust commercial investment and other support for the emerging economies whose clean development is both underfunded and essential to the global climate effort."
At the Adipec conference on Monday, Sultan Al Jaber, the CEO of Abu Dhabi National Oil Company (Adnoc), said that energy is a top priority for everyone, but under-investment in oil and gas production has made the situation worse.
“If we zero out hydrocarbon investment, due to natural decline, we would lose five million barrels per day of oil each year from current supplies,” he said in his speech. “This would make the shocks we have experienced this year feel like a minor tremor.”
Back in September, the UAE agreed to an "energy security" deal with Germany to supply liquefied natural gas (LNG) and diesel, as Berlin searches for new power sources to replace Russian supplies.
As part of the deal, the UAE will provide "an LNG cargo for delivery in late 2022, to be used in the commissioning of Germany's floating LNG import terminal at Brunsbuettel", a North Sea port, the UAE's state news agency WAM report said.
Adnoc completed its first-ever direct diesel delivery to Germany in September and will "supply up to 250,000 tonnes of diesel per month in 2023", it said.
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