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UAE and US Approves $100 Billion Investment Deal on Clean Energy

To develop 100 gigawatts of clean energy, the United States and the United Arab Emirates (UAE) agreed to spend $100 billion.

At the Adipec energy conference in Abu Dhabi, the parties endorsed the “Partnership for Accelerating Clean Energy” (PACE). Its four core tenets are the development of clean energy innovation and supply chains, control of carbon and methane emissions, nuclear energy, and decarbonization of industry and transportation.

“The cooperation comes within the framework of the close friendship between the UAE and the United States of America (and) affirms the commitment of both sides to work to enhance energy security and advance progress in climate action,” said the UAE government.

“Today, President Biden again demonstrated his deep commitment to ensuring a global clean energy future and long-term energy security as the United States and the United Arab Emirates (UAE) announced a robust partnership to ensure the swift and smooth transition toward clean energy and away from unabated fossil fuels,” the White House stated.

According to the American government, the agreement marks yet another significant step forward for the nation’s climate change agenda. The nations should finish the plan by 2035. The nations will then choose a professional team to manage the operations covered by the agreement.

The group’s central role is to “identify priority projects, remove potential hurdles, and measure PACE’s progress in achieving its goal of catalyzing $100 billion in the financing, investment, and other support and deploying globally 100 gigawatts of clean energy.”

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A concern for the UAE

The UAE sells enormous amounts of oil on the market. On the other hand, the UAE produces oil using non-fossil fuel energy sources, in contrast to many other countries that rely on fossil fuels. Additionally, the nation is home to the world’s largest single-site solar power plant. The COP 28 climate summit will take place in the UAE in 2023.

Sultan Al Jaber, the CEO of Abu Dhabi National Oil Company (ADNOC), said that the company desires to generate as much energy as possible while emitting the fewest amount of carbon dioxide.

“If we zero out hydrocarbon investment due to natural decline, we would lose 5 million barrels per day of oil each year from current supplies. This would make the shocks we have experienced this year feel like a minor tremor,” he added.

“It is not oil and gas, or solar, not wind or nuclear, or hydrogen. And it is oil and gas and solar, and wind and nuclear, and hydrogen. It is all of the above, plus the clean energies yet to be discovered, commercialized and deployed,” the CEO explained.

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To cut fossil fuel

The use of fossil fuels is denounced by policymakers, who add that abusing them would result in catastrophe. According to United Nations Secretary-General Antonio Guterres, countries should stop supporting and making investments in the production of energy using fossil fuels. He continued by saying that fossil fuel exploration should be strongly discouraged.

However, the decline in investments in productions unlinked to fossil fuels is the issue. As a result, investments in climate change adaptation and mitigation will also decrease, according to the United Nations Conference on Trade and Development.