The sharp rise in energy prices on the back of Russia’s military aggression in Ukraine has accelerated the push to achieve net-zero goals and invest in oil and transition fuels to ensure global energy security.
Although it is an uphill task and governments and private companies from across sectors need to rally around the cause, the world has the resources and the technology and is moving in the right direction, panellists told Bloomberg’s UAE Capital Markets Forum on Thursday.
“We have the tech, we have the capital and we have the skills, we just need to get going,” said Marco Alvera, chief executive of Italian energy infrastructure company Snam.
“The $100 [per barrel] oil and $130 gas is really putting the foot flat down on the accelerator to get to net zero faster.”
However, bottlenecks in the drive to achieve carbon neutrality come from people, materials and the evolution of technology, he said.
The panel also included Tony Douglas, group chief executive of Etihad Aviation Group, Rola Abu Manneh, chief executive of Standard Chartered Bank UAE, and Klaus Froehlich, chief investment officer at Adnoc Group.
Robust demand for crude last year drove oil prices 67 per cent higher. However, prices this year have risen sharply amid a rise in geopolitical tension, with the Ukraine conflict threatening to disrupt global energy supplies, especially to Europe.
Brent, the global benchmark for two thirds of the world's oil, which soared to a notch under $140 per barrel this month, has since given up gains amid talks between Russia and Ukraine and concerns of demand growth in China amid rising Covid-19 cases.
Brent was trading more than 8.52 per cent to $106.37 at 8.45pm UAE time on Thursday while West Texas Intermediate, the gauge that tracks US crude, was up 7.64 per cent at $102.3 a barrel.
Snam has started a $25 billion programme to start moving green hydrogen from Africa into Europe in a decade, and the “good news” is that a lot of existing infrastructure, including natural gas pipelines and storage, can be used for the cleaner fuel, Mr Alvera said.
“It will be a price-driven acceleration for green hydrogen, for renewables and for blue hydrogen in parts of the world where natural gas is very cheap.
“We will continue to need a lot of oil in the market [in the meantime] as it is clearly tight from a supply point of view and places like the Middle East with the cheapest source of oil will continue to gain market share even past a peak oil [demand point],” he said.
Mr Froehlich said both green and blue hydrogen are big on Adnoc's agenda as it continues to invest in its oil and gas output capacity to remain a reliable energy provider to global markets.
The company has “the reservoirs and technology” to produce blue hydrogen and is part of the hydrogen alliance with Abu Dhabi’s ADQ and Mubadala Investment Company, which aims to make the UAE a global hydrogen hub.
Adnoc, which has $125bn in investment plans over the five-year period to 2026, is among the few companies investing in capacity expansion.
“It is an important aspect for the transition as no one else is investing. We produce the cleanest barrels, so to speak, in the globe given our low carbon intensity,” Mr Froehlich said.
The rise in oil and commodities prices have also stoked inflation, which is clouding the global economic outlook. Slower economic momentum will make it difficult for governments to continue investing in meeting their net-zero goals, panellists said.
The $100 [per barrel] oil and $130 gas is really putting the foot flat down on the accelerator to get to net zero faster
Marco Alvera,
chief executive of Snam
About $50 trillion in incremental investments is required by 2050 to achieve net-zero goals and cut greenhouse emissions by about 51 billion tonnes per year. Much of the existing emission abatement can happen with existing technology but to accelerate the transition, investment in “breakthrough” technologies is needed.
In October, the International Monetary Fund urged the $50tn global investment funds industry to step up efforts to finance the transition to a greener economy and help mitigate the effects of climate change.
There is an increased drive in the broader Middle East and Africa region to achieve carbon neutrality goals.
The region requires about $10tn in investments “so we need to move very fast”, Ms Abu Manneh said.
Last year, the UAE, the Arab world’s second-biggest economy, became the first country in the Middle East to set a net-zero target, which it seeks to achieve by 2050. It plans to invest $160bn in clean and renewable energy sources over the next three decades.
The aviation industry, which took the “beating of all beatings” during the pandemic, needs to do a lot more to be able to achieve its net-zero goals, Mr Douglas said.
“I think now is the time for commercial aviation to do more than it has ever done before.”
Etihad is “doubling down on its sustainable agenda” and last year achieved 72 per cent carbon reduction in its flight from Heathrow to Abu Dhabi when compared to an equivalent flight in 2019.
The feat was achieved by using 38 per cent sustainable aviation fuel in the fuel mix.
However, it is difficult to repeat these achievements as sustainable fuel is not widely available and is three times more expensive than conventional fuel, he said.
“What it gives is an indication that there’s a route through this that’s going to require [support from] everybody from the policy sector, governments and regulators through to consumers as well,” Mr Douglas said.
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THE%20SPECS
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PROFILE OF HALAN
Started: November 2017
Founders: Mounir Nakhla, Ahmed Mohsen and Mohamed Aboulnaga
Based: Cairo, Egypt
Sector: transport and logistics
Size: 150 employees
Investment: approximately $8 million
Investors include: Singapore’s Battery Road Digital Holdings, Egypt’s Algebra Ventures, Uber co-founder and former CTO Oscar Salazar
Company%20Profile
%3Cp%3E%3Cstrong%3EName%3A%3C%2Fstrong%3E%20Takestep%0D%3Cbr%3E%3Cstrong%3EStarted%3A%3C%2Fstrong%3E%20March%202018%0D%3Cbr%3E%3Cstrong%3EFounders%3A%3C%2Fstrong%3E%20Mohamed%20Khashaba%2C%20Mohamed%20Abdallah%2C%20Mohamed%20Adel%20Wafiq%20and%20Ayman%20Taha%0D%3Cbr%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20Cairo%2C%20Egypt%0D%3Cbr%3E%3Cstrong%3ESector%3A%3C%2Fstrong%3E%20health%20technology%0D%3Cbr%3E%3Cstrong%3EEmployees%3A%3C%2Fstrong%3E%20%2011%20full%20time%20and%2022%20part%20time%0D%3Cbr%3E%3Cstrong%3EInvestment%20stage%3A%3C%2Fstrong%3E%20pre-Series%20A%3C%2Fp%3E%0A
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%3Cp%3E%3Cstrong%3EDirector%3A%20%3C%2Fstrong%3EBen%20Wheatley%3Cbr%3E%3Cstrong%3EStars%3A%20%3C%2Fstrong%3EJason%20Statham%2C%20Jing%20Wu%2C%20Cliff%20Curtis%2C%20Page%20Kennedy%2C%20Cliff%20Curtis%2C%20Melissanthi%20Mahut%20and%20Shuya%20Sophia%20Cai%3Cbr%3E%3Cstrong%3ERating%3A%20%3C%2Fstrong%3E2%2F5%3C%2Fp%3E%0A
COMPANY%20PROFILE
%3Cp%3E%3Cstrong%3EName%3A%20%3C%2Fstrong%3ETelr%3Cbr%3E%3Cstrong%3EBased%3A%20%3C%2Fstrong%3EDubai%2C%20UAE%3Cbr%3E%3Cstrong%3ELaunch%20year%3A%3C%2Fstrong%3E%202014%3Cbr%3E%3Cstrong%3ENumber%20of%20employees%3A%20%3C%2Fstrong%3E65%3Cbr%3E%3Cstrong%3ESector%3A%20%3C%2Fstrong%3EFinTech%20and%20payments%3Cbr%3E%3Cstrong%3EFunding%3A%20%3C%2Fstrong%3Enearly%20%2430%20million%20so%20far%3C%2Fp%3E%0A
Final results:
Open men
Australia 94 (4) beat New Zealand 48 (0)
Plate men
England 85 (3) beat India 81 (1)
Open women
Australia 121 (4) beat South Africa 52 (0)
Under 22 men
Australia 68 (2) beat New Zealand 66 (2)
Under 22 women
Australia 92 (3) beat New Zealand 54 (1)
Scores in brief:
- New Medical Centre 129-5 in 17 overs bt Zayed Cricket Academy 125-6 in 20 overs.
- William Hare Abu Dhabi Gymkhana 188-8 in 20 overs bt One Stop Tourism 184-8 in 20 overs
- Alubond Tigers 138-7 in 20 overs bt United Bank Limited 132-7 in 20 overs
- Multiplex 142-6 in 17 overs bt Xconcepts Automobili 140 all out in 20 overs
Women & Power: A Manifesto
Mary Beard
Profile Books and London Review of Books
Veil (Object Lessons)
Rafia Zakaria
Bloomsbury Academic
What the law says
Micro-retirement is not a recognised concept or employment status under Federal Decree Law No. 33 of 2021 on the Regulation of Labour Relations (as amended) (UAE Labour Law). As such, it reflects a voluntary work-life balance practice, rather than a recognised legal employment category, according to Dilini Loku, senior associate for law firm Gateley Middle East.
“Some companies may offer formal sabbatical policies or career break programmes; however, beyond such arrangements, there is no automatic right or statutory entitlement to extended breaks,” she explains.
“Any leave taken beyond statutory entitlements, such as annual leave, is typically regarded as unpaid leave in accordance with Article 33 of the UAE Labour Law. While employees may legally take unpaid leave, such requests are subject to the employer’s discretion and require approval.”
If an employee resigns to pursue micro-retirement, the employment contract is terminated, and the employer is under no legal obligation to rehire the employee in the future unless specific contractual agreements are in place (such as return-to-work arrangements), which are generally uncommon, Ms Loku adds.
Petrarch: Everywhere a Wanderer
Christopher Celenza,
Reaktion Books
World Cricket League Division 2
In Windhoek, Namibia - Top two teams qualify for the World Cup Qualifier in Zimbabwe, which starts on March 4.
UAE fixtures
Thursday February 8, v Kenya; Friday February 9, v Canada; Sunday February 11, v Nepal; Monday February 12, v Oman; Wednesday February 14, v Namibia; Thursday February 15, final
South Africa's T20 squad
Duminy (c), Behardien, Dala, De Villiers, Hendricks, Jonker, Klaasen (wkt), Miller, Morris, Paterson, Phangiso, Phehlukwayo, Shamsi, Smuts.
The specs
Engine: 3.0-litre six-cylinder turbo
Power: 398hp from 5,250rpm
Torque: 580Nm at 1,900-4,800rpm
Transmission: Eight-speed auto
Fuel economy, combined: 6.5L/100km
On sale: December
Price: From Dh330,000 (estimate)
The biog
Family: Parents and four sisters
Education: Bachelor’s degree in business management and marketing at American University of Sharjah
A self-confessed foodie, she enjoys trying out new cuisines, her current favourite is the poke superfood bowls
Likes reading: autobiographies and fiction
Favourite holiday destination: Italy
Posts information about challenges, events, runs in other emirates on the group's Instagram account @Anagowrunning
Has created a database of Emirati and GCC sportspeople on Instagram @abeermk, highlight: Athletes
Apart from training, also talks to women about nutrition, healthy lifestyle, diabetes, cholesterol, blood pressure
How to get there
Emirates (www.emirates.com) flies directly to Hanoi, Vietnam, with fares starting from around Dh2,725 return, while Etihad (www.etihad.com) fares cost about Dh2,213 return with a stop. Chuong is 25 kilometres south of Hanoi.
'Lost in Space'
Creators: Matt Sazama, Burk Sharpless, Irwin Allen
Stars: Molly Parker, Toby Stephens, Maxwell Jenkins
Rating: 4/5
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RESULTS
5pm: Wathba Stallions Cup – Maiden (PA) Dh70,000 (Dirt) 1,400m
Winner: Yas Xmnsor, Sean Kirrane (jockey), Khalifa Al Neyadi (trainer)
5.30pm: Falaj Hazza – Handicap (PA) Dh70,000 (D) 1,600m
Winner: Arim W’Rsan, Dane O’Neill, Jaci Wickham
6pm: Al Basrah – Maiden (PA) Dh70,000 (D) 1,800m
Winner: Kalifano De Ghazal, Abdul Aziz Al Balushi, Helal Al Alawi
6.30pm: Oud Al Touba – Handicap (PA) Dh70,000 (D) 1,800m
Winner: Pharitz Oubai, Sean Kirrane, Ibrahim Al Hadhrami
7pm: Sieh bin Amaar – Conditions (PA) Dh80,000 (D) 1,800m
Winner: Oxord, Richard Mullen, Abdalla Al Hammadi
7.30pm: Jebel Hafeet – Conditions (PA) Dh85,000 (D) 2,000m
Winner: AF Ramz, Sean Kirrane, Khalifa Al Neyadi
8pm: Al Saad – Handicap (TB) Dh70,000 (D) 2,000m
Winner: Sea Skimmer, Gabriele Malune, Kareem Ramadan
Results
5pm: Reem Island – Conditions (PA) Dh80,000 (Turf) 1,600m; Winner: Farasah, Antonio Fresu (jockey), Musabah Al Muhairi
5.30pm: Sir Baniyas Island – Maiden (PA) Dh80,000 (T) 1,400m; Winner: SSR Ghazwan, Antonio Fresu, Ibrahim Al Hadhrami
6pm: Wathba Stallions Cup – Handicap (PA) Dh70,000 (T) 1,400m; Winner: Astral Del Sol, Sean Kirrane, Ibrahim Al Hadhrami
6.30pm: Al Maryah Island – Maiden (PA) Dh80,000 (T) 2,200m; Winner: Toumadher, Dane O’Neill, Jaber Bittar
7pm: Yas Island – Handicap (PA) Dh80,000 (T) 2,200m; Winner: AF Mukhrej, Tadhg O’Shea, Ernst Oertel
7.30pm: Saadiyat Island – Handicap (TB) Dh80,000 (T) 2,400m; Winner: Celestial Spheres, Gary Sanchez, Ismail Mohammed
The specs
Engine: 2.0-litre four-cylinder turbo
Power: 268hp at 5,600rpm
Torque: 380Nm at 4,800rpm
Transmission: CVT auto
Fuel consumption: 9.5L/100km
On sale: now
Price: from Dh195,000
Moonfall
Director: Rolan Emmerich
Stars: Patrick Wilson, Halle Berry
Rating: 3/5
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Stage result
1. Jasper Philipsen (Bel) Alpecin-Fenix 4:42:34
2. Sam Bennett (Irl) Bora-Hansgrohe
3. Elia Viviani (Ita) Ineos Grenadiers
4. Dylan Groenewegen (Ned) BikeExchange-Jayco
5. Emils Liepins (Lat) Trek-Segafredo
6. Arnaud Demare (Fra) Groupama-FDJ
7. Max Kanter (Ger) Movistar Team
8. Olav Kooij (Ned) Jumbo-Visma
9. Tom Devriendt (Bel) Intermarché-Wanty-Gobert Matériaux
10. Pascal Ackermann (Ger) UAE Team Emirate
Family reunited
Nazanin Zaghari-Ratcliffe was born and raised in Tehran and studied English literature before working as a translator in the relief effort for the Japanese International Co-operation Agency in 2003.
She moved to the International Federation of Red Cross and Red Crescent Societies before moving to the World Health Organisation as a communications officer.
She came to the UK in 2007 after securing a scholarship at London Metropolitan University to study a master's in communication management and met her future husband through mutual friends a month later.
The couple were married in August 2009 in Winchester and their daughter was born in June 2014.
She was held in her native country a year later.
