Global investment in renewable energy must more than triple in the next six years to meet the 11,000-gigawatt capacity target by 2030 needed to keep 1.5°C within reach, Dr Sultan Al Jaber, Minister of Industry and Advanced Technology, and Cop28 President, said on Tuesday.
Tripling renewable energy capacity by 2030 was one of the key outcomes of the UAE Consensus, adopted at Cop28, with the aim of advancing global climate goals and promoting sustainable development.
“Tripling renewable capacity is not just a benchmark, it is an essential enabler of all global efforts to keep 1.5°C within reach, advance sustainable prosperity and leave no one behind,” Dr Al Jaber told the Global Renewables Summit, held on the sidelines of the 79th UN General Assembly in New York City.
While renewable energy has expanded eightfold in two decades and costs have plummeted more than 80 per cent, the pace of change is still not adequate, Dr Al Jaber said.
“The average levellised cost of solar power just reached a new low of 4 cents per kilowatt hour, basically cheaper than any other form of energy available today … the trends are moving in the right direction, they just aren’t moving fast enough,” he said.
The UAE Cop28 presidency has a signed a partnership with the hosts of the next two climate conferences, Azerbaijan and Brazil, to help keep the crucial climate goal of a global average rise in temperature of no more than 1.5ºC above pre-industrial levels within reach.
The Cop presidencies troika aims to boost co-operation and ensure continuity between the hosts of the annual climate talks in what is being called “mission 1.5ºC”.
Dr Al Jaber called for major investment in grid infrastructure, artificial intelligence and the Global South, while urging governments to include renewable targets in climate plans and incentivise private-sector investment.
While tapping into the private sector is critical, “investors need to know that their projects will have a viable grid to plug into, in a viable timeline”, said Dr Al Jaber. Grid infrastructure in many industrialised countries is more than 60 years old, while in many parts of the Global South there are no grids at all.
Grid investment must increase to $820 billion annually by 2030, doubling current levels to support the growth of renewable energy, the International Energy Agency has reported.
Meanwhile, governments “must step up” and include specific renewable energy and infrastructure targets in their next Nationally Determined Contributions (NDCs), Dr Al Jaber said. NDCs are climate action plans that individual countries develop and submit to outline their commitments to reduce greenhouse gas emissions and adapt to climate impacts.
“In too many places, the pace of permitting is like driving with the handbrake on, when we need to be accelerating down the highway,” Dr Al Jaber said.
The official also called for more inclusive growth. About 120 developing countries currently attract less than 15 per cent of global renewable energy investment, Dr Al Jaber said. He called on international financial institutions to make funding more widely available, accessible and affordable, and for private finance to be incentivised through blended models.
Alterra, the UAE's $30 billion climate fund launched during Cop28, aims to raise $250 billion globally in the next six years to create a fairer climate finance system. It has already deployed $6.5 billion with investors in projects with a combined portfolio of 40 gigawatts.
On Monday, Texas-based TPG announced it had secured $1.3 billion in initial commitments for its Global South Initiative (GSI), aimed at attracting large-scale institutional capital by offering better returns to boost private equity investment in "high-growth climate opportunities".
TPG and Alterra launched GSI at Cop28, targeting $2.5 billion in total capital commitment.
“There is much more to do to fill the power development gap in the Global South … and I would encourage all parties to explore all solutions in collaboration with like-minded partners," Dr Al Jaber said.
Declaring that “business as usual simply will not work”, he called for a “new model of engagement that drives public and private partnership to a new level”.
Technology will also play a key role to support the sector. AI and other advanced technology can help overcome key challenges in renewable energy, such as intermittency and storage, by making grids smarter and optimising energy usage, Dr Al Jaber told the summit.
Predictive maintenance powered by AI could extend battery life, improve transmission infrastructure and enhance storage capacity.
However, widespread adoption of such technology in the energy sector is still in its early stages, particularly in regions where infrastructure remains underdeveloped. “The faster we invest in and apply AI to the energy sector, the faster its benefits can be scaled," he said.
EU Commission President Ursula von der Leyen met Dr Al Jaber and thanked him for hosting Cop28 and said they discussed ways to deepen EU-UAE ties.
The studios taking part (so far)
- Punch
- Vogue Fitness
- Sweat
- Bodytree Studio
- The Hot House
- The Room
- Inspire Sports (Ladies Only)
- Cryo
So what is Spicy Chickenjoy?
Just as McDonald’s has the Big Mac, Jollibee has Spicy Chickenjoy – a piece of fried chicken that’s crispy and spicy on the outside and comes with a side of spaghetti, all covered in tomato sauce and topped with sausage slices and ground beef. It sounds like a recipe that a child would come up with, but perhaps that’s the point – a flavourbomb combination of cheap comfort foods. Chickenjoy is Jollibee’s best-selling product in every country in which it has a presence.
The five pillars of Islam
1. Fasting
2. Prayer
3. Hajj
4. Shahada
5. Zakat
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.”
UAE currency: the story behind the money in your pockets
Labour dispute
The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.
- Abdullah Ishnaneh, Partner, BSA Law
How to watch Ireland v Pakistan in UAE
When: The one-off Test starts on Friday, May 11
What time: Each day’s play is scheduled to start at 2pm UAE time.
TV: The match will be broadcast on OSN Sports Cricket HD. Subscribers to the channel can also stream the action live on OSN Play.
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