Stated energy transition goals Energy policy priorities Reduce emissions by 31% by 2030 Achieve 50% share of clean energy Create a conducive environment compared to business as usual (renewables and nuclear) in the for industries of the future, Achieve net-zero emissions by 2050 installed power capacity mix by 2050 including hydrogen Reduce energy demand in the transport, building and industrial sectors by 40% by 2050 The UAE launched the National Water and Energy Country analysis Demand Management Programme in 2022 “to improve the energy ef昀椀ciency of the three most Key progress on ETI energy-intensive sectors in the country, namely transport, industry and construction, by 40% in The United Arab Emirates (UAE), a major oil and 2050. It will launch several initiatives to cut energy gas producer and exporter, ranks 63 out of 120 demand by 40%, to raise the share of renewables countries on the ETI 2023. Over the last 10 years, in the energy mix to 50% and to boost water reuse 109 the UAE’s ETI score has 昀氀uctuated, mainly due to by 95%”. Newly implemented building codes and the transition readiness dimension, but the overall regulations require certain energy standards to be trend suggests a gradual strengthening of the met, such as the use of energy-ef昀椀cient appliances enabling environment for the energy transition. The and equipment. The Emirates Energy Ef昀椀ciency UAE performs strongly on regulation and political Strategy will retro昀椀t 30,000 existing buildings in Dubai 110 commitment, which remains a critical enabler of the by 2030, abating 1 million tonnes of CO . The UAE 2 energy transition. In addition, progress on system is also promoting public transport, alternative fuels performance remains strong, although progress and electric vehicles, with the intention of having 111 within the sustainable dimension is slowing. Further 42,000 electric vehicles by 2030. A carbon trading improvements can be unlocked by targeting a exchange and carbon clearing house was announced reduction in energy intensity as well as carbon in Abu Dhabi in 2022 to attract investment in carbon intensity of the energy mix. emissions reduction by allowing companies to trade and 昀椀nance carbon credits. The revenue generated Key imperatives and policies in place from the carbon pricing system will be used to support renewable energy and energy ef昀椀ciency The UAE has invested $40 billion in clean energy in projects. The UAE has also invested $2 billion in 102 112 the past 15 years, which translates into signi昀椀cant new desalination plants; these are highly energy strides to promote renewable sources of energy. intensive, however, and contribute to GHG emissions, More than $160 billion is expected to be invested which in turn drives the need for more clean energy. 103 to achieve net zero by 2050, which will see the UAE continue to shift its energy mix towards What’s next? renewables, reduce GHG emissions and improve energy ef昀椀ciency across sectors. The national The energy sector has been an important enabler Renewable Energy Strategy 2050 was launched of economic development and growth in the UAE, in 2017 to increase the share of renewables in the accounting for approximately a third of its GDP. 104 The country total energy mix to 50% by 2050. Like other major exporting nations, the UAE has has made signi昀椀cant progress towards achieving traditionally relied on its oil and gas resources to fuel this target by investing heavily in renewable energy its economy, but as the world transitions towards projects and is home to one of the world’s largest cleaner energy sources, demand for fossil fuels will single-site solar power plants, the Mohammed decline over time. The cost of UAE’s renewables bin Rashid Al Maktoum Solar Park, covering 76 has been decreasing rapidly in recent years, making 2 km.The solar park currently generates 1.63 GW them increasingly competitive with fossil fuels. This and offsets roughly 1.4 million tonnes of CO provides an opportunity for the UAE to diversify 2 emissions every year, and its capacity will expand its energy exports to include cheap renewable to 5 GW by 2030.105,106 The Abu Dhabi National Oil energy, clean technology and services to ensure it Company also announced a $3.1 billion investment maintains its position as a leading energy exporter to explore and implement carbon capture and while also supporting its own energy transition storage technology in its operations, seeking to goals. The UAE’s natural resource endowment, 107 capture 5 million tonnes of CO annually by 2030. legacy energy infrastructure and availability of 2 While the net results of these efforts are re昀氀ected skilled labour, due to investment in education and in UAE’s high ETI scores on regulation and political training programmes (up 30% over the decade), commitment and decarbonized energy, much position it favourably in the new energy landscape more remains to be done to reduce the UAE’s high and provide a reference point for countries at 108 emissions per capita globally. similar levels of clean energy development. Fostering Effective Energy Transition: 2023 Edition 54