TRENDS Research and Advisory and Rabdan Academy, discussed the challenges and opportunities of financing the energy transition in the Middle East. The two institutions held a joint symposium, organized with the participation of a number of academics and experts.
In three working sessions, speakers emphasized the importance of financing the region's energy transition to achieve its renewable energy goals. They said the region faces significant challenges in this area, such as the high cost of renewable energy and political and economic instability.
They explained that the region also has many opportunities in financing the energy transition, such as the availability of natural resources for renewable energy, and the growth of demand for renewable energy.
On the need to finance the energy transition in the region, the symposium recommended the need to increase cooperation between the public and private sectors and develop new tools and technologies to finance green projects. They explained that the establishment of the Loss and Damage Fund is a crucial step to address the effects of climate change, despite the significant challenges it faces.
Speakers at the symposium stressed that financing the energy transition in the Middle East is critical to achieving the region's renewable energy goals. By addressing challenges and seizing opportunities, they said, the region can transform into a sustainable green economy.
Towards a more sustainable future
TRENDS researcher Alanoud Al-Hosani moderated the first session entitled "The General Context of the COP-28", noting that climate change and extreme weather around the world wrought increasing havoc at the global and local levels. This has led to emerging threats, in addition to widespread and continuous economic damage, social unrest. She indicated that this theme explores the regional and international context of COP28.
The session began with a working paper by Dr. Serhat Gubukçoğlu, Senior Researcher at TRENDS Research and Advisory, who pointed out that the world faces challenges in establishing a climate loss and damage fund. Countries differed in their interpretation of the Loss and Damage Fund and in what they prioritized, particularly with regard to the details of where the funds would come from and how they would be distributed. There are also little funds made available so far.
Some countries, such as the United States, want to cover only "low-impact" disasters, such as desertification or the sinking of islands due to the rising sea levels, while climate advocacy organizations are demanding a broader framework. Negotiations reportedly did not progress significantly at the UN General Assembly at the end of September.
Dr. Sarhat suggested some potential solutions to establish a loss and damage fund, such as increasing the contributions of major countries, imposing a tax on the windfall profits of fossil fuel companies, imposing small fees on international flights, and imposing a global tax on money market transactions.
Dr. Gena Serhal, researcher at TRENDS in Dubai, said that the Paris climate agreement aims to keep the rise in average global temperature below 2 degrees Celsius, preferably no more than 1.5 degrees Celsius. She said that significant progress has been made in the renewable energy sector, but greenhouse gas emissions are not falling as fast as required to achieve the goals of the Paris Agreement.
Climate impacts, such as extreme weather events and rising sea levels, are having a real impact around the world, undermining everything from individual livelihoods to national security and military readiness.
Vital role
The second session, moderated by TRENDS researcher Moza Al Marzouqi, dealt with the topic of "Energy Transition, Decarbonization Economics and Energy Security." Dr. Vlado Vivoda, Assistant Professor at Rabdan Academy, explained in a his paper entitled "The Role of Important Metals in the Energy Transition" that the global energy transition, represented by the shift from fossil fuels to renewable energy sources. This confirms the vital role of important metals, such as lithium, cobalt and rare earth elements, noting that these metals are essential components of technologies, such as batteries, solar panels, and windmills.
As countries pursue their climate goals and enhance energy security, demand for these minerals is rising, which highlighted potential weaknesses in their supply chains.
Dr. Vlado said that the interaction between the energy transition and ensuring uninterruptible energy supply (energy security), the availability and sustainable extraction of important minerals forms a complex link that underscores the importance of understanding this interrelationship of public policies, to ensure a smooth, safe and sustainable transition to a low-carbon future.
Stephen Scalet, an expert at TRENDS Research and Advisory, believes that the transition to clean energy creates significant economic opportunities. He noted that the transition to clean energy represents a "major economic transformation" that will lead to new growth in sectors, such as clean energy manufacturing, energy efficiency, renewable energy and electric vehicles, and create new employment opportunities in these sectors.
He explained that the clean energy manufacturing market is expected to more than triple by 2030, creating new opportunities in the manufacture of solar panels, wind turbines, fuel cells and other clean energy technologies.
Improving energy efficiency will save businesses money and create new opportunities in sectors such as construction and services. Renewable energy projects, such as wind and solar farms, can create jobs in construction, operations and maintenance, he explained. They also provide a clean and reliable source of energy for communities and businesses.
Dr. Scalet concluded that the transition to clean energy represents a great economic opportunity, which can lead to new growth in the economy and create new jobs.
Professor Martin Spraggon-Hernandez., Director of Research Partnerships at Rabdan Academy, said that the Middle East, which has historically been a global hub for hydrocarbon reserves and energy production, is at a turning point, as the world moves towards decarbonization and net zero emissions to combat climate change. He indicated that the region is recalibrating its growth model to align with global sustainability goals, by adopting renewable energy, especially solar and wind energy, benefiting from technological innovation, and diversifying economies.
This transformation not only promises to reduce the region's carbon footprint, but also puts the Middle East in a position to achieve sustainable economic growth in a zero-carbon world.
Innovation & Strategies
The third session, moderated by TRENDS researcher Sultan Al-Rubaie, dealt with the theme of transforming climate finance and activating losses and damages. Dr. Mohamed Hossam Helmy, Assistant Professor at Rabdan Academy, explained in a paper entitled "The Development and Future of Climate Finance" that the region has many opportunities in the field of financing the energy transition, such as the availability of natural resources for renewable energy. He referred to the growth of demand for renewable energy and the evolution and future of climate finance, focusing on innovative strategies to drive sustainable change. Dr. Mohamed Hossam explained the transformative approach, which reshapes financial structures to address climate challenges. Climate finance plays a crucial role in enabling the transition to a low-carbon economy and helping communities adapt to the effects of climate change, he said. He indicated that the Financial Services Regulatory Authority is developing an appropriate regulatory framework for investing in renewable energy in the region.
Nick Green, Senior Policy Manager at the Financial Services Regulatory Authority (ADGM), delivered a presentation entitled 'Financing the Energy Transition'. He outlined innovative financing mechanisms for the energy transition and alternative strategies to support sustainable energy endeavors and enhance resilience to climate change.
He highlighted the financial tools in which renewable energy projects and the development of clean energy technologies can be supported in order to accelerate the transition to clean energy.
The seminar was introduced and concluded by the specialist in the Conference Management Department, Alaa Ibrahim.
©2024 Trends Research & Advisory, All Rights Reserved.
