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If you look at the track record of the annual Conference of the Parties (COP) to the United Nations Framework Convention on Climate Change (UNFCC), you can probably say that the COP is not known for being a technology showcase or a startup. To the extent that they lack policy debate and political commitment, there is a need to support the effort. No one who is surprised by the ancillary deals and compromises in the UNFCCC process has been paying attention since 1992.
However, the latest edition of the COP, to be held in the UAE in 2023, highlights the focus on entrepreneurs and how innovation can help us explore solutions to climate change. They may differ slightly in terms of whether they are the means that need to be utilized. With the exponential growth in energy technology, the goal of limiting global warming to 2 degrees Celsius, if not 1.5 degrees Celsius, is always on the horizon. However, you should be careful about the reliability of these solutions.
Promoting entrepreneurial solutions goes against some people’s preconceptions that the United Arab Emirates (UAE), host of COP28, is an oil-rich, relatively small economy. It may seem like that. According to London-based think tank Carbon Tracker, the company is punching above its weight in the region’s energy transition, although it has not yet done enough. For example, the UAE updated its energy strategy earlier this year to triple the share of renewable energy by 2030, a position it took at the COP and which many other countries now support. There is. In fact, the UAE expects that by 2025, 55% of Abu Dhabi’s electricity will come from clean sources.
The UAE is changing. Located at the crossroads of Africa, Asia, and Europe, it is also a global investment hub, and is home to many companies from large companies to small and medium-sized enterprises in various industries, and has a wealth of capital. In this way, the UAE participated in Africa Climate Week last September and was able to mobilize over US$4 billion for clean energy on the African continent. Western countries did no such thing. Having never worked in a Gulf state before, I see similarities with the can-do culture of Silicon Valley, where he ran the California Clean Energy Fund for nearly a decade.
Related: Sustainable Finance: Here’s how startups can succeed in the UAE and GCC region’s emerging green economies
A shot of the Mohammed bin Rashid Al Maktoum Solar Park, the world’s largest single-site solar power plant.
It’s interesting to think about California at the beginning of the last century. California, like her UAE, was a major oil producer in the world. If you asked someone who was there in 1923 if they thought they would be champions of a 100% renewable future, including the destruction of electrification of cars powered by internal combustion engines, I don’t think they would. But by fostering a culture of innovation and collaboration, California has led the world in several new industries for decades. The UAE seems to understand this strategy, and its current leaders believe that the last barrel of oil will soon be shipped, and the big question we are all fighting over is how quickly. It has been confirmed that it will be shipped.
Given the recent surge in investment in U.S. oil and gas production and exports, it is in the interests of U.S. multinationals to delay the introduction of renewable energy compared to state oil companies in the Middle East. The International Energy Agency’s scenario predicts that if the world moves beyond the “announced policy scenario” to “net-zero emissions” by 2050, North America’s share of export sales will go from a high figure of 20% to much more. suggests a small number of 20%. Meanwhile, state-run oil companies in the Middle East have a much smaller market share of around 40% to 60%. Therefore, it is unclear who will become the true champions of the move away from oil in the future. The truth is, no one is doing enough yet.
Of course the evidence will come out, but there is a lot going on right now among some of the biggest companies in the UAE. Earlier this year, Emirates Global Aluminum (EGA) launched a green supply chain program and also purchased clean energy certificates for 1.1 million megawatt hours of electricity to produce 80,000 tonnes of solar-powered aluminum. Greenhouse gas emissions from aluminum production have not been sufficiently reduced, but this is one of the ‘hard to reduce’ sectors that we must repeatedly do. Innovating along such complex supply chains (EGA has 3,000 vendors) is a lot of work we still have to do in the energy transition.
Related: What is our climate legacy? Ask a female entrepreneur.
Danny Kennedy is CEO of New Energy Nexus (NEX), the world’s leading ecosystem of funds and accelerators supporting clean energy entrepreneurs.
What is clear is that the UAE has been building financial and other infrastructure for startups and innovators as it transitions to a more diversified economy. I participated in Abu Dhabi Finance Week for a while before the COP. Abu Dhabi Finance Week is an annual gathering of investors, family offices and directors from across the Gulf who value environmental, social and governance (ESG) principles. value. I am convinced that this country has fertile ground for the growth of new technologies and businesses. That is why at New Energy Nexus, as part of a program we have been running this year with the COP28 Secretariat and the Abu Dhabi Investment Office (ADIO), he is bringing 50 climate tech founders to his UAE during COP28. Ta.
We have known some of these climate tech startups for years, like AltoTech, which is introducing smart controls to air conditioning loads in Thailand. Some companies, such as ZED Motors and Mobility for Africa, are joining the new wave of two-wheeled e-mobility sweeping Africa. With the help of our COP28 partners, we were able to introduce these startups to all kinds of regulators, decision makers and investors, and connect them with more resources, partners and potential customers. There may be many other connections with opportunities. First, he will be attending the Student Energy Summit in Abu Dhabi, which will be attended by nearly 1,000 undergraduate engineers and others. They represent key talent in innovative companies.
From this one-off program, we aim to build an ongoing support engine for climate startups in the UAE in collaboration with Hub71, the country’s leading technology startup support organization. We unapologetically take advantage of the fact that the UAE is a great place for startups to find the capital, mentors, partners and customers they need to succeed. If half of the companies we bring here can enter the regional market and open sales channels to regional countries, the world will be a better place.
ADIO is also playing an active role in supporting the UAE’s sustainability efforts, partnering with the Abu Dhabi Department of Energy (DoE) and Abu Dhabi Future Energy Company PJSC – Masdar to accelerate Abu Dhabi’s hydrogen economy. An agreement was also signed. , and positions the UAE as a global leader in the production and export of low-carbon hydrogen. This follows Abu Dhabi’s recently launched low-carbon hydrogen policy, which creates a framework to accelerate production on a larger scale.
One thing we’ve learned over 20 years of building entrepreneurial support ecosystems in 12 countries is that great ideas and talk aren’t enough. Creating a virtuous cycle around an idea requires capital, talent, and demand. The UAE has all these and announced them through the COP last year. Let’s wait and see. There is no doubt that it will never be enough in the face of the climate crisis, but we are sowing the fields to see just some of the solutions we need to harvest in the coming years. .
Related: Transformative action: The key role creative industries can play in realizing the GCC’s climate change agenda
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