The MENA region is highly dependent on fossil fuels, accounting for 36% of global oil production and 20% of global gas production in 2018.

Fossil fuels cause environmental and social problems and some analyses project global depletion between about 2052 and 2060 under current trends.

IRENA estimated that MENA could generate more than 60% of its electricity from renewable sources by 2030.

The UAE targets a 50% share of clean energy by 2050 and hosts projects such as Shams 1, the Mohammed bin Rashid Al Maktoum Solar Park, and Masdar City.

The UAE also announced an intent to invest up to AED 200 billion in renewable energy and launched a AED 4 billion renewable plant in Dubai alongside the world’s largest waste-to-energy plant.

Morocco aims for 52% of electricity from renewables by 2030 and has the Noor Ouarzazate concentrated solar power complex; its wind capacity exceeded 1.2 GW as of 2019.

Egypt aims for 42% renewable electricity by 2035 and is developing large projects including the Benban Solar Park and the Zafarana Wind Farm.

Countries including Jordan, Saudi Arabia, Oman and others are pursuing renewables to diversify economies and reduce dependence on oil revenues.

Common barriers cited include policy and regulatory gaps, financing and investment challenges, grid planning and storage limitations, public awareness, and the need for regional cooperation.

Cities in the region are adopting measures such as green building regulations and using solar to power large buildings, exemplified by Dubai.

Middle Eastern governments and cities are scaling solar and other renewables through high-profile national projects, investment pledges and targets to diversify oil-dependent economies and meet climate goals, but they still face regulatory, financing and grid challenges.

The MENA region is highly dependent on fossil fuels, accounting for 36% of global oil production and 20% of global gas production in 2018.

Title:

Content: Fossil fuels, which have powered the industrial growth and development of civilisations for centuries, are facing a looming deadline of depletion. Moreover, they have caused severe environmental and social problems, such as climate change, conflicts, and pollution. The need for alternative and sustainable energy sources is clear and urgent. However, the transition to a post-fossil fuel era is not easy or straightforward. It requires innovation, investment, cooperation, and vision.

This article explores the challenges and opportunities of global energy transformation, focusing on the dual nature of fossil fuels, the countdown to their exhaustion, and the promise of renewable energy sources. It also highlights the progress and potential of some countries in the Middle East and North Africa (MENA) region, which is one of the most dependent regions on fossil fuels in the world.

Fossil Fuels: A Double-Edged Sword

Fossil fuels, comprising oil, coal, and natural gas, are ancient energy sources that have been central to the development of various industries and sectors. They have enhanced transportation, manufacturing, agriculture, and electricity generation. They have catalysed global trade, commerce, and innovation, elevating the quality of life for millions.

However, this ascent has been coupled with profound challenges. Fossil fuels have been a source of geopolitical strife, epitomised by wars and conflicts over their control and distribution. They have also exacerbated environmental issues, such as greenhouse gas emissions, global warming, and climate change. Incidents like oil spills, gas leaks, and fracking have inflicted severe damage on ecosystems and public health.

The Countdown to Depletion

The finite and non-renewable nature of fossil fuels leaves humanity facing a daunting deadline. Predicting the exact exhaustion of these resources is a complex endeavour, influenced by reserves, consumption rates, technological advancements, and price fluctuations. Nonetheless, projections based on current data paint a concerning picture.

According to Octopus Energy, the year 2060 may mark the twilight of fossil fuels, based on current consumption and reserve estimates. In 2020, global oil production reached 91.7 million barrels per day (b/d), with key players like the United States, Saudi Arabia, and Russia at the forefront. Simultaneously, natural gas production stood at 3.94 trillion cubic meters (bcm). Although the Covid-19 pandemic temporarily curtailed production, a resurgence is anticipated. In contrast, natural gas consumption steadily rises by over 3% each year.

Should additional oil reserves remain elusive, known deposits could be depleted by 2052. The stark reality is that demand for oil has surged, nearly doubling the average annual rate observed over the preceding decade in 2018.

Toward a Sustainable Energy Paradigm

The global imperative for alternative energy sources is clear. Sustainable options, even if not entirely devoid of environmental impact, have become a linchpin of energy discussions. The quest for sustainability is no longer optional; it is fundamental to securing a prosperous future.

Embracing alternative and sustainable energy solutions is our paramount responsibility. The adverse consequences of persisting with fossil fuels are increasingly undeniable. Furthermore, incidents such as oil spills, gas leaks, and fracking have grievously scarred ecosystems and human health.

The geopolitical maelstrom surrounding fossil fuels is a testament to their strategic importance. By reducing our dependence on these finite resources, we can contribute to global stability and peace.

The Promise of Sustainable Energy

Investing in sustainable energy is not merely an ecological commitment; it is a strategic move to safeguard long-term energy security. Renewable sources like solar and wind power do not suffer the same spectre of depletion as fossil fuels, offering a reliable and sustainable energy future. Moreover, technology’s relentless march is enhancing the efficiency and cost-effectiveness of these alternatives, ensuring a seamless transition.

In this era of unprecedented global challenges, the unsustainable trajectory of fossil fuels is no longer tenable. Transitioning to renewable and sustainable energy sources is both a moral imperative and an economic necessity. As we confront the relentless march of climate change, endeavouring to secure long-term energy stability and foster global peace, embracing this transformation is our only viable path toward a sustainable and prosperous future. It is a journey we must embark upon with unwavering determination and foresight.

The MENA Region: The abundance of wisdom

The MENA region stands as an interesting case study for global energy transformation. The region is one of the most dependent regions on fossil fuels in the world. According to the World Bank, the region accounted for 36% of the global oil production and 20% of the global gas production in 2018. However, the region also faces many challenges and risks related to its reliance on fossil fuels, such as price volatility, environmental degradation, social unrest, and geopolitical conflicts.

Therefore, some countries in the region have started to prepare for the transition to a post-fossil fuel era by diversifying their economies, investing in renewable energy sources, and promoting innovation and sustainability. According to a report by the International Renewable Energy Agency (IRENA), the MENA region has a huge potential for renewable energy development, especially solar and wind power. The report estimates that the region could generate more than 60% of its total electricity from renewable sources by 2030.

Some of the countries that have made significant progress in this field are:

• UAE: The UAE has been a leader in innovation and sustainability in the region, with a vision of becoming a global hub for green economy and clean energy. The UAE has set a target of increasing its share of clean energy to 50% by 2050. The UAE has invested in various renewable energy projects, such as the Shams 1 solar thermal plant, which is one of the largest of its kind in the world, and the Mohammed bin Rashid Al Maktoum Solar Park, which is planned to be the largest single-site solar park in the world by 2030. The UAE is also home to Masdar City, which is a planned city that aims to be one of the most sustainable cities in the world. Also, UAE is one of the 10 largest oil producing countries with a proven reserves, according to BP statistical reviews, of 100 billion barrels.

• Morocco: Morocco has been a pioneer in renewable energy development in the region, with a target of achieving 52% of its electricity from renewable sources by 2030. Morocco has invested heavily in solar power projects, such as the Noor Ouarzazate complex, which is the largest concentrated solar power plant in the world. Morocco also has a strong wind power sector, with a capacity of over 1.2 gigawatts (GW) as of 2019.

• Egypt: Egypt has also been pursuing an ambitious renewable energy strategy, with a goal of reaching 42% of its electricity from renewable sources by 2035. Egypt has a large potential for solar and wind power, especially in the Sinai Peninsula and the Red Sea coast. Egypt has launched several large-scale projects, such as the Benban Solar Park, which is expected to be the largest solar photovoltaic (PV) plant in the world when completed, and the Zafarana Wind Farm, which is one of the largest wind farms in Africa.

These are some examples of countries in the MENA region that are prepared for after fossil fuels era. However, there are still many challenges and barriers that need to be overcome, such as policy and regulatory frameworks, financing and investment mechanisms, public awareness and participation, and regional cooperation and integration.

The world is at a crossroads in its energy choices. Fossil fuels have been instrumental in driving industrial growth and development, but they have also caused severe environmental problems. Their finite nature also poses a threat to long-term energy security. The need for alternative and sustainable energy sources is clear and urgent.

Renewable energy sources offer a promising solution to this challenge. They are abundant, reliable, and sustainable. They can reduce greenhouse gas emissions, mitigate climate change impacts, and foster global peace. They can also create new opportunities for economic growth, innovation, and social welfare.

— Dr Abdullah Belhaif Al Nuaimi is a former UAE minister of Infrastructure Development and for Climate Change and Environment

Fossil fuels cause environmental and social problems and some analyses project global depletion between about 2052 and 2060 under current trends.

IRENA estimated that MENA could generate more than 60% of its electricity from renewable sources by 2030.

The UAE targets a 50% share of clean energy by 2050 and hosts projects such as Shams 1, the Mohammed bin Rashid Al Maktoum Solar Park, and Masdar City.

The UAE also announced an intent to invest up to AED 200 billion in renewable energy and launched a AED 4 billion renewable plant in Dubai alongside the world’s largest waste-to-energy plant.

Title:

Content: Environmental, Social, and Governance (ESG) issues have become increasingly prominent on the global stage as organisations recognise the need to integrate sustainability into their operations.

As the Middle East moves towards a low carbon future, sustainability has become a top priority for organisations and governments across the region.

Sheikh Mohammad bin Rashid, Prime Minister and Ruler of Dubai announced while launching the National Hydrogen Strategy that the UAE is to invest up to AED 200 billion ($54.5 billion) in renewable energy.

The launch of a AED 4 billion renewable energy plant in Dubai,  and the world’s largest waste-to-energy plant are proof of sustainability climbing the agenda.

With COP 28 being held in the UAE this year, there is a renewed sense of urgency on climate change action, and the net-zero carbon target is being prioritised through policies and actions.

After all, sustainability will boost the UAE’s economic competitiveness, drive innovative policy and improve investment opportunities.

The region has seen notable sustainability innovations, including Saudi Arabia’s rapid transition to a circular carbon economy, Bahrain’s state oil company refinancing a $2.2 billion sustainability-linked corporate finance facility, and Oman’s exploration of green hydrogen as a clean energy source.

However, the Middle East faces its own unique challenges in implementing ESG practices, especially around accurate sustainability reporting and implementing early regulations to fill in previous gaps.

Other challenges that hinder the progress of the region’s ESG agenda include the talent gap, how corporates in the region address the need to implement ESG practices, as well as data availability.

Regulatory frameworks

While standardised frameworks and reporting guidelines begin to form, the lack of clear regulations can hinder consistent measurement and disclosure of ESG performance.

Global frameworks have now become more widely adopted in the region such as the Global Reporting Initiative (GRI), the Sustainability Accounting Standards Board (SASB), and the newly published International Sustainability Standards Board (ISSB).

The gap in standardisation previously posed challenges for investors and stakeholders who relied on transparent and comparable ESG data for decision-making, however, we are starting to see drastic changes in this area.

Data availability

Many companies in the Middle East still face challenges in collecting, managing, and reporting ESG data, which can hinder their ability to effectively assess and manage their sustainability performance.

Data is the first step to measure any status, but also measure progress. Improving data collection mechanisms and investing in robust reporting systems will be instrumental in addressing this challenge.

ESG talent gap

Organisations need individuals with specialised knowledge and expertise in ESG practices to drive sustainable strategies effectively. Alongside this specialised knowledge, the industry also needs innovators, risk takers, agitators for change, mentors, and communicators in the field. There is however, a shortage of skilled professionals in the region with a deep understanding of ESG principles to drive innovative solutions.

Bridging this gap requires investment in education and training programmes to build a skilled workforce capable of integrating ESG considerations into business practices. Universities and training institutions are therefore increasingly offering courses and programmes on sustainability and ESG and businesses are partnering with academic institutions to develop tailored training initiatives and internships, nurturing a pipeline of talent equipped with the required knowledge and skills.

These efforts will cultivate a sustainable workforce capable of implementing and driving ESG practices in the Middle East.

Implementation by region’s corporates

Despite the challenges, corporations in the Middle East are embracing ESG practices, recognising the importance of sustainability and responsible business conduct. We see this through accelerated electrification and the increase of decarbonizing energy supply.

The GCC’s oil-producing nations have made efforts to diversify energy sources, transitioning towards net-zero carbon fuels for transportation. Investments in renewable energy, such as solar and wind, aim to mitigate environmental impacts and promote a low-carbon economic future transforming the economic system and supply chain.

Additionally, social considerations are gaining prominence. Companies are addressing social issues through initiatives that promote diversity, inclusion, and employee welfare.

Governance practices are also being strengthened to ensure transparency, accountability, regulatory reforms and ethical conduct.

While obstacles in integrating ESG practices persist in the Middle East, corporates in the region are proactively embracing sustainability and responsible business practices.

That the Middle East is emerging as a leader in ESG adoption is apparent through their fullfillment of the UN SDG goals which has driven positive environmental, social, and governance outcomes for businesses and society as a whole.

Morocco aims for 52% of electricity from renewables by 2030 and has the Noor Ouarzazate concentrated solar power complex; its wind capacity exceeded 1.2 GW as of 2019.

Egypt aims for 42% renewable electricity by 2035 and is developing large projects including the Benban Solar Park and the Zafarana Wind Farm.

Countries including Jordan, Saudi Arabia, Oman and others are pursuing renewables to diversify economies and reduce dependence on oil revenues.

Title:

Content: Contribution ｜ Explore Hong Kong ’ s role and opportunities in the development of renewable energy in the Middle East
Author: 01 More Voices
Published: Updated:
In recent years, Hong Kong has actively promoted the development of renewable energy and launched a number of related products in the financial market.
In addition, more and more Hong Kong enterprises have also started to participate in the development of this industry, especially in the financial market, and launched a number of financial products to support the development of renewable energy.
At the same time, many countries in the Middle East, such as the United Arab Emirates, Jordan, Saudi Arabia, Oman and Turkey, are also actively engaged in various large-scale projects to promote the development of renewable energy, and expect to see a different energy mix and economic development model in 2030 or 2050.
For Hong Kong, China and other countries, the development opportunities of the Middle East market cannot be ignored, and Hong Kong ’ s participation in this area cannot be underestimated.
Submitted by: Kwong Cheuk-wui
Recently, I had the opportunity to participate in several seminars on economic and energy development in the Middle East, and have in-depth exchanges with government representatives in charge of foreign affairs and trade from various Middle Eastern countries and Azerbaijan.
These exchange experiences provide the author with a wealth of insight.
After many in-depth talks, to understand the interest and momentum of the development of renewable energy in many countries in the Middle East, the author synthesized the information from various parties and came to the following insights: The reason why the major oil producers in the Middle East are actively developing renewable energy is to achieve economic diversification and get rid of dependence on oil and related industries.
They hope to turn the country ’ s surplus renewable energy into new, dependable foreign revenues (i.e., revenues generated from natural resource exports; “Rents ”) through innovative technologies.
For other non-oil producing countries, they want to achieve economic sustainability through the development of renewable energy, reduce dependence on traditional fossil fuels or electricity imports, and convert renewable energy into new external rental income to boost the country ’ s economic development.
From this, it can be seen that the Middle East countries are very concerned about the development of renewable energy, but also hope to complete the energy transformation as soon as possible, and look forward to renewable energy can produce more and greater economic benefits, create new dependent income, promote economic diversification and modernization, but also benefit thousands of people.
As a result, many countries in the Middle East have invested heavily in and promoted energy transformation and clean energy development.
Although many countries have made extraordinary achievements in driving renewable energy development, they also face many challenges.
Jordan, for example, has a wealth of renewable energy resources, including solar, wind, geothermal and bioenergy, as well as state-of-the-art renewable energy laws, regulatory mechanisms and development frameworks.
Earlier this year, Jordan successfully achieved its national roadmap, originally set for 2030, with renewable energy accounting for 31% of total energy.
The Jordanian government also plans to increase this target to 50%, and is committed to building the country into a regional renewable energy development center and exporting environmentally friendly power to neighboring countries to increase the country ’ s foreign revenue.
However, like other Middle Eastern countries, Jordan faces a host of challenges.
These challenges include lagging energy infrastructure, imperfect grid planning, an over-concentration of resources on solar and wind with less focus on geothermal energy, and a lack of energy storage systems and foreign investment.
In addition, there is the debt problem of the national power company.
These difficulties not only affect Jordan ’ s progress in developing renewable energy, but also act as a barrier to modernizing and diversifying the country ’ s economy.
Some Jordanian officials and scholars are concerned about whether the development of renewable energy is progressing as expected.
They are concerned that if the development of renewable energy and its core economic development model are not carried out smoothly, or if the newly set targets are not successfully achieved, the country ’ s economic sustainability will be adversely affected.
At the same time, it can undermine the credibility and governance of the government.
In particular, those political forces that have been opposed to the use of renewable energy to promote economic development and diversification may take the opportunity to launch opposition actions, further endangering the political stability and regional security of the country and the Middle East as a whole.
It is worth noting that these challenges are not only in Jordan, but also in Middle Eastern countries such as Morocco and Egypt.
Other countries such as the United Arab Emirates, Oman, Saudi Arabia and Qatar have also made great efforts to develop solar and wind power in recent years, but in addition to the above concerns and challenges, there are also concerns that the development of renewable energy will have some impact on the high dependence of these countries ’ economies on oil and gas markets, which may affect existing incomes and lead to economic and social instability.
Other factors include the huge demand for capital, the need for foreign technology and talents, the need for talent training, economic feasibility, etc. These are also issues of concern to the officials of these Middle Eastern countries.
These challenges are in fact a valuable development opportunity for Hong Kong.
The key is to make good use of our strengths, especially in the Belt and Road Initiative, to work with the Middle East countries to promote renewable energy and green economy development.
This not only helps these countries diversify their economies, but also creates development opportunities for Hong Kong businesses and governments, and indirectly promotes the development of other industries.
I suggest that Hong Kong can establish cooperation platforms and channels of communication with transnational organizations in the Middle East and North Africa, such as the Arab Parliamentary Union, the Gulf Cooperation Council, the Turkic Parliament and the Arab Maghreb Union.
Such a platform could be used to explore free trade agreements and to help Middle Eastern countries provide services such as finance, advisory, legal, education or training, and energy infrastructure.
This will not only help Hong Kong consolidate its leading position in the professional services sector and the financial sector, but will also directly or indirectly create many development opportunities, especially in Islamic finance.
Finally, Hong Kong can consider providing financial support to the Middle East countries by assisting in the issuance of Islamic financial bonds to promote the development of renewable energy, and can also take the opportunity to develop Islamic finance in Hong Kong as a new financial center outside the Islamic world.
Of course, Hong Kong should not only cooperate with major countries such as Saudi Arabia and the United Arab Emirates or the above-mentioned multinational organizations and platforms, but also consider other regions with development potential and worthy of investment, such as Turkey, Azerbaijan, Morocco, etc.
This diverse collaboration will help Hong Kong expand its international presence and contribute to global sustainability in the renewable energy sector.
The author, Mr Kwong Cheuk-rui, is the Executive Director of the Hong Kong Group of Ideas, a Master of Arts from the Australian National University, and has worked at the Australian Institute of International Affairs.
The article is only the opinion of the author and does not represent the position of Hong Kong 01.
Please email us at 01view @ hk01.com.
Please attach the author ’ s real name and contact details.
If not applicable, without prior notice.

Common barriers cited include policy and regulatory gaps, financing and investment challenges, grid planning and storage limitations, public awareness, and the need for regional cooperation.

Cities in the region are adopting measures such as green building regulations and using solar to power large buildings, exemplified by Dubai.

Title:

Content: Monday, 27 June, 2022, 1:59 AM
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Home Op-Ed

Greener cities are critical to regional sustainability

Published : Monday, 27 June, 2022 at 12:00 AM  Count : 73
SARA AL-MULLA

From megacities to metropolises, cities of all kinds are experiencing an unprecedented spectrum of threats associated with climate change, necessitating a serious debate on the importance of transitioning toward greener cities in order to remain sustainable and resilient.

Currently, those living in urban areas make up just over half the global population. But this figure is projected to increase exponentially to a whopping 68 percent by mid-century, according to the UN. The modern urban landscape poses complex challenges for cities, as they are vulnerable to climate-induced hazards that threaten their economies and infrastructures and the well-being of their residents.

An influential 2018 report titled "The Future We Don't Want" - published by C40 Cities, the Global Covenant of Mayors, Acclimatise and the Urban Climate Change Research Network - revealed the manifold threats that cities are facing and will continue to face in greater intensity as a result of climate change. The report stated that 70 percent of cities are already feeling the wrath of climate change in the form of heat waves, rising sea levels, wildfires, storms and droughts. The fact that 90 percent of urban areas are coastal also poses a significant vulnerability to flooding due to rising sea levels and mass destruction from tsunamis.

By 2050, more than 45 percent of the global urban population is projected to live in cities with extreme summer temperatures of at least 35 degrees Celsius, leaving residents susceptible to dehydration, heatstroke, sleep loss, stress, cardiovascular disease and even death.

Many cities are currently counteracting these challenges, such as the case with Seoul, which implements a number of successful interventions when temperatures reach 33 C for two consecutive days. They include advisories to residents with practical advice and guidance to employers about allowing their outdoor workers to take breaks. The city has also installed shaded cooling centers in public locations, planted 16 million trees and expanded its green space by 3.5 million sq m.

The urgency of addressing climate change in the Middle East and North Africa has never been more critical, with UN experts projecting an urbanization rate of 59 percent by 2030. The region is already fraught with high temperatures, droughts, limited rainfall and scarce agricultural lands, and it is considered among the most water-stressed regions in the world. Climate-induced water scarcity alone is projected to cost MENA countries as much as 6 percent of their gross domestic product by 2050, according to the World Bank.

All of these challenges have important policy implications for city governments on how to balance economic growth while reducing environmental impacts and maximizing population well-being. The International Finance Corporation estimates the climate-centered investment opportunity for the MENA region to be $1.7 trillion.

Many cities have already implemented a vast range of interventions to bolster their resilience and successfully transition into greener cities. Chief among these actions is establishing a dedicated agency to plan, coordinate and manage climate-related strategies across the country. Regular extensive assessments of vulnerabilities and climate-related risks will inform decision-makers on the urgent and critical interventions needed.

Cities should also upgrade their infrastructure to ensure resilience in the face of extreme climate events, such as the flooding of drainage systems. Shifting to climate-smart infrastructure is an important step toward reducing greenhouse gas emissions and conserving resources. For example, a number of cities are currently relying on renewable energy and solar energy to power large buildings.

Meanwhile, the government of Dubai has issued regulations for "green buildings" that elaborate on a number of climate-friendly solutions, including creating vegetated rooftops, reducing hazardous waste, limiting pollution and improving energy and water efficiency. Many cities are also experimenting with vertical forests, whereby a variety of plant species are grown on buildings, such as the ones in Milan, Kuala Lumpur, Singapore and Utrecht.

Investing in climate-efficient public transportation and promoting the uptake of hybrid or electric vehicles will offer cleaner alternatives to fuel-reliant vehicles that amplify air pollution. To illustrate, the city of Santiago in Chile invested in electric-powered public buses, which do not generate emissions and cost a remarkable 70 percent less to operate than diesel-fueled buses. In tandem, guidance should be issued to enterprises on how to decarbonize their operations and shift toward electrification and digital solutions.

Launching mass greening and reforestation projects across cities can yield a number of benefits, such as cooling them during summer months and improving biodiversity. This can be done by planting trees to line streets and boulevards and creating gardens, grassy areas, public parks, flowery meadows, miniature urban forests and allotments. For instance, many cities offer allotments for urban farming and recreational gardening projects managed by residents, with an abundance of evidence pointing to improved physical and mental well-being, in addition to the growth of local, seasonal and organic produce.

Additionally, many countries, such as the UAE and Singapore, are capitalizing on vertical farming projects to maximize agricultural yield while relying on climate-friendly solutions to efficiently utilize water and energy.

City governments should also be creative with their public education campaigns to nudge the desired behavioral changes by residents, focusing on recycling, metered consumption and the reduction of wastage. Furthermore, MENA countries should invest in cutting-edge research and innovations related to climate change, which will empower cities to navigate an uncertain future and adjust their climate action plans accordingly.

When imagining the cities of tomorrow, a rather ambitious idea should be explored to include sustainability. By transforming its cities into greener cities, the MENA region can navigate the coming decades with enhanced resilience and competitiveness.
Source: ARAB NEWS

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Middle Eastern governments and cities are scaling solar and other renewables through high-profile national projects, investment pledges and targets to diversify oil-dependent economies and meet climate goals, but they still face regulatory, financing and grid challenges.


The MENA region is highly dependent on fossil fuels and accounted for 36% of global oil production and 20% of global gas production in 2018.

IRENA estimates the region could generate more than 60% of its electricity from renewable sources by 2030.

The United Arab Emirates has set a target to increase its share of clean energy to 50% by 2050.

The UAE has developed major projects such as the Shams 1 solar thermal plant, the Mohammed bin Rashid Al Maktoum Solar Park, and Masdar City.

Mohammed bin Rashid Al Maktoum Solar Park is planned to be the largest single-site solar park in the world by 2030.

Shams 1 is described as one of the largest solar thermal plants of its kind in the world.

The UAE announced plans to invest up to AED 200 billion (about $54.5 billion) in renewable energy and launched a AED 4 billion renewable energy plant in Dubai.

Dubai has issued green-building regulations that include measures such as vegetated rooftops and improved energy and water efficiency.

Morocco aims to obtain 52% of its electricity from renewable sources by 2030.

Morocco developed the Noor Ouarzazate concentrated solar complex, described as the largest concentrated solar power plant in the world.

Morocco had wind capacity of over 1.2 gigawatts as of 2019.

Egypt has a target of 42% of electricity from renewable sources by 2035.

Egypt has launched large-scale projects including the Benban Solar Park and the Zafarana Wind Farm.

Benban Solar Park is expected to be the largest solar photovoltaic plant in the world when completed.

Jordan reached a renewable share of 31% earlier than its 2030 plan and plans to raise that target to 50%.

Governments in the region are pursuing renewables to diversify economies and reduce dependence on oil and gas revenues.

Renewable energy is presented as a way to reduce greenhouse gas emissions while creating opportunities for economic growth and innovation.

The International Finance Corporation estimates a climate-centred investment opportunity of $1.7 trillion for the MENA region.

Regional governments and companies are increasingly adopting ESG strategies and pursuing new low-carbon options such as green hydrogen and circular carbon approaches.

Bahrain refinanced a $2.2 billion sustainability-linked corporate finance facility as an example of regional green finance activity.

Key barriers reported across the region include policy and regulatory gaps, financing constraints, limited ESG and energy data, talent shortages, grid planning shortfalls, and insufficient storage and infrastructure.

Specific national challenges include overconcentration on solar and wind, a lack of storage systems, limited foreign investment, energy infrastructure lags, imperfect grid planning, and debts at national power companies.

Hosting COP28 in the UAE has increased political urgency around climate action and net-zero targets in the country and region.

Renewable projects and policies can create new revenue streams and investment opportunities for Middle East countries.

Rapid transition carries risks for oil-dependent revenues and could affect economic and political stability if the shift is not managed carefully.

Summary: Several Middle East countries are investing in large-scale solar and other renewable projects, setting national clean-energy targets, and deploying policies and financing to diversify their economies and meet climate goals, while facing financing, infrastructure, data and political challenges.

The MENA region is highly dependent on fossil fuels and accounted for 36% of global oil production and 20% of global gas production in 2018.

Title:

Content: Fossil fuels, which have powered the industrial growth and development of civilisations for centuries, are facing a looming deadline of depletion. Moreover, they have caused severe environmental and social problems, such as climate change, conflicts, and pollution. The need for alternative and sustainable energy sources is clear and urgent. However, the transition to a post-fossil fuel era is not easy or straightforward. It requires innovation, investment, cooperation, and vision.

This article explores the challenges and opportunities of global energy transformation, focusing on the dual nature of fossil fuels, the countdown to their exhaustion, and the promise of renewable energy sources. It also highlights the progress and potential of some countries in the Middle East and North Africa (MENA) region, which is one of the most dependent regions on fossil fuels in the world.

Fossil Fuels: A Double-Edged Sword

Fossil fuels, comprising oil, coal, and natural gas, are ancient energy sources that have been central to the development of various industries and sectors. They have enhanced transportation, manufacturing, agriculture, and electricity generation. They have catalysed global trade, commerce, and innovation, elevating the quality of life for millions.

However, this ascent has been coupled with profound challenges. Fossil fuels have been a source of geopolitical strife, epitomised by wars and conflicts over their control and distribution. They have also exacerbated environmental issues, such as greenhouse gas emissions, global warming, and climate change. Incidents like oil spills, gas leaks, and fracking have inflicted severe damage on ecosystems and public health.

The Countdown to Depletion

The finite and non-renewable nature of fossil fuels leaves humanity facing a daunting deadline. Predicting the exact exhaustion of these resources is a complex endeavour, influenced by reserves, consumption rates, technological advancements, and price fluctuations. Nonetheless, projections based on current data paint a concerning picture.

According to Octopus Energy, the year 2060 may mark the twilight of fossil fuels, based on current consumption and reserve estimates. In 2020, global oil production reached 91.7 million barrels per day (b/d), with key players like the United States, Saudi Arabia, and Russia at the forefront. Simultaneously, natural gas production stood at 3.94 trillion cubic meters (bcm). Although the Covid-19 pandemic temporarily curtailed production, a resurgence is anticipated. In contrast, natural gas consumption steadily rises by over 3% each year.

Should additional oil reserves remain elusive, known deposits could be depleted by 2052. The stark reality is that demand for oil has surged, nearly doubling the average annual rate observed over the preceding decade in 2018.

Toward a Sustainable Energy Paradigm

The global imperative for alternative energy sources is clear. Sustainable options, even if not entirely devoid of environmental impact, have become a linchpin of energy discussions. The quest for sustainability is no longer optional; it is fundamental to securing a prosperous future.

Embracing alternative and sustainable energy solutions is our paramount responsibility. The adverse consequences of persisting with fossil fuels are increasingly undeniable. Furthermore, incidents such as oil spills, gas leaks, and fracking have grievously scarred ecosystems and human health.

The geopolitical maelstrom surrounding fossil fuels is a testament to their strategic importance. By reducing our dependence on these finite resources, we can contribute to global stability and peace.

The Promise of Sustainable Energy

Investing in sustainable energy is not merely an ecological commitment; it is a strategic move to safeguard long-term energy security. Renewable sources like solar and wind power do not suffer the same spectre of depletion as fossil fuels, offering a reliable and sustainable energy future. Moreover, technology’s relentless march is enhancing the efficiency and cost-effectiveness of these alternatives, ensuring a seamless transition.

In this era of unprecedented global challenges, the unsustainable trajectory of fossil fuels is no longer tenable. Transitioning to renewable and sustainable energy sources is both a moral imperative and an economic necessity. As we confront the relentless march of climate change, endeavouring to secure long-term energy stability and foster global peace, embracing this transformation is our only viable path toward a sustainable and prosperous future. It is a journey we must embark upon with unwavering determination and foresight.

The MENA Region: The abundance of wisdom

The MENA region stands as an interesting case study for global energy transformation. The region is one of the most dependent regions on fossil fuels in the world. According to the World Bank, the region accounted for 36% of the global oil production and 20% of the global gas production in 2018. However, the region also faces many challenges and risks related to its reliance on fossil fuels, such as price volatility, environmental degradation, social unrest, and geopolitical conflicts.

Therefore, some countries in the region have started to prepare for the transition to a post-fossil fuel era by diversifying their economies, investing in renewable energy sources, and promoting innovation and sustainability. According to a report by the International Renewable Energy Agency (IRENA), the MENA region has a huge potential for renewable energy development, especially solar and wind power. The report estimates that the region could generate more than 60% of its total electricity from renewable sources by 2030.

Some of the countries that have made significant progress in this field are:

• UAE: The UAE has been a leader in innovation and sustainability in the region, with a vision of becoming a global hub for green economy and clean energy. The UAE has set a target of increasing its share of clean energy to 50% by 2050. The UAE has invested in various renewable energy projects, such as the Shams 1 solar thermal plant, which is one of the largest of its kind in the world, and the Mohammed bin Rashid Al Maktoum Solar Park, which is planned to be the largest single-site solar park in the world by 2030. The UAE is also home to Masdar City, which is a planned city that aims to be one of the most sustainable cities in the world. Also, UAE is one of the 10 largest oil producing countries with a proven reserves, according to BP statistical reviews, of 100 billion barrels.

• Morocco: Morocco has been a pioneer in renewable energy development in the region, with a target of achieving 52% of its electricity from renewable sources by 2030. Morocco has invested heavily in solar power projects, such as the Noor Ouarzazate complex, which is the largest concentrated solar power plant in the world. Morocco also has a strong wind power sector, with a capacity of over 1.2 gigawatts (GW) as of 2019.

• Egypt: Egypt has also been pursuing an ambitious renewable energy strategy, with a goal of reaching 42% of its electricity from renewable sources by 2035. Egypt has a large potential for solar and wind power, especially in the Sinai Peninsula and the Red Sea coast. Egypt has launched several large-scale projects, such as the Benban Solar Park, which is expected to be the largest solar photovoltaic (PV) plant in the world when completed, and the Zafarana Wind Farm, which is one of the largest wind farms in Africa.

These are some examples of countries in the MENA region that are prepared for after fossil fuels era. However, there are still many challenges and barriers that need to be overcome, such as policy and regulatory frameworks, financing and investment mechanisms, public awareness and participation, and regional cooperation and integration.

The world is at a crossroads in its energy choices. Fossil fuels have been instrumental in driving industrial growth and development, but they have also caused severe environmental problems. Their finite nature also poses a threat to long-term energy security. The need for alternative and sustainable energy sources is clear and urgent.

Renewable energy sources offer a promising solution to this challenge. They are abundant, reliable, and sustainable. They can reduce greenhouse gas emissions, mitigate climate change impacts, and foster global peace. They can also create new opportunities for economic growth, innovation, and social welfare.

— Dr Abdullah Belhaif Al Nuaimi is a former UAE minister of Infrastructure Development and for Climate Change and Environment

IRENA estimates the region could generate more than 60% of its electricity from renewable sources by 2030.

The United Arab Emirates has set a target to increase its share of clean energy to 50% by 2050.

The UAE has developed major projects such as the Shams 1 solar thermal plant, the Mohammed bin Rashid Al Maktoum Solar Park, and Masdar City.

Mohammed bin Rashid Al Maktoum Solar Park is planned to be the largest single-site solar park in the world by 2030.

Shams 1 is described as one of the largest solar thermal plants of its kind in the world.

The UAE announced plans to invest up to AED 200 billion (about $54.5 billion) in renewable energy and launched a AED 4 billion renewable energy plant in Dubai.

Title:

Content: Environmental, Social, and Governance (ESG) issues have become increasingly prominent on the global stage as organisations recognise the need to integrate sustainability into their operations.

As the Middle East moves towards a low carbon future, sustainability has become a top priority for organisations and governments across the region.

Sheikh Mohammad bin Rashid, Prime Minister and Ruler of Dubai announced while launching the National Hydrogen Strategy that the UAE is to invest up to AED 200 billion ($54.5 billion) in renewable energy.

The launch of a AED 4 billion renewable energy plant in Dubai,  and the world’s largest waste-to-energy plant are proof of sustainability climbing the agenda.

With COP 28 being held in the UAE this year, there is a renewed sense of urgency on climate change action, and the net-zero carbon target is being prioritised through policies and actions.

After all, sustainability will boost the UAE’s economic competitiveness, drive innovative policy and improve investment opportunities.

The region has seen notable sustainability innovations, including Saudi Arabia’s rapid transition to a circular carbon economy, Bahrain’s state oil company refinancing a $2.2 billion sustainability-linked corporate finance facility, and Oman’s exploration of green hydrogen as a clean energy source.

However, the Middle East faces its own unique challenges in implementing ESG practices, especially around accurate sustainability reporting and implementing early regulations to fill in previous gaps.

Other challenges that hinder the progress of the region’s ESG agenda include the talent gap, how corporates in the region address the need to implement ESG practices, as well as data availability.

Regulatory frameworks

While standardised frameworks and reporting guidelines begin to form, the lack of clear regulations can hinder consistent measurement and disclosure of ESG performance.

Global frameworks have now become more widely adopted in the region such as the Global Reporting Initiative (GRI), the Sustainability Accounting Standards Board (SASB), and the newly published International Sustainability Standards Board (ISSB).

The gap in standardisation previously posed challenges for investors and stakeholders who relied on transparent and comparable ESG data for decision-making, however, we are starting to see drastic changes in this area.

Data availability

Many companies in the Middle East still face challenges in collecting, managing, and reporting ESG data, which can hinder their ability to effectively assess and manage their sustainability performance.

Data is the first step to measure any status, but also measure progress. Improving data collection mechanisms and investing in robust reporting systems will be instrumental in addressing this challenge.

ESG talent gap

Organisations need individuals with specialised knowledge and expertise in ESG practices to drive sustainable strategies effectively. Alongside this specialised knowledge, the industry also needs innovators, risk takers, agitators for change, mentors, and communicators in the field. There is however, a shortage of skilled professionals in the region with a deep understanding of ESG principles to drive innovative solutions.

Bridging this gap requires investment in education and training programmes to build a skilled workforce capable of integrating ESG considerations into business practices. Universities and training institutions are therefore increasingly offering courses and programmes on sustainability and ESG and businesses are partnering with academic institutions to develop tailored training initiatives and internships, nurturing a pipeline of talent equipped with the required knowledge and skills.

These efforts will cultivate a sustainable workforce capable of implementing and driving ESG practices in the Middle East.

Implementation by region’s corporates

Despite the challenges, corporations in the Middle East are embracing ESG practices, recognising the importance of sustainability and responsible business conduct. We see this through accelerated electrification and the increase of decarbonizing energy supply.

The GCC’s oil-producing nations have made efforts to diversify energy sources, transitioning towards net-zero carbon fuels for transportation. Investments in renewable energy, such as solar and wind, aim to mitigate environmental impacts and promote a low-carbon economic future transforming the economic system and supply chain.

Additionally, social considerations are gaining prominence. Companies are addressing social issues through initiatives that promote diversity, inclusion, and employee welfare.

Governance practices are also being strengthened to ensure transparency, accountability, regulatory reforms and ethical conduct.

While obstacles in integrating ESG practices persist in the Middle East, corporates in the region are proactively embracing sustainability and responsible business practices.

That the Middle East is emerging as a leader in ESG adoption is apparent through their fullfillment of the UN SDG goals which has driven positive environmental, social, and governance outcomes for businesses and society as a whole.

Dubai has issued green-building regulations that include measures such as vegetated rooftops and improved energy and water efficiency.

Title:

Content: Monday, 27 June, 2022, 1:59 AM
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Home Op-Ed

Greener cities are critical to regional sustainability

Published : Monday, 27 June, 2022 at 12:00 AM  Count : 73
SARA AL-MULLA

From megacities to metropolises, cities of all kinds are experiencing an unprecedented spectrum of threats associated with climate change, necessitating a serious debate on the importance of transitioning toward greener cities in order to remain sustainable and resilient.

Currently, those living in urban areas make up just over half the global population. But this figure is projected to increase exponentially to a whopping 68 percent by mid-century, according to the UN. The modern urban landscape poses complex challenges for cities, as they are vulnerable to climate-induced hazards that threaten their economies and infrastructures and the well-being of their residents.

An influential 2018 report titled "The Future We Don't Want" - published by C40 Cities, the Global Covenant of Mayors, Acclimatise and the Urban Climate Change Research Network - revealed the manifold threats that cities are facing and will continue to face in greater intensity as a result of climate change. The report stated that 70 percent of cities are already feeling the wrath of climate change in the form of heat waves, rising sea levels, wildfires, storms and droughts. The fact that 90 percent of urban areas are coastal also poses a significant vulnerability to flooding due to rising sea levels and mass destruction from tsunamis.

By 2050, more than 45 percent of the global urban population is projected to live in cities with extreme summer temperatures of at least 35 degrees Celsius, leaving residents susceptible to dehydration, heatstroke, sleep loss, stress, cardiovascular disease and even death.

Many cities are currently counteracting these challenges, such as the case with Seoul, which implements a number of successful interventions when temperatures reach 33 C for two consecutive days. They include advisories to residents with practical advice and guidance to employers about allowing their outdoor workers to take breaks. The city has also installed shaded cooling centers in public locations, planted 16 million trees and expanded its green space by 3.5 million sq m.

The urgency of addressing climate change in the Middle East and North Africa has never been more critical, with UN experts projecting an urbanization rate of 59 percent by 2030. The region is already fraught with high temperatures, droughts, limited rainfall and scarce agricultural lands, and it is considered among the most water-stressed regions in the world. Climate-induced water scarcity alone is projected to cost MENA countries as much as 6 percent of their gross domestic product by 2050, according to the World Bank.

All of these challenges have important policy implications for city governments on how to balance economic growth while reducing environmental impacts and maximizing population well-being. The International Finance Corporation estimates the climate-centered investment opportunity for the MENA region to be $1.7 trillion.

Many cities have already implemented a vast range of interventions to bolster their resilience and successfully transition into greener cities. Chief among these actions is establishing a dedicated agency to plan, coordinate and manage climate-related strategies across the country. Regular extensive assessments of vulnerabilities and climate-related risks will inform decision-makers on the urgent and critical interventions needed.

Cities should also upgrade their infrastructure to ensure resilience in the face of extreme climate events, such as the flooding of drainage systems. Shifting to climate-smart infrastructure is an important step toward reducing greenhouse gas emissions and conserving resources. For example, a number of cities are currently relying on renewable energy and solar energy to power large buildings.

Meanwhile, the government of Dubai has issued regulations for "green buildings" that elaborate on a number of climate-friendly solutions, including creating vegetated rooftops, reducing hazardous waste, limiting pollution and improving energy and water efficiency. Many cities are also experimenting with vertical forests, whereby a variety of plant species are grown on buildings, such as the ones in Milan, Kuala Lumpur, Singapore and Utrecht.

Investing in climate-efficient public transportation and promoting the uptake of hybrid or electric vehicles will offer cleaner alternatives to fuel-reliant vehicles that amplify air pollution. To illustrate, the city of Santiago in Chile invested in electric-powered public buses, which do not generate emissions and cost a remarkable 70 percent less to operate than diesel-fueled buses. In tandem, guidance should be issued to enterprises on how to decarbonize their operations and shift toward electrification and digital solutions.

Launching mass greening and reforestation projects across cities can yield a number of benefits, such as cooling them during summer months and improving biodiversity. This can be done by planting trees to line streets and boulevards and creating gardens, grassy areas, public parks, flowery meadows, miniature urban forests and allotments. For instance, many cities offer allotments for urban farming and recreational gardening projects managed by residents, with an abundance of evidence pointing to improved physical and mental well-being, in addition to the growth of local, seasonal and organic produce.

Additionally, many countries, such as the UAE and Singapore, are capitalizing on vertical farming projects to maximize agricultural yield while relying on climate-friendly solutions to efficiently utilize water and energy.

City governments should also be creative with their public education campaigns to nudge the desired behavioral changes by residents, focusing on recycling, metered consumption and the reduction of wastage. Furthermore, MENA countries should invest in cutting-edge research and innovations related to climate change, which will empower cities to navigate an uncertain future and adjust their climate action plans accordingly.

When imagining the cities of tomorrow, a rather ambitious idea should be explored to include sustainability. By transforming its cities into greener cities, the MENA region can navigate the coming decades with enhanced resilience and competitiveness.
Source: ARAB NEWS

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Morocco aims to obtain 52% of its electricity from renewable sources by 2030.

Morocco developed the Noor Ouarzazate concentrated solar complex, described as the largest concentrated solar power plant in the world.

Morocco had wind capacity of over 1.2 gigawatts as of 2019.

Egypt has a target of 42% of electricity from renewable sources by 2035.

Egypt has launched large-scale projects including the Benban Solar Park and the Zafarana Wind Farm.

Benban Solar Park is expected to be the largest solar photovoltaic plant in the world when completed.

Jordan reached a renewable share of 31% earlier than its 2030 plan and plans to raise that target to 50%.

Title:

Content: Contribution ｜ Explore Hong Kong ’ s role and opportunities in the development of renewable energy in the Middle East
Author: 01 More Voices
Published: Updated:
In recent years, Hong Kong has actively promoted the development of renewable energy and launched a number of related products in the financial market.
In addition, more and more Hong Kong enterprises have also started to participate in the development of this industry, especially in the financial market, and launched a number of financial products to support the development of renewable energy.
At the same time, many countries in the Middle East, such as the United Arab Emirates, Jordan, Saudi Arabia, Oman and Turkey, are also actively engaged in various large-scale projects to promote the development of renewable energy, and expect to see a different energy mix and economic development model in 2030 or 2050.
For Hong Kong, China and other countries, the development opportunities of the Middle East market cannot be ignored, and Hong Kong ’ s participation in this area cannot be underestimated.
Submitted by: Kwong Cheuk-wui
Recently, I had the opportunity to participate in several seminars on economic and energy development in the Middle East, and have in-depth exchanges with government representatives in charge of foreign affairs and trade from various Middle Eastern countries and Azerbaijan.
These exchange experiences provide the author with a wealth of insight.
After many in-depth talks, to understand the interest and momentum of the development of renewable energy in many countries in the Middle East, the author synthesized the information from various parties and came to the following insights: The reason why the major oil producers in the Middle East are actively developing renewable energy is to achieve economic diversification and get rid of dependence on oil and related industries.
They hope to turn the country ’ s surplus renewable energy into new, dependable foreign revenues (i.e., revenues generated from natural resource exports; “Rents ”) through innovative technologies.
For other non-oil producing countries, they want to achieve economic sustainability through the development of renewable energy, reduce dependence on traditional fossil fuels or electricity imports, and convert renewable energy into new external rental income to boost the country ’ s economic development.
From this, it can be seen that the Middle East countries are very concerned about the development of renewable energy, but also hope to complete the energy transformation as soon as possible, and look forward to renewable energy can produce more and greater economic benefits, create new dependent income, promote economic diversification and modernization, but also benefit thousands of people.
As a result, many countries in the Middle East have invested heavily in and promoted energy transformation and clean energy development.
Although many countries have made extraordinary achievements in driving renewable energy development, they also face many challenges.
Jordan, for example, has a wealth of renewable energy resources, including solar, wind, geothermal and bioenergy, as well as state-of-the-art renewable energy laws, regulatory mechanisms and development frameworks.
Earlier this year, Jordan successfully achieved its national roadmap, originally set for 2030, with renewable energy accounting for 31% of total energy.
The Jordanian government also plans to increase this target to 50%, and is committed to building the country into a regional renewable energy development center and exporting environmentally friendly power to neighboring countries to increase the country ’ s foreign revenue.
However, like other Middle Eastern countries, Jordan faces a host of challenges.
These challenges include lagging energy infrastructure, imperfect grid planning, an over-concentration of resources on solar and wind with less focus on geothermal energy, and a lack of energy storage systems and foreign investment.
In addition, there is the debt problem of the national power company.
These difficulties not only affect Jordan ’ s progress in developing renewable energy, but also act as a barrier to modernizing and diversifying the country ’ s economy.
Some Jordanian officials and scholars are concerned about whether the development of renewable energy is progressing as expected.
They are concerned that if the development of renewable energy and its core economic development model are not carried out smoothly, or if the newly set targets are not successfully achieved, the country ’ s economic sustainability will be adversely affected.
At the same time, it can undermine the credibility and governance of the government.
In particular, those political forces that have been opposed to the use of renewable energy to promote economic development and diversification may take the opportunity to launch opposition actions, further endangering the political stability and regional security of the country and the Middle East as a whole.
It is worth noting that these challenges are not only in Jordan, but also in Middle Eastern countries such as Morocco and Egypt.
Other countries such as the United Arab Emirates, Oman, Saudi Arabia and Qatar have also made great efforts to develop solar and wind power in recent years, but in addition to the above concerns and challenges, there are also concerns that the development of renewable energy will have some impact on the high dependence of these countries ’ economies on oil and gas markets, which may affect existing incomes and lead to economic and social instability.
Other factors include the huge demand for capital, the need for foreign technology and talents, the need for talent training, economic feasibility, etc. These are also issues of concern to the officials of these Middle Eastern countries.
These challenges are in fact a valuable development opportunity for Hong Kong.
The key is to make good use of our strengths, especially in the Belt and Road Initiative, to work with the Middle East countries to promote renewable energy and green economy development.
This not only helps these countries diversify their economies, but also creates development opportunities for Hong Kong businesses and governments, and indirectly promotes the development of other industries.
I suggest that Hong Kong can establish cooperation platforms and channels of communication with transnational organizations in the Middle East and North Africa, such as the Arab Parliamentary Union, the Gulf Cooperation Council, the Turkic Parliament and the Arab Maghreb Union.
Such a platform could be used to explore free trade agreements and to help Middle Eastern countries provide services such as finance, advisory, legal, education or training, and energy infrastructure.
This will not only help Hong Kong consolidate its leading position in the professional services sector and the financial sector, but will also directly or indirectly create many development opportunities, especially in Islamic finance.
Finally, Hong Kong can consider providing financial support to the Middle East countries by assisting in the issuance of Islamic financial bonds to promote the development of renewable energy, and can also take the opportunity to develop Islamic finance in Hong Kong as a new financial center outside the Islamic world.
Of course, Hong Kong should not only cooperate with major countries such as Saudi Arabia and the United Arab Emirates or the above-mentioned multinational organizations and platforms, but also consider other regions with development potential and worthy of investment, such as Turkey, Azerbaijan, Morocco, etc.
This diverse collaboration will help Hong Kong expand its international presence and contribute to global sustainability in the renewable energy sector.
The author, Mr Kwong Cheuk-rui, is the Executive Director of the Hong Kong Group of Ideas, a Master of Arts from the Australian National University, and has worked at the Australian Institute of International Affairs.
The article is only the opinion of the author and does not represent the position of Hong Kong 01.
Please email us at 01view @ hk01.com.
Please attach the author ’ s real name and contact details.
If not applicable, without prior notice.

Governments in the region are pursuing renewables to diversify economies and reduce dependence on oil and gas revenues.

Renewable energy is presented as a way to reduce greenhouse gas emissions while creating opportunities for economic growth and innovation.

The International Finance Corporation estimates a climate-centred investment opportunity of $1.7 trillion for the MENA region.

Regional governments and companies are increasingly adopting ESG strategies and pursuing new low-carbon options such as green hydrogen and circular carbon approaches.

Bahrain refinanced a $2.2 billion sustainability-linked corporate finance facility as an example of regional green finance activity.

Key barriers reported across the region include policy and regulatory gaps, financing constraints, limited ESG and energy data, talent shortages, grid planning shortfalls, and insufficient storage and infrastructure.

Specific national challenges include overconcentration on solar and wind, a lack of storage systems, limited foreign investment, energy infrastructure lags, imperfect grid planning, and debts at national power companies.

Hosting COP28 in the UAE has increased political urgency around climate action and net-zero targets in the country and region.

Renewable projects and policies can create new revenue streams and investment opportunities for Middle East countries.

Rapid transition carries risks for oil-dependent revenues and could affect economic and political stability if the shift is not managed carefully.

Summary: Several Middle East countries are investing in large-scale solar and other renewable projects, setting national clean-energy targets, and deploying policies and financing to diversify their economies and meet climate goals, while facing financing, infrastructure, data and political challenges.


The MENA region is highly dependent on fossil fuels, accounting for about 36% of global oil production and 20% of global gas production in 2018.

IRENA estimates the region could generate over 60% of its electricity from renewables by 2030.

The UAE targets 50% clean energy by 2050 and hosts projects such as Shams 1, the Mohammed bin Rashid Al Maktoum Solar Park, and Masdar City.

The UAE has announced up to AED 200 billion (about $54.5 billion) in renewable investments and opened a AED 4 billion plant and a large waste-to-energy facility in Dubai.

Morocco aims for 52% renewables by 2030 and built the Noor Ouarzazate concentrated solar power complex.

Morocco had over 1.2 GW of wind capacity as of 2019.

Egypt plans 42% renewables by 2035 and is developing the Benban Solar Park and the Zafarana Wind Farm.

Egypt launched the Nexus of Water, Food and Energy program at COP27 to mobilize $14.7 billion for projects including replacing inefficient thermal plants with renewables.

Governments are using sovereign investments, public programs, and international finance partnerships as incentives and funding mechanisms.

Egypt’s program notes retraining or retiring fossil fuel workers and debt-for-climate swaps as tools to support a just transition.

Energy diplomacy is shifting, with states coupling gas exports and renewable cooperation to build partnerships and commercial ties.

Challenges remain, including regulatory gaps, financing barriers, data limitations, and a regional ESG and talent gap that can slow deployment.

Overall, Gulf and North African states are investing in large solar projects and financing mechanisms to diversify economies and meet climate goals, but policy, finance, and capacity gaps remain.

The MENA region is highly dependent on fossil fuels, accounting for about 36% of global oil production and 20% of global gas production in 2018.

Title:

Content: Fossil fuels, which have powered the industrial growth and development of civilisations for centuries, are facing a looming deadline of depletion. Moreover, they have caused severe environmental and social problems, such as climate change, conflicts, and pollution. The need for alternative and sustainable energy sources is clear and urgent. However, the transition to a post-fossil fuel era is not easy or straightforward. It requires innovation, investment, cooperation, and vision.

This article explores the challenges and opportunities of global energy transformation, focusing on the dual nature of fossil fuels, the countdown to their exhaustion, and the promise of renewable energy sources. It also highlights the progress and potential of some countries in the Middle East and North Africa (MENA) region, which is one of the most dependent regions on fossil fuels in the world.

Fossil Fuels: A Double-Edged Sword

Fossil fuels, comprising oil, coal, and natural gas, are ancient energy sources that have been central to the development of various industries and sectors. They have enhanced transportation, manufacturing, agriculture, and electricity generation. They have catalysed global trade, commerce, and innovation, elevating the quality of life for millions.

However, this ascent has been coupled with profound challenges. Fossil fuels have been a source of geopolitical strife, epitomised by wars and conflicts over their control and distribution. They have also exacerbated environmental issues, such as greenhouse gas emissions, global warming, and climate change. Incidents like oil spills, gas leaks, and fracking have inflicted severe damage on ecosystems and public health.

The Countdown to Depletion

The finite and non-renewable nature of fossil fuels leaves humanity facing a daunting deadline. Predicting the exact exhaustion of these resources is a complex endeavour, influenced by reserves, consumption rates, technological advancements, and price fluctuations. Nonetheless, projections based on current data paint a concerning picture.

According to Octopus Energy, the year 2060 may mark the twilight of fossil fuels, based on current consumption and reserve estimates. In 2020, global oil production reached 91.7 million barrels per day (b/d), with key players like the United States, Saudi Arabia, and Russia at the forefront. Simultaneously, natural gas production stood at 3.94 trillion cubic meters (bcm). Although the Covid-19 pandemic temporarily curtailed production, a resurgence is anticipated. In contrast, natural gas consumption steadily rises by over 3% each year.

Should additional oil reserves remain elusive, known deposits could be depleted by 2052. The stark reality is that demand for oil has surged, nearly doubling the average annual rate observed over the preceding decade in 2018.

Toward a Sustainable Energy Paradigm

The global imperative for alternative energy sources is clear. Sustainable options, even if not entirely devoid of environmental impact, have become a linchpin of energy discussions. The quest for sustainability is no longer optional; it is fundamental to securing a prosperous future.

Embracing alternative and sustainable energy solutions is our paramount responsibility. The adverse consequences of persisting with fossil fuels are increasingly undeniable. Furthermore, incidents such as oil spills, gas leaks, and fracking have grievously scarred ecosystems and human health.

The geopolitical maelstrom surrounding fossil fuels is a testament to their strategic importance. By reducing our dependence on these finite resources, we can contribute to global stability and peace.

The Promise of Sustainable Energy

Investing in sustainable energy is not merely an ecological commitment; it is a strategic move to safeguard long-term energy security. Renewable sources like solar and wind power do not suffer the same spectre of depletion as fossil fuels, offering a reliable and sustainable energy future. Moreover, technology’s relentless march is enhancing the efficiency and cost-effectiveness of these alternatives, ensuring a seamless transition.

In this era of unprecedented global challenges, the unsustainable trajectory of fossil fuels is no longer tenable. Transitioning to renewable and sustainable energy sources is both a moral imperative and an economic necessity. As we confront the relentless march of climate change, endeavouring to secure long-term energy stability and foster global peace, embracing this transformation is our only viable path toward a sustainable and prosperous future. It is a journey we must embark upon with unwavering determination and foresight.

The MENA Region: The abundance of wisdom

The MENA region stands as an interesting case study for global energy transformation. The region is one of the most dependent regions on fossil fuels in the world. According to the World Bank, the region accounted for 36% of the global oil production and 20% of the global gas production in 2018. However, the region also faces many challenges and risks related to its reliance on fossil fuels, such as price volatility, environmental degradation, social unrest, and geopolitical conflicts.

Therefore, some countries in the region have started to prepare for the transition to a post-fossil fuel era by diversifying their economies, investing in renewable energy sources, and promoting innovation and sustainability. According to a report by the International Renewable Energy Agency (IRENA), the MENA region has a huge potential for renewable energy development, especially solar and wind power. The report estimates that the region could generate more than 60% of its total electricity from renewable sources by 2030.

Some of the countries that have made significant progress in this field are:

• UAE: The UAE has been a leader in innovation and sustainability in the region, with a vision of becoming a global hub for green economy and clean energy. The UAE has set a target of increasing its share of clean energy to 50% by 2050. The UAE has invested in various renewable energy projects, such as the Shams 1 solar thermal plant, which is one of the largest of its kind in the world, and the Mohammed bin Rashid Al Maktoum Solar Park, which is planned to be the largest single-site solar park in the world by 2030. The UAE is also home to Masdar City, which is a planned city that aims to be one of the most sustainable cities in the world. Also, UAE is one of the 10 largest oil producing countries with a proven reserves, according to BP statistical reviews, of 100 billion barrels.

• Morocco: Morocco has been a pioneer in renewable energy development in the region, with a target of achieving 52% of its electricity from renewable sources by 2030. Morocco has invested heavily in solar power projects, such as the Noor Ouarzazate complex, which is the largest concentrated solar power plant in the world. Morocco also has a strong wind power sector, with a capacity of over 1.2 gigawatts (GW) as of 2019.

• Egypt: Egypt has also been pursuing an ambitious renewable energy strategy, with a goal of reaching 42% of its electricity from renewable sources by 2035. Egypt has a large potential for solar and wind power, especially in the Sinai Peninsula and the Red Sea coast. Egypt has launched several large-scale projects, such as the Benban Solar Park, which is expected to be the largest solar photovoltaic (PV) plant in the world when completed, and the Zafarana Wind Farm, which is one of the largest wind farms in Africa.

These are some examples of countries in the MENA region that are prepared for after fossil fuels era. However, there are still many challenges and barriers that need to be overcome, such as policy and regulatory frameworks, financing and investment mechanisms, public awareness and participation, and regional cooperation and integration.

The world is at a crossroads in its energy choices. Fossil fuels have been instrumental in driving industrial growth and development, but they have also caused severe environmental problems. Their finite nature also poses a threat to long-term energy security. The need for alternative and sustainable energy sources is clear and urgent.

Renewable energy sources offer a promising solution to this challenge. They are abundant, reliable, and sustainable. They can reduce greenhouse gas emissions, mitigate climate change impacts, and foster global peace. They can also create new opportunities for economic growth, innovation, and social welfare.

— Dr Abdullah Belhaif Al Nuaimi is a former UAE minister of Infrastructure Development and for Climate Change and Environment

IRENA estimates the region could generate over 60% of its electricity from renewables by 2030.

The UAE targets 50% clean energy by 2050 and hosts projects such as Shams 1, the Mohammed bin Rashid Al Maktoum Solar Park, and Masdar City.

The UAE has announced up to AED 200 billion (about $54.5 billion) in renewable investments and opened a AED 4 billion plant and a large waste-to-energy facility in Dubai.

Title:

Content: Environmental, Social, and Governance (ESG) issues have become increasingly prominent on the global stage as organisations recognise the need to integrate sustainability into their operations.

As the Middle East moves towards a low carbon future, sustainability has become a top priority for organisations and governments across the region.

Sheikh Mohammad bin Rashid, Prime Minister and Ruler of Dubai announced while launching the National Hydrogen Strategy that the UAE is to invest up to AED 200 billion ($54.5 billion) in renewable energy.

The launch of a AED 4 billion renewable energy plant in Dubai,  and the world’s largest waste-to-energy plant are proof of sustainability climbing the agenda.

With COP 28 being held in the UAE this year, there is a renewed sense of urgency on climate change action, and the net-zero carbon target is being prioritised through policies and actions.

After all, sustainability will boost the UAE’s economic competitiveness, drive innovative policy and improve investment opportunities.

The region has seen notable sustainability innovations, including Saudi Arabia’s rapid transition to a circular carbon economy, Bahrain’s state oil company refinancing a $2.2 billion sustainability-linked corporate finance facility, and Oman’s exploration of green hydrogen as a clean energy source.

However, the Middle East faces its own unique challenges in implementing ESG practices, especially around accurate sustainability reporting and implementing early regulations to fill in previous gaps.

Other challenges that hinder the progress of the region’s ESG agenda include the talent gap, how corporates in the region address the need to implement ESG practices, as well as data availability.

Regulatory frameworks

While standardised frameworks and reporting guidelines begin to form, the lack of clear regulations can hinder consistent measurement and disclosure of ESG performance.

Global frameworks have now become more widely adopted in the region such as the Global Reporting Initiative (GRI), the Sustainability Accounting Standards Board (SASB), and the newly published International Sustainability Standards Board (ISSB).

The gap in standardisation previously posed challenges for investors and stakeholders who relied on transparent and comparable ESG data for decision-making, however, we are starting to see drastic changes in this area.

Data availability

Many companies in the Middle East still face challenges in collecting, managing, and reporting ESG data, which can hinder their ability to effectively assess and manage their sustainability performance.

Data is the first step to measure any status, but also measure progress. Improving data collection mechanisms and investing in robust reporting systems will be instrumental in addressing this challenge.

ESG talent gap

Organisations need individuals with specialised knowledge and expertise in ESG practices to drive sustainable strategies effectively. Alongside this specialised knowledge, the industry also needs innovators, risk takers, agitators for change, mentors, and communicators in the field. There is however, a shortage of skilled professionals in the region with a deep understanding of ESG principles to drive innovative solutions.

Bridging this gap requires investment in education and training programmes to build a skilled workforce capable of integrating ESG considerations into business practices. Universities and training institutions are therefore increasingly offering courses and programmes on sustainability and ESG and businesses are partnering with academic institutions to develop tailored training initiatives and internships, nurturing a pipeline of talent equipped with the required knowledge and skills.

These efforts will cultivate a sustainable workforce capable of implementing and driving ESG practices in the Middle East.

Implementation by region’s corporates

Despite the challenges, corporations in the Middle East are embracing ESG practices, recognising the importance of sustainability and responsible business conduct. We see this through accelerated electrification and the increase of decarbonizing energy supply.

The GCC’s oil-producing nations have made efforts to diversify energy sources, transitioning towards net-zero carbon fuels for transportation. Investments in renewable energy, such as solar and wind, aim to mitigate environmental impacts and promote a low-carbon economic future transforming the economic system and supply chain.

Additionally, social considerations are gaining prominence. Companies are addressing social issues through initiatives that promote diversity, inclusion, and employee welfare.

Governance practices are also being strengthened to ensure transparency, accountability, regulatory reforms and ethical conduct.

While obstacles in integrating ESG practices persist in the Middle East, corporates in the region are proactively embracing sustainability and responsible business practices.

That the Middle East is emerging as a leader in ESG adoption is apparent through their fullfillment of the UN SDG goals which has driven positive environmental, social, and governance outcomes for businesses and society as a whole.

Morocco aims for 52% renewables by 2030 and built the Noor Ouarzazate concentrated solar power complex.

Morocco had over 1.2 GW of wind capacity as of 2019.

Egypt plans 42% renewables by 2035 and is developing the Benban Solar Park and the Zafarana Wind Farm.

Egypt launched the Nexus of Water, Food and Energy program at COP27 to mobilize $14.7 billion for projects including replacing inefficient thermal plants with renewables.

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Content: Egypt leading the way on ensuring net-zero transition is just

Rania Al-Mashat & Erik Berglof

The gap between the resources needed to achieve net-zero greenhouse gas emissions by 2050 and the resources that are available currently amounts to trillions of dollars – and is still growing. As many developing and emerging economies lose ground in the wake of the COVID-19 pandemic, public and private capital must be mobilized to accelerate mitigation and adaptation efforts. But this requires governments to produce credible plans for achieving global sustainability goals, to design and implement these policies themselves and to ensure that their strategies’ costs and benefits are fairly distributed.
Last November’s UN Climate Change Conference in Egypt, known as COP27 and dubbed the “implementation COP,” laid the groundwork for a fairer, more robust climate finance system. The conference’s “guidebook” called on the international community to advance a transformative agenda that accounts for developing countries’ national priorities and ensures equitable access to financial and technical resources. It included, in its definition of climate justice, “equitable access to quality and quantity climate financing” that considers “historical responsibility for climate change” and “supports resilient development pathways, leaving no one behind.”
With this in mind, Egypt launched its Nexus of Water, Food and Energy investment program during COP27, providing a practical and replicable model for ensuring a just net-zero transition through a concept of “country platforms.” These platforms are meant to help countries build state capacities and emphasize the importance of developing countries’ agency (or “ownership,” in aid parlance).
The Nexus of Water, Food and Energy – whose acronym NWFE, pronounced “nuafiy,” is Arabic for “fulfilling pledges” – builds on Egypt’s commitments under the 2015 Paris climate agreement and aims to attract financial support for the country’s development agenda, while accelerating climate action. The stakeholders include multilateral development banks such as the European Bank for Reconstruction and Development, the African Development Bank, the European Investment Bank and the Asian Infrastructure Investment Bank. The Nexus of Water, Food and Energy platform integrates several high-priority water, food and energy projects – all selected by the Egyptian government – worth a total of $14.7 billion. The projects seek to replace existing inefficient thermal power plants with renewable energy; enhance small farmers’ adaptation to climate risks; modernize farming practices to increase irrigation efficiency and boost crop yields; strengthen the resilience of vulnerable regions; create water desalination capacity; and establish early-warning systems.
By using innovative financing mechanisms to mobilize public funds, technical assistance and private investment, Egypt seeks to leverage its partnerships with the multilateral development banks and other development stakeholders to accelerate its climate agenda. This would support the country’s green transition and show that climate action and economic development can go hand in hand. Egypt can also rely on these partnerships to help it phase out “brown” oil, gas and mineral assets. For example, partial concessional financial support from the US will enable the country to retrain (or retire) fossil fuel workers. Yet, the most innovative instrument may be debt-for-climate swaps, whereby Egypt receives partial debt relief from, say, Germany, in exchange for commitments to reduce greenhouse gas emissions. These types of performance-linked financial instruments could provide many developing and emerging countries with an opportunity to lower their debt burden or obtain low-cost funds. By tying development assistance to progress on a common global target, such swaps could also prove to be significant in mitigating the worst effects of climate change.
As a 2018 report by the G20 Eminent Persons Group on Global Financial Governance noted, collective action through country platforms has the power to unlock public and private investment to achieve climate-resilient and sustainable development. Such investment platforms can take different forms. For example, Just Energy Transition Partnerships – first introduced during COP26 in Scotland in 2021 – aim to direct private capital toward decarbonization targets in the energy sector. Since launching in South Africa, Just Energy Transition Partnerships have also been established in Indonesia, India, Vietnam and Senegal. Egypt’s Nexus of Water, Food and Energy initiative provides a useful model for how developing and emerging countries can expedite the implementation of their national climate agendas in line with global priorities. By encouraging coordination among domestic and external stakeholders, such programs can help bridge the information gap, establish shared standards and increase the number of bankable projects.
But the platform’s success hinges on domestic agency, transparency and accountability in managing these partnerships. Most importantly, the green transition must be perceived as just in order to be sustainable. Predictability is particularly important for the poor and fairness is essential to winning long-term public support for climate measures. To achieve these goals, governments must lead on climate finance. The net-zero transition depends on it.

Governments are using sovereign investments, public programs, and international finance partnerships as incentives and funding mechanisms.

Egypt’s program notes retraining or retiring fossil fuel workers and debt-for-climate swaps as tools to support a just transition.

Energy diplomacy is shifting, with states coupling gas exports and renewable cooperation to build partnerships and commercial ties.

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Content: Energy is changing Israel’s foreign policy - opinion

The Abraham Accords between Israel and several Arab states, including the oil-rich countries, further illustrate Israel’s energy centric-foreign policy.

Israel's Energy Minister Karin Elharrar is seen signing a climate cooperation deal with Jordan in Dubai, on November 22, 2021.
(photo credit: Courtesy)

For centuries, energy concerns have influenced defense, economics, and the environment. Starting with the British Empire’s decision to found coaling stations to support the imperial navy to Russia’s invasion of Ukraine, energy has impacted security decisions at every level.

Future energy sources are destined to be just as transformative and disruptive to the international system. This ongoing transformation is showcased in no better example than Israel’s sensitive energy-centric diplomacy.

Its energy-focused foreign and security policy comes in the wake of the Russian ruble climbing to a seven-year high, owing to high oil prices triggered by sanctions against Russia and the post-COVID global recovery. With Europe reeling due to dependence on Russian gas, Israel has stepped in and is in talks to fill this vacuum with its own gas exports by exporting gas to Europe via Egypt.

However, Israel’s diplomacy and the future of energy politics are not just about changing logistics or suppliers. Dr. Alexander V. Mirtchev, in his groundbreaking The Prologue: The Alternative Energy Megatrend in the Age of Great Power Competition, elucidates on the changing landscape of energy politics. The book provides an excellent model for Israeli diplomacy.

Mirtchev, a vice-chair at the Atlantic Council, a leading Washington think tank, and a founding member of the Council to the Kissinger Institute on China and the US at the Woodrow Wilson International Center, argues that the vigorous pursuit of innovation and an expeditious entry into the realm of the unknown is becoming a key ingredient in the competition between global powers, resulting in energy rebalancing between actors.

The Leviathan gas platform, 10km. offshore Israel (credit: ALBATROSS)

Mirtchev is not alone in this assessment. Former secretary of state and national security adviser Henry Kissinger concurs, stating “Mirtchev’s sweeping exploration of the changing energy landscape looks far into the future and outlines issues that will occupy scholars and policymakers for decades to come.”

Former director of the FBI William Sessions believes the megatrend described by Mirtchev has succeeded in breaking through the complexities of the current alternative energy development strategies. World Bank vice president for sustainable development Rachel Kyte notes, “The alternative energy megatrend as described in Alexander Mirtchev’s book, occupies a large and growing role in the World Bank’s energy portfolio and policy advice.”

It is worth analyzing what this forward-looking trajectory, a megatrend, means for Israel’s changing foreign policy considering the Abraham Accords, the Iranian threat, and its wish to export gas to Europe.

Israel’s foreign policy through the lens of energy

Mirtchev posits that security considerations are driving Israel’s energy strategies. The use of solar-based battery chargers and new approaches to providing energy to military bases are obvious examples. Counterintuitively, Mirtchev also explains how Israel’s booming natural gas industry interplays with technological and regional dynamics: “Combined with the increased use of domestic natural gas, Israel can utilize alternative energy as a balancing factor in its relations with its energy-rich neighbors. These considerations are already leading to advances in alternative energy [...].”

Energy has also recently played a critical role in Turkish-Israeli relations. While some experts speculate on Turkey’s latest charm offensive, hoping to repair long-strained Turkish-Israeli relations, energy is obviously paramount. Turkish President Recep Tayyip Erdogan stated as much in February, “We can use Israeli natural gas in our country and beyond using it, we can also engage in a joint effort on its passage to Europe.”

It is these same energy concerns that drive Israel’s engagement with various Mediterranean states. Israel’s energy alliance with Greece, Cyprus, Egypt and Italy aims to transport Israeli gas to Europe via the Euro-Asia interconnector, which was announced in April, to boost alternatives after the Russian invasion of Ukraine. With these states also announcing the EastMed subsea pipeline to supplement delivery capabilities, it is unsurprising that Turkey is both rhetorically retaliating against Europe and seeking ties with Israel.

The perennial Iranian nuclear issue is another excellent example of this. While seeking nuclear weapons and funding terrorism are political projects, energy is also at their apex. Oil revenues enable their activities, and Iran is now attempting to leverage the Ukrainian crisis to do so.

Last week, Iran announced they are going to increase cooperation with Russia by swapping energy supplies and setting up a logistics hub with a Russian accord. The simple aim is to help both parties bypass sanctions and provide plausible deniability to politically uncommitted buyers. If the international community wants to pressure Iran and Russia successfully, it must find a way to hamper their energy industries and simultaneously pressure both parties.

The Abraham Accords between Israel and several Arab states, including the oil-rich United Arab Emirates and Bahrain, further illustrate Israel’s energy centric-foreign policy. A taste of the future alternative energy paradigm surfaced last November with the signing of a water-for-energy deal between Israel and Jordan. Months later, a UAE-Egyptian consortium announced intentions to buy South African renewables firm Lekela, giving Abu Dhabi’s Masdar, owned by UAE’s sovereign investment company Mubadala, a presence in southern Africa.

Israel’s recent energy-centric diplomacy showcases what Mirtchev argues: “the alternative energy megatrend [...] has already begun to shape the way production choices are made and energy is distributed.”

As alternative energy and technologies advance, this megatrend will create opportunities for relations between states and upset existing power balances. Israel’s foreign policy transformation already acts as a testimony to this major development.

The writer is a Middle East expert, the managing editor at the Jerusalem Institute for Strategic Studies and a Ph.D. candidate at Bar-Ilan University. He is formerly the Middle East correspondent for The Jerusalem Post.

Challenges remain, including regulatory gaps, financing barriers, data limitations, and a regional ESG and talent gap that can slow deployment.

Overall, Gulf and North African states are investing in large solar projects and financing mechanisms to diversify economies and meet climate goals, but policy, finance, and capacity gaps remain.