# Energy Transition in the Middle East: A Comprehensive Report

## Introduction

The Middle East, traditionally known for its vast oil wealth, is undergoing a significant transformation in its energy landscape.

Several countries in the region have begun investing heavily in solar energy and other renewable sources as part of their broader energy transition strategies.

This report examines key national projects, current solar capacity, government incentives, and the impact of these efforts on both local economies and climate goals.

## Key National Projects and Solar Capacity

### United Arab Emirates

The UAE has emerged as a regional leader in renewable energy development.

The Mohammed bin Rashid Al Maktoum Solar Park stands as the world's largest solar energy site using the IPP (Independent Power Producer) model.

Additionally, the Al Dhafra Solar Plant is being constructed as the world's largest photovoltaic solar station with a production capacity of 2 gigawatts.

The UAE's commitment extends beyond domestic projects.

The country has invested over $50 billion in renewable

# Energy Transition in the Middle East: A Comprehensive Report

## Introduction

The Middle East, traditionally known for its vast oil wealth, is undergoing a significant transformation in its energy landscape.

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Content: The absence of regional and national markets for trading in carbon credits could potentially hinder the Gulf countries’ ambitions to become global leaders in sustainable fuels, whether green hydrogen, ammonia, or e-fuels.

The Zero Emissions Traders Alliance (ZETA), recently established in Dubai, aims to change this by creating a GCC-based clean energy market resembling the regional Emissions Trading System (ETS) in Europe.

Clean energy markets distribute risks more equitably between producers and buyers of sustainable commodities and help price the carbon they reduce, according to ZETA's CEO Jan Haizmann.

He told Zawya Projects that unlike Europe, where the ETS has effectively lowered carbon emissions, the GCC has limited experience in carbon trading.

With ZETA staff and affiliated companies boasting extensive experience in zero emissions trading in Europe, he said the organisation is well-equipped to offer valuable knowledge-sharing on carbon trading to the GCC community. This expertise can be a significant asset in the region's transition to sustainable energy.

The power of regional markets

Haizmann noted that current efforts for carbon markets in the GCC are fragmented, with each country pursuing its own approach, unlike the regional initiative seen in Europe.

"There is a limited degree of transparency about national policies," he said.

Except for Saudi Arabia, other GCC countries are too small to launch their own carbon trading markets due to insufficient liquidity.

Haizmann continued: "Preparing a regional GCC-ETS would substantially increase the potential impact of ETS compared to various insular ETS initiatives. This joint initiative would require common certificate standards, free transferability of carbon rights within the GCC region and an agreement on how to link national initiatives in a regional context."

He stressed that the European ETS, established in 2005 as the world's first international emissions trading system, could, due to its mature functionality, serve as a yardstick for the GCC.

A collaborative platform in pursuit of price discovery
The ZETA CEO said the organisation can serve as a collaboration platform for industry players to agree on market standards and engage in transparent preparatory work. It can also guide the creation of a robust ruleset by leveraging its experience with established markets.

"Price discovery relies heavily on a market built on integrity and open information," he said, adding that ZETA can facilitate industry-government dialogue for market design as industry input is crucial for a successful market launch.

Haizmann said a market for sustainable commodities could hedge price risks and bridge the gap between long-term contract prices and fluctuating market prices, paving the way for green fuel projects to reach the final investment milestone.

However, he acknowledged that creating standard contracts for trading could be challenging due to regulatory fragmentation, especially in terms of product definitions.

"A good starting point would be to agree on commodity definitions for these new sustainable fuels," he said, adding that tradeable certificates that verify their sustainability claims are also necessary.

Unlocking GCC’s sustainable production potential
Haizmann pointed out that GCC countries shouldn't focus solely on exporting sustainable commodities to Europe and other developed markets.

"The primary beneficiary is the environment, not European companies. By fostering regional markets for these goods, alongside exploring export options, GCC countries can unlock their sustainable production potential and boost their financial markets," he said.

Last month, oilprice.com reported that ZETA also intends to collaborate with stakeholders in Saudi Arabia and internationally to develop certificates that guarantee the origin of carbon-free fuels. The group will also develop pricing benchmarks similar to the LNG spot price benchmark to create reliable reference points for clean commodities, including hydrogen, ammonia, and e-fuels.

By addressing knowledge gaps, fostering regional cooperation, and developing transparent market mechanisms, ZETA is set to play a pivotal role in the sustainable energy transition in the Gulf and the broader Middle East.

(Reporting by Anoop Menon; Editing by SA Kader)

(anoop.menon@lseg.com)

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Content: within the work of the United Nations High-level Political Forum on Sustainable Development
Abdullah Lootah:
• The UAE plays a leading and effective role to enhance government knowledge exchange to enable the United Nations 2030 Sustainable Development Goals globally
• The UAE is accelerating the achievement of the Sustainable Development Goals and sharing its experiences with governments and countries based on an innovative methodology, visions and clear strategic plans.
Nawal Al-Hosani:
• The UAE has translated its commitment to promote clean energy by investing more than $50 billion in renewable energy projects in 70 countries around the world.
• The UAE promotes the role of clean energy globally to support the achievement of the Sustainable Development Goals and empower individuals and communities
His Excellency Abdullah Nasser Lootah, Assistant Minister of Cabinet Affairs for Knowledge Exchange and Competitiveness, Chairman of the Competitiveness Council and Vice Chairman of the National Committee for Sustainable Development Goals, said that the UAE, under the leadership of His Highness Sheikh Mohammed bin Zayed Al Nahyan and under the guidance of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, is keen to accelerate the achievement of the SDGs. In this regard, with various governments and countries based on innovative methodology, visions and clear strategic plans for the benefit of societies and peoples.
This came during a special session on voluntary national and local data-based reviews of the SDGs, the UAE Data Platform for the SDGs, as part of the UAE government delegation ’ s participation in the United Nations High-Level Political Forum on Sustainable Development organized by the United Nations Department of Economic and Social Affairs (DESA) from 10 to 19 July in New York.
Abdullah Lootah said that the UAE continues its efforts and plays a leading and effective role in supporting the achievement of the United Nations Sustainable Development Goals 2030 and strengthening global partnerships and international cooperation to accelerate the achievement of the SDGs for a sustainable future for all.
Abdullah Lootah added: “The UAE was the first in the region to launch a SDG data center in October 2017 in a joint effort between the UAE Federal Competitiveness and Statistics Center and the United Nations Department of Economic and Social Affairs, pointing out the importance of the UAE ’ s voluntary review report on achieving the SDGs as a successful model in accelerating the achievement of these goals globally. ”
The UAE government delegation continues to hold meetings with prominent United Nations officials, experts, specialists and representatives of SDGs stakeholders from various countries participating in the International Forum, where the delegation discussed the mechanisms of strengthening strategic partnerships between the UAE and the participating countries and effective coordination between the public, private and communities sectors to achieve the goals of the sustainable development agenda around the world.
The delegation participated in two pivotal sessions on the seventh goal of the United Nations Sustainable Development Goals (SDG) of providing clean energy at affordable prices, where the first session focused on the complementary relationship between SDG 7 and the rest of the SDGs, while the second session discussed financing clean energy projects through solidarity and equality to achieve ambitions.
The delegation reviewed a number of partnerships that resulted in specific projects in this field, such as the establishment of the UAE-Pacific Partnership Fund worth $50 million, through which Masdar Abu Dhabi Future Energy Company (ADFEC) completed 11 renewable energy projects in the Pacific countries through two funding cycles launched by the Fund with funding from the Abu Dhabi Fund for Development.
These projects produce 6.5 megawatts of renewable energy and contribute to the prevention of the emission of 8,447 tons of carbon dioxide and the elimination of 2.3 million liters of diesel fuel annually.
UAE is key international supporter of renewable energy projects in more than 70 countries
Her Excellency Dr. Nawal Al Hosani, Permanent Representative of the UAE to the International Renewable Energy Agency (IRENA), during her participation in the two sessions, reviewed the UAE ’ s experience and pioneering strategy to enhance the contribution of renewable and clean energy to the energy mix locally and globally.
“The UAE continues to be a global leader in supporting the achievement of the Sustainable Development Goals (SDGs), especially SDG 7, and is accelerating energy transformation and diversification within the UAE and around the world, contributing to global energy security, ” Al Hosani said, adding that the UAE has translated over the years its commitment to clean energy by investing more than $50 billion in renewable energy projects in 70 countries around the world.
She also referred to the strategic partnership between the United Arab Emirates and the United States to invest $100 billion in the implementation of 100 GW clean energy projects in the UAE, the United States and around the world by 2035, which was signed in November 2022.
Al Hosani added: “The UAE is collaborating with the International Renewable Energy Agency (IRENA) to support and finance vital clean energy projects around the world, such as the $1 billion ETAF project, launched by the UAE and IRENA in 2021, which received major investments from the Abu Dhabi Fund for Development (ADFD), and the ‘ Enabling Lives and Livelihoods – Renewable Energy for Climate Action ’ initiative, which aims to raise $1 billion to strengthen food and health value chains. and other initiatives that promote the role of clean energy in supporting the achievement of the rest of the Sustainable Development Goals and empowering individuals and communities. ”
Urban renaissance and sustainable communities for the future
The UAE delegation presented the UAE ’ s pioneering experience in the comprehensive urban renaissance it has witnessed since the establishment of its federation more than fifty years ago, and discussed enhancing the presence of the targets of the Sustainable Development Goal 11 of “Sustainable Cities and Local Communities ” in the UAE Centennial Vision 2071.
The UAE government delegation also met with Rohit Agarwala, Commissioner of the Department of Environmental Protection in New York City, where they discussed areas of joint cooperation in the sectors of decarbonization of urban areas, smart planning for sustainable cities and communities of the future, and exploring smart solutions to future challenges and turning them into opportunities in the sectors of sustainable urban planning and infrastructure.
The UAE government delegation to the UN High-Level Political Forum on Sustainable Development 2023 includes officials and directors from the General Secretariat of the National Commission for Sustainable Development Goals, Mohammed bin Rashid Al Maktoum Global Initiatives Foundation, Abu Dhabi Fund for Development, the UAE Permanent Mission to the UAE-based International Renewable Energy Agency (IRENA), the COP28 Bureau, the Young Leaders Program for Sustainable Development Goals, and the Federal Competitiveness and Statistics Center. and the Government Knowledge Exchange Office of the Ministry of Cabinet Affairs.
The delegation ’ s participation this year is in line with the UAE ’ s ‘ Year of Sustainability 2023 ’, which also marks the country ’ s readiness to host the Conference of the Parties to the United Nations Framework Convention on Climate Change (COP28) in November.
High Level Political Forum of the United Nations
Since its establishment in 2012, the UN High-Level Political Forum (HLPF) has been the UN ’ s primary platform on sustainable development and has a central role in monitoring and reviewing what has been implemented at the country level in the 2030 Agenda for Sustainable Development.
The theme of the forum is “Accelerating Recovery from the COVID-19 Pandemic and Continuing the Full Implementation of the 2030 Agenda for Sustainable Development. ”
Discussions will focus mainly on five Sustainable Development Goals (SDGs), SDG 6 on “Clean Water and Hygiene ”, SDG 7 on“ Clean and Affordable Energy ”, SDG 9 on “Industry, Innovation and Basic Life ”, SDG 11 on“ Sustainable Cities and Communities ” and SDG 17 on “Partnerships to Achieve the Goals ”.
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Content: Climate Change and Environment Hosts Second National Dialogue on Climate Ambition
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The Ministry of Climate Change and Environment hosted the second National Dialogue on Climate Ambition, which highlights electricity generation.
The panel, titled “The Energy Sector and its Catalytic Role for Climate Neutrality ”, brought together 52 representatives from federal and local entities and the private sector, including the UAE ’ s leading energy companies.
Participants discussed global energy prospects and the industry landscape at the local level, as well as emerging solutions that help build a climate-neutral energy system such as clean hydrogen.
H.E. Maryam bint Mohammed Saeed Hareb Al Muhairi, Minister of Climate Change and Environment, said: “The clean energy sector is currently undergoing a transition phase to support global carbon reduction efforts, and we are taking effective measures to diversify our energy mix and reduce emissions from the sector.
In the UAE, we are also witnessing significant opportunities to generate the clean energy that the world needs, as well as our efforts to improve the national economy, reduce our carbon footprint and create jobs for the future.
Thanks to these efforts in the UAE and beyond, we are helping to set the stage for a new energy economy that will be more efficient, inclusive, connected and electrified.
The National Energy Strategy, launched in 2017, oversees the outlook for the UAE ’ s energy sector, targeting an electricity mix of 50% from clean energy sources (44% from renewable energy, 6% from nuclear) and 50% from fossil energy by 2050.
This scenario is expected to reduce CO2 emissions from electricity generation by up to 70% compared to the current situation.
In line with this strategy, the UAE has increased its share of clean energy and is now home to three of the world ’ s largest solar power plants in terms of capacity and the lowest cost globally.
The UAE is also the first country in the region to build a commercial carbon capture, use and storage facility and the first country in the region to use nuclear energy for peaceful purposes following the launch of the 5,600-megawatt Barakah nuclear power plant.
The country is also exploring the potential of clean hydrogen as a sustainable energy source and has launched the region ’ s first green-hydrogen project on an industrial scale.
The country ’ s total clean energy capacity is expected to reach 14 gigawatts by 2030.
The National Dialogue on Climate Ambition, which will take place between May and September 2022, is a national platform to promote climate ambition and support efforts to reduce carbon emissions in sectors that are difficult to mitigate, including industry, cement, waste, transport and energy.
The dialogue aims to develop a national vision of sustainability and support the UAE ’ s strategic initiative to strive towards achieving climate neutrality by 2050.
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Content: New technologies to achieve sustainability goals and address climate change
Science and Technology
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Existing renewable energy initiatives in the Middle East are strengthening their role in supporting international efforts to address climate change.
In particular, the region is one of the largest contributors to the oil and gas sector globally, and at the same time is the cradle of a number of major and ambitious initiatives and projects aimed at enhancing the reliance on clean energy.
In the UAE, the Mohammed bin Rashid Al Maktoum Solar Park is the world ’ s largest IPP solar site, and the Al Dhafra Solar PV Plant is being built as the world ’ s largest solar power plant with a capacity of 2 GW.
Masdar City is the most sustainable urban community in the world.
ADFD is committed to funding innovative projects to accelerate access to sustainable energy as part of a joint initiative with the International Renewable Energy Agency (IRENA).
In Saudi Arabia, Neom recently launched The Line, the world ’ s first car-free, carbon-free city with 100% renewable energy.
King Abdullah University of Science and Technology (KAUST) leads green energy projects designed to manage the recycling of grey water for reuse for plant irrigation and other purposes, and also has large area photovoltaic panels that produce clean electricity.
In Egypt, hydropower is the second source of energy after thermal, wind and solar, and the country has developed a number of future projects that seek to exploit solar energy and replace non-renewable energy.
Other green projects in Egypt include the cities of Jebel Galala and El Alamein.
The Bahrain World Trade Centre is one of the world ’ s leading examples of sustainable architecture, taking the lead in being the first skyscraper in the world to introduce wind turbines to provide total energy consumption.
Morocco, famous for its huge and world-leading solar arrays, has made a big name for itself as a leader in the fight against climate change, renewable energy makes up nearly two-fifths of the country ’ s electricity, and the country implements some of the world ’ s largest clean energy projects.
Since 2012, Jordan has turned to solar power to generate electricity and government policies have pushed citizens and investors to turn to renewable energy to reduce carbon dioxide emissions, by offering financial facilities to investors and reducing the electricity bill.
Sustainability initiatives in the Arab countries contribute effectively to building a diversified digital economy that achieves the national visions of these countries, and the green economy initiative launched by the UAE, and the Saudi Green Initiative is a good example of this.
Today, the ICT sector is increasingly playing a role in achieving sustainability through new technologies such as 5G, cloud computing and artificial intelligence that will play a key role in implementing clean energy initiatives as they enhance productivity, improve efficiency, reduce costs and waste, evaluate business systems, analyze waste, track problems and develop solutions.
The International Telecommunication Union (ITU) says ICT will contribute to achieving the UN ’ s Sustainable Development Goals and improving the quality of life.
According to the United Nations, ICT can be relied upon in two ways: reliance on clean information and communication technology, and clean energy generation based on information and communication technology.
In the first scenario, ICT solutions that contribute to environmental safety and carbon reduction are designed.
In the second scenario, ICT solutions such as those in grids, buildings, smart logistics and industrial processes help promote sustainability and energy efficiency.
The sustainability efforts of tech companies have been recognized globally, Huawei is an example of companies that have adjusted their business in line with sustainability goals, and recently received an award from the International Mobile Phone Association for their contributions to achieving the United Nations Sustainable Development Goals through mobile devices.
The company aims to rely on innovative technologies to drive clean development across various sectors and industries, and in 2021 it used more than 300 million kWh of electricity produced from renewable sources, an increase of 42.3% compared to 2020.
Huawei ’ s digital power solutions have generated 482.9 billion kilowatt-hours of clean energy and reduced electricity consumption by 14.2 billion kilowatt-hours, equivalent to 230 million tons of carbon emissions.
In parallel with efforts to promote a sustainable approach to technology, the ICT industry must not lose sight of the issue of enhanced security.
Technology providers should focus on protecting user privacy when working to provide modern, seamless technology and communications.
Certainly, we will not be able to grow the business and ensure its sustainability if we do not provide safe and reliable technologies to protect cybersecurity, which is a shared responsibility of all stakeholders involved in sustainability.
The current digital divide could isolate millions of people around the world from contributing to the development of a clean economy.
Tech companies can contribute to making technology accessible to all thanks to their technical capabilities and resources.
Through initiatives such as TECH4ALL, Huawei has relied on digital technologies to implement programs aimed at enhancing the leadership capabilities of more than 110,000 people in 2021.
The digital divide in global talent could undermine sustainability efforts, so greater emphasis should be placed on redressing it and priority should be given to strengthening collaboration between tech companies, academia and government institutions in order to bridge the digital skills gap.
By investing in programs to prepare local technical cadres, hone skills and enhance practical experience, more bridges of cooperation between the public and private sectors can be built to prepare the future generation of sustainability leaders with the help of technology.
Huawei has established 163 ICT academies in the Middle East.
More than 3,500 students participated in the Seeds for the Global Future program, while more than 37,000 students received Huawei certifications.
The company has also provided training to more than 120,000 ICT talents in the region who are expected to contribute to the advancement of sustainability in the countries of the region by making the most of technology.
In light of the increasing challenges of reducing carbon emissions facing various countries around the world, we all have a responsibility to strengthen cooperation and work together to build a sustainable and prosperous future for future generations.
By: Ammar Taba, Huawei Vice President for Public Relations and Media in the Middle East
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Content: ABU DHABI: Bloomberg Philanthropies and the International Renewable Energy Agency (IRENA) announced a new COP28 partnership to turbocharge clean energy deployment and capital mobilisation in emerging markets and developing economies.

The official announcement took place in the presence of Dr. Sultan bin Ahmed Al Jaber, Minister of Industry and Advanced Technology, President-Designate of COP28, and Francesco La Camera, Director-General of IRENA, and Michael R. Bloomberg, UN Special Envoy on Climate Ambition and Solutions and founder of Bloomberg L.P. and Bloomberg Philanthropies.

Ahead of COP28 and the milestone Global Stocktake – assessing national contributions and progress against the goals of the Paris Agreement – Bloomberg Philanthropies’ support will enable IRENA to advance efforts to drive the widespread adoption of renewable energy and reduce political, technical, and financial barriers to the energy transition by:

1. Building capacities in Southeast Asia, Africa, and Latin America: Deepening IRENA’s capacity to design tailor-made, scalable renewable energy initiatives through policy recommendations, technical support, and financing solutions towards accelerated decarbonisation and stronger climate resilience for lives and livelihoods.

2. Strengthening project finance and preparation: Bolstering the Energy Transition Accelerator Financing (ETAF) Platform – IRENA’s global climate finance platform aimed at mobilising capital to scale up renewables-based energy transition technologies in emerging markets and developing economies (EMDEs) by 2030 – and expanding the technical and financial feasibility work needed to deliver a robust pipeline of potential projects.

3. Facilitating private capital mobilisation: In the lead-up to COP28 – in partnership with the Glasgow Financial Alliance for Net Zero (GFANZ) – Bloomberg Philanthropies and IRENA will work together toward the goal of presenting readily investable energy transition projects to financial institutions that have committed to net zero and seek to increase investments in climate solutions in developing countries.

A robust supply of bankable renewable energy projects is one of the main barriers to scaling up the financing of clean energy – especially in EMDEs. According to IRENA, investment in renewables reached US$ 0.5 trillion in 2022; however, this is less than one-third of the average annual investments needed until 2030 to hit net-zero emission goals by 2050. To accelerate the pipeline of attractive renewable energy projects, Bloomberg and IRENA’s new partnership will reduce risk for potential developers and investors by providing vigorous technical and financial expertise to eligible projects that meet environmental, social, regulatory, and economic factors and implementation readiness.

Dr. Sultan Al Jaber, COP28 President-Designate, who as Chairman of Masdar, one of the world’s largest investors in renewable energy, played a pivotal role, in the UAE’s successful bid to host IRENA, said, “The UAE welcomes this ambitious partnership between Bloomberg Philanthropies and IRENA to champion innovation and deliver clean energy, climate action, and economic prosperity for emerging markets in the Global South”, adding that “The world must move faster and further than ever before to seize the moment of the Global Stocktake and close the gap between ambition and reality. I look forward to working hand in hand with Bloomberg Philanthropies and IRENA to create a paradigm shift for tangible progress and help ensure that COP28 UAE delivers on its promise to deliver game-changing solutions for all.”

“Increasing the production of renewable energy is an urgent necessity, and doing it requires strong partnerships across the public, private, and nonprofit sectors,” said Michael R. Bloomberg, UN Secretary-General’s Special Envoy on Climate Ambition and Solutions and founder of Bloomberg Philanthropies. “By working closely with the International Renewable Energy Agency, we'll help countries in the Global South develop the capacity they need to build clean energy projects more quickly and efficiently. We look forward to working with IRENA, and all of our partners, to accelerate the clean energy transition.”

“While we continue to make progress on the energy transition, it is still way off track,” said Francesco La Camera, Director-General of IRENA. “Annual additions of renewable power capacity must grow three times the current level by 2030 if we want to stay on track to limiting the impacts of climate change and stay below 1.5°C. As we drive towards solutions at COP28, today’s agreement between IRENA and Bloomberg Philanthropies will accelerate the development and delivery of renewable energy projects in the countries that need it most.”

The announcement supports Bloomberg Philanthropies’ overarching partnership with the COP28 Presidency to galvanise climate action by increasing clean energy development and capital mobilisation both in the lead-up to and on the ground at the climate conference in Dubai.

The Bloomberg-IRENA COP28 partnership also complements Bloomberg Philanthropies’ collaborations with GFANZ, Sustainable Energy for All (SEforALL), and other organisations to support developing countries across Africa, Asia, and Latin America to accelerate coal phaseout, develop viable pathways to net-zero, and speed deployment of renewable energy.

Limiting global warming to 1.5°C will require a significant scale-up of renewable energy supply to enable the transition away from fossil fuels. In March, IRENA released the World Energy Transitions Outlook Preview 2023, which identified the urgent need to course-correct the energy transition to keep the 1.5°C target within reach. While 2022 saw the largest-ever annual increase in renewable energy capacity, 75 percent of the added capacity was centred in China, the European Union, and the United States. And while clean energy investment has recently grown, capital is overwhelmingly concentrated in the Global North; in 2021, renewable energy investment per capita in North America was 57 times that in Sub-Saharan Africa. Rapidly scaling clean energy infrastructure, building more supportive and enabling policy environments, and granting easier access to capital for clean energy projects will foster clean energy infrastructure in the countries that need it most.

Roughly 770 million people – primarily across Africa and Asia – lack access to electricity. As countries across the Global South develop and energy demand grows, ensuring that power needs are met by renewable energy rather than fossil fuels will be crucial to meeting international climate goals. In most countries in Africa and Asia, coal – the most polluting form of fuel on Earth – is the dominant source of electricity generation, leading to poor outcomes for air quality, health, and climate and undermining the competitiveness of these economies. Anchored in Bloomberg Philanthropies' ongoing clean energy programmes in 32 countries and the EU, today’s announcement aims to help deliver on United Nations Secretary-General António Guterres’ call to secure clean energy access for all by 2030.

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Content: 3.
Expo 2020 Dubai Today
A model to be emulated
Through its pioneering global initiatives and innovative strategies, the UAE is one of the pillars of environmental sustainability, providing role models in the field of renewable energy and the green economy, which has been a top priority in the UAE ’ s vision over the years.
The issue of climate change and its challenges is one of the most prominent issues that the State has paid great attention to the steps taken by many countries to focus on reducing gas emissions, activating investments in alternative and clean energy, as well as the great efforts witnessed by the world in pushing forward the efforts of climate change after harnessing its full potential to succeed international efforts to reduce the aggravation of the climate change crisis and find effective solutions.
The UAE, which has established solid principles, remains one of the most prominent models of clean energy and green economy, especially in the post-Coronavirus era, enabling it to gain the confidence of the world in hosting the Conference of the Parties to the United Nations Framework Convention on Climate Change (UNFCCC) 2023.
The country is based on a great legacy and vision laid down by the founding father, Sheikh Zayed bin Sultan, and followed his wise leadership ’ s approach in supporting climate issues and focusing on achieving results, whether in the field of policies, building partnerships or implementing initiatives.
The UAE ’ s achievements have established a strong foundation for clean energy and economic diversification, repeatedly surpassing the world record for the lowest cost of solar power generation, as well as being the first country in the region to use carbon-free nuclear energy, exploring blue and green hydrogen projects, exploiting its resource base and expertise in gas production, supply chain and transport infrastructure. Renewable energy projects in 70 countries across five continents.
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Several countries in the region have begun investing heavily in solar energy and other renewable sources as part of their broader energy transition strategies.

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Content: Sunday 23 June 2024 Abu Dhabi UAE
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Today 's Issue
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$9 trillion per year in global climate finance by 2030
$9 trillion per year in global climate finance by 2030
June 23, 2024 01: 04
Hassouna Al Tayeb (Abu Dhabi)
The cost of the road to achieving green energy goals is huge and requires the cooperation of governments around the world, and the International Renewable Energy Agency (IRENA) estimates that the world needs to add about 1,000 gigawatts of renewable energy capacity annually until 2030.
The U.S. government introduced the Inflation Control Act, the first legislation to advance green investments through subsidies, grants, and tax breaks for green projects and businesses.
Furthermore, new facilities should be energy efficient, and all types of infrastructure should be able to withstand the effects of climate change, as well as preserve the natural environment and make it more resilient.
But the bill to achieve this, which is too costly and to maintain average global temperature rises consistent with the 2015 Paris Agreement, should increase global climate finance to about $9 trillion a year by 2030, from just $1.3 trillion in 2021-22, according to the Climate Policy Initiative.
In an April report, Europe alone would need to invest around €800 billion in energy infrastructure to meet the goals of the Paris 2030 climate agreement and €2.5 trillion to complete the transition to green energy by 2050, according to the Financial Times.
To move towards a green energy transition, governments around the world are considering options ranging from a tax on the wealthy to fees on shipping, among other measures, the US plans to fund the IRA by raising $300 billion over the current decade by requiring large companies to pay a minimum 15% tax on their profits and imposing a share buyback tax.
The importance of speed in raising money is becoming more apparent after nearly 200 countries around the world agreed to shift away from fossil fuels by 2050, tripling renewable energy capacity and doubling its efficiency by 2030.
Adding to the importance of the issue was the naming of the COP29, which is scheduled to be held in November this year in Baku, Azerbaijan.
Much of the debate is focused on agreeing on a global climate finance target to help poor countries transform and transform their economies.
But rich countries are also suffering from the cost of this transformation.
Policymakers in rich countries expect a generous contribution from the private sector to finance many aspects of the transition to a greener economy, but that does not exempt taxpayers from contributing.
The International Energy Agency estimates that the public sector will have to contribute about 30% of the cost of climate finance, with the remaining 70% coming from the private sector.
Governments are expected to play the key role in providing the necessary financing to prepare the infrastructure necessary for the green transition, such as electricity grids, as well as preparing economies for climate change by building walls around the seas to repel floods, for example.
Officials are often concerned about the weight of the consumer with more tariffs, with most struggling with the costs of daily living.
Some 40 countries have introduced some kind of carbon pricing mechanism, the proceeds of which are often used for public government spending rather than for efforts to tackle climate change.
Many countries around the world are planning to impose new tax duties, as the UK government has proposed a “Green Prosperity Plan ”, which is funded through tax revenues from the country ’ s major oil and gas companies.
An additional “extraction tax ” on major fossil fuel companies in rich countries could raise as much as $720 billion by 2030, with the support of non-profit organizations and environmental groups such as Greenpeace and Poverty Eradication.
In Hawaii, local authorities are seeking to levy a tourist fee of $25 per guest when booking hotels to help the state cope with the effects of climate change.
Barcelona, which is currently in a drought emergency, has allocated 100 million euros of tourism tax to install heat pumps and solar panels in state-owned schools.
In the meantime, governments are scrambling to find other options.
At COP28, countries including France, Kenya and Barbados launched a task force to look at how innovative sources of finance, such as shipping and aviation fees, can be used to fund climate action.
These various taxes and fees could generate revenues of about $2.2 trillion annually.
Other countries are supporting efforts to phase out fossil fuel subsidies in order to leverage funds used to support the oil, coal and gas industry for other purposes.
Currently, at least $7 trillion is spent annually on direct and indirect fossil fuel subsidies.
Over the next seven years, capital spending on renewables is expected to double, while halving on fossil fuels.
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This report examines key national projects, current solar capacity, government incentives, and the impact of these efforts on both local economies and climate goals.

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Fayyad represented the President of the Republic at the events of the “High-Level Dialogue on Energy ”
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Minister of Energy and Water dr.
Walid Fayyad, President of the Republic, General Michel Aoun, at the events of the "High-Level Dialogue on Energy", which was hosted by the United Nations General Assembly on Friday, September 24, 2021.
The dialogue included interventions from a large number of heads of state and government and ministers of energy from different countries of the world.
The interventions focused on the United Nations Sustainable Development Goals (SDGs), in particular Goal 7 on “Achieving Clean and Affordable Energy for All by 2030 ”.
Fayyad addressed the international community and expressed the Lebanese state ’ s “commitment to develop the renewable energy market in order to achieve the goal of 30% renewable energy by 2030, ” according to the report of the International Renewable Energy Agency (IRENA).
It is noteworthy that the Ministry of Energy and Water has submitted the Energy Compact report to the Secretariat of the United Nations prior to the dialogue, making Lebanon among the first 11 countries in the world to submit the Energy Compact report.
This report is a key reference that can be relied upon by international institutions and donors to help developing countries achieve their stated goals in the field of renewable energy.
"It is a priority for the Ministry of Energy and Water to develop renewable energy projects with a capacity of more than 4,000 megawatts of wind and solar energy projects," Fayyad said, adding that "success in turning these projects into a reality can only be achieved through a serious partnership between the public and private sectors in Lebanon and in partnership with Lebanon's friends around the world."
While describing some of the achievements made in Lebanon during the past years, especially the significant development in the market for heating water on solar energy and producing electricity from distributed solar energy systems, Fayyad said that "the world has great challenges over the next 10 years to succeed in combating climate change."
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Content: Wednesday, 06 December 2023 01: 04 GMT
Energy mobilizes and signs 9 agreements and memorandums of understanding at the Climate Conference
(MENAFN- Jordan News Agency)
Amman, December 6 (Petra) - The Ministry of Energy and Mineral Resources has signed nine agreements and memorandums of understanding, including five in the field of green hydrogen and green ammonia production with several companies, and an agreement to develop a joint wind energy project with Abu Dhabi Future Energy Company - Masdar, according to a press release issued by the ministry on Wednesday.
On the details of the MoUs and the agreement signed during the COP28 Climate Conference in Dubai, Minister of Energy and Mineral Resources Dr. Saleh Al-Kharabsha said that the agreement signed with the CEO of Abu Dhabi Future Energy Company – Masdar, Mohammed Al-Ramahi, aims to develop a 1GW wind power plant with a battery energy storage system (BESS) in Jordan.
He added that the first memorandum of understanding in the field of green hydrogen production, signed during the climate conference with Masdar, aims to prepare a feasibility study for the establishment of a green hydrogen project, and the establishment of a plant near the port of Aqaba to produce up to 50,000 tons of hydrogen annually, the most cost competitive, using water. Desalinated sea and renewable energy.
He explained that the second memorandum of understanding in the field of green hydrogen was signed with ACWA Power Saudi Arabia to produce green hydrogen in Jordan, and the memorandum allows the company to prepare preliminary feasibility studies for the project, which aims to produce 100-150 thousand tons per year of green ammonia.
He said that the third memorandum was signed with the consortium of Korea Electric Power Company (KEPCO) and Xenel International, and enables the consortium to prepare preliminary feasibility studies for a project to produce green hydrogen and produce one million tons of green ammonia annually in Jordan.
The fourth memorandum in the field of green hydrogen, between Khorabsha, was signed with Osior Energy India / UAE, and allows the company to prepare preliminary feasibility studies for the project, which aims to produce 1 million tons of green ammonia per year and will be developed in stages, with the first phase of the project consisting of production of 100 thousand tons per year, to be increased to 1 million tons per year. tons by 2030.
Kharabsheh also signed the fifth memorandum in the field of green hydrogen production with Catalest Investment Management Company to produce green hydrogen in Jordan, and in light of the memorandum, the company will be able to prepare preliminary feasibility studies for its project aimed at producing 150,000 tons of green ammonia annually.
He stressed that the Jordanian government ’ s efforts are serious and continuous to strengthen Jordan ’ s role as a regional center for green energy production and the provision of high quality and competitive green hydrogen fuel, by taking advantage of the abundance of renewable energy sources and Jordan ’ s strategic geographical location in the region, ensuring excellent access to European markets.
Al-Kharabsheh praised the cooperation at the regional and national levels, and partnership with all partners signing the agreements, in order to enhance the priorities of the Ministry and the vision of economic modernization (2023-2033) recently launched by the Jordanian government, including investment in green hydrogen production projects, which are part of Jordan ’ s initiatives to shift towards the use of clean energy, in order to achieve net zero emissions.
For his part, Al-Ramahi said Jordan has the potential to become a global power in the field of green energy, thanks to large wind and solar resources that can be used to generate large quantities of renewable energy, produce green hydrogen and green fuels at competitive cost, relying on the strength of the long-term bilateral partnership, through which Masdar will provide its expertise in clean energy projects and technologies to help Jordan. To achieve its decarbonisation plans and unleash the country ’ s vast energy potential.
In his capacity as the Executive Chairman of the Renewable Energy and Energy Conservation Fund, Khorabsheh signed a memorandum of cooperation with the Italian Ministry of Environment and Energy Security, represented by the Italian Minister of Environment. The memorandum provides opportunities to finance proposals for projects and initiatives of the Renewable Energy Promotion Fund for the next four years. Italy signed in Rome in 2018.
He also signed a letter of intent with the Director of the Canadian Fund for International Investments (CCC), which came as a result of meetings and dialogues between the two parties to implement energy conservation projects for Jordanian government buildings within the ESCO2 model program. These projects contribute to the sustainability of the energy services market, promote energy conservation projects in public and private buildings, increase financing opportunities and create new and sustainable jobs. in Jordan.
On the sidelines of the COP, Khorabsheh also signed a memorandum of understanding with the Director of Guide house International – Germany, to rationalize energy within the “Heating and Cooling of Buildings ” program in Jordan. The memorandum includes the submission of joint project proposals that contribute to achieving the indicators of the Jordanian National Energy Efficiency Plan (NEEAP). Reducing carbon emissions in the face of climate change.
In this context, Al-Kharabsheh stressed that Jordan is seeking to attract investments and achieve partnership to improve energy efficiency in various sectors by 2030, pointing out that the Ministry is looking forward to enabling and financing the transition to an efficient and environmentally friendly cooling system in the Middle East and North Africa region during the Climate Conference, held in the UAE.
The signing ceremony was attended by Dr. Sultan Al Jaber, President of the Climate Conference, Dr. Muawiya Al Radaidah, Minister of Environment of Jordan, and members of the Ministry ’ s delegation participating in the conference, including Rasmi Hamza, Director of the Renewable Energy and Energy Conservation Fund, Eng. Lina Moubayed, and members of the teams representing companies and government entities that signed the agreements and memorandums of understanding.
On the sidelines of the conference, Kharabsheh participated in a seminar to discuss the roadmap of energy cooperation between the Middle East, North Africa and Europe, during which he stressed that the joint dialogue is a leading forum for the most important stakeholders in the energy sector from the two regions. Participants also stressed the importance of building on the success of the future energy dialogue between the Middle East and North Africa and Europe, held in Jordan in June 2022.
The seminar saw the participants activate the Future Energy Dialogue to deepen energy cooperation between the Middle East and Europe, and it was announced during the meeting that the next dialogue will be held in the Greek city of Thessaloniki in September 2024.
- Petra.
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## Key National Projects and Solar Capacity

### United Arab Emirates

The UAE has emerged as a regional leader in renewable energy development.

Title:

Content: Monday 11th September 2023 Abu Dhabi UAE
Prayer times
News Highlights
Today 's Issue
Today 's Issue
United Arab Emirates
Director of the International Solar Alliance: Pioneering efforts for the UAE to achieve carbon neutrality by 2050
Director of the International Solar Alliance: Pioneering efforts for the UAE to achieve carbon neutrality by 2050
September 11, 2023 01: 32
New Delhi (WAM)
Dr. Ajay Mathur, Director General of the International Solar Alliance, praised the UAE ’ s pioneering efforts to achieve carbon neutrality by 2050, which constitutes a concrete and proactive response to climate change issues.
Mathur said, in statements to the UAE News Agency « WAM » on the sidelines of his participation in the work of the G20 summit in the Indian capital New Delhi: The UAE has devoted for more than 15 years, great resources in this field, resulting in huge and remarkable achievements.
He pointed out that one of the remarkable achievements achieved by the UAE in this regard is the provision of solar energy at a low price of 1.35 cents per kilowatt hour, pointing out that the UAE is fully and clearly committed to combating climate change in accordance with its strategy to reach zero carbon emissions by 2050.
The UAE has taken active steps to explore sustainable and innovative energy generation that supports its economy and aligns with broader global sustainability goals, in recognition of the serious implications of climate change globally.
The Director General of the International Solar Alliance pointed out that the UAE is also committed to developing sustainable knowledge, promoting the development of green industries, and creating opportunities for skills development and job growth.
As part of its commitment to the United Nations Sustainable Development Goals (SDGs), the UAE has implemented advanced initiatives and projects such as the Dubai Clean Energy Strategy 2050 and Abu Dhabi Vision 2030, which sets an ambitious target for the adoption of renewable energy sources, including the significant expansion of solar capacity.
Dr. Ajay Mathur pointed out that these initiatives confirm the UAE ’ s commitment to solar energy as a pillar of its vision for sustainable development, which will be a driver of economic growth and reduce carbon emissions.
According to the International Solar Alliance, it is necessary to diversify renewable energy investments to benefit all regions of the world, where investments are currently disproportionately concentrated in a few countries, while less developed countries receive less than 1% of the total.
All rights reserved to Al Ittihad Newspaper 2023 ©

The Mohammed bin Rashid Al Maktoum Solar Park stands as the world's largest solar energy site using the IPP (Independent Power Producer) model.

Additionally, the Al Dhafra Solar Plant is being constructed as the world's largest photovoltaic solar station with a production capacity of 2 gigawatts.

The UAE's commitment extends beyond domestic projects.

The country has invested over $50 billion in renewable

Title:

Content: ...
...
...
...
Economy of Saudi Arabia
“The Green Economy. ”
The Future of Saudi Development
Khalid Ali Al Matrafi
Posted in: Last Updated:
Achieving sustainability is almost based on reforming the economy, and we must know that the transition to a green economy is not an immediate decision, but a long-term process that requires long decades.
One of the important reports recently published is the “Green Economy ” report prepared by the Center for Communication and Financial Knowledge (Ministry of Finance) in cooperation with the Saudi Economic Association (32 pages), so I recommend reading it to understand the features of the economic era, especially in the fields of energy and environmental protection.
Interest in this economy dates back to 2008, when the United Nations launched the Green Economy Initiative, which consisted of global research and country-level assistance to encourage policymakers to support environmental investments in the context of sustainable development.
There are several definitions of this concept, including the economy in which carbon emissions are reduced, resources are more efficient, and all social groups are absorbed; where production in the world today is no longer in quantity, but in quality, and with any resources and environmental implications.
It can be said that the emergence of the “green economy ” was caused by a number of interrelated global crises, such as the“ financial crisis ”, the “food crisis ” and the“ climate crisis ”, and it is expected that the investments of the agricultural sector will contribute to its return to be more environmentally friendly, thus alleviating rural poverty and displacement of people to cities, as well as its role in solving the problem of food security. Consumption of natural resources, and mitigation of investment in green infrastructure, such as renewable energy services, drinking water and sanitation.
One of the leading countries in the sector is Germany, which is the second largest European market to invest in renewable energy, both in the production of wind and solar energy, and with the latest technology to achieve its green goals.
They have sought to solve environmental problems by shifting from fossil fuels to clean and renewable energy, and have used renewable resources to manufacture essential materials in their critical areas.
The Saudi government has taken several measures to achieve the objectives of the Green Economy, including: reviewing and redesigning government policies to stimulate shifts in production, consumption and investment patterns, increasing resources, focusing on the water sector, controlling its use, rationalizing and preventing pollution, working on sustainable investments in the field of energy and raising energy efficiency, and developing effective strategies to reduce the carbon of industrial development.
In this way, the Saudi leadership, under the direct supervision of the Crown Prince, adopted the initiative of the “circular carbon economy ” and highlighted it in the most important global forums, especially the summit of leaders of the Group of 20 (2020), to emphasize its active role in emissions management initiatives and the transition to clean energy.
We must know that the transition to a green economy is not an immediate decision, but a long-term process that needs long decades; it needs a change in economic policies related to production and consumption patterns, and attention to the environmental aspect in a number of productive and service sectors.
So long as you're okay.
* Quoted from the Riyadh Newspaper.
Disclaimer: All published articles represent the opinion of their authors only.
Most Read Common Topics


### The Labubu Phenomenon: A Comprehensive Report

#### Introduction
Labubu is a collectible plush toy monster elf created by Hong Kong designer Kasing Lung and marketed by Pop Mart, a leading Chinese toy company.

Recently, Labubu has surged in popularity, becoming a viral sensation, particularly among teenagers and young adults.

This report explores the reasons behind the "Labubu Phenomenon," its impact on Pop Mart's global revenue, and the role of social media platforms like TikTok in its rise.

#### The Rise of Labubu
Labubu is part of Pop Mart's broader strategy to create collectible toys that resonate with contemporary culture.

The character's design—a quirky, somewhat mischievous elf-like creature—has struck a chord with a generation that values uniqueness and nostalgia.

The toy's appeal lies in its blend of cuteness and eccentricity, making it both a collectible item and a symbol of individuality.

#### Why Labubu Went

### The Labubu Phenomenon: A Comprehensive Report

#### Introduction
Labubu is a collectible plush toy monster elf created by Hong Kong designer Kasing Lung and marketed by Pop Mart, a leading Chinese toy company.

Title:

Content: How Barbie is shaping up to be a source of emotional support for grown-ups

Of all the roles the doll has taken on over her 64 years of existence, Barbie is now being seen as a comforting and reassuring item, even for adults

Published: Oct 14, 2023 07:29:39 AM IST
Updated: Oct 13, 2023 05:31:24 PM IST

Barbie dolls are shaping up to be a source of emotional support for grown-ups in the US. Image: NeydtStock / Shutterstock©

The theatrical release of Greta Gerwig's "Barbie" movie this summer has helped boost sales of Mattel's doll. And it's not just children who are getting them. On TikTok, some internet users—mainly women in the US—are posting videos of them buying a Barbie for themselves. So has the famous plastic doll become a new source of comfort for adults?

On TikTok, videos of adult women in the US buying themselves Barbie dolls are proliferating. The videos show them browsing toy aisles, looking for a doll that looks just like them, or unboxing their purchases. For example, the artist and wheelchair user, @gremlingrandparent, bought herself a wheelchair Barbie, just like her. "I got a Barbie that looks like me. ... She comes with her own ramp!" she says while opening the packaging, clearly moved by the experience. "Plus size Barbie is something I wish I had as a little girl, constantly comparing myself to her. I'm so happy to have her," explains another TikToker called Maddie. Meanwhile, Britknee took a different approach by gifting a Barbie to her mother, who never got the chance to have one when she was a child.

In the multitude of videos that can be seen on the Chinese social network, many women refer to their doll as an emotional support Barbie. In fact, the emotionalsupportbarbie hashtag has almost two million views. For these adults, Barbie is seen as a source of comfort, serving to reassure them and (re)build their self-confidence. "Oh my god, she's so pretty. I'm so pretty. Ok, I'm gonna go before I cry," continues @grelingrandparent in her video. And the success of Greta Gerwig's movie is no small part of this trend. It has allowed these women to talk freely about wanting a Barbie, without being seen as adults who refuse to grow up and who dream of returning to childhood. Of all the roles the doll has taken on over her 64 years of existence, Barbie is now being seen as a comforting and reassuring item, even for adults.

Also read: With 'Kencore,' Barbie isn't the only one smashing stereotypes

Nostalgia at the service of mental health

"We have quite a bit of research that shows the benefits of play for children. But increasingly, we have scientific evidence that play is beneficial for adults as well, especially in the mental health realm," explains Kristin Flora, a professor of psychology at Franklin College in Indiana, speaking to CNN. "Some of the research suggests that it can help stave off depression. It can help us build a sense of optimism, which is really important when things are uncertain. It can help us decide what disposition to take as we live through unprecedented times." According to her, Barbie, or other toys, could contribute to well-being, helping to "boost confidence and positivity in critical moments," reports CNN.

Internet users therefore find a certain comfort in toys like Barbie, which helps them get through the tumult of everyday life. According to psychologist Mark Travers, who wrote an article on the subject in Forbes magazine, "the Barbie phenomenon symbolizes many things in our society. Perhaps most of all, it reaffirms the power of the past." Faced with the uncertainties of recent years (including the health, economic and climate crises) and the stress these times can generate, people tend to turn to their past —their childhood—to connect with a happier, or at least simpler, period in their lives. "Today, as more people prioritize self-care and well-being, their longing for—and, hence, the appeal of—nostalgic moments continues to grow relentlessly," he explains. "A recent study found that nostalgia is often triggered in response to negative feelings, acting as an effective tool to strengthen social connections, enhance self-esteem, and generate positive emotions necessary to avoid stress or unpleasant emotions during difficult times."

Barbie dolls are just one example of how toys can play an important role in the everyday lives of adults. In fact, plush toys have for years been acknowledged as a source of emotional support for adults. This can be seen on social networks like TikTok, where a plethora of videos shows internet users cuddling or sleeping with their favorite stuffed toy. Indeed, some adults keep their childhood cuddly toys as companions for life. Research from the University of Amsterdam, published in 2013 in the journal Psychological Science, even demonstrated that a plush toy could be a great ally for maintaining mental health, even capable of alleviating anxiety attacks.

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Which designers does Pop Mart collaborate with?

Which products are increasingly viewed as treasures by collectors?

Recently, Labubu has surged in popularity, becoming a viral sensation, particularly among teenagers and young adults.

Title:

Content: Leaders

Brands and marketing
The serious business of being a social influencer

Read this leader!!#ad

IT IS A sure sign that a hot trend has reached the mainstream when the tax authorities catch up. This week China promised a tax-evasion crackdown on social-media influencers, who are paid by brands to promote products online to armies of followers. One of the big stars, Viya, a 30-something fashionista known as the live-streaming queen, has already been fined $210m for not declaring her income. The size of that levy shows the sheer scale of the industry, which accounts for 12% of online sales in China. Outside China, influencers are also likely to have an enduring role in e-commerce. For all firms with brands—and together those brands are worth over $7trn—it is time to realise that influencing is more than just a hobby.

The use of personal endorsements used to be about harnessing existing celebrity power. Elizabeth Taylor touted Colgate-Palmolive’s shampoo in the 1950s, and Michael Jordan’s deal in 1984 with Nike revolutionised both basketball and branding. Influencers turn the logic on its head: selling things helps make them more famous. Through curated feeds of clipped videos and filtered photos they offer recommendations to consumers, mingled with glimpses into their daily lives that give their artifice an aura of authenticity. Sometimes they disclose how they are paid. Often they do not.

Initially dismissed as credulous Gen-Z folk who had mistaken posting selfies for having a job, these entrepreneurs have become a big business, boosted further by the e-commerce surge from the pandemic. Total spending on influencers by brands could reach $16bn this year. Whereas the number of wannabe influencers outside China is in the millions, an elite of under 100,000 of them who have over 1m followers each get the bulk of revenues and the front seats at fashion shows.

Their staying power suggests that they add value in several ways. They can save money: Elon Musk is an honorary influencer whose raucous online presence lets Tesla do without any conventional advertising (General Motors blew $3.3bn on it in 2021). Influencers’ networks reach new audiences, particularly younger shoppers. Global brands can localise their appeal by cutting deals with them. In China local shopping festivals and style sensibilities matter, so transplanting marketing campaigns from the West does not work. And influencers are technologically proficient in a way that old-style brand ambassadors never were. They are quick to adapt to newer platforms like TikTok and to the ever-changing algorithms of older ones like Instagram.

Yet one-third of brands do not use influencers. They worry about tarnishing their reputation. Having a swarm of freelance advocates is riskier than the command-and-control campaigns of the “Mad Men” era. And the industry is a Wild West, awash with fraud and manipulation.

Despite this, ignoring influencers is a mistake. Their share of digital advertising budgets is still low at perhaps 3%, but it is rising fast. The boundary between entertainment and e-commerce is blurring. And the most popular marketing strategy of the 2010s—ads targeted through Google and Facebook—is under threat as new privacy standards, including on Apple’s iPhone, make it harder to spy on potential customers.

To get the most out of influencers, brands should set a clear strategy. They should expect more regulation on consumer protection: China’s crackdown may also include limits on spending and content rules. The guiding principle should be to use only influencers who disclose to their audiences that their posts are paid. As the Wild West phase ends, brands should also embrace new analytical tools that help them gauge the performance of influencers, sorting the con-artists from the stars. It used to be said that only half of all advertising spending worked, but it was impossible to know which half. Now brands can control only half of what influencers say, but they may be able to calculate 100% of the value they add.

This article appeared in the Leaders section of the print edition under the headline "This leader is amazing!! #ad"

Reuse this contentThe Trust Project

This report explores the reasons behind the "Labubu Phenomenon," its impact on Pop Mart's global revenue, and the role of social media platforms like TikTok in its rise.

Title:

Content: Fashion

The Fast Fashion Laser-Point: Targeting You

Words by Amy Wild

In today’s busy world of rampant consumerism and throw-away-fashion it’s hard to make the right decisions about sustainability when buying clothes.

It probably won’t surprise you that Generation Z and Millennials are more active than older generations in addressing climate change, income inequity and poverty on and offline. Seventy percent of 16-19-year-olds agree that sustainability is an important factor when purchasing fashion items comparing to just 20% of 65-to 74-year-olds [Mintel, UK Fashion and Sustainability Market Report 2021]. However, this is increasingly ironic as Gen Z is also undeniably the biggest consumer of fast fashion.

It’s funny to think that our generation has produced both Greta Thunberg, the climate change activist who excoriates the fashion industry, and also Love Island’s Molly-Mae Hague, who recently signed a seven-figure deal with ultra-low-cost fast-fashion brand PrettyLittleThing.

It is without a doubt that the rise of fast fashion is intertwined with the rise of social media and its influencers. The newly formed influencer culture has resulted in the inability to repeat an outfit (both in person but especially seen online), as well as the unnecessary and wasteful purchases of every new garment to remain on-trend. The rise of TikTok has made fashion trends come and go faster than ever.

Before, trends were only created by A-list celebrities and designers, eventually trickling down to the general public through the high street shops. But now, almost anyone can create a trend, as the ability to reach millions of people online in mere minutes, generates micro-trends in their thousands and thousands.

It’s great for consumers that there is now such a variety in fashion, that tastes are becoming more diverse, and that clothing options are no longer so heavily limited to a singular style. But it’s the sheer speed at which these new trends die out which is terrifying. Think about how quickly the satin pink/green Zara dress became popular through TikTok but probably won’t be worn for any of the next balls. I saw that dress six times when working at end-of-year balls, but it probably won’t be worn again because it will be far too popular and therefore last season.

Brands respond to fast-changing trends by manufacturing clothes more and more rapidly. This results in designs that are lazy. To lower the costs of making clothes, cheap polyester is chosen, which consists of plastic and releases a larger number of emissions than cotton would do. These microplastics then end up in the human food chain, causing harmful effects to our health. So fast fashion isn’t just damaging to the environment its damaging to us, as a species, as well.

Disposable fashion has knock-on effects, too. Low-priced and on-demand fashion means that it’s more or less cheaper to buy new clothes from Primark than it is to wash your clothes in Circuit Laundry. In the UK, it is estimated that a garment is worn on average only fourteen times before it is thrown away. Brands are purposefully manufacturing clothes designed not to last: it’s planned obsolescence.

Some people make the argument that fast fashion is the only way that those with lower incomes can dress trendily. Well, yes. But isn’t that still exploiting people with even lower-incomes overseas? In Boohoo and its sister brands’ factories, they allegedly pay wages as low as £2-3 per hour in their UK Leicester factories [The Guardian 2021]. If fast fashion companies gave even a slightly bigger percentage more of their profits to their employees it would begin to solve numerous ethical problems that stem from the clothing industry. But many companies would rather drive for the biggest profit margin that they can. Human rights violations lie at the heart of fast fashion.

Some brands have begun to market more ‘sustainable’ ranges like H&M’s Conscious range and Amazon’s Aware range. But these ranges are still fast fashion. The turnover of clothing in these ‘sustainable’ collections can mean that they can never truly be sustainable.

Fast fashion is a social movement. You can be a leader by moving in the other direction. It’s important we analyse our own behaviour and consumer habits. Will we wear the item of clothing in a year or two years’ time? If not – don’t buy it.

I try and stick to a 90/10 rule where 90% of my clothing is second-hand from charity shops, car boot sales and second-hand clothing sites like Depop and Vinted, and the other 10% is brand new clothing that I think I will wear for years to come. But this might not work for everyone. Shien and Boohoo, for example, offer a more size-inclusive range than sustainable brands and vintage shops.

Beginning changes to break from the cycle:

  1. Shop from sustainable and ethical fashion brands if you can.
  2. Buy less often and buy higher quality clothing.
  3. Don’t recycle or throw away your old clothes. Sell them on Depop, eBay or Vinted or just go to your local car boot sales. Plus, you will get a little bit of extra cash. Donate them as a last resort as more than 80% goes to landfill.
  4. Buy or rent second-hand clothing from a provider near you (especially for an event or ball where you will only wear it once).
  5. Repurpose/ repair/ tailor old clothing.
  6. Use the 90/10 rule when shopping.

It’s unfair to condemn Generation Z for being consumers of fast fashion when people of all ages keep the system going or at least fail to challenge it. The people we look up to for fashion inspiration, such as influencers and celebrities, should adapt too.

Shopping second-hand is becoming more and more the norm and almost trendy in itself. Influencers that exclusively shop second-hand are popping up on TikTok and YouTube and positively changing the fashion industry. Tasha Ghouri from the most recent series of Love Island is a good example of this, she has partnered with eBay to promote pre-loved fashion. This gives hope that sustainable influencers will inspire the younger generation to do the same.

It is not just up to consumers to change the fashion industry. Brands must operate in a transparent way, including signing the transparency pledge and publishing supplier lists.

Everyone likes new clothes. It’s time we all about thought whether a smart new dress or a classy jacket is the best choice for the wider environment. It’s important to remember that the most sustainable garment is the one already in your wardrobe.

Title:

Content: Chairman of Wafd Party
Dr. Abdul Sindh Yamama
Chairman of the Board of Directors
Dr. Ayman is an accountant.
Editor-in-Chief
I'm sorry.
My grandfather, Zainuddin.
Chairman of Wafd Party
Dr. Abdul Sindh Yamama
Chairman of the Board of Directors
Dr. Ayman is an accountant.
Editor-in-Chief
I'm sorry.
My grandfather, Zainuddin.
TikTok ban hurts Amazon sellers
In March, the U.S. House of Representatives overwhelmingly passed a bill that could force ByteDance to withdraw TikTok or face a ban in U.S. app stores.
Much of the relevant discussion and debate has centered around U.S. data security and speech rights, but the potential move also highlights something else: TikTok is increasing its focus on e-commerce, but the interaction between the tech giants and geopolitics is putting pressure on small merchants.
Over the past few months, merchants — many of them from China — who are looking for an alternative to Amazon, have flocked to TikTok to sell clothing, cosmetics, electronics and a variety of other products to American buyers, via the TikTok store.
In interviews with TechCrunch, sellers from Shenzhen — a Chinese megacity that is a major hub for Amazon merchants — said they felt a collective sense of frustration over rising geopolitical tensions and a “deficit ” over the potential ban on TikTok.
“The situation is not under our control, ” a retailer specializing in maternity and baby products told TechCrunch.
“It ’ s hard to know how things will develop. ”
With current supply chains difficult to change, “we just have to listen to them. ”
(Vendors asked not to be named because of political sensitivities.)
TikTok Shop officially launched in September 2023 with 200,000 merchants already present.
But since then she has not provided any updated figures on how many merchants are currently on the platform, how much they sell there, nor how many sellers are selling elsewhere (and where that could be).
However, research by Jungle Scout, a company that provides data information at Amazon, provides insight into TikTok ’ s impact on ecommerce.
It found that 20% of sellers, brands and businesses on Amazon have plans to expand into the TikTok store this year.
Before the current political backlash erupted, ByteDance reportedly predicted it would have the potential to grow its U.S. e-commerce business tenfold to $17.5 billion this year.
TikTok is not the only platform on the list for merchants looking for more channels outside of Amazon to expand their customer bases.
Its rise is part of a larger shift we are seeing around alternative markets like Temu that are getting more attention not only from shoppers, but also from Chinese e-commerce exporters and merchants.
Amazon is reportedly paying attention, another sign that alternatives are gaining momentum.
TikTok did not immediately respond to a request for comment.
A new way to buy and sell
TikTok has been trying to boost its e-commerce business since launching in the US last September.
The app is popular — or notorious, depending on who you ’ re talking to — because of how tightly it controls what content is being viewed and for whom.
TikTok Shop also has a strong dose of regulation.
Unlike Timo, known for its seas of cheap, white-branded products from Chinese factories sold directly to American consumers, TikTok ’ s strategy has been to include and highlight more branded goods, making it a direct competitor to Amazon.
TikTok is also looking to attract sellers through more traditional subsidies.
According to reports, to encourage merchants to sell goods at a significant discount during the recent Black Friday sales period, TikTok provided subsidies to these merchants to cut their prices by up to 50%.
Regardless of incentives and algorithms, merchants were interested in selling on the app just because TikTok ’ s short video platform generated massive engagement.
According to a survey by Tabcut, a Chinese company that tracks the performance of TikTok Shop, nearly 70% of sellers reported an increase in year-on-year sales during the first eleven months of 2023.
This also confirms consumer behavior, as products championed by influencers continue to make gains, especially with younger consumers.
According to Jungle Scout, nearly 20% of consumers started searching for products on TikTok in the first quarter of 2023, up 44% from a year ago.
While 56% of all consumers still prefer to start searching for their products on Amazon, 40% of the Gen Z demographic prefer TikTok to search instead of Google.
The high concentration of young shoppers is not surprising, given that 52% of TikTok users in the US are between the ages of 18 and 34, according to Pew Research.
TikTok has the opportunity to reshape how America ’ s younger generations shop online.
Far from relying on its dynamics, TikTok was doing some pretty straightforward media to push its message.
Earlier this month, business research firm Oxford Economics published a report on TikTok ’ s impact on the U.S. SME sector.
It was funded by TikTok, and perhaps not surprisingly, this report provides a strong endorsement of TikTok ’ s economic impact.
It is estimated that being on the platform (through advertising or just marketing itself via accounts) has generated $14.7 billion in revenue for the 7 million US SMEs that use it.
The Amazon competitor?
TikTok seems to be serious about ecommerce successes, but it ’ s still in flux.
On the one hand, the company — even as it faces a potential U.S. ban or forced sale — continues to roll out new e-commerce features, such as the new video shopping format previewed at this month ’ s conference.
On the other hand, they are apparently adjusting or enforcing vendor policies as they try to navigate how to grow under particularly stark lights.
“The internal management of TikTok [Shop] is a bit chaotic right now.
A trader selling LEDs on Amazon since mid-2010 said: “It ’ s a new platform, so it hasn ’ t started pressuring sellers, but its policies are still changing. ”
One of these policies seems to be related to what its algorithms show consumers.
Merchants outside China say that in recent months, TikTok in the United States has intensified its efforts to prioritize U.S.-based stores over foreign ones.
Vendors tell TechCrunch that this has led to the emergence of black market “agents ” — parties that mediate deals between foreign sellers and U.S. residents, who in turn have created TikTok stores that appear to be U.S.-owned but are actually run by foreign merchants.
Traders are willing to overcome these obstacles to grow their points of contact with users, and diversify their channels with the emergence of one giant after another.
“Margins on Amazon are dwindling and competition is increasingly fierce because of Temu, so TikTok gives us another option, ” said the lamp seller.
Richard Xu, partner at Starting Gate Fund, which invests in cross-border retail solutions between China and the US, to measure TikTok ’ s impact on Amazon, said: “We need to understand the overall retail market in the US. ”
E-commerce makes up only about 15% of retail in the United States, according to the Commerce Department, so “if we talk about a small share of the online e-commerce sector alone, there ’ s not much to discuss, ” Xu suggested.
But if TikTok Shop ’ s strategy is primarily focused on bringing offline businesses online for the first time, that could be a pretty big step.
“[Using] live e-commerce to allow offline stores and small stores to participate, the potential is very large. ”
However, while 15% seems small, the number is still large – $285.2 billion – so TikTok ’ s potential is enormous even if it only gets a small slice of the current e-commerce pie.
Jozas Kazyukinas, founder of Marketplace Pulse, an e-commerce intelligence company, suspects that TikTok will ever replace Amazon.
“It doesn ’ t have a wide range of choices and gratification, and shoppers in the West are used to search-based e-commerce, ” he said.
“But a lot of people spend long hours using TikTok every day, and therefore, sometimes they buy things on it. ”
“In the United States and other countries in the West, shopping apps have been developed in parallel with apps that provide entertainment or connectivity such as social media.
“We ’ re used to getting different things from different apps, instead of going to one place to get everything. ”
“Today, social apps like TikTok are trying to discover shopping before retailers like Amazon discover social media (like Amazon Inspire).
But the status quo for different applications serving different needs remains.

#### The Rise of Labubu
Labubu is part of Pop Mart's broader strategy to create collectible toys that resonate with contemporary culture.

What does the collectible toys concept emphasize/

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The character's design—a quirky, somewhat mischievous elf-like creature—has struck a chord with a generation that values uniqueness and nostalgia.

What about the person on Tiktok persuades buyers to buy what they see in their feeds?

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The toy's appeal lies in its blend of cuteness and eccentricity, making it both a collectible item and a symbol of individuality.

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#### Why Labubu Went

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The Business of Fashion

Agenda-setting intelligence, analysis and advice for the global fashion community.

Temu’s Ad Blitz Is Working

Spending data shows millions of consumers are shopping on the Chinese app after seeing its ubiquitous marketing. Worryingly for competitors, customers appear to like what they’re seeing.

There’s a reason brands spend millions of dollars on 30-second ads during the Super Bowl — they work.

Temu’s 90 seconds spent telling American football fans to “shop like a billionaire” last month cost the Chinese shopping app an estimated $21 million. That was a drop in the bucket in a global marketing strategy, which according to JPMorgan is expected to total $3 billion this year alone and will encompass television ads, digital marketing and influencer partnerships. The goal is to transform the previously unknown Temu, which launched in the US in September 2022 as an Amazon-style “everything store” selling everything from fashion to home goods to electronics at shockingly low prices, into a name brand as quickly as possible.

That effort appears to have succeeded. In January and February, Temu generated sales of $346 million — up from $77 million in the same period last year, according to Facteus, a data insights firm that tracks debit and credit card spending. US consumers directed 0.65 percent of their online spending toward Temu, surpassing Shein, the last Chinese-owned app to storm the US market, which held a 0.47 percent share, according to according to marketing agency Consumer Edge. (Amazon still has a healthy lead, at 16.5 percent).

Online shopping has seen plenty of discount retailers enter with a splash of advertising and a surge in sales, only to fade just as quickly. Wish.com is a case in point. Launched in 2012 as a digital version of the dollar store, Wish spent exorbitant amounts on advertising but that never translated into a loyal customer base. Last month, it sold for $143 million to mobile e-commerce company ContextLogic.

But Temu may have more sticking power. Its low prices resonate more at a time when consumers are still worried about inflation, and have already been primed to seek out the cheapest possible clothes by ultra-fast-fashion retailers like Shein. The app is also designed around product discovery, creating an addictive shopping experience that Amazon, with its endless grid layout, never managed to crack.

Industry observers have questioned whether Temu’s approach is any more sustainable than Wish’s. A recent Financial Times report highlighted Temu’s bare-bones physical infrastructure, and the opaque financial structure of both it and its parent, Chinese online retail giant Pinduoduo, which doesn’t break out sales figures or earnings from Temu. Analysts believe Temu is losing billions of dollars annually, between the cost of advertising and subsidising those low prices.

“Regarding media reports and third-party analyses that suggest significant losses for Temu, these do not reflect our actual financial situation and are far from reality,” Temu said in a statement to BoF.

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Still, many aspects of the Temu playbook are similar to how other tech giants started out: Swoop into a market and aggressively acquire customers in the hopes that consumers will develop a loyalty to the platform, allowing prices to rise, marketing costs to fall and profits to be had.

“Our recent Super Bowl advertisement demonstrates our confidence in the potential of the US market and we’ll step up our investment even further this year,” a Temu spokesperson said in an email statement. “However, an under-appreciated (and under-reported) gem in our strategy is the power of word-of-mouth endorsements.”

There are early signs Temu is making progress along this path. According to Earnest, more than 28 percent of Temu customers made a second transaction on the platform 16 months after their first purchase — nearly double the rate of Walmart and Target in the same period.

“The growth they’re seeing now is from massively subsidising new customers,” said Drew Thomas, chief executive of Kleen, a retail AI services provider. “But [when] all their gamification and sharing and referral mechanisms kick in, and their acquisition costs will be lowered, because people are recommending it to their friends.”

What People Shop for on Temu

While Temu offers a vast assortment of products, clothing and accessories make up its most popular category. In a Jefferies survey of US consumers, 56 percent said they purchased such goods from Temu, compared to 37 percent for toys and hobby-related items and 27 percent for beauty.

Customers say quality is hit or miss. Unlike Shein, which sources its own inventory (and has generated plenty of complaints about shoddy merchandise of its own), Temu’s marketplace allows more than 100,000 vendors to reach users directly. The result is a striking array of products, with similar listings using similar photos but from different suppliers, often at different prices. The one constant is that those prices are very low — jewellery under $1, $3 leather belts, etc.

It’s a dizzying, chaotic experience, akin to the treasure hunt of perusing a secondhand store or visiting off-price retailers like TJ Maxx. When something turns out to be a miss, items are often cheap enough so that an entire cart can be chalked up to be a net positive, shoppers say (Temu also allows for one free return per order).

Whereas Amazon optimises for convenience and utility, Temu — like its predecessor Shein — is a cornucopia of discovery. Its product recommendation engine takes into account users’ browsing habits, serving up an endless scroll of subtly related products, which is coupled with insanely low prices and incessant promotions. The more time spent on browsing the site, the more addictive the experience.

“It seems out of this world,” said one fashion publicist who has made multiple purchases.

High income earners — those who make $130,000 or above — make up Temu’s biggest customer segment, accounting for over 44 percent of Temu’s sales, according to Earnest data. They’re also growing at a faster pace than those in lower earning segments.

“Yes, Temu is over-invested in advertising, but its message of ‘shop like a billionaire’ is totally landing,” said Debbie Ellison, global chief digital officer at VML, a global marketing agency.

The Universal Appeal of Bargains

Typically, product recommendations are driven by one of two types of data: identity-based information gleaned from creating a profile for an app, often linked to e-mail or social media, or behavioural data based on browsing and purchase activity. Temu leverages both because so many shoppers engage with the platform via their mobile app, which requires signup, according to Rishabh Jain, co-founder of AI-powered retail solutions start-up. This model of recommendations was first perfected by Shein, which is the third most downloaded free app in the US Apple store as of March 19. Temu is two spots behind, at No. 5.

Temu’s recommendation engine is also discovery-based, which means it’s “trying to get you to buy something that you didn’t know you wanted,” Jain said, “compared to Amazon’s search-based product recommendation.”

This mode of recommendation may be especially salient today because it mimics current trends on social media, AI experts said. Whereas 10 years ago, the norm on Facebook and Instagram was content from the specific profiles that users follow, today, the TikTok algorithm of random recommended posts has infiltrated every one of its competitors.

“Temu is very in line with how people are interacting with their social media platforms and the other digital experiences in their lives,” said Thomas, of Kleene. “It feels like an extension of their digital experiences.

Room to Grow

Rival retailers are eyeing Temu warily, though Amazon and Shein executives, at least, have yet to publicly identify the company as a threat.

Temu’s rise comes with one critical caveat: analysts estimate that the company is currently operating at a loss ($3 billion last year alone, according to JPMorgan). This means its colossal marketing budget is almost certainly not sustainable, nor are the ultra-low prices, which likely require some form of direct or indirect subsidy.

For Temu to survive in the long run, it must convince consumers it has value beyond low prices. No matter how on-the-nose, a personalisation algorithm alone isn’t going to drive repeat orders.

“If [Temu] ever wants to move away from customer acquisition, it has to rely on organic growth and word-of-mouth,” said Jamie Ray, founder and chief executive at influencer marketing agency Buttermilk. “Look at Amazon, which has become a media company and streaming platform, a conglomerate completely involved in culture. To stay [relevant], you have to go beyond selling cheap stuff.”

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