UAE set to lead world in renewable energy

Subject

Outlook for the renewables sector.

Significance

The United Arab Emirates (UAE) announced plans to increase its clean energy targets at the World Future Energy Summit hosted in Abu Dhabi on January 18-21. Over the past decade, the country has cultivated a reputation as a 'green' trailblazer in the renewable energy (RE) sector. In 2009, Abu Dhabi launched its drive to transform the UAE into a global leader in the sector, creating an economic blueprint requiring that renewables comprise 7% of energy production by 2020.

Impacts

• The UAE will develop a national carbon market to spur RE investment.
• Development of world-class RE technology could facilitate advanced technology transfer into other fields.
• Hydrocarbons exports and petrochemical production will increase, boosting foreign revenues.
• Significant subsidy cuts and the subsequent reduction in the fiscal burden should enable further RE investment in coming years.