Central News Hub

Month: September 2022

  • Lanka to hold debt restructuring talks with creditors

    Lanka to hold debt restructuring talks with creditors

    Faced with the severe financial crisis which led to the shortages of essentials like food, fuel, medicine, as well as long hours of power cuts, Sri Lanka defaulted its debts in April…reports SUSITHA FERNANDO

    Sri Lanka will on Friday present its economic woes, debt restructuring plans and a deal that it struck with the International Monetary Fund (IMF) to external creditors in an attempt to recover from the ongoing economic crisis, the worst since the island nation gained independence in 1948.

    Officials from the Central Bank of Sri Lanka, Finance Ministry higher-ups and its legal advisers Clifford Chance will make the virtual presentation to all creditors. including India and Japan which holds around $4.9 billion of Colombo’s debt.

    The presentation comes a day after 16 diplomats and six missions virtually joined from New Delhi assured Sri Lanka that support would be given for the country to overcome the grave financial crisis.

    “The foreign ambassadors assured President Ranil Wickremesinghe of their support to get IMF assistance for Sri Lanka to recover from the economic crisis,” the President’s Office announced after Ambassadors’ Forum on Debt Restructuring and IMF Program held on Thursday.

    The envoys, members and non-members of Paris Club, expressed confidence that Sri Lanka would be able to get out of the dire situation, the Office added.

    The Paris Club comprises a group of officials from major creditor countries which had welcomed the staff level agreement between Sri Lanka and the IMF for a 48-month plan under extended fund facility to restore macroeconomic stability and debt sustainability.

    Earlier this month, the President’s Office announced that the Paris Club also would coordinate with non-Paris Club bilateral creditors to ensure financial security for Sri Lanka.

    Also in September, Sri Lanka reached the preliminary deal with the IMF to get a $2.9 billion in loans over four years but the disbursement is subject to agreement of the country’s creditor on debt restructuring.

    India, Sri Lanka’s closest neighbour which has offered nearly $4 billion in financial assistance since January, has canvassed with other countries for the support of the island that had suffered three decades of war, the Easter Sunday attack in April 2019, Covid pandemic and political crisis which had blocked its main foreign income generators including tourism, foreign labour and exports.

    “We continue to be supportive of Sri Lanka in all possible ways, in particular by promoting long-term investments from India in key economic sectors in Sri Lanka for its early economic recovery and growth,” the Indian High Commission stated on Tuesday.

    “India has also advocated to other bilateral and multilateral partners supporting Sri Lanka expeditiously in its current economic difficulties. We have also noted the conclusion of a Staff Level Agreement between IMF and Government of Sri Lanka. Its further approval within IMF is contingent upon, inter alia, on Sri Lanka’s debt sustainability.”

    Faced with the severe financial crisis which led to the shortages of essentials like food, fuel, medicine, as well as long hours of power cuts, Sri Lanka defaulted its debts in April.

    In protest, people from all walks of life took to the streets, triggering the resignation of the former Prime Minister Mahinda Rajapaksa-led cabinet in July.

    Former President Gotabaya Rajapaksa had also fled the country.

    ALSO READ: Lankan inflation hit 70.2 in August

  • BNP’s nasty scare campaign exposed

    BNP’s nasty scare campaign exposed

    With the biggest festival for Hindus in Bangladesh – Durga Puja – approaching, this sort of fake news is seen as a ploy by the party to instigate “fresh spell of attacks”…reports Asian Lite News

    The Bangladesh Nationalist Party (BNP) took to its official Facebook page to “trigger communal disturbance” in Raozan Upazila of Chittagong, a place that is known for its rich history of communal harmony.

    A Facebook post by the BNP, unleashing a scare campaign, suggested that Buddhist citizens in the area have been attacked. However, netizens, specially local community leaders, promptly protested to the “fake news” and termed it “baseless”.

    social media

    With the biggest festival for Hindus in Bangladesh – Durga Puja – approaching, this sort of fake news is seen as a ploy by the party to instigate “fresh spell of attacks”.

    Rumours on social media have long been abused by the militant wings as a key tool to instigate attacks on minorities in the country.

    In 2021, pictures of a “Hindu” devotee placing a copy of holy Quran on the lap of Lord Hanuman was widely circulated on social media, which led to a series of attacks on temples across the country on an unprecedented scale. However, the police investigation later found that a radical Muslim youth put the holy book on the lap of Lord Hanuman and circulated the pictures to create mayhem.

    Known for commiting horrendous war crimes in association with the Pakistani army in 1971, Jamaat later got a new lease of life after the country’s first military dictator General Ziaur Rahman, also the founder of BNP, took over the reigns of the country after the assassination of country’s founding father Sheikh Mujibur Rahman in 1975.

    ALSO READ: Bangladesh sees dengue spike

  • BOE says Britain may already be in recession

    BOE says Britain may already be in recession

    The BOE now expects inflation to peak at just under 11% in October, down from a previous forecast of 13%…reports Asian Lite News

    The Bank of England voted to raise its base rate to 2.25% from 1.75% on Thursday, lower than the 0.75 percentage point increase that had been expected by many traders.

    Inflation in the UK dipped slightly in August but at 9.9% year-on-year remained well above the bank’s 2% target. Energy and food have seen the biggest price rises, but core inflation, which strips out those components, is still at 6.3% on an annual basis.

    The BOE now expects inflation to peak at just under 11% in October, down from a previous forecast of 13%.

    The hike was in line with economists’ forecasts, according to Reuters, however many in the market had been expecting a 75-basis-point raise, in line with the US Federal Reserve and many other major central banks.

    It came as the Bank of England said it believed the UK economy was already in a recession, as it forecast GDP would contract by 0.1% in the third quarter, down from a previous forecast of 0.4% growth. It would follow a 0.1% decline in the second quarter.

    Numerous analysts, along with business association the British Chambers of Commerce, have previously said they expect the UK to enter a recession before the end of the year. As well as energy price shocks, it faces trade bottlenecks due to Covid-19 and Brexit, declining consumer sentiment, and falling retail sales.

    The BOE dropped its key rate, known as the bank rate, down to 0.1% in March 2020 in an attempt to prop up growth and spending at the onset of the coronavirus pandemic. However, as inflation began to rise sharply late last year, it was among the first major central banks to kick off a hiking cycle at its December meeting.

    Seventh consecutive rise

    This is its seventh consecutive rise and takes U.K. interest rates to a level last seen in 2008.

    In a release explaining its decision, the bank noted volatility in wholesale gas prices but said announcements of government caps on energy bills would limit further increases in consumer price index inflation. However, it said there had been more signs since August of “continuing strength in domestically generated inflation.”

    It added: “The labour market is tight and domestic cost and price pressures remain elevated. While the [energy bill subsidy] reduces inflation in the near term, it also means that household spending is likely to be less weak than projected in the August Report over the first two years of the forecast period.”

    Five members of its Monetary Policy Committee voted for the 0.5 percentage point rise, while three voted for a higher 0.75 percentage point increase that had been expected by many. One member voted for a 0.25 percentage point hike.

    The bank said it was not on a “pre-set path” and would continue to assess data to decide the scale, pace and timing of future changes in the bank rate. The committee also voted to begin the sale of UK government bonds held in its asset purchase facility shortly after the meeting and noted a “sharp increase in government bond yields globally.”

    The bank’s decision comes against a backdrop of an increasingly weak British pound, recession forecasts, the European energy crisis and a program of new economic policies set to be introduced by new Prime Minister Liz Truss.

    Sterling hit fresh multidecade lows against the dollar

    The devaluation of the pound has been caused by a combination of strength in the dollar — as traders flock to the perceived safe haven investment amid global market volatility and as the U.S. Federal Reserve hikes its own interest rates — and grim forecasts for the U.K. economy.

    Data published Wednesday showed the U.K. government borrowed £11.8 billion ($13.3 billion) last month, nearly twice as much as forecast and £6.5 billion more than the same month in 2019, due to a rise in government spending.

    ‘Critical moment’

    David Bharier, head of research at business group the British Chambers of Commerce, said the bank faced a “tricky balancing act” in using the blunt instrument of rate rises to control inflation.

    “The bank’s decision to raise rates will increase the risk for individuals and organisations exposed to debt burdens and rising mortgage costs – dampening consumer confidence,” he said in a note.

    “Recent energy price cap announcements will have provided some comfort to businesses and households alike and should place downward pressure on the rate of inflation.”

    “The bank, looking to dampen consumer demand, and government, looking to increase growth, could now be pulling in opposite directions,” he added, saying the coming economic statement from the finance minister Friday was a “critical moment.”

    Samuel Tombs, chief U.K. economist at Pantheon Macroeconomics, said the bank was hiking at a “sensible pace” given the lower inflation outlook and emerging slack in the economy.

    Tombs forecast a 50 basis point increase at the bank’s November meeting, with risks titled toward a 75 basis point hike given the hawkishness of three committee members. He said this was likely to be followed by a 25 basis point rise in December, taking the bank rate to 3% at the end of the year, with no further hikes next year.

    The U.K. is not alone in raising interest rates to combat inflation. The European Central Bank raised rates by 75 basis points earlier this month, while Switzerland’s central bank hiked by 75 basis points Thursday morning. The U.S. Federal Reserve increased its benchmark rate range by the same amount Wednesday.

    ALSO READ-

  • UAE-Saudi non-oil foreign trade sees sharp growth

    UAE-Saudi non-oil foreign trade sees sharp growth

    From 2012 to 2021, Saudi Arabia was the UAE’s fourth leading trading partner, with their trade exchange amounting to AED904.3 billion, or 5.6 percent of the UAE’s total international trade…reports Asian Lite News

    The non-oil foreign trade between the UAE and Saudi Arabia grew by 92.5 percent over the past decade to AED124.69 billion by the end of 2021, compared with AED64.79 billion by end of 2012, according to statistics from the Federal Competitiveness and Statistics Centre (FCSC).

    The trade exchange between the two countries in the first half of 2022 totalled AED65.7 billion, the statistics also showed.

    The total value of non-oil exports from the UAE to Saudi Arabia over the past ten years was around AED205.5 billion, while re-exports were valued at AED471.7 billion, and imports at AED227 billion.

    From 2012 to 2021, Saudi Arabia was the UAE’s fourth leading trading partner, with their trade exchange amounting to AED904.3 billion, or 5.6 percent of the UAE’s total international trade.

    Saudi Arabia was ranked first in the list of countries that received re-exports from the UAE over the past 10 years, valued at nearly AED423 billion. It was also ranked second in the list of countries receiving Emirati non-oil exports, with a value of AED206 billion, constituting 9.5 percent of the UAE’s total non-oil exports.

    According to the FCSC’s figures, the trade exchange between the two countries in 2013 was AED79.9 billion, decreasing in 2014 to AED75.5 billion, and increasing again in 2015 to AED83.3 billion.

    The non-oil trade exchange between the two countries totalled AED71.5 billion in 2016 and AED79.2 billion in 2017. In 2018, it crossed the AED100 billion mark.

    In 2019, their non-oil trade exchange was valued at AED113.2 billion, and in 2020, it amounted to some AED104 billion.

    In 2021, the trade exchange between the UAE and Saudi Arabia amounted to AED124.6 billion, a rise of 20 percent compared to 2020, and 10 percent compared to 2019.

    Re-exports represented 48 percent of the total trade between the two countries in 2021, valued at more than AED59.78 billion while exports accounted for 30 percent, with a value of more than AED37.85 billion, and merchandise imports for 22 percent valued at more than AE 26.97 billion.

    In 2021, petroleum and oil obtained from bituminous minerals topped the list of Emirati imports, with a value of over AED5 billion, followed by ethylene polymers in their primary forms valued at AED3.35 billion, and raw, semi-worked or powdered gold with a value of AED1.87 billion, and then by propylene polymers in their primary forms.

    Gold topped the list of key commodities exported to Saudi Arabia in 2021, with a value of AED10.9 billion, followed by wires valued at AED3.11 billion.

    Telephone devices, including phones for cellular networks and other wireless networks, topped the list of goods that were re-exported to Saudi Arabia in 2021, with a value of AED11.58 billion, followed by machines for the self-processing of information and their units, magnetic or optical readers, and machines for transmitting information on stands in the form of codes worth AED6.12 billion, and then by cars worth AED2.29 billion, vehicle parts and supplies worth AED2.08 billion, and ready-made clothes worth AED1.59 billion.

    ALSO READ: ‘UAE a pioneer in energy security and sustainability’

  • KSA to send female astronaut to space in 2023

    KSA to send female astronaut to space in 2023

    The Saudi Astronaut Program, which is an integral part of the Kingdom’s ambitious Vision 2030, will send Saudi astronauts into space to help better serve humanity….reports Asian Lite News

    Saudi Space Commission has launched the Kingdom’s first astronaut program, dedicated to train Saudi competent personnel to undertake long- and short-term space flights.

    The program will enable Saudi astronauts to conduct scientific experiments and research for the betterment of humanity in priority areas such as health, sustainability and space technology, the Saudi Press Agency reported.

    The Saudi Astronaut Program, which is an integral part of the Kingdom’s ambitious Vision 2030, will send Saudi astronauts into space to help better serve humanity. One of the astronauts will be a Saudi woman, whose mission to space will represent a historical first one for the Kingdom.

    Human space flights boost countries global leadership and competitiveness in areas such as science, engineering, and research and innovation.

    In the coming months, the Kingdom plans to launch its National Space Strategy, which will reveal space programs and initiatives that aim to serve humanity from space.

    ALSO READ: UAE outlines pathway for practical, viable energy transition 

  • UAE celebrates Saudi National Day

    UAE celebrates Saudi National Day

    The UAE is celebrating Saudi Arabia’s 92nd National Day today with large-scale official and popular celebrations, under the theme, “Together Forever KSA-UAE,” underscoring the deep-rooted relations between the two countries, reports Asian Lite Newsdesk

    President Sheikh Mohamed bin Zayed Al Nahyan and Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai, have sent messages of congratulations to King Salman bin Abdulaziz Al Saud of Saudi Arabia, on the occasion of the Kingdom’s 92nd National Day.

    The UAE leaders, including the rulers of other emirates also dispatched similar messages to Prince Mohammed bin Salman bin Abdul Aziz, Crown Prince, Deputy Prime Minister and Minister of Defence of Saudi Arabia, on the occasion.

    The UAE is celebrating Saudi Arabia’s 92nd National Day today with large-scale official and popular celebrations, under the theme, “Together Forever KSA-UAE,” underscoring the deep-rooted relations between the two countries.

    The UAE’s major landmarks and many official and private entities have started decorating their headquarters with Saudi flags, and shopping malls have announced special events and activities on the occasion.

    The close ties between the UAE and Saudi Arabia are a distinguished model, and their mutual history has many examples of overall cooperation, including in the areas of politics, diplomacy, the economy and culture.

    In 2016, the two countries established the Saudi-Emirati Coordination Council, which aims to establish a joint vision to strengthen and maintain their mutual ties and consolidate their integrated economic systems.

    The UAE and Saudi Arabia share the same vision and stance on various topics and regional and Arab issues of mutual concern thanks to their shared principles that support regional and international security and peace.

    The bilateral relations between the two countries were strengthened by the efforts of the late Sheikh Zayed bin Sultan Al Nahyan and the late King Faisal bin Abdulaziz Al Saud. Their relations reached the level of a full partnership under the rule of the late Sheikh Khalifa bin Zayed Al Nahyan and the late King Abdullah bin Abdulaziz Al Saud.

    Subsequently, the leaderships of the two countries, President His Highness Sheikh Mohamed bin Zayed Al Nahyan and King Salman bin Abdulaziz Al Saud, Custodian of the Two Holy Mosques and King of Saudi Arabia, are continuing to enhance their bilateral ties and upgrading them to the highest levels.

    The leadership of the two countries has shown their keenness to celebrate national occasions in the two countries, underscoring their deep-rooted ties.

    Their cultural and social relations embody the geographical and social cohesion between their peoples based on a mutual cultural heritage.

    Their close cultural relations are highlighted by the signing of many joint agreements and programmes, as well as the level of cultural cooperation between major institutions and individuals in both countries.

    Moreover, the economic and commercial ties between the UAE and Saudi Arabia represent a distinguished and rich model of cooperation in building a better future.

    The value of their non-oil trade exchange in the first half of 2022 totalled US$17.9 billion, compared with US$16.8 billion in the same period in 2021 while the growth of their non-oil trade exchange in the first half of this year was 6.6 percent compared to the same period in 2021.

    ALSO READ: ‘UAE a pioneer in energy security and sustainability’

  • Bank of England hikes key rates

    Bank of England hikes key rates

    The country’s consumer price index (CPI) rose by 9.9 per cent in the 12 months to August, down from the 40-year high of 10.1 per cent in July…reports Asian Lite News

    To tackle high inflation, the Bank of England (BoE) has increased interest rates by 0.5 percentage points to 2.25 per cent, the highest since 2008 and the seventh successive since December 2021, as well as the second 50-basis-point increase in a row.

    The central bank announced on Thursday that it will “take the actions necessary” to return inflation to the 2 per cent target sustainably in the medium term, reports Xinhua news agency.

    The country’s consumer price index (CPI) rose by 9.9 per cent in the 12 months to August, down from the 40-year high of 10.1 per cent in July.

    Also on Thursday, the BoE decided to reduce the stock of purchased UK government bonds financed by the issuance of central bank reserves by 80 billion pounds ($90 billion) over the next 12 months to a total of 758 billion pounds.

    The bank said that its staff now expected the UK’s gross domestic product (GDP) to fall by 0.1 percent in the third quarter, below August’s projection of 0.4 per cent growth, and a second successive quarterly decline.

    It cemented fears that the UK economy will soon slide into recession.

    Despite support packages announced by the UK government this month to cap energy prices, the BoE said energy bills will still go up and, combined with the indirect effects of higher energy costs, inflation is expected to remain above 10 percent over the following few months, before starting to fall back.

    ALSO READ: UK announces new support for people facing famine in horn of Africa

  • ‘Renewable energy jobs hit 12.7 million globally’

    ‘Renewable energy jobs hit 12.7 million globally’

    With rising concerns about climate change, COVID-19 recovery and supply chain disruption, national interest is growing in localising supply chains and creating jobs at home…reports Asian Lite News

     Worldwide employment in renewable energy reached 12.7 million last year, a jump of 700,000 new jobs in one year, despite the lingering effects of COVID-19 and the growing energy crisis, according to the “Renewable Energy and Jobs: Annual Review 2022” report.

    The report identifies domestic market size as a major factor influencing employment generation in renewables, along with labour and other costs. Solar energy was found to be the fastest-growing sector. In 2021 it provided 4.3 million jobs, more than a third of the current global workforce in renewable energy.

    The new report was published by the International Renewable Energy Agency (IRENA) in collaboration with the International Labour Organisation (ILO), during the Global Clean Energy Action Forum in Pittsburgh, USA.

    With rising concerns about climate change, COVID-19 recovery and supply chain disruption, national interest is growing in localising supply chains and creating jobs at home. The report describes how strong domestic markets are key to anchoring a drive toward clean energy industrialisation. Developing renewable technology export capabilities is also dependent on this, it adds.

    Francesco La Camera, IRENA’s Director-General, said, “Renewable energy jobs remain resilient, and have been proven to be a reliable job creation engine. My advice to governments around the world is to pursue industrial policies that encourage the expansion of decent renewables jobs at home. Spurring a domestic value chain will not only create business opportunities and new jobs for people and local communities. It also bolsters supply chain reliability and contributes to more energy security overall.”

    The report shows that an increasing number of countries are creating jobs in renewables. Almost two-thirds of all these jobs are in Asia. China alone accounts for 42 percent of the global total, followed by the EU and Brazil with ten percent each, and the USA and India with seven percent each.

    For his part, ILO Director-General Guy Ryder stated, “There is a growing focus on the quality of jobs and the conditions of work in renewable energies, to ensure decent and productive employment. The increasing share of female employment suggests that dedicated policies and training can significantly enhance the participation of women in renewable energy occupations, inclusion and ultimately, achieve a just transition for all. I encourage governments, workers’ and employers’ organisations to remain firmly committed to a sustainable energy transition, which is indispensable for the future of work.”

    The report highlights some notable regional and national developments. These include Southeast Asian countries becoming major solar photovoltaic (PV) manufacturing hubs and biofuel producers. China is the pre-eminent manufacturer and installer of solar PV panels and is creating a growing number of jobs in offshore wind. India added more than 10 Gigawatts of solar PV, generating many installation jobs, but remains heavily dependent on imported panels.

    Europe now accounts for about 40 percent of the world’s wind manufacturing output and is the most important exporter of wind power equipment; it is trying to reconstitute its solar PV manufacturing industry. Africa’s role is still limited, but the report points out that there are growing job opportunities in decentralised renewables, especially in support of local commerce, agriculture, and other economic activities.

    In the Americas, Mexico is the leading supplier of wind turbine blades. Brazil remains the leading employer in biofuels but is also adding many jobs in wind and solar PV installations. The USA is beginning to build a domestic industrial base for the budding offshore wind sector.

    The report also highlights that the expansion of renewable energy needs to be supported with holistic policy packages, including training for workers to ensure jobs are decent, high quality, well paid and diverse in pursuit of a just transition.

    ALSO READ: UAE to launch region’s first Independent Climate Change Accelerators

  • ‘UAE a pioneer in energy security and sustainability’

    ‘UAE a pioneer in energy security and sustainability’

    The operation of the third unit of the Barakah Nuclear Power Plant in Al Dhafra highlights the UAE’s successful efforts to achieve the objectives of the UAE Net Zero 2050 strategic initiative…reports Asian Lite News

    Sheikh Hamdan bin Zayed Al Nahyan, Ruler’s Representative in Al Dhafra Region, said the developments and challenges being witnessed by the entire world confirm the appropriate long-term vision of the UAE’s leadership and the forward-looking approach of President His Highness Sheikh Mohamed bin Zayed Al Nahyan to energy security, which is the cornerstone of sustainable development.

    The operation of the third unit of the Barakah Nuclear Power Plant in Al Dhafra highlights the UAE’s successful efforts to achieve the objectives of the UAE Net Zero 2050 strategic initiative, by diversifying the country’s sources of environmentally-friendly energy and reducing local carbon emissions, he added.

    The units of the Barakah Nuclear Power Plant, which are among the most advanced in the world, have prepared a distinguished generation of Emirati engineers, operators and specialists in the peaceful nuclear power sector, one of the safest and most environmentally-friendly sectors, he further added, stressing that this generation has contributed to the advancement of the UAE Peaceful Nuclear Energy Programme, as well as pursued the process of sustainable development in the UAE.

    “The operation of the third unit of the Barakah Nuclear Power Plant will ensure energy security nationwide and underscores the country’s ongoing efforts to make the nuclear energy sector a key source in the generation of abundant, credible and environmentally-friendly electricity,” Sheikh Hamdan said.

    He also noted that this achievement highlights the distinguished efforts of Emirati cadres, considering the continuous support of the UAE’s leadership, to complete the project on time and is in line with the highest international standards.

    “This is a new achievement for Barakah, which will help create a carbonless economy and guarantee a prosperous future for generations to come,” he said in conclusion.

    ALSO READ: UAE to launch region’s first Independent Climate Change Accelerators

  • UAE outlines pathway for practical, viable energy transition 

    UAE outlines pathway for practical, viable energy transition 

    Al Jaber joined world leaders, ministers, and experts at the Bloomberg ‘Emerging + Frontier Forum’, taking place on the sidelines of the UN General Assembly in New York…reports Asian Lite News

    The energy transition needs a realistic, practical and economically viable plan in order to succeed in delivering climate progress together with energy security and economic growth, according to Dr. Sultan bin Ahmed Al Jaber, Minister of Industry and Advanced Technology, Special Envoy for Climate Change.

    Al Jaber joined world leaders, ministers, and experts at the Bloomberg ‘Emerging + Frontier Forum’, taking place on the sidelines of the UN General Assembly in New York to emphasise the need for a just, affordable, and successful energy transition to drive both economic growth and climate action.

    “If people’s basic energy needs are not met, economic development slows down and so does climate action. And, if we under-invest in the energy system of today, before the energy system of tomorrow is ready, we will only make matters worse.”

    “Globally, there are less than one and half million barrels of spare oil capacity, that’s less than 2% per cent of global consumption. In a world where markets may face further disruption, that doesn’t give us a lot of room to maneuver. In fact, it is a recipe for disaster, when what we need is a recipe for progress.”

    Dr. Sultan added, “The fundamental challenges of the energy transition are as follows:

    -One. How to ensure economies move forward, while putting the brakes on emissions.

    -Two. How to maintain energy security and climate progress at the same time.

    -And three: How to make sure that no one gets left behind. I believe we can, we must, and in fact we have no other option, but to solve these challenges together.”

    “Before looking for solutions, we have to recognise that the current energy system is vast, complex and multi-faceted. And transitioning to a new energy system needs a system-wide response. It needs measured, practical and sober planning.

    In short, we need a realistic strategy to keep the increase in global temperatures within 1.5 degrees, while expanding access to affordable energy.”

    The minister welcomed the fact that wind and solar energy had accounted for over 80 per cent of all new power generating capacity last year, demonstrating that the power sector is shifting rapidly to renewable sources. However, he reminded the audience that hard to abate sectors that consume the most energy are still very reliant on conventional sources.

    Dr. Al Jaber noted, “Much more investment is needed in mitigation technologies and zero carbon energies that can effectively transition heavy industry, manufacturing, construction, transportation, and agriculture. The funding gap here is wide, and it’s important to understand the numbers. While global investment in renewable energy exceeded 365 billion dollars last year, less than 5 per cent of that amount was invested in energy storage, carbon capture, and the hydrogen value chain. This is simply not enough. In fact, according to some industry estimates, the energy transition will require more than 200 TRILLION dollars over the next thirty years- that’s more than six trillion dollars every year. Clearly no single country or corporation can foot this bill.”

    Dr. Al Jaber emphasized that the expansion of renewables and decarbonization of existing hydrocarbons had to happen in parallel. With renewables constituting only 4% of the global energy mix, oil and gas remain essential to meeting global energy needs.

    A regional leader in renewable energy, the UAE has invested $50 billion in renewable energy projects across 70 countries, with plans to invest a further $50 billion in the years to come. The UAE is home to three of the world’s largest single-site solar plants and plays host to the International Renewable Energy Agency (IRENA). At the same time, the UAE is leading efforts to decarbonize the hydrocarbon industry, investing heavily in carbon capture and storage, as well as exploring other innovative technologies. 

    ALSO READ: UAE to launch region’s first Independent Climate Change Accelerators