UAE, US form ‘Expert Group’ to govern Partnership for Accelerating Clean Energy

The UAE and US are forming an ‘Expert Group’ to govern the Partnership for Accelerating Clean Energy (PACE), officials announced in Abu Dhabi.

Led by UAE co-chair Dr Sultan Al Jaber, COP28 President-Designate; Minister of Industry and Advanced Technology and UAE Special Envoy for Climate Change, and US Co-Chair Amos Hochstein, US Special Presidential Coordinator, the bilateral body will be composed of the private sector and government representatives from both countries.

 

Launched in November 2022, PACE’s aim is to catalyse $100bn in financing, investment and other support and deploy 100 gigawatts (GW) of clean energy by 2035.

Funds allocated through PACE

UAE and US officials announced that $20bn will be allocated to fund 15 new gigawatts (GW) of clean and renewable energy projects in the US before 2035, led by UAE’s Masdar and a consortium of US private investors, reported the state news agency, WAM.

This first wave of investments under PACE will be financed through $7bn in cash equity from the private sector that will catalyse $13bn through US debt financing and other instruments.

The first wave of #PACE financing – $7bn in cash equity from the private sector to catalyze $13bn through US debt financing & other instruments – will fund 15GW of new #renewableenergy projects in the US, led by @Masdar and US private investors
Read more: https://t.co/tm2IKjRMmU

— Office Of The UAE Special Envoy For Climate Change (@uaeclimateenvoy) January 16, 2023

“Already one of the world’s largest renewable energy investors and developers, the UAE is joining forces with the US under PACE to supercharge a just energy transition, enhance energy security and demonstrate that climate action can unlock economic opportunities,” said Dr Al Jaber.

Amos Hochstein said: “As the international community prepares to take stock of global climate progress at COP28 in the UAE, this multi-sectoral partnership is a transformative step to advance mitigation and adaptation through the pragmatic investment and deployment of clean energy projects across the US, UAE and emerging economies around the world. We are confident that this partnership will provide a new model of cooperation that unites global efforts on the path to COP28 towards achieving meaningful progress.

“The US and the UE enjoy a deep and consequential partnership, now strengthened further by our collaboration to advance clean energy innovation and deployment.”

Hochstein added: “Just as the US makes historic investments in clean energy at home, we are also engaging in strategic cooperation to accelerate global investments underpinning energy affordability and climate action. The formation of an expert group and work plan under PACE will help to build momentum toward impactful deliverables at COP28 and beyond.”

Four strategic pillars of PACE

Members of the Expert Group will convene monthly to provide guidance across the four strategic pillars of PACE:

1) Clean energy innovation, deployment and supply chains

2) Carbon and methane management

3) Nuclear energy

4) Industrial and transport decarbonisation.

The co-chairs will meet quarterly with the full Expert Group to measure impact, initiate new projects and expand support for PACE.

Majid Al Suwaidi, DG of COP28, and David Livingston, senior advisor to US Special Presidential Envoy for Climate John Kerry, have been appointed as the deputy co-chairs of the Expert Group, representing the UAE and the US, respectively.

Together, the deputy co-chairs will convene and chair monthly meetings of the group, which includes a variety of US- and UAE-based entities from the public and private sectors.

PACE financing will support established renewable energy sources like solar and nuclear, as well as new applications such as green hydrogen and carbon capture. In line with its focus on elevating climate action and ensuring a just transition, PACE will prioritise efforts to deliver technical, project management and funding assistance for commercially and environmentally sustainable energy projects across the Global South.

Building on the partnership

The Expert Group will support the PACE co-chairs and key decision-makers to operationalise the partnership. The group will work toward reaching PACE’s targets by tracking progress, proposing new projects, developing financial models, formulating criteria for relevant initiatives and identifying potential partner institutions, among other activities.

The UAE has a track record as one of the most active investors in US clean and renewable energy projects. Through Masdar, the UAE has backed ten clean energy projects totaling more than 1.75 GW across California, Texas, New Mexico and Nebraska. These include investments in the 149-MW Rocksprings wind farm in Val Verde County, TX and the 29.9-MW Sterling wind farm in Lea County, NM.

Internationally, the UAE is supporting and implementing clean energy projects on six continents, including in 31 small island-developing states in both the Caribbean and the Pacific Ocean.

In recent news, the  UAE’s Ministry of Energy and Infrastructure recently signed a Memorandum of Understanding (MoU) with UK’s Department for Business, Energy & Industrial Strategy. The MoU aims to advance strategic and technical cooperation in the energy sector, and develop renewable energy technologies, including regulatory frameworks and incentives.

Read: UAE, UK sign MoU to drive cooperation in energy sector