DB ENERGY’S DEDICATION TO SUSTAINABILITY
HISTORY OF GLOBAL SUSTAINABILITY
United Nations Framework Convention on Climate Change (UNFCCC) (See Reference) is a multilateral treaty adopted in 1992, shortly after the first assessment report by the Intergovernmental Panel on Climate Change (IPCC) in 1990, to stabilize greenhouse gas concentrations “at a level that would prevent dangerous anthropogenic (human-induced) interference with the climate system” (See Reference). Since going into effect in 1994, UNFCCC has provided the basis for international climate negotiations including landmark agreements, such as the Kyoto Protocol (1997) and the Paris Agreement (See Reference) (2015).
The Sustainable Development Goals (SDGs), also known as the Global Goals, were adopted by the United Nations in 2015 as a universal call to action to end poverty, protect the planet, and ensure that by 2030 peace and prosperity prevail (See Reference). Since the introduction of the SDGs by the United Nations, sustainability and reducing carbon emissions have become a critical priority for many nations. Every year, member countries of the UNFCCC meet to measure progress and negotiate multilateral responses to climate change. Today there are 198 Parties to the Convention (See Reference) .
The first Conference of the Parties (COP) was held in Berlin, Germany, in 1995. The 28th COP was held at the end of 2023
in Dubai, United Arab Emirates “with an agreement that signals the beginning of the end of the fossil fuel era by laying the ground for a swift, just and equitable transition, underpinned by deep emissions cuts and scaled-up finance (See Reference) .
Negotiators from nearly 200 countries, and in the world’s first global acknowledgement of the crisis at the Paris meeting (See Reference), agreed to increase climate action before the end of the decade with the objective of keeping global temperature increase to 1.5°C above pre-industrial levels (See Reference).
HISTORY OF GLOBAL SUSTAINABILITY
Governments throughout the world are urging their local industries to adopt better practices by offering incentives to assimilate sustainable technology and carbon reduction solutions to their business. Senior financial pundits believe that the “global consensus to address climate change presents one of the most compelling return/risk-adjusted attractive opportunities for the next 30 years…. that the most attractive investment opportunity is investing in companies that provide technology, products and services to consumers and corporates worldwide to help them on their net zero targets….. and that it is in the trillions in terms of the size of the market opportunity” (See Reference). Some countires, especially those listed below, have strongly encouraged and supported their local business communities embrace clean energy mandates through incentives, such as investments, and grants, often referred to as “off set programs” in the GCC.
COUNTRIES LEADING THE WAY GLOBALLY TO A CLEAN ENERGY ECONOMY
China
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In 2022, China invested a staggering $546 billion, nearly half of the world’s low-carbon spending, in expanding its domestic clean energy industrial complex to develop more manufacturing capabilities, far surpassing the US at $141 billion and the EU at $180 billion (See Reference). Simultaneously, China also dominated low-carbon manufacturing by investing $79 billion in that sector alone.
United States
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In 2022, the U.S. government also earmarked an additional $369 billion through benefits under the Inflation Reduction Act. This is the most significant climate legislation in U.S. history, offering funding, programs, and incentives to accelerate the transition to a clean energy economy, and will likely drive significant deployment of new clean electricity resources to encourage its domestic clean technology industries. (See Reference)
The Inflation Reduction Act aims to reduce renewable energy costs for organizations like Green Power Partners, i.e., businesses, nonprofits, educational institutions, and state, local, and tribal organizations. According to the Environmental Protection Agency (EPA), taking advantage of tax credit incentives is the key to lowering GHG emission footprints and accelerating the clean energy transition in the United States.
UAE
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In 2023, the UAE allocated more than $40 billion for clean energy investments, intending to invest an additional $163.5 billion at a later stage (See Reference). The UAE is increasingly being recognized for its commitment to financing a green and sustainable future, with banks mandated to approve approximately $10 billion in loans by 2026, with a particular focus on manufacturing, advanced technology, infrastructure, healthcare, and food security as “sectors for the future.” (See Reference)
The UAE’s MASDAR (Arabic:مصدر), also known as the Abu Dhabi Future Energy Company, is an Emirati state-owned renewable energy company. It was founded and chaired by Sultan Al Jaber in 2006 as a subsidiary of the national Mubadala Investment Company. MAZDAR is a clean energy pioneer with numerous clean technology projects in green hydrogen and renewables over the last decade that has been positioning the UAE at the forefront of the worldwide energy transition. (See Reference)
Saudi Arabia
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Since 2017 the kingdom has committed $3 trillion to transition away from a fossil fuel-based economy to a high-tech hub and destination for global business and leisure. (See Reference) In 2023, Saudi Arabia announced a whopping $266 billion to develop its domestic clean energy industrial complex, with “transport lines and distribution networks to eventually export the energy to the world and produce clean hydrogen” (See Reference).
Since 2016, the kingdom has already spent well over $1 trillion on new real estate and infrastructure projects, one-third of the total planned development and expenditure by 2030, with $300 million on new infrastructure projects such as a new Riyadh airport for the new national airline, and a vast, brand new passenger rail network. An additional $575 billion is earmarked for eight new cities on the Red Sea coast, while the $500 billion NEOM city, one of the kingdom‘s fourteen new multi-billion dollar giga projects (See Reference), is to become the ultimate answer to all smart cities using cutting edge 21st-century technologies, and to create the most innovative yet sustainable development in the entire world. (See Reference).
The 1 trillion dollar The Line project is also underway, and garnering a lot of media coverage internationally, both in favor and against it (See Reference). The Line is Saudi Arabia’s groundbreaking eco-friendly city that will one day stand as a testament to futuristic urban living. As one of the subsidiaries of the NEOM development, this innovative project will stretch 170 kilometers, and is designed to run entirely on renewable energy, and will function without roads, cars, or emissions. As the world’s most sophisticated, and possibly most expensive environmental sustainability project, The Line aims to preserve 95% of its natural surroundings by offering a radical approach to urban living where nature and technology coexist in harmony.
Financial pundits, however are sceptic about the kingdom’s ambitious plan to cut CO2 emissions by 43 per cent 2030 under the current economic climate and the $681 billion to $6 trillion approximately needed annually to transition to clean energy (See Reference).
As one of the architects of the UN’s SDGs and the former Senior Coordinator for Climate Innovation Technology for the United Nations Industrial Development Organization (UNIDO) (See Reference) for the better part of 20 of his 37 years career with the UN, DB Energy Board member Dr. Carlos Chanduvi Suarez is today one of the leading sustainability experts in the private sector in the GCC.
