Power Shift | How The UAE’s Global Alliance Is Redefining The Energy Equation w. HE Sharif Al Olama

Summary

In this exclusive Forbes Middle East interview, His Excellency Engineer Sharif Felona, UAE Undersecretary for Energy and Petroleum Affairs, discusses the launch of the Global Energy Efficiency Alliance (GIA). GIA aims to double global energy efficiency improvements by 2030, a crucial move to tackle emissions while maintaining economic growth. The UAE, a leader in energy transition, shares its successful national energy strategies and innovative projects in energy efficiency, such as optimizing government buildings and introducing a national green certification program. The alliance seeks collaboration among governments, private sectors, financial institutions, and tech providers to accelerate global energy efficiency.

Takeaways

• 😀 The UAE is spearheading a global energy efficiency initiative, the Global Energy Efficiency Alliance (GIA), aiming to more than double the world's energy efficiency improvements by 2030.
• 😀 Energy efficiency is a critical yet often overlooked solution to reducing emissions while sustaining economic growth, with the UAE taking the lead in promoting it globally.
• 😀 The UAE’s energy strategy focuses on tripling renewable energy by 2030 and managing energy demand in sectors like buildings, industry, and transportation.
• 😀 Despite global progress in renewable energy, energy efficiency improvements have lagged behind, with only 1% improvement in 2024, far from the 4% target set at COP28.
• 😀 The UAE's track record in energy efficiency includes a 14.8 million tons CO2 reduction and savings of up to $2 billion over just four years in domestic energy management.
• 😀 The UAE aims to showcase its successful energy efficiency models and strategies through GIA, with a focus on cross-sector collaboration involving governments, tech providers, and financial institutions.
• 😀 The UAE is committed to achieving net zero by 2050, and its energy strategy includes clear targets for 2030, such as 15 GW of renewable energy capacity and the integration of clean fuels like hydrogen.
• 😀 The UAE’s national energy and water efficiency programs are led by a cross-sector committee involving both public and private sector collaboration.
• 😀 The UAE is pioneering innovative energy efficiency projects, such as optimizing government building energy use and developing a national green certification program for sustainable buildings.
• 😀 GIA serves as a platform for governments, technology providers, and financial institutions to collaborate, share best practices, and invest in global energy transition solutions.
• 😀 AI and smart technologies are playing an increasingly critical role in driving energy efficiency, with the UAE monitoring the energy consumption of data centers to ensure sustainable growth in AI applications.

Q & A

What is the Global Energy Efficiency Alliance (GIA), and why is it being launched now?

The Global Energy Efficiency Alliance (GIA) is an initiative aimed at significantly increasing the rate of energy efficiency improvements globally. It was launched to address a critical gap in global energy efficiency progress, with a specific focus on doubling energy efficiency by 2030. The need for GIA emerged after the UAE's experience with COP28, where the country identified that renewable energy projects were advancing but energy efficiency was lagging, achieving only 1% annual improvement instead of the targeted 4%.

What are the main sectors targeted by the UAE's energy strategy for efficiency?

The UAE's energy strategy targets three main sectors for energy efficiency: the building sector, the industry sector, and the transportation sector. These areas have been identified as the most significant contributors to energy consumption, and significant reductions in energy use can be achieved through targeted interventions in these sectors.

How has the UAE made progress in energy efficiency so far?

The UAE has made notable progress in energy efficiency through its National Demand Side Management Program. Over four years, the UAE achieved a reduction of 14.8 million tons of CO2 emissions and saved up to $2 billion. These successes are largely attributed to effective energy efficiency measures in buildings, industries, and transportation.

How does the UAE plan to involve the private sector in driving energy efficiency?

The UAE's strategy involves strong collaboration with the private sector. An example is the energy efficiency project involving government buildings, where the private sector provided all the investment and guaranteed savings in energy costs. The government also works with developers through programs like the National Green Certification Program, which incentivizes sustainable building practices and energy savings.

What is the UAE's energy strategy for 2030?

The UAE's updated energy strategy aims to triple renewable energy capacity by 2030, targeting a total renewable energy capacity of about 15 gigawatts (GW), which, when combined with nuclear power, will contribute to around 20 GW of clean energy. The strategy also includes a focus on energy demand management, integrating water optimization with energy use across key sectors.

What role will AI and smart technologies play in the GIA's mission?

AI and smart technologies are central to driving energy efficiency through innovative solutions, such as AI-powered systems in buildings to optimize energy use. The rapid growth of AI applications will be a key factor in achieving energy efficiency goals, particularly in sectors like data centers, which require careful regulation to ensure optimal energy consumption while supporting technological advancements.

What are some successful projects the UAE has implemented in energy efficiency?

The UAE has implemented several successful projects, such as the energy efficiency program for government buildings. By engaging the private sector, the UAE was able to reduce energy and water consumption by 25-30% without any initial government investment. Additionally, the National Green Certification Program is helping drive sustainable development in commercial buildings.

How does the UAE view its role in global energy efficiency efforts?

The UAE positions itself as a leader in global energy efficiency, driven by its commitment to net zero by 2050. The country has established a reputation as a reliable energy supplier and is now sharing its best practices and successful energy efficiency models with other nations through the Global Energy Efficiency Alliance (GIA).

How will GIA benefit countries and private sector players?

For governments, GIA provides access to successful policies and regulations that can attract investment and improve energy efficiency. Private sector players, including financial institutions and technology providers, will benefit from networking opportunities, exposure to global projects, and access to green funding opportunities. The platform facilitates collaboration and knowledge sharing to accelerate global energy efficiency efforts.

What is the significance of data centers in the UAE's energy strategy?

Data centers are a significant part of the UAE's energy strategy, particularly as the demand for AI and other digital services grows. These facilities consume large amounts of energy, especially for cooling. The UAE is working on regulations to ensure that data centers operate efficiently, minimizing energy waste while supporting the country's broader technological and sustainability goals.