Ellora-Julie Parekh, Chief Sustainability Officer at Al-Futtaim Automotive, emphasises the critical role of integrated efforts in shaping sustainable urban futures.
Water is the foundation of our planet’s ecosystem, yet nearly one-third of the global population faces water scarcity. Climate change is exacerbating this crisis, intensifying droughts and shifting rainfall patterns threatening ecosystems and communities alike.
Today, over 2 billion people lack access to safe drinking water, and by 2030, UN-Water predicts that water scarcity could displace more than 700 million people. This creates a demand for providing global platforms to instigate change, implementing forward-thinking policies, developing innovative solutions and securing investment to sustain growth while preserving water security.
n the Middle East and North Africa (MENA) water scarcity presents an urgent and existential threat. Limited freshwater resources, and ever-increasing demand and consumption have left many countries in the region grappling for water access. Therefore, to confront this challenge, we must act now – driving progress through innovation, investment, and bold policy reforms.
In Abu Dhabi, we are rising to meet this challenge globally, navigating a path to a more secure and sustainable future.
As leaders in water management, we are in the process of completing our integrated strategy to enable more effective management of Abu Dhabi’s water resources. The Department of Energy – Abu Dhabi is proud to host the upcoming IDRA World Congress 2024, a landmark event, where global leaders will explore transformative strategies to address water scarcity, underscoring the importance of both integrated water resource management and securing public-private partnerships to drive sustainable solutions.
At the heart of water management in Abu Dhabi are effective, forward-thinking policies and robust regulatory frameworks that ensure water is used efficiently, equitably and sustainably. Local progressive regulations on topics such as recycled water and low-carbon desalination technologies are fully aligned with the Emirate’s commitment to UN Sustainable Development Goal 6 (Water and Sanitation for All).
These policies not only meet growing demand, but also safeguard water resources for future generations. One example of this, the Al Taweelah Power and Desalination Complex, exemplifies how technological innovation can be harnessed to deliver sustainable water solutions.
While forward-thinking policies and regulatory framework is central to water management, innovation is the catalyst for change. Abu Dhabi’s advancements in AI-driven water systems, energy efficient desalination, and water reuse technologies showcase how the energy and water sectors are converging to achieve the UAE’s net-zero targets. To fully transform the sector, we must continue to accelerate the development of water efficiency technologies, smart infrastructure and energy-conscious desalination, which are crucial to achieving our long-term sustainability goals.
A sustainable future depends on empowering our youth, the next generation. As the DoE we actively raise awareness about water conservation through dedicated student programmes, in line with the Abu Dhabi Demand Side Management and Energy Rationalisation Strategy 2030. By equipping our youth with knowledge and leadership skills, Abu Dhabi is fostering a culture of sustainability in water and energy conservation that will endure for decades.
To raise the youth’s awareness of the importance of rationalising energy and water consumption, we launched the Energix app as an effective tool to promote sustainable behavior. We are also organising awareness lectures across Abu Dhabi to educate members of the community on the optimal use of energy and water resources. In addition, we are planning to launch the Youth Program at the IDRA World Congress 2024, to provide a platform for young innovators to engage in water and energy conservation discussions and enhance the role of future generations to become pioneers in energy and water sustainability.
Such initiatives aim to empower the next generation, not only by equipping them with the skills required to tackle future challenges but also encouraging them to actively participate in global discussions on the realities and future of sustainability and energy. IDRA World Congress 2024 will provide a unique opportunity for young innovators to interact with experts and explore the latest technologies in water security, preparing the next generation to face global water-related challenges.
Nevertheless, water security and management cannot be achieved without substantial financial investment. Financial institutions are a key pillar in water management solutions, directing capital towards impactful projects.
Abu Dhabi has successfully leveraged the public-private partnership model (PPP) to scale up critical infrastructure projects, including large-scale desalination plants. Through collaboration with global financial leaders, we continue to secure the investments needed to implement innovative, scalable water solutions to meet future demands.
Ensuring water security demands an integrated approach, leveraging the strength of knowledge exchange between environmental, industrial and policy-making sectors to balance our human needs with the protection of ecosystems. We are in need of a comprehensive global strategy that addresses the exacerbating effects posed by population growth, the increasing industrial demand for water, and the effects of climate change on water scarcity.
As we look toward the future, I am confident that through collective global action, uniting industry, policymakers, financial institutions, and environmental stewards , we can build a world where every community has equitable access to safe, reliable and sustainable water resources.
By H.E. Eng. Ahmed Mohamed Al Rumaithi, Undersecretary, Department of Energy, Abu Dhabi
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In an interview with ESG MENA, Nouf Abdulghani, Principal Renewable Energy Engineer at Saudi Arabia’s Ministry of Energy, highlighted the kingdom’s ambitious renewable energy goals.
Cities across the Middle East are experiencing an infrastructure boom, driving the demand for steel, cement, petrochemicals, and aluminum. However, the production of these essential materials faces significant decarbonisation challenges. Globally, the industrial sector accounts for one-quarter of CO2 emissions, a share that is expected to rise.1 It contributes even more significantly in some regions, accounting for 46% in the UAE.2 With increasing pressure to align with the Paris Agreement’s climate targets, finding sustainable solutions has become imperative in the Gulf Cooperation Council (GCC) region. This article explores the barriers, opportunities, and solutions in decarbonising heavy industries in the GCC.
Challenges in Decarbonising GCC’s Heavy Industries
The GCC’s heavy industries are vital to the region’s economy but face complex decarbonisation challenges primarily related to their production processes.
In many heavy industries, production processes require high temperatures—often generated by burning fossil fuels—and involve carbon-intensive chemical reactions. Steel, cement, and petrochemical production operate at around 1,000°C and above, producing substantial emissions through blast furnaces, calcination, and steam cracking processes. For example, a study found that in the UAE, 525kg of the total 709kg of CO2 produced per ton of cement was attributable to calcination, which relies on coal.3 As a result, decarbonising these heavy industries often requires changing the production processes entirely.
Another challenge specific to the region is the large quantities of water the industry consumes, though it contributes less to emissions. The GCC region overall accounts for 40% of the world’s desalination capacity,.4 which is almost entirely powered by fossil fuels.5 Desalination – which produces 70% of the country’s water – is one of KSA’s six target sectors for decarbonisation.6 Industrial needs account for 8% of KSA’s total water consumption.7 In addition, the GCC’s climate necessitates energy-intensive cooling and air purification for industrial processes.
Industrial centers are spread across the GCC, often requiring emissions-intensive transport networks. While existing railways connect some industrial clusters, trans-peninsular and GCC-wide railways are still under construction.8 Moreover, although the region experiences significant international demand for industrial products, its primary export markets are overseas.
Policy and Green Technology Innovation for Heavy Industries
GCC countries have implemented ambitious policy frameworks to promote sustainability. Saudi Arabia’s Green Initiative aims for net zero emissions by 2060, with 50% of power generation from renewable sources by 2030.9 The UAE recently enacted a comprehensive legal framework to improve energy efficiency, increase the use of renewables, protect natural carbon sinks, and expand carbon capture, utilisation, and storage (CCUS) in support of its net zero goal by 2050.10 Similarly, Oman’s Vision 2040 targets generating 30% of its electricity from renewable sources by 2030 and developing green hydrogen to position the country as a significant player in the global market.11
Green technologies are being pioneered in the region. The world’s largest green hydrogen plant in NEOM, Saudi Arabia, is expected to produce over 200,000 tons of green hydrogen per year by 2026 in the form of green ammonia, enabling its efficient transport to other markets.12 CCUS is expanding across the region. The Uthmaniyah Carbon Dioxide Enhanced Oil Recovery project in Saudi Arabia captures 800,000 tons of CO2 annually. At the same time, the Al Reyadah facility in Abu Dhabi is the world’s first fully commercial CCUS facility for the steel industry.13 Gigawatt-scale low-carbon power generation is underway in the UAE. The Barakah Nuclear Energy Plant and Mohammed bin Rashid Al Maktoum Solar Park will generate 5.6 GW and 5 GW by 2030, respectively. Emirates Global Aluminium in Dubai uses part of that solar power to produce 40,000 tons of green aluminum, making the UAE the first to use solar energy for aluminum production.14 The same company is prototyping a new smelting technology, improving efficiency by 22% and reducing emissions by 12%.15 Meanwhile, Vulcan Green Steel is pushing for low-emission steel production in Oman. It integrates the entire value chain from its iron ore mine in Cameroon to production processes in Oman using direct-reduced iron and electric arc furnaces to manage emissions.16
The GCC’s Potential for Global Leadership
As these initiatives demonstrate, the GCC has the potential to become a global leader in industrial decarbonisation. The region has strategic competitive advantages: vast renewable energy potential, financial capacity, an existing industrial base, and relative proximity to large off-takers in Europe and East Asia. To realise this potential, the GCC should focus on these critical initiatives:
- A regional task force to harmonize decarbonisation strategies across GCC states:
.This task force could be a multi-stakeholder partnership with representatives from the government, industry, academia, and international organisations. This would aim to break down barriers to the trade of renewable energy and green products. The GCC Interconnection Authority, which successfully linked the electricity grids of six countries, could serve as an example.17
- Given the potential of green hydrogen in the region, a GCC green hydrogen alliance should be established to collectively invest in and develop green hydrogen infrastructure by focusing on shared pipelines, R&D, and export strategies. This could reduce costs, mitigate risks, and help establish the GCC as a global leader in green hydrogen production. A similar alliance could be instrumental in advancing CCUS initiatives.
- Green financing mechanisms, such as a GCC green fund supported by sovereign wealth funds: low-interest loans, grants, or equity investments in projects that meet stringent sustainability criteria could help finance large-scale GCC-wide decarbonisation projects.
.
- Cross-border industrial ecosystems to create symbioses and further drive circular integration among various industries: Some already exist, but expanding them in scope, scale, and especially geography could amplify the benefits of circularity.18
In conclusion, the GCC is pivotal in redefining its heavy industries. By leveraging its abundant renewable resources, financial strength, and strategic location, the region can emerge as a global leader in sustainable industrial practices. The path is daunting, yet within these challenges lie immense opportunities – for innovation, economic growth, and a more sustainable planet. Even traditional industries can pivot towards sustainability, setting a precedent for global change with the GCC at the forefront.
By Giuseppe Bonaccorsi, Managing Director and Partner, BCG; and Miklos Veszpremi Consultant, BCG
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In a bid to accelerate energy transformation, ADNOC announced the launch of XRG, an international lower-carbon energy and chemicals investment company with a value of over $80 billion. XRG aims to more than double its asset value over the next decade by capitalising on the demand for low-carbon energy and chemicals driven by three mega-trends;
- The transformation of energy
- The growth of AI
- The rise of emerging economies
The new investment company will build on ADNOC’s existing experience and transformational international acquisitions, it will initially focus on developing three core strategic value platforms:
- XRG’s Global Chemicals Platform aims to be a top 5 global chemicals player, producing and delivering chemical and speciality products essential for modern life, to meet the projected 70 per cent increase in global demand by 2050.
- XRG’s International Gas Platform will build a world-scale integrated gas portfolio to help meet the anticipated 15 per cent increase in global natural gas demand over the next decade, as a lower carbon transition fuel, as well as meet the expected 65 per cent increase in demand for LNG by 2050.
- XRG’s Low Carbon Energies Platform will invest in the solutions needed to meet increasing demand for low carbon energies and decarbonisation technologies to drive economic growth through the energy transition. The market for low carbon ammonia alone is expected to grow by between 70-90 million tonnes per annum by 2040, from close to zero.
“In line with our Board mandate to prioritise transformational growth, XRG marks a bold new chapter for ADNOC”, said Dr Sultan Ahmed Al Jaber, Managing Director and Group CEO of ADNOC. “Building on our unrivalled track record in energy and investments, network of global partners, and strategic market access, XRG will drive sustainable economic growth, foster technological innovation, and deliver the energy and products needed to improve lives around the world.”
“We are committed to delivering long-term value for our stakeholders and reinforcing Abu Dhabi and the UAE’s role as a global energy and chemicals leader.”
XRG will formally commence activities in 2025.
ACWA Power has signed an Implementation Agreement (IA) with the Ministry of Energy (MoE) of Uzbekistan to develop up to 2GWh of standalone Battery Energy Systems capacity (BESS) across the country,
The agreement was witnessed by President Shavkat Mirziyoyev of the Republic of Uzbekistan, President Ilham Aliyev of the Republic of Azerbaijan, and HRH Prince Abdulaziz bin Salman Al Saud, Minister of Energy of Saudi Arabia.
The announcement came soon after Saudi Arabia signed an implementation programme to strengthen cooperation in the field of renewable energy with Azerbaijan, Kazakhstan and Uzbekistan.
The agreement was formally signed during COP29, with both parties reaffirming their commitment to advancing renewable energy technologies and reducing carbon emissions. The IA follows a Memorandum of Understanding (MoU) signed between ACWA Power and Uzbekistan’s Ministry of Energy during the Tashkent Investment Forum in May 2024.
Under the agreement, ACWA Power receives contractual priority for 2GWh of new BESS capacity in Uzbekistan, allowing the company to offer competitive tariffs. The agreement is valid for two years and may be extended by mutual consent. Both parties will collaborate on feasibility studies to identify optimal locations for BESS projects.
“This agreement marks a key milestone in the evolution of our ongoing partnership with Uzbekistan”, said Raad Al-Saady, Vice Chairman and Managing Director of ACWA Power. “Crucially, as the largest investor in Uzbekistan’s energy sector, with over 13GW of projects under development, this new agreement represents our shared vision for a sustainable future for all.”
“Today, we reiterate our support for the country’s energy transition through advanced battery storage solutions. The agreement not only strengthens our leadership in energy storage technologies, but also demonstrates our commitment to delivering reliable and sustainable energy solutions across Central Asia.”
The signing of the IA underscores both ACWA Power’s leadership in energy storage technologies and Uzbekistan’s ambitions to expand its renewable energy portfolio.
ACWA Power has announced the successful financial close of senior debt facilities worth USD $238 million to finance a key renewable energy project in the Caucasus region.
The European Bank for Reconstruction and Development (EBRD) and the OPEC Fund for International Development have provided financing facilities of USD $238 million in total for the Absheron-Khizi 240MW Wind Farm in Azerbaijan.
An equity bridge financing of USD $120 million, based on shariah compliant structure, was secured from First Abu Dhabi Bank (FAB) in December 2023.
The Absheron-Khizi plant is the first international investment-based independent wind power project in Azerbaijan, and the largest in the Caucasus region.
“This project reflects what can be achieved through strategic collaborations between the private and public sector to mobilise finance that accelerates climate action”, said Marco Arcelli, CEO of ACWA Power. “We are proud to be supporting Azerbaijan’s shift from natural gas to renewable energy in line with the nation’s clean energy ambitions, and hope that this is the first of many similar projects.”
The project is expected to commence operations in the first half of 2026 and involves a 25-year power purchase agreement with Azerenerji, the national electrical power company. When complete, the project is expected to provide nearly 300,000 households with renewable power and mitigate the impact of 400,000 tonnes of carbon emissions annually.
Abu Dhabi Future Energy Company PJSC (Masdar) and Albanian Power Corporation, Korporata Elektroenergjitike Shqiptare (KESH) have signed a joint venture agreement to explore the development of gigawatt-scale renewable energy projects in Albania.
The agreement was signed in Baku, Azerbaijan on the sidelines of COP29, by Mohammed Jameel Al Ramahi, Chief Executive Officer of Masdar, and Erald Elezi, Cheif Executive Officer of KESH.
The signing of the agreement was witnessed by HE Edi Rama, Prime Minister of Albania, and His Excellency Dr. Saltan Al Jaber, UAE Minister of Industry and Advanced Technology, COP28 President and Chairman of Masdar, and her Excellency Belinder Balluku, Deputy Prime Minister and Minister of Infrastructure and Energy for Albania.
The joint venture agreement aims to develop, construct and operate renewable energy projects utilising a range of renewable technologies, including solar PV, wind and hybrid solutions, with potential integration of battery storage. The energy produced is expected to be supplied to the Albanian market and exported to neighbouring countries.
“This agreement is a testament to the UAE’s unwavering commitment to pioneering clean energy solutions on a global scale”, said Dr. Sultan Al Jaber, Chairman of Masdar. “By leveraging the UAE’s world-class expertise in renewable energy and Albania’s abundant natural resources, our purpose-built, future-ready infrastructure will deliver more energy with fewer emissions than ever before.”
The joint venture between Masdar and KESH is a crucial element of the broader strategic partnership between the UAE and Albania. The aim is to meet local demand for renewable energy, while also supporting its energy export capabilities to neighbouring countries, and contributing to the regions energy security and sustainability goals.
“This joint venture with Masdar is a pivotal advancement in Albania’s renewable energy journey, underscoring KESH’s commitment to sustainable development and energy diversification”, said Erald Elezi, CEO of KESH. “Although Albania already benefits from a predominantly green energy mix, this partnership will enhance our resilience, improve stability and open revenues for clean energy exports to the region.”
The MENA region’s first net-positive mosque has been opened by Majid Al Futtaim, a leading shopping mall, communities, retail and leisure pioneer across the Middle East, Africa and Asia.
The mosque was opened in the Group’s flagship Dubai community, Tilal Al Ghaf, and it integrates sustainable and modern design practices in support of the UAE’s Green Agenda 2030, ensuring efficiency, resource optimisation and minimal environmental impact.
“The opening of the first net-zero emissions mosque in the Middle East is an achievement that reflects our deep commitment to the principles of sustainability, this project represents a significant shift in the field of environmental sustainability and highlights our fruitful collaboration with Majid Al Futtaim in implementing this initiative”, said His Excellency Ahmed Darwish Al Mohair, General Manager of the Islamic Affairs and Charitable Activities Department.
“It serves as a live example of a successful partnership between public and private sectors, setting a new standard for responsible innovation in building and maintenance, it also aligns with the noble Islamic values that advocate for environmental preservation and protection.”
The Majid Al Futtaim Mosque is set to become the first bespoke project to be given the Building Research Establishment Environmental Assessment Method (BREEAM) certification. This assessment recognises measures of performance that are set against established benchmarks, evaluating a building’s specification, design, construction and use.
The BREEAM framework is globally recognised and used to validate the sustainability of buildings by evaluating different facets of a building’s environmental influence and functionality.
The mosque’s construction incorporates advanced mechanical, electrical and plumbing (MEP) systems, renewable energy sources and sustainable building practices designed to achieve a net-positive status. A key element of the construction is a renewable energy system with 203 solar photovoltaic panels, providing a total installed solar capacity of 116.73 kWp and generating over 204,121 kWh annually, delivering more than 115 per cent of the mosque’s energy demand. The excess energy is supplied back to the grid to be used across the community.
There is also a solar-powered hot water system, LED lighting, an efficient HVAC setup, EV charging stations, and a Building Management System (BMS) to optimise energy consumption. Water efficiency, air quality and non-toxic materials have been employed to ensure a healthy environment, with responsibly sourced low-carbon materials prioritised to reduce the overall carbon footprint of the building.
“It is a great honour to inaugurate the Majid Al Futtaim Mosque, a symbol of our late Founder’s enduring legacy and a tribute to his commitment to serve the communities in which we operate”, said Ahmed Galal Ismail, Chief Executive Officer of Majid Al Futtaim Holding.
“As the first net-positive mosque in the region, this space has been thoughtfully designed as a cornerstone of the community, blending sustainable design principles with Islamic values.”
The mosque supports Majid Al Futtaim’s commitment to building a cleaner tomorrow, with the Group aims to achieve net-positivity in carbon and water for all its operating companies by 2040.
Arab Development Establishment (ADE) and Schneider Electric launched a joint venture manufacturing facility in Abu Dhabi, UAE, this week.
According to the two parties, the TAQANA Energy Solutions facility in the Industrial City of Abu Dhabi (ICAD) will reportedly play a key role in manufacturing a range of advanced energy solutions designed to support the UAE’s industrial growth.
The new facility was inaugurated in the presence of His Excellency Omar Al Suwaidi, Undersecretary of the Ministry of Industry and Advanced Technology, Yousef Mohamad Al Nowais, Chairman and Managing Director, Mohammed Ali Al Kamali, Chief Trade and Industry Officer, Abu Dhabi Investment Office (ADIO), ADE; Mohamed Yousef Al Nowais; Executive Director, TAQANA Board; Amel Chadli, President of Gulf Countries, Schneider Electric; Walid Sheta, President, MEA Zone, Schneider Electric; Mahmoud Nader, CEO of TAQANA Energy Solutions; and other officials.
“We are not just manufacturing energy solutions; we are engineering the future of sustainable energy in the UAE and beyond. This facility marks a watershed moment in advancing the nation’s clean energy ambitions through innovative technologies that address the growing global and regional demand for sustainability,” said Chadli.
“This milestone highlights Schneider Electric’s unwavering commitment to the UAE, as we support the rapid transformation of the nation’s manufacturing sector and remain dedicated to driving sustainable solutions,” she added.
In a press release this week, the parties noted that the launch aligns with the UAE’s “Make it in the Emirates” initiative and the Abu Dhabi Industrial Strategy (ADIS), which aims to make Abu Dhabi the “most competitive industrial hub in the region.”
Speaking at the launch, His Excellency Al Suwaidi said that the facility reflects the “robust collaboration” between the public and private sectors in the UAE and contributes to the in-country value in addition to developing an advanced and sustainable industrial sector.
“Public-private-partnerships, especially those that focus on knowledge transfers and technology adoption, are in line with the National Industry and Advanced Technology Strategy, through its contribution to investment across the country. Also, such partnerships solidifies the UAE’s position as a global and regional industrial hub,” HE added.
The Undersecretary noted that the projects come as part of the ongoing cooperation between UAE-based and French companies under the umbrella of the UAE-France Business Council.
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