THE FUTURE OF ENERGY

PIONEERING ENERGY

THE FUTURE OF ENERGY

2025

An official World Future Energy Summit publication

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GT Media Group Ltd

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A warm welcome

17th Edition of the World Future Energy Summit

Dear readers,

2024 has been another year highlighting the need for a faster, more ambitious transition to a clean energy future. While every industry and sector is important when it comes to decarbonisation, energy is still the central battleground for humanity’s collective response to climate change, and the gateway to unlocking a truly sustainable climate future for all.

Despite unforeseen climate challenges, 2024 still provided plenty of positive, tangible progress ranging from renewables adoption to the widespread integration of smart, sustainability-based systems into crucial sectors such as agriculture, water management and smart cities. There is also hope for faster progress in the latter half of this decade. As you will see for yourself, across the various sections of this lovingly crafted yearbook, adoption rates of sustainability-based technologies are advancing in crucial areas. From the water we collect, consume and recapture, to our urban spaces and agricultural systems, and, of course, the energy we produce worldwide, the technical means to lighten their environmental impact are gaining prominence.

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The World Future Energy Summit 2025 yearbook is split into five sections: Energy, Water, Solar and Clean Energy, Smart Cities, and Climate Change. The insights and observations of each section informs and supports the others, highlighting the interconnected nature of the sustainability struggle we face, and how progress in one area can quickly spread to others.

Providing those considered insights, we are exceptionally fortunate to call upon the expertise of thought leaders from both the public and private spheres. The UAE Department of Energy,

Masdar, TADWEER, the G20 and G7, the IEA, IRENA, Sustainable Energy for All, The Economist Intelligence Unit, and the Technology Innovation Institute – these are just a handful of the globally recognised and respected institutions who have generously contributed their time and knowledge. The breadth of their experience, bolstered by their ongoing work in each of the five sections covered in the following pages, makes this yearbook a timelier and more relevant snapshot of the broader strategic landscape. We are immensely grateful for their efforts.

In each section, however, you can expect much more than just a status update. While providing accurate analysis of where we currently stand on the more critical sustainability issues, challenges and implementation of solutions, our contributors also look at where we are headed. Referencing key projects that they and their peers are undertaking, these contributors are able to make viable predictions on what steps must be taken next, how feasible they are to implement, how quickly they can be scaled up. Whatever the technical brilliance of new and emerging solutions, these logistical realities cannot be ignored. Time and again in this yearbook, you will read about the importance of two factors: ambition and scalability. Both are needed to turn technologically impressive concepts into genuinely world-shaping solutions.

Alongside the expert commentary from our contributors, you’ll also find two articles written by the World Future Energy Summit’s own team. Together, they both explore the evolving role of the summit itself in the ongoing climate struggle. They highlight its continuing importance as a platform for fostering collaboration, showcase technology and prompting concrete action at a time when instability can derail even the most tepid climate response.

Together, these complementary sections of the yearbook represent a much-needed reminder of the size and scale of the task we face. While there are stark realities to manage, we hope that the strategies and projects outlined in these pages serve as a source of inspiration.

As you will read for yourself, there are organisations and individuals

LEEN AL SEBAI

GENERAL MANAGER RX GLOBAL – MIDDLE EAST / HEAD OF THE WORLD

FUTURE ENERGY SUMMIT

Leen Joined RX Global in 2014 as their CFO in the Middle East and Board Member of RX UAE.

Her role currently expands to General Manager of RX Global in the Middle East overseeing the company’s operations, including managing day-today operations, managing budgets, resources and employees and driving performance towards business goals.

Leen is also the Head of the World Future Energy Summit, where she is responsible for developing and driving the strategy, overseeing planning and operational management of the event, while leading the team to deliver on the event strategy.

Leen is an accomplished C-level executive holding a CPA and an MBA with 25+ years experience in corporate finance and hands-on management working in challenging, goal-oriented environments.

She started her career in the Audit field in Ernst and Young, after which she shifted her career to academia at a Business faculty in the Higher Colleges of Technology in UAE, teaching, guiding, and directing the Emirati Youth throughout their journey to be ready to enter the business world.

She then worked for the Alliance Française in Abu Dhabi, a cultural division of the French Embassy that aims to promote French culture in Abu Dhabi, where she held the post of Finance Director and Board member.

across the Middle East and the rest of the world who are straining every commercial, logistical, technological and intellectual muscle to deliver tangible progress on combatting climate change. They are forging ahead with solutions that not only impact their locality, but may pave the way for broader problem-solving, prompted by a deepening desire for cooperation and collective solutions to a series of collective challenges. Building momentum, however small at the start, is what takes a novel idea and allows it to deliver change on an industrial scale.

So, please read, absorb and reflect on the following insights held within this yearbook. Remember that every disappointment and failed objective from past climate conferences still pushes the conversation forward, as we strive to find solutions that are both economically and technologically feasible. The groundswell of support for building a more sustainable world is inevitably rising, and the ‘hard no’ voices of previous years are steadily

softening as the severity of the threat to our very existence increases. Finally, remember that collaboration is the cornerstone of climate progress. No single person or institution, not even the most advanced of nations, possesses the influence and resources needed to tackle this threat alone. Crowd wisdom, cooperative solutions and collaborative action – these are the forces necessary to bring the collective will of our species to bear at this critical time.

All that’s left for me to do is to wish you the best of luck in your current projects and climate efforts. As we look ahead to 2025, starting with the 17th edition of The World Future Energy Summit in January, there is every reason to be hopeful for our future, and every reason to strive to secure it.

Warmest regards,

Leen

Alsebai Head

of the World Future Energy

Summit General

Manager, RX Middle East

Consumers: The Human Catalyst For The Energy Transition

Capture at a Crossroads

the World’s Energy Future

The First Fuel: Why Energy Efficiency Should Be the First Stop on Our Path to Net

Is The Role Of Capital Markets In Alleviating The Climate Crisis?

A PIVOTAL YEAR IN SHAPING THE FUTURE OF ENERGY INNOVATION

As the global energy landscape evolves, 2024 emerged as a milestone year marked by record-breaking investments in renewables, breakthroughs in clean energy technologies, and ambitious international commitments. From solar and wind surging ahead to green hydrogen and carbon capture gaining momentum, this timeline highlights the pivotal developments shaping the transition to a sustainable energy future.

JAN FEB MAR

Global Renewable Energy Investments to Reach Record High?

According to the International Energy Agency (IEA), global energy investment is projected to exceed USD 3 trillion for the first time in 2024, with USD 2 trillion allocated to clean energy technologies and infrastructure. This marks a significant increase from previous years, reflecting a strong commitment to renewable energy development.

January temperature breaks records January 2024 was the warmest January on record globally, with an average ERA5 surface air temperature of 13.14°C, 0.70°C above the 1991-2020 average for January and 0.12°C above the temperature of the previous warmest January, in 2020.

Major Corporations Commit to Net-Zero Emissions

Several multinational companies underlined accelerated plans to achieve net-zero emissions by 2030, increasing investments in renewable energy and energy efficiency. For example, Microsoft has committed to becoming carbon negative by 2030, and Unilever is doubling its investments in green energy solutions to achieve its 1.5-degree climate target.

Wind Energy Faces Challenges

This month, some of the world’s leading wind power companies—Siemens Energy, Ørsted, and Vestas—reported ongoing challenges, including project delays, equipment issues, and inflationary pressures. These factors have adversely affected the wind energy sector’s growth and profitability. Challenges include rising costs for raw materials, supply chain disruptions, and delays in government permitting processes, which have slowed project timelines and squeezed profit margins for major wind power companies.

Natural Gas Prices Plummet Due to Oversupply

In February 2024, natural gas prices declined due to mild winter weather and high storage levels, leading to decreased demand. This oversupply resulted in lower prices, with European gas prices falling below €25 per megawatt-hour. Energy companies are increasingly focusing on hydrogen and carbon capture technologies to mitigate future market volatility.

Electric Vehicle Sales Growth

In February 2024, electric vehicle (EV) sales in Europe increased by approximately 10% year-over-year, aligning with the general market growth. Battery electric vehicles (BEVs) accounted for about 13% of the market, while plug-in hybrid electric vehicles (PHEVs) made up about 7%.

Solar Power Generation Breaks Records Worldwide

This month, global solar power generation accounted for approximately 6% of total electricity production, according to the International Energy Agency (IEA). This represents an increase from previous years, driven by record installations in key markets such as India, China, and the United States. Falling panel costs and increased demand for renewables contributed to this growth. For instance, India installed over 6.2 GW of new solar capacity in March 2024 alone.

Coal Plant Closures Accelerate Globally

Germany decommissioned 15 coal-fired power plants, totalling approximately 4.4 GW in capacity, as part of its commitment to phase out coal by 2030. Meanwhile, South Korea announced plans to phase out over 75% of its coal-fired power plants by 2039, reflecting its efforts to reduce greenhouse gas emissions. These actions align with international climate agreements and aim to significantly lower carbon emissions.

Green hydrogen gains new investment

Green hydrogen saw significant investments globally in March 2024. Europe led the way with major projects in Germany and the Netherlands, while Australia announced infrastructure to export hydrogen to Asia. The Netherlands has allocated approximately €250 million in subsidies to seven green hydrogen projects, totalling a combined capacity of 101 MW.

MAY APR

California fuelled 100% by renewables

This month, the US state of California achieved a significant milestone by generating over 100% of its electricity demand from renewable sources, including solar, wind, geothermal, and hydropower. This accomplishment underscores the state’s commitment to transitioning away from fossil fuels and demonstrates the feasibility of large-scale renewable energy adoption.

Battery Storage crucial to renewable energy success

In April, the International Energy Agency (IEA) reported that achieving a tripling of renewable energy capacity by 2030 would necessitate a sixfold increase in global energy storage, equating to 1,500 GW. This underscores the critical role of battery storage in stabilizing renewable energy supply and ensuring grid reliability amid the energy transition.

Carbon Pricing Policies Expand Globally

As of April 1, 2024, there were 75 carbon pricing mechanisms in operation worldwide. The number of carbon pricing mechanisms has increased considerably since 1990 - the year Finland became the world’s first country to introduce a carbon tax. Carbon pricing instruments such as carbon taxes and emission trading systems (ETS) now cover almost a quarter of global emissions.

TotalEnergies commits to solar in Iraq

In April 2024, TotalEnergies announced plans to complete the initial phases of a solar and gas project in Iraq by 2025. The project includes a 1 GW solar power plant and a 600 million cubic feet per day gas processing facility, aiming to boost Iraq’s energy production and reduce reliance on imports.

Offshore Wind Projects Surge

In May 2024, the global offshore wind energy sector marked a significant milestone, with over 15 gigawatts (GW) of new capacity under construction across various countries, including the UK, China, and the US. These projects are anticipated to substantially reduce global carbon emissions upon completion. As of May 31, 2024, the US had 4,097 megawatts (MW) of offshore wind energy under construction, a more than 300% increase from the previous year’s 938 MW.

Canada’s Brookfield expands renewable energy portfolio

In May 2024, Canada’s Brookfield, alongside Brookfield Renewable Partners and Singapore’s Temasek Holdings, entered exclusive talks to acquire a 53.32% stake in French renewable energy producer Neoen for approximately $6.6 billion. This acquisition underscores growing investor appetite for renewable energy assets, highlighting a global trend toward the energy transition.

Energy Efficiency Standards Strengthened

The European Union enacted the revised Energy Performance of Buildings Directive (EU/2024/1275), effective from May 28. This legislation aims to accelerate the renovation of the EU’s least efficient buildings, enhance indoor air quality, support digitalisation of energy systems, and promote sustainable mobility infrastructure. Member States are required to transpose the directive into national law by May 29, 2026.

Saudi Arabia Eyes Solar Investment

Saudi Arabia’s Ministry of Energy initiated the sixth round of its National Renewable Energy Program, issuing a request for qualifications for 4,500 megawatts of solar and wind projects. The move aligns with the Kingdom’s Vision 2030 goal to generate 50% of its electricity from renewable sources. The projects are expected to attract significant investment and contribute to sustainable energy development.

JUN

Heatwaves

Boost Renewable

Energy Demand

Unprecedented heatwaves across Europe and North America in June 2024 drove a record surge in electricity demand as air conditioning use surged. In the US, grid stability was maintained through demand response programmes, while parts of Europe, including the Balkans, faced power outages due to overloaded systems. Solar and wind energy contributed significantly, with renewables generating over 30% of Europe’s power in early 2024.

US offers methane reduction grants under IRA

In June 2024, the U.S. Environmental Protection Agency (EPA) and the Department of Energy announced the availability of $850 million in grants to assist small oil and gas producers in monitoring and reducing methane emissions. This initiative, funded by the Inflation Reduction Act, aims to mitigate climate change impacts by providing access to advanced methane detection and reduction technologies. The grants are available to industry players, academia, NGOs, Native American tribes, and state and local government bodies.

Corporates commit to sustainable energy PPAs

In June 2024, corporate procurement of renewable energy continued its upward trajectory, with significant power purchase agreements (PPAs) announced globally. Notably, EDP Renewables secured a multi-geography PPA with a major U.S.-based tech company, supplying solar energy across Germany, France, and Italy. Additionally, ReNew signed a 437.6 MW green energy deal with Microsoft in India, marking one of the country’s largest corporate renewable agreements. These developments underscore the growing commitment of corporations to sustainable energy sourcing.

Germany and Morocco plan future energy alliance

Germany and Morocco established a climate and energy alliance to enhance renewable energy and green hydrogen production in Morocco. This partnership aims to support Germany’s goal of climate neutrality by 2045, addressing its need to import up to 70% of future hydrogen demand. The agreement includes cooperation on electricity trade between Morocco and the EU, and German involvement in advancing Morocco’s hydrogen economy.

JUL AUG SEP

China dominates renewable energy growth

In July 2024, global renewable energy capacity reached approximately 3,865 GW, marking a 13.9% increase from the previous year. This growth was primarily driven by substantial solar and wind power installations, with China contributing 64% of new projects under development, totalling 339 GW. These developments underscore the accelerating global shift from fossil fuels toward sustainable energy systems.

Oil Exploration Projects Cancelled Amid Green Transition

In July 2024, TotalEnergies announced its withdrawal from offshore Blocks 11B/12B and 5/6/7 off South Africa’s southern coast, citing challenges in economically developing the Brulpadda and Luiperd gas discoveries. This decision reflects the growing trend of energy companies reassessing fossil fuel projects amid increasing investor pressure to prioritise low-carbon energy investments.

China’s bold lithium plans

In July 2024, China’s Shandong province announced plans to develop a lithium battery industry valued at approximately $13.8 billion by 2025. The initiative aims to establish a comprehensive industrial chain encompassing electrode materials, electrolytes, battery cells and assembly processes. This strategic move is designed to bolster the region’s capacity to meet the growing demand for energy storage solutions, thereby wsupporting the global transition to renewable energy sources.

Saudi Arabia increases renewable energy targets

Saudi Arabia has significantly increased its renewable energy targets, aiming for 130 GW of renewable capacity by 2030, up from the previous goal of 58.7 GW. This ambitious plan includes substantial solar energy projects, such as the recent agreements for three solar photovoltaic projects totalling 5.5 GW, involving ACWA Power, Badeel, and Aramco Power. These initiatives align with the Kingdom’s Vision 2030 strategy to diversify its energy sources.

Solar panel cost drops

In August 2024, the cost of solar panels continued to decline, driven by advancements in manufacturing and economies of scale. Notably, the Inflation Reduction Act extended the 30% federal solar tax credit through 2032, enhancing affordability for consumers. Additionally, the price of polysilicon, a key material in solar panel production, decreased, contributing to lower overall costs. These factors are expected to accelerate solar adoption, particularly in developing regions.

Coal usage persists

Global coal consumption remains at record levels, with approximately 8.7 billion tonnes used in 2024, marking a 10% increase from 2014. This sustained demand is primarily driven by developing countries, notably China and India, which are the largest consumers and producers of coal. In 2023, more coal-fired power generation capacity was commissioned than decommissioned, particularly in Asian nations. Despite efforts to phase out coal, its global usage persists.

Wind capacity expands

In August 2024, global offshore wind capacity continued to expand, with significant contributions from the UK and Taiwan. Notably, the U.S. Department of Energy reports that global offshore wind installations in 2023 added 6,326 MW of new capacity, marking the fourth-largest annual increase to date. This growth underscores the ongoing efforts to boost renewable energy capacity worldwide.

First methane—sensing satellite launches

In August 2024, the Carbon Mapper Coalition launched its first methane-sensing satellite, Tanager-1, from Vandenberg Space Force Base. This satellite enhances the detection of methane and carbon dioxide emissions, providing precise data to identify and monitor significant emission sources. The initiative aims to make greenhouse gas data publicly accessible, supporting global efforts to mitigate climate change by enabling targeted emission reduction strategies.

Jobs in renewables sector increase by 18%

According to the “Renewable Energy and Jobs – Annual Review 2024” by the International Renewable Energy Agency (IRENA) and the International Labour Organization (ILO), renewable energy employment reached 16.2 million jobs in 2023, up from 13.7 million in 2022. This 18% increase reflects strong growth in renewable energy capacity and equipment manufacturing.

Carbon Emissions Grow

Analysis indicates that global carbon dioxide (CO₂) emissions from fossil fuels are projected to reach a record 37.4 billion metric tons in 2024, marking a 0.8% increase from the previous year. This rise is primarily attributed to increased coal and oil consumption, particularly in China and India. Despite significant investments in renewable energy and improvements in energy efficiency, these efforts have not yet resulted in a decline in overall emissions.

Eurozone Corporate Renewable Deals Soar

In September 2024, the European corporate power purchase agreement (PPA) market was on track to set a new record, with contracted capacity reaching 10.7 GW, nearing the previous year’s total of 10.8 GW. This growth reflects the increasing commitment of European corporations to secure renewable energy sources, driven by sustainability goals and favourable market conditions. The trend indicates a robust expansion in corporate renewable energy procurement across Europe.

Green hydrogen deal helps Spain’s journey to net zero

In September 2024, bp and Iberdrola approved the construction of a 25 MW green hydrogen plant at bp’s Castellón refinery in Spain, expected to be operational by late 2026. This joint venture, Castellón Green Hydrogen S.L., marks a significant step in decarbonising industrial processes and advancing Spain’s renewable energy goals. The project will utilise proton exchange membrane (PEM) technology supplied by Plug Power.

NOV OCT DEC

IEA Reports $2trillion investment in clean energies

In October 2024, the International Energy Agency (IEA) reported that global energy investment is set to exceed $3 trillion for the first time, with $2 trillion allocated to clean energy technologies such as renewables, electric vehicles, and nuclear power. This surge reflects a significant shift towards sustainable energy solutions, driven by policy support and declining technology costs, marking a pivotal moment in the global energy transition.

Nuclear Power Gains Momentum in Energy Transition

Several countries announced new nuclear power initiatives in October 2024. France and South Korea committed to expanding their nuclear energy capacity to support baseload demand as renewables grow. This marks a resurgence in nuclear as a critical low-carbon energy source.

Australia moves towards green hydrogen

In October 2024, the South Australian Government initiated efforts to develop a comprehensive evidence base for its renewable hydrogen strategy, focusing on Whyalla as a hydrogen and net-zero manufacturing hub. This move comes more than three years after announcing the Whyalla-focused Hydrogen Jobs Plan with an estimated cost of $590 million. The Government plans to proceed with this market approach by mid-February 2025, as outlined in the Department for Energy and Mining’s Procurement Activity Report “South Australia’s Hydrogen Strategy 2025-2030”.

Scotland begins providing 450MW of clean wind energy

In October 2024, Scotland’s Neart na Gaoithe (NnG) offshore wind farm, situated 15.5km off the Fife coast, began generating electricity for the UK national grid. Once fully operational, NnG’s 54 turbines will produce up to 450MW of clean energy, sufficient to power approximately 375,000 homes and offset over 400,000 tonnes of CO₂ emissions annually. This milestone significantly advances Scotland’s renewable energy objectives.

Electric vehicle sales grow by 26%

In November 2024, global electric vehicle (EV) sales continued their robust growth, with projections indicating approximately 16.7 million units sold by year’s end—a 26% increase from 2023’s 14 million units. China remains the dominant market, accounting for nearly 60% of global EV sales, translating to about 10 million units. This sustained expansion underscores the accelerating shift towards sustainable transportation worldwide.

Global wind power generation set to achieve record share of electricity output

In November 2024, the International Energy Agency (IEA) reported that global wind power generation is set to achieve a record share of electricity output, potentially surpassing 10% in the final months of the year. This increase is attributed to enhanced wind conditions and substantial capacity additions, particularly in China, the United States, and Germany, which collectively account for 64% of global wind generation capacity.

Australia faces power outages

In November 2024, Australia’s energy grid faced significant strain due to the rapid transition from coal to renewable energy sources. Maintenance shutdowns of coal-fired generators in New South Wales during extreme heat nearly led to widespread blackouts, averted only by urgent power-saving measures from residents and businesses. Energy experts criticised the swift move away from coal, citing under-investment in coal plant maintenance and insufficient readiness of renewable sources to meet demand.

COP 29 concludes with new climate-finance goal

In November 2024, the COP29 climate summit in Baku concluded with a $300 billion annual climate finance agreement to assist developing nations in combating climate change. However, many recipient countries criticised the amount as insufficient, highlighting ongoing challenges in global climate finance efforts.

Emissions

hit record highs in 2024

Recent analyses indicate that global carbon dioxide (CO₂) emissions have reached record highs in 2024, with no significant decline observed. The Global Carbon Budget report, published during the UN COP29 climate summit in Azerbaijan, said global CO2 emissions are set to total 41.6 billion metric tons in 2024, up from 40.6 billion tons last year. The rise is attributed to factors such as increased coal combustion in India and a rebound in airline flights. Consequently, the goal of limiting global warming to 1.5°C remains at risk, as emissions continue to climb.

Water

gains attention at COP29

At COP29, the Declaration on Water for Climate Action, supported by UNECE, UNEP, and WMO, was endorsed by over 50 countries. It emphasises integrating water management into climate policies and launched the Baku Dialogue to foster international cooperation on water-related climate actions. The initiative highlights the critical need to address water and climate challenges together, promoting sustainable practices and collaborative efforts to enhance resilience against climate impacts globally.

Corporate world needs to catch up on net zero goals

Accenture’s “Destination Net Zero” report reveals that only 16% of the world’s 2,000 largest companies are on track to achieve net-zero emissions by 2050, with 45% experiencing increased carbon emissions. The report emphasises the need for responsible AI deployment to aid decarbonisation efforts.

Climate finance grows, but not to LDCs or SIDS

Latest data from the UNFCCC shows that global climate finance flows in 2021 and 2022 rose 63 percent compared to 2019 and 2020 to reach an annual average of $1.3 trillion, but only 2.6% of that flow went to LDCs, and just one percent to Small Island Developing States.

ENERGY

Masdar: Redefining Renewable Energy Leadership

p12

Masdar City: A Greenprint For Sustainable Urban Innovation

p14

Renewables Rise: Forecasts For A Transformative Year In Energy

Nicolas Daher, Lead Energy Analyst at The Economist Intelligence Unit, shares insights and predictions for the year ahead

p22

Why Battery Energy Storage Is Key To A Clean Energy Future

Battery Energy Storage Systems (BESS) are transforming the renewable energy landscape, addressing critical challenges like grid reliability, price volatility and energy efficiency

p26

How Will Artificial Intelligence Transform Energy Innovation?

Simon Bennett and Thomas Spencer of the IEA explore how AI technology could reshape energy innovation and drive global progress toward sustainability

p32

ENERGY

Unleashing the EU’s Circular Economy Potential

Anum Sheikh, policy analyst at Cambridge Institute for Sustainability Leadership, explains why the EU is far from its ambition of doubling its circularity rate by 2030.

p36

Building Resilient Grids: The Backbone Of A Sustainable Energy Future

Meeting climate targets while ensuring energy security requires bold action to add or replace 80 million kilometres of grids globally by 2040 p38

TADWEER Q&A: Turning Waste Into A Valuable Resource

Ali Al Dhaheri, Tadweer CEO, takes us through the capital city’s advanced waste management programme p41

Insights From IRENA’s 2024 Outlook Report

A new report from IRENA suggests how the world can achieve the 1.5°c climate target p46

MASDAR’S REMARKABLE 2024: REDEFINING RENEWABLE ENERGY LEADERSHIP

Masdar has solidified its position as a global leader in renewable energy, driving transformative progress in a world that increasingly demands sustainable solutions. In 2024, the company achieved significant milestones, cementing its role as a leader in the global energy transformation and setting new benchmarks for growth, innovation and impact. With a bold vision, Masdar continues to demonstrate what is possible when ambition meets action.

In its Annual Sustainability Report published in mid-2024, Masdar highlighted that its capacity had increased significantly. This milestone is a testament to Masdar’s ability to scale solutions that meet the growing global demand for clean energy. At a time when the world is grappling with the impacts of climate change, this achievement underscores Masdar’s commitment to driving meaningful change on a global scale.

This growth has been driven by strategic investments in key markets worldwide. In the United States, Masdar acquired a 50 percent stake in Terra-Gen, one of the country’s largest independent renewable energy producers. This landmark acquisition has not only strengthened

From record-breaking green bonds to landmark hydrogen innovations and global wind projects, Masdar’s 2024 milestones highlight its pivotal role in the global energy systems transformation.

Discover how this UAE leader is driving sustainability, creating impact, and reshaping the future of clean energy.

Masdar’s presence in North America but also reinforced its commitment to solidifying its operations across geographies.

In Greece, Masdar secured a majority share in TERNA ENERGY, a clean energy leader, in a transaction that marked the largest energy deal ever on the Athens Stock Exchange.

In Spain, Masdar continued its European expansion through a strategic partnership with Endesa and the acquisition of Saeta Yield, adding 2.5GW of renewable energy assets to its portfolio.

Masdar has developed and partnered in projects in more than 40 countries across six continents, those of which generated an impressive 26,702GWh of

clean energy in 2023—enough to power millions of homes. Just as importantly, its projects avoided 14 million tonnes of CO2 emissions.

These accomplishments are not just the result of financial investment but also the outcome of innovative strategies in sustainable financing. This year, Masdar issued its second Green Bond, valued at USD$1 billion. The proceeds from this issuance are being directed towards meeting its equity funding commitments for new greenfield projects. It comes a year after its first $750 million Green Bond issuance, where proceeds of a total $653 million were allocated towards fulfilling renewable energy projects in the UAE, Uzbekistan and Azerbaijan.

Mohamed Jameel Al Ramahi, Chief Executive Officer, Masdar

UAE Wind Program

Sustainability and profitability are not mutually exclusive

Masdar’s leadership in sustainable financing is setting an important example for the global financial community. By demonstrating how green bonds can drive both environmental and economic returns, the company is showing that sustainability and profitability are not mutually exclusive. This approach is particularly critical as investors increasingly prioritize ESG (environmental, social, and governance) principles in their decision-making processes.

Beyond financing, Masdar is breaking new ground in the realm of innovation. In 2024, the company successfully inaugurated the first project in the MENA region to produce green steel using green hydrogen. This groundbreaking initiative, developed in collaboration with EMSTEEL, underscores the transformative potential of hydrogen in decarbonizing industries such as steel manufacturing.

Re-shaping the energy landscape

By demonstrating the possibilities of the emerging green hydrogen sector, Masdar is not only helping to reshape the energy landscape but is addressing the broader challenge of reducing emissions across carbon-intensive industries. This year, Masdar was also elected to the Board of the Hydrogen Council, where the company will play an active role in helping to define the trajectory of this nascent industry.

Offshore wind energy also continues to be a key technology focus area for Masdar in 2024. The company achieved major milestones, including the installation of all 50 turbines at Baltic Eagle in Germany, one of Europe’s most iconic offshore wind projects.

In Azerbaijan, Masdar signed agreements at COP29 in Baku to develop up to 3.5GW of offshore wind capacity in the Caspian Sea, further diversifying

“In the United States, Masdar acquired a 50 percent stake in Terra-Gen, one of the country’s largest independent renewable energy producers

its portfolio and showcasing its ability to introduce advanced renewable energy technologies in new markets. These achievements highlight Masdar’s commitment to advancing renewable energy in all its forms, from solar and wind to emerging technologies like hydrogen.

However, Masdar’s impact reaches beyond its core business operations, creating ripple effects that extend into communities and ecosystems. While focused on delivering profitable, scalable renewable energy solutions, the company recognizes the broader value its projects bring. From creating jobs and supporting local economies to reducing environmental footprints and enabling sustainable development, Masdar’s initiatives are designed to generate lasting benefits.

In Indonesia, for example, training programs equip local communities with skills for growing the green economy, fostering resilience and unlocking opportunities for individuals and families. These efforts reflect Masdar’s belief that sustainability is not just about clean energy – it’s about empowering people and enhancing the environments in which they live.

Global influence

Masdar’s influence is also felt on the global stage. This year, the company played a leading role at COP29, where it represented the UAE and advanced discussions on key renewable energy initiatives. Among the highlights was the milestone agreement to develop a 1GW wind farm in Uzbekistan, as well

as an agreement to forge ahead with its inaugural wind farm in Kazakhstan. Both projects are poised to significantly contribute to regional energy security and decarbonization efforts. Through its active participation in such global forums, Masdar continues to drive the global energy agenda and foster collaboration among key stakeholders to accelerate impactful action.

The company’s success is deeply rooted in the vision of the UAE, a nation that has positioned itself as a global leader in transforming energy systems. The UAE’s ambitious initiatives, such as the Energy Strategy 2050 and the Net Zero by 2050 Strategic Initiative, demonstrate how economic growth and environmental stewardship can coexist. As the UAE’s flagship renewable energy company, Masdar plays a crucial role in delivering these national commitments while exporting the UAE’s vision to the world.

Masdar’s achievements in 2024 mark a pivotal step forward in the company’s ambitious journey to redefine the future of energy. With a target of achieving 100GW of renewable energy capacity by 2030, Masdar is positioned to play a central role in shaping the next phase of the global energy transformation. Meeting this goal will require not only continued innovation but also unprecedented levels of collaboration across governments, businesses, and other stakeholders. Platforms like Abu Dhabi Sustainability Week (ADSW) and the World Future Energy Summit (WFES) provide valuable opportunities to foster these partnerships and accelerate progress.

The story of Masdar is one of ambition and progress. In a year of global challenges, Masdar’s achievements provide invaluable insights into overcoming obstacles and driving forward energy transformation. By blending visionary leadership with cutting-edge innovation and a commitment to global collaboration, Masdar is shaping a future where clean energy drives progress, prosperity and benefits communities worldwide.

MASDAR CITY: A GREENPRINT FOR SUSTAINABLE URBAN INNOVATION

Since its inception in 2008, Masdar City has evolved into a thriving hub of sustainability and innovation, redefining urban living with cutting-edge technologies and eco-friendly practices. As a global model, it demonstrates how cities can harmonize economic growth, environmental stewardship, and social well-being while aligning with global net-zero goals.

A Q&A with

Ahmed Baghoum, CEO, Masdar City

Could you provide an overview of Masdar City’s journey so far and how it has evolved since its inception?

In 2008, Masdar City was conceived as an ambitious vision to create a sustainable, energy-efficient urban space. Over the years, it has evolved into a thriving hub for businesses, innovation and cutting-edge sustainability solutions.

As a pioneering sustainable urban community, Masdar City is at the forefront of changing the way people live, work, learn and play. Masdar City has developed a thriving ecosystem of leading global organisations that are working to create a greener future.

Masdar City Free Zone provides a seamless environment for diverse business activities, while its high-impact industry clusters promote collaboration and innovation across various sectors. Today, we stand as a global model, or ‘greenprint,’ demonstrating to cities worldwide that sustainability is not only essential for the planet but also a cornerstone for enduring economic success.

What are the most significant sustainability milestones Masdar City has achieved, and how do these align with the UAE’s broader climate goals?

Masdar City continues to set global benchmarks in sustainable urban development, aligning seamlessly with the UAE’s ambitious climate goals. From pioneering the region’s first utility-scale solar farm to launching NZ1, the UAE’s first net-zero energy commercial office building design, Masdar City exemplifies leadership in the transition to a low-carbon future. With a 99% occupancy rate for its sustainable spaces, the city has proven that environmental progress and economic success are not only compatible but mutually reinforcing.

Our buildings consume 40% less energy and water compared to conventional designs, meeting globally recognized standards such as LEED and Estidama Pearl Ratings. Beyond energy efficiency, we’ve prioritized waste management, achieving impressive landfill diversion rates through recycling initiatives. These efforts directly align with the UAE’s Circular Economy Policy 2021-2031, which emphasizes the shift from a linear to a circular economy maximizing resource efficiency,

Masdar City’s Ecofriendly Building Design

reducing environmental impact and fostering innovation to ensure sustainable economic growth.

Sustainable mobility is another cornerstone of Masdar City’s approach. Our Personal Rapid Transit (PRT) system and electric vehicle infrastructure provide zero-emission transport solutions, reducing dependency on fossil fuels while offering residents efficient and comfortable travel options, even during the harsh summer months. These advancements are part of a broader commitment to decarbonizing urban transport and supporting the UAE’s Net Zero by 2050 initiative.

Masdar City generates up to 37% of its energy needs through on-site photovoltaic systems, significantly reducing its carbon footprint. These efforts are complemented by walkable neighbourhoods, green spaces and state-of-the-art amenities that enhance the quality of life for residents and visitors alike. By integrating economic growth, environmental sustainability, and social well-being, Masdar City demonstrates that the cities of the future can achieve a harmonious balance between these critical pillars.

Looking ahead, we remain steadfast in our commitment to fostering innovation and scaling our solutions, ensuring that Masdar City continues to play a pivotal role in achieving the UAE’s broader climate ambition

Could you elaborate on the innovative technologies currently in use and how they contribute to energy efficiency and sustainability?

Technology is at the heart of Masdar City’s sustainability strategy, enabling us to achieve remarkable energy efficiency and environmental impact. Solar PV systems generate clean energy to some of the buildings and parks in the city, while solar thermal collectors provide efficient water heating, significantly reducing reliance on conventional energy sources. Smart energy systems continuously monitor electricity usage, ensuring optimized consumption and minimizing waste.

Our buildings integrate advanced passive

design strategies to reduce the heat gain and the electricity consumption of the cooling system. For example, optimizing the ratio of windows to facade area, employing airtight building envelopes, and integrating high-performance insulation.

Masdar City employs innovative technologies like condensate water collection from air conditioning systems, which, combined with greywater recycling, support water efficiency efforts. Our Personal Rapid Transit (PRT) system offers zero-emission mobility, further reducing dependency on fossil-fuel-based transport. These technologies, combined with rigorous sustainability standards such as LEED and Estidama Pearl Ratings, exemplify how innovation drives our journey toward net-zero emissions while creating a vibrant and sustainable urban environment

How does Masdar City foster global collaboration in sustainability and clean energy innovation?

Masdar City is a global platform where

Today, we stand as a global model, or ‘greenprint,’ demonstrating to cities worldwide that sustainability is not only essential for the planet but also a cornerstone for enduring economic success “

innovation and sustainability converge, fostering collaboration among businesses, research institutions, and governments to shape the future of clean energy and urban living. Central to this vision is the Masdar City Free Zone, which attracts a diverse mix of global players with benefits such as 100% foreign ownership, tax exemptions, and strategic access to regional markets. This dynamic ecosystem facilitates partnerships and the exchange of ideas, creating fertile ground for transformative projects.

One prominent example of Masdar City’s collaborative approach is hosting the International Renewable Energy Agency (IRENA), symbolizing its role as a global hub for advancing clean energy policies. Strategic partnerships with industry have driven groundbreaking pilot projects in energy storage, hydrogen technology, and smart urban infrastructure, demonstrating scalable solutions for a low-carbon future.

In the academic sphere, Masdar City collaborates with institutions like the Mohamed bin Zayed University of Artificial Intelligence (MBZUAI), advancing research in AI applications for energy efficiency and urban planning. These efforts are complemented by initiatives like The Catalyst, a joint venture that supports clean-tech startups, fuelling innovation in renewable energy and sustainability.

By integrating global expertise, fostering local innovation and promoting an open culture of collaboration, Masdar City has evolved into a meeting point for stakeholders worldwide. It is not just a sustainable urban environment— it is a global laboratory for pioneering solutions that redefine the way cities live, work and grow sustainably.

What makes Masdar City an attractive community for residents, balancing sustainability with liveability?

From the outset, Masdar City was envisioned as a thriving, walkable community that balances

Masdar City’s iconic wind tower

eco-friendly living with modern conveniences. We’ve successfully created a high-quality living environment, attracting professionals and their families with eco-friendly housing, state-of-the-art infrastructure and access to global markets.

Masdar City’s residential community offers energy- and water-efficient design, smart technologies, green parks, and convenient amenities. What sets Masdar City apart is its thoughtful integration of sustainability into everyday life. The city features extensive green spaces, shaded walkways and pedestrian-friendly streets that encourage walking and cycling, reducing reliance on cars. Sporting facilities and cultural amenities, including Mosques, further enrich the quality of life for residents and foster a sense of community.

Our commitment to liveability doesn’t stop there. Soon, we’ll be enhancing our offerings with the launch of a new food hub, providing both residents and visitors with unique dining and social experiences. This addition reflects our dedication to continuously evolving as a vibrant, multifaceted community.

At every step, we have prioritized what transforms an urban setting into a true community—sustainability, liveability and

MAJOR PROJECTS PLANNED FOR MASDAR CITY

Masdar City Square (MC2):

Scheduled for completion in 2025, MC2 comprises seven buildings designed to achieve LEED Platinum, WELL Gold, and 4 Pearl PBRS Estidama certifications. The iconic headquarters building will feature a canopy of photovoltaic (PV) panels, generating 109% of its annual energy needs while providing shade. This headquarter is on track to be certified Zero Energy by the International Living Future Institute, setting a global benchmark for energy-efficient design and sustainability.

The Link:

This mixed-use development, also planned for completion in 2025, includes five buildings constructed to LEED Platinum, WELL Gold, 4 Pearl PBRS Estidama, and Park Smart Silver standards. A standout feature is the Co-Lab Building, a net-zero energy structure powered by renewable energy sources and equipped with high-efficiency HVAC systems, advanced energy monitoring, and A-rated appliances. The remaining buildings will offer low-carbon spaces for events, retail and fitness facilities, with shaded courtyards, creating a vibrant, sustainable urban hub.

Net-Zero Energy Mosque:

Blending cutting-edge technology with regional culture and architecture, the Net-Zero Energy Mosque is being constructed using rammed earth in certain sections, a traditional and sustainable building method. It will consume 35% less energy than comparable structures and feature 1,590 square meters of PV panels. On track to receive a 4 Pearl PBRS Estidama certification, the Mosque is a symbol of Masdar City’s innovative approach to integrating sustainability with cultural identity.

These projects will expand Masdar City’s commercial, residential and cultural offerings while attracting businesses, residents and investors who prioritize sustainability. By incorporating renewable energy, advanced design technologies and resource efficiency, Masdar City continues to align its developments with global net-zero targets, solidifying its status as a leader in the green economy and a global model for sustainable urban living.

Masdar City’s stunning Innovation Centre

Scientific research and innovation are key to Masdar City’s success

inclusivity. By harmonizing these elements, Masdar City continues to redefine what it means to create a sustainable urban lifestyle.

How has Masdar City contributed to the UAE’s economic diversification and positioned itself as a hub for clean energy investment?

Masdar City plays a pivotal role in advancing the UAE’s economic diversification and positioning the nation as a global hub for clean energy investment. As part of the UAE’s Vision 2030, Masdar City is aligned with the Falcon Economy framework, emphasizing agility, innovation and sustainability to drive economic growth. This approach has helped create a dynamic Free Zone, home to over 1,200 businesses ranging from ambitious startups to multinational corporations. This thriving ecosystem fosters collaboration, drives innovation, and generates high-value jobs in renewable energy, technology, and sustainable development.

Strategic partnerships underpin Masdar City’s success. Siemens established its Middle East headquarters in the city, housed in a state-of-the-art LEED Platinum-certified building that exemplifies advanced energy efficiency. ENGIE has collaborated on pioneering projects such as green hydrogen pilots and smart district cooling systems, significantly reducing energy consumption and emissions. These initiatives highlight the city’s role as a global

Masdar City is a global platform where innovation and sustainability converge, fostering collaboration among businesses, research institutions and governments — shaping the future of clean energy and urban living “

leader in clean energy innovation and attract major investment.

In addition to business collaborations, Masdar City actively supports clean-tech entrepreneurship through initiatives like The Catalyst, a startup accelerator fostering innovation in renewable energy and sustainability. Partnerships with international organizations like IRENA further amplify Masdar City’s influence in shaping global renewable energy policies and advancing the UAE’s leadership in the clean energy sector.

“

It is not just

a sustainable urban environment— it is a global laboratory for pioneering solutions that redefine the way cities live, work and grow sustainably

40%

Masdar City’s buildings consume 40% less energy and water compared to conventional designs

37% of Masdar City’s energy needs are met through on-site photovoltaic systems

By aligning with the Falcon Economy’s principles, Masdar City not only creates a vibrant business environment but also ensures long-term economic resilience. Through its commitment to sustainability, innovation and collaboration, Masdar City exemplifies how clean energy investment can harmonize with economic growth, making it a cornerstone of the UAE’s Vision 2030 and a global model for sustainable urban development.

What are the next major projects or developments planned for Masdar City, and how do these align with global net-zero targets?

Masdar City has several major developments underway that exemplify its commitment to sustainability and align with global net-zero targets. Key projects include Masdar City Square (MC2), The Link and the Net-Zero Energy Mosque, each of which reflects the city’s dedication to innovation and sustainable urban design.

Institute of Science and Technology at Masdar City

What have been the biggest challenges in developing Masdar City, and what lessons could other cities learn from its experience?

Masdar City faced several challenges in its development journey, balancing ambitious sustainability goals with economic feasibility. Adapting to fluctuating global economic conditions required rethinking initial plans and adopting a phased development strategy. Integrating cutting-edge technologies while ensuring their scalability and cost-effectiveness posed additional logistical and financial hurdles.

One key lesson is the importance of flexibility in planning, enabling the city to evolve while staying aligned with its core sustainability mission. Collaborating with global and local stakeholders, including governments, private enterprises, and research institutions, has been instrumental in overcoming obstacles. Public-private partnerships and innovative financing models have helped ensure the successful execution of Masdar City’s projects.

Masdar City’s experience highlights the need for urban developments to embrace adaptability, prioritize stakeholder engagement, and leverage partnerships to achieve long-term sustainability and resilience.

How does Masdar City envision its role in shaping the future of sustainable urban development globally?

Masdar City is more than a sustainable urban development; it is a global model and proving ground for scalable and adaptable solutions in urban sustainability. By deploying technologies like smart grids, autonomous transport and renewable energy systems on a city-wide scale, Masdar City provides a real-world template for other cities aiming to transition to net-zero. What sets Masdar City apart is its focus on developing exportable solutions that address the unique challenges of diverse urban environments. Innovations such as advanced greywater recycling systems, low-energy cooling technologies, and integrated passive design principles are designed not just for local use but for global replication. This emphasis on scalability ensures the city’s breakthroughs can drive broader adoption of sustainable practices worldwide.

Masdar City also plays a pivotal role in shaping global urban development through its partnerships with governments, private enterprises and research institutions. Collaborations with organizations like IRENA and projects like green hydrogen pilots showcase the city’s commitment to fostering investment and innovation. These efforts align with international sustainability goals, including the UN’s Sustainable Development Goals, by addressing critical issues like climate

AHMED BAGHOUM, CHIEF EXECUTIVE OFFICER (CEO)

Ahmed Baghoum oversees operations and development at Masdar City. He is responsible for driving its strategy, innovation-focused initiatives, partnerships, and R&D cluster towards sustainable growth.

He joined the company in 2009 as director of the Free Zone at Masdar City, where he oversaw all special economic zone functions. He then took the role of executive director of human capital and services at Masdar. In this position, he led the department on talent acquisition, development, and optimizing the company’s UAE national workforce. He also led the company’s corporate services activities.

Baghoum holds an MBA from Texas Tech University. Additionally, he holds a Master’s Certificate in project management and management concepts from Regis University in the United States.

action, resource efficiency and inclusive urban planning.

As a platform for testing groundbreaking ideas and pioneering clean energy technologies, Masdar City is dedicated to accelerating the global shift toward sustainable, liveable cities. By harmonizing economic growth, environmental stewardship, and social well-being, it envisions a future where urban development is synonymous with sustainability, innovation, and resilience.

INTERVIEW

RENEWABLES RISE: FORECASTS FOR A TRANSFORMATIVE YEAR IN ENERGY

As renewables edge closer to becoming the world’s leading source of energy generation, the dynamics of the energy sector are shifting profoundly. Here, Nicolas Daher, Lead Energy Analyst at The Economist Intelligence Unit, shares insights into the drivers of this transformation and predictions for the year ahead.

The global energy sector is on the brink of a historic transformation, with renewables poised to surpass coal as the leading source of electricity generation by the end of the decade. This significant shift is driven not only by climate considerations but also by the economic advantages of renewable technologies like solar photovoltaics and onshore wind. Nicolas Daher, Lead Energy Analyst at The Economist Intelligence Unit, underscores that the levelized cost of electricity from renewables has now outcompeted coal in most geographies. The result is an accelerating energy transition that is increasingly dictated by market forces rather than regulatory mandates or environmental targets alone.

Economic competitiveness is proving to be the decisive factor in the expansion of renewables. While initial growth in the sector was fuelled by climate policies and the push for net-zero emissions, renewables are now thriving independently of these imperatives. This is particularly evident in countries like China, where concerns about local air pollution and the high healthcare costs associated with coal-fired power plants have added momentum to the shift. Similarly, Southeast Asia and India continue to install new coal capacity, yet they are also investing heavily in renewables to meet their growing electricity needs. This dual approach reflects the complex interplay of economic development and environmental priorities across different regions.

Evolving Demand Patterns

Looking ahead, global energy demand is expected to grow, albeit at a sluggish pace, due to high energy prices and economic uncertainties.

Fossil fuel prices, which spiked during the war in Ukraine, remain elevated, constraining growth in demand. In 2024 and beyond, emerging markets and developed economies will exhibit divergent consumption patterns. While developing nations in Latin America and Africa focus on expanding access to electricity, developed nations are increasingly prioritising efficiency and decarbonisation.

China remains a pivotal player in shaping global demand. Its rapid adoption of new energy vehicles, which now account for 50% of domestic car sales, is driving a green revolution. However, the country’s economic challenges are slowing overall energy demand growth. In the US, the energy landscape is shaped by political dynamics, with

“China remains a pivotal player in shaping global demand. Its rapid adoption of new energy vehicles, which now account for 50% of domestic car sales, is driving a green revolution.”

the potential rollback of renewable subsidies under a Trump presidency adding further uncertainty. Despite these challenges, the growing economic advantages of renewables ensure their continued expansion, even amid geopolitical turbulence.

The Role of Emerging Technologies

Energy storage technologies are emerging as a linchpin for integrating renewables into the energy mix. Daher highlights the critical importance of storage in stabilising renewable energy systems, particularly in regions where solar and wind are becoming dominant sources of electricity.

China, again, is leading the way in battery storage investments, solidifying its position as a global leader in renewable energy technology. However, Europe is also making strides, with interconnection projects between northern and southern regions aiming to balance wind and solar power generation more effectively.

Offshore wind is another area of significant innovation. Floating offshore wind platforms, which allow turbines to be installed in deeper waters, are poised to unlock vast new resources in regions like

“

Private companies, particularly tech giants like Google and Microsoft, are increasingly investing in renewable energy projects to power hungry data centres and meet corporate sustainability goals.”

Nicolas Daher

Lead Energy Analyst, Economist Intelligence Unit

Nicolas Daher works for EIU as Lead Energy Analyst. He specialises in energy and climate change issues, covering energy markets and commodities, the energy transition, and energy policies and economics.

Nicolas leads the EIU’s energy service, which provides comprehensive forecasts of demand and supply across the entire energy mix at a

global and national level. He also writes and edits articles for the service. In addition, he is in charge of the production of EIU Special Reports on energy topics. He offers commentary on energy topics to media outlets and speaks at conferences.

Nicolas joined EIU in 2021, and has been working as an energy analyst and consultant since 2012. In addition

to a Bachelor’s degree in economics, he holds a Master’s in Journalism from Universidad Torcuato Di Tella (Argentina), and an MSC in Economics, and Policy of Energy and the Environment from University College London.

An Argentine national, he has been based in London since 2015.

Southeast Asia, Latin America, Europe’s Atlantic coast, and the North Sea. These technologies are expected to overcome many of the barriers currently limiting offshore wind development, such as inconsistent winds and high costs. As floating platforms become more commercially viable, they will play an increasingly transformative role in meeting global electricity demand.

Meanwhile, the hydrogen economy faces more mixed prospects. Although often touted as a key component of the energy transition, hydrogen technologies are hampered by bottlenecks in production and infrastructure. Daher notes that green hydrogen, which relies on renewable electricity, faces significant challenges in scaling up due to competition with other sectors for renewable resources. While there is potential for hydrogen to play a role in industrial applications, its widespread adoption remains a longer-term goal, he says.

Geopolitical and Regulatory Influences

Geopolitical factors continue to shape the energy transition, introducing both challenges and opportunities. Trade tensions between the US and China, particularly around renewable energy technologies, are raising costs for developers and slowing the adoption of renewables in key markets. China’s dominance in manufacturing solar panels and batteries has made it a critical player in the global energy transition, but it has also exposed vulnerabilities in supply chains. Countries like Vietnam, which serve as alternative manufacturing hubs for Chinese companies, are becoming increasingly important in mitigating these risks. However, US trade tariffs on China look likely to spread to other Asian nations where Chinese companies are operating.

Policy and regulatory trends further complicate the landscape. In Europe, the rise of conservative and right wing political movements has tempered enthusiasm for green policies, while in the US, a potential second Trump administration could reduce subsidies for renewables, slowing their adoption.

However, public support for renewable energy remains strong, particularly in states that have benefited from job creation under the Inflation Reduction Act. As a result, any policy changes are likely to be incremental rather than sweeping.

Latin America and Africa present a more optimistic picture. Countries like Brazil are making bold moves to expand their renewable energy capacity, driven by a combination of more sustainably minded political leadership and economic opportunity.

In Africa, where electricity access remains a pressing issue, solar and wind projects are gaining traction as cost-effective solutions for rural electrification. These developments highlight the potential for the global South to play a leading role in the energy transition, even as traditional powerhouses in the North face political and economic headwinds.

Public and Private Sector Collaboration

Collaboration between public and private entities is proving essential in driving the energy transition. Private companies, particularly tech giants like Google and Microsoft, are increasingly investing in renewable energy projects to power hungry data centres and meet corporate sustainability goals. These partnerships are not limited to renewables; nuclear energy is also benefiting from agreements that ensure reliable electricity supply for energy-intensive operations.

Daher emphasises the growing importance of public-private partnerships in bridging investment gaps and accelerating the deployment of clean energy technologies. In some cases, private-sector targets for decarbonisation are even more ambitious than those set by governments, reflecting a broader societal push for sustainability.

As energy demands from emerging technologies like artificial intelligence and data centres grow, such partnerships will become even more critical in ensuring that supply meets demand sustainably.

The Road Ahead

The energy sector is entering a period of profound change, marked by both opportunities and challenges. Renewables are on track to become the dominant source of electricity, driven by their economic competitiveness and technological advancements. However, the transition is far from straightforward. Geopolitical tensions, regulatory uncertainties and infrastructure bottlenecks threaten to slow progress, requiring coordinated efforts from governments, industry and civil society.

Emerging technologies such as floating offshore wind platforms, advanced energy storage, and potentially nuclear fusion hold the promise of redefining the energy landscape. But realising their potential will require sustained investment, international cooperation, and a commitment to innovation. As Daher points out, the energy transition is not just a technical challenge but a political and economic one, shaped by the interplay of market forces, policy decisions and global power dynamics.

In 2024, the focus must remain on overcoming these challenges and ensuring that the energy transition delivers on its promise of a sustainable and equitable future. With renewables leading the charge, the world has a unique opportunity to reshape its energy systems for the better, but only if it acts decisively and collectively.

Sources: Nicolas Daher, Energy Lead, The Economist Intelligence Unit (transcription from interviews); Analysis and forecasts from The Economist Intelligence Unit; Supporting insights from the International Renewable Energy Agency (IRENA).

WHY BATTERY ENERGY STORAGE IS KEY TO A CLEAN ENERGY FUTURE

Battery Energy Storage Systems (BESS) are transforming the renewable energy landscape, addressing critical challenges like grid reliability, price volatility, and energy efficiency. As investment and innovation in BESS surge, this game-changing technology is emerging as the cornerstone of a sustainable energy future, enabling a seamless transition away from fossil fuels while maximising the potential of renewables, says Shawn Shi, Vice President of Sungrow PV.

At COP29, the move to renewable energy was described as “unstoppable”. Over the last few years, this view has become more widely accepted in many developed and developing nations. Rightly so: renewable energy has proved itself to be a cost-effective, practical alternative to fossil fuels, innovation is rapidly improving, and investment is surging.

So, the transition to renewables is certain, but what’s the next step to further accelerate this process? Now, renewables account for 30% of the global power mix as of 2023, and the industry is ready to get even more out of green energy and find suitable technologies to cope with a number of challenges, such as reliability, grid stability, safety and economic feasibility. It is within this

environment that the technology underlying renewable energy infrastructure must prove its potential.

Enter battery energy storage systems, known as BESS. This transformative technology - the fastest growing energy technology on the marketstores electricity in batteries for later use, and can address all these challenges – and that’s without mentioning its compound effect on renewable integration more broadly (more on that later).

So, what’s the current state of the BESS market? In short, it’s booming. The global energy storage market almost tripled in 2023, and by 2034, the global BESS market is expected to grow at a compound annual growth rate (CAGR) of 26.92%.

Advancements in battery chemistry, manufacturing processes, and system integration are continuously driving down costs while improving performance. “

The market is also opening its doors. For example, delegates at COP29 agreed to a milestone pledge to raise global energy storage capacity to 1.5TW by 2030 and to scale up investments in the electricity grid away from fossil fuel reliance.

This is clearly a step in the right direction, but if we are to achieve domestic and global net-zero ambitions, improving the efficiency of renewables by fostering reliability, grid stability, safety and economic feasibility is paramount. BESS technology offers compelling solutions to these challenges and in doing so, will pave the way for a more sustainable energy future.

BESS as a solution for grid reliability and stability

BESS has emerged as a critical infrastructure for sustainable energy transition, directly addressing concerns about the stability of renewable energy sources. By providing on-demand energy supply, BESS effectively smooths out the intermittency issues associated with solar and wind power. This capability ensures a consistent power supply, even when renewable sources are not actively generating electricity.

Moreover, BESS plays a crucial role in mitigating price volatility caused by the variable nature of renewable energy production. By storing excess energy during peak production times and releasing it during periods of high demand or low production, BESS helps stabilise energy prices and supply. This function is particularly valuable

in integrating multiple renewable energy technologies into the grid, creating a more resilient and diversified energy ecosystem. The reliability of BESS extends beyond its operational capabilities. Advanced technological safeguards and risk mitigation strategies have been implemented to maximize safety and dependability of these systems. Features such as advanced battery management systems, thermal regulation, and robust containment measures address potential concerns about battery safety. What’s more, with large-scale burn tests now being conducted, there is an increasing understanding of how to mitigate ‘worst-case’ scenarios. By transparently communicating these safety measures, we can build consumer confidence in BESS technology and, by extension, in the broader renewable energy sector.

BESS as a solution to economic feasibility

When discussing the economic feasibility of BESS and renewable energy, it’s crucial to consider the long-term costs of environmental inaction and continued reliance on fossil

It is predicted that total upfront costs of utility-scale battery storage projects will decline by 40% by 2030. “

fuels. While the initial investment in BESS infrastructure may seem substantial, it pales in comparison to the potential economic impacts of climate change, which could cost the global economy trillions of dollars in the coming decades.

BESS demonstrates environmental benefits that extend far beyond carbon reduction. By enabling greater integration of renewable energy sources, BESS contributes significantly to reducing greenhouse gas emissions. In addition, BESS can prevent the issue of wasted renewable energy during times of excess production, such as the £1.5 billion spent to curtail over 6.5 TWh of wind power in the UK between January 2021 and April 2023 –costs which end up impacting households. It not only represents a significant economic saving but also maximises the utilisation of clean energy resources.

The economic viability of BESS is further

enhanced by ongoing technological innovations. Advancements in battery chemistry, manufacturing processes, and system integration are continuously driving down costs while improving performance. For instance, it is predicted that total upfront costs of utility-scale battery storage projects will decline by 40% by 2030. Projects scaled up will create economies of scale and as a result, make BESS increasingly cost-effective and appealing to deploy.

BESS will become a key player in the clean energy story

BESS technology is not just addressing concerns about renewable energy; it can revolutionise our approach to a clean energy future. By tackling reliability, grid stability, and economic feasibility head-on, BESS can be the linchpin in the world’s renewable energy transition. More than that, it can be a catalyst for change on a bigger scale. It’s already enabling the integration of more renewable sources, and so will create jobs, drive economic growth, and bolster energy independence amid market uncertainty. As we scale up BESS deployment, we find ourselves on a promising route to a clean-energy transition, sooner than we think.

Shawn Shi is Vice President of Sungrow PV & Storage Business Group, Sungrow.

Sungrow, a global leader in renewable energy technology, has pioneered sustainable power solutions for over 27 years. As of June 2024, Sungrow has installed 605 GW of power electronic converters worldwide. The Company is recognized as the world’s No. 1 on PV inverter shipments (S&P Global Commodity Insights) and the most bankable Asian energy storage company (BloombergNEF). Its innovations power clean energy projects in over 170 countries, supported by a network of 490 service outlets. Sungrow has 17 years of experience in Energy Storage Systems, and in H1 2024, delivered 8 GWh of BESS across the globe.

The global BESS market is booming

SHAWN SHI

Revolutionising Energy Storage: The Technologies Powering a Scalable Future

Advancements in lithium-ion and sodium-ion batteries are redefining energy storage capabilities, tackling challenges in cost, safety and performance. Meanwhile, hydrogen fuel cells and flow batteries are carving out their roles in heavy-duty transport and renewable grid storage, paving the way for a diversified energy landscape.

By Kevin Brundish, CEO of LionVolt.

What are the most promising advancements in battery technology and how do you see these addressing current challenges in energy storage and scalability?

There are two key areas. The first focuses on enhancing performance of existing lithium-ion cells. This involves developing new technologies such as better-performing anodes and electrolytes. For example, lithium and silicon anodes are being explored to replace traditional graphite anodes, offering higher capacity and improved energy density which is key to extending electric vehicle range and consumer electronics run times. Additionally, advancements in electrolyte formulations are aimed at increasing the stability and safety of lithium-ion batteries, reducing the risk of thermal runaway and extending the battery’s lifespan.

The second area of advancement is more revolution than evolution. The rise of sodium-ion batteries brings a new chemistry into the market. These batteries are gaining traction as a cost-effective and sustainable alternative to lithium-ion batteries. Sodium is more abundant and less expensive than lithium, which can help reduce the overall cost of battery production. Giga factories are now being built to produce sodium-ion batteries at scale, and these batteries are starting to be integrated into vehicles and energy storage systems. Sodium-ion cells offer good performance compared to lithium iron phosphate (LFP) batteries and are considered safer due to their lower risk of thermal runaway.

How are alternative storage solutions positioned to complement or compete with traditional lithium-ion batteries in meeting the growing demands of renewable energy and electric vehicles?

No one energy storage solution has attributes that meet all market needs, although lithium ion batteries are considered the “go to” solution for many applications. Hydrogen fuel cells face efficiency challenges. They are around 35% efficient in converting hydrogen to usable electricity, compared to up to 90% efficiency of battery electric vehicles. This lower efficiency means hydrogen fuel cells require more space and infrastructure to deploy effectively. However, they can offer significant advantages in terms of energy density for larger applications and have the potential for fast refuelling times, making them suitable when long-range and quick refuelling are essential, such as heavy-duty vehicles and shipping. The main hurdles include the need for a robust hydrogen infrastructure and the high cost, and sometimes high CO2 levels, of hydrogen production.

Flow batteries, such as vanadium redox flow batteries, store energy in liquid electrolytes contained in external tanks. These are known for their long lifecycle and scalability. The more energy required, the larger the tanks and the more space needed, which can be a limitation for certain applications. That said, flow batteries can provide an option for grid and renewable energy storage, where space and weight are less critical. They can provide a reliable solution

Kevin Brundish is the CEO of LionVolt, an innovative battery scale-up company focused on developing next-generation battery technologies, including innovative 3D electrode technology for lithium-ion battery cells. With over 30 years of experience in the industry, Kevin has held C-level positions in both the public and private sectors, working with large corporates and high-tech startups. He is passionate about renewable energy and committed to driving the transition away from fossil fuels through advanced battery solutions.

for balancing supply and demand in renewable energy systems, ensuring a stable and continuous power supply. Flow batteries can also be used in large-scale energy storage projects, supporting integration of renewable energy sources like wind and solar into the grid.

Both hydrogen fuel cells and flow batteries offer unique benefits that can complement the capabilities of traditional lithium-ion batteries. By diversifying the energy storage landscape, these technologies can help address the specific needs of different applications, from heavy-duty transportation to grid storage, contributing to a more resilient and sustainable energy future.

Legal Perspectives on Innovation in Energy Storage and Trading

From overcoming grid connection challenges to leveraging AI and blockchain for decentralised energy systems, legal insights reveal the shifting dynamics of energy storage. As hydrogen and flow batteries complement lithium-ion technology, innovative market routes and regulatory adaptability are shaping a resilient and scalable renewable energy future.

By Deborah Harvey, Clean Energy Partner at Freeths law firm, UK

What are the most promising advancements in battery technology and how do you see these innovations addressing current challenges in energy storage and scalability?

Whilst, as lawyers, we cannot comment from a technical perspective in the advancements of the technical components, we have seen considerable innovation in the deployment and trading of battery assets. We are seeing increasing co-location opportunities due to grid connection challenges and innovation in the route to market solutions being proposed to deliver increased certainty in revenues to overcome the investor confidence challenge. We see grid connection being a key challenge for the UK BESS market at present, which is a broader sector issue, and consequently as a team we are seeing increasing BESS activity in other jurisdictions.

How are alternative storage solutions positioned to complement or compete with traditional lithium-ion batteries in meeting the growing demands of renewable energy and electric vehicles?

The lithium-ion battery market has certainly kept our Clean Energy team busy in recent years – we have been advising across the sector from EV application through to large scale BESS deployment and optimisation. Looking forward, we are already

seeing hydrogen and flow batteries taking on a complimentary role to the more establishing lithium-ion technology, and we anticipate this trajectory continuing. A viable route to market is central to the successful deployment of hydrogen, and we are seeing the transport use case as being particularly successful. The potential of flow batteries in long duration energy storage is well publicised, and the sector support is there.

What role do you see blockchain playing in enabling decentralised grids, and how can it enhance energy trading, storage efficiency and grid resilience in a renewable energy future?

We see blockchain and AI having important applications across the sector, and are supporting a number of clients harnessing these technologies. Ofgem has recognised the increasing importance of AI, with the AI in the Energy Sector guidance consultation having recently opened - we await the outcome after the closing date of February 7, 2025. As a sector, we are already seeing the application of AI to asset management and anticipate seeing more widespread use to grid resilience and maintenance. AI already has an important application in energy trading, and we are pleased to be supporting innovative businesses developing platform-based solutions which rely heavily on AI.

Deborah is a specialist energy projects lawyer with over 14 years of sector specific legal experience. She advises on contractual, regulatory and transactional energy matters across a range of renewable and clean technologies including rooftop and ground mounted solar, onshore wind, battery storage, hydrogen, hydro, anaerobic digestion and biomass. Her clients range from investors and developers to energy companies, innovative market access providers, and corporate end users. She also supports a number of electric vehicle clients in relation to the energy aspects of their projects.

HOW WILL ARTIFICIAL INTELLIGENCE TRANSFORM ENERGY INNOVATION?

Artificial intelligence (AI) is poised to revolutionise the energy sector, accelerating breakthroughs in clean energy technology and innovation. From identifying new materials to optimising complex systems, AI offers transformative potential. However, realising its full benefits requires addressing key challenges, including data accessibility, skill gaps, and regulatory frameworks. Simon Bennett and Thomas Spencer of the IEA explore how this general-purpose technology could reshape energy innovation and drive global progress toward sustainability.

Like the steam engine and electricity, artificial intelligence (AI) is a general-purpose technology that could profoundly transform the global economy and the world’s energy system. Though key uncertainties remain, it stands to have major impacts. High on the list is its potential role in accelerating innovation.

Impressive technological advancements – both incremental and radical – have helped drive down the cost of key energy technologies in recent years. But to achieve global energy security and emissions goals, existing clean energy technologies need to keep improving, and novel energy technologies must reach the market. AI will enhance the capacity and creativity of scientists in generating and testing new ideas. But for AI-accelerated innovation to really deliver for the energy

sector, policymakers and the scientific community need to build a common understanding of the most promising applications and key enablers – and address critical gaps.

This is a key focus of the IEA’s new workstream on energy and AI, which also involves analysing how the adoption of AI will affect electricity consumption by data centres and how AI can be applied to optimise complex parts of energy systems, such as electricity networks. The recent Global Conference on Energy & AI,

“

Realising the full benefits of Artificial Intelligence in the energy transformation requires addressing key challenges, including data accessibility, skill gaps and regulatory frameworks.”

which brings together leaders from government, the energy sector, the tech industry and civil society to discuss these topics for the first time, will provide a space to kickstart and advance public-private dialogues on these subjects at a critical moment.

Does AI represent a step-change in the speed of energy innovation?

For energy analysts, a fundamental question is whether the application of AI will cause the rate of technology progress to deviate from current projections. In the field of semiconductors, Moore’s Law – an observation from the 1960s that the number of transistors in an integrated circuit doubles about every two years, which proved startlingly accurate for several decades – is well known. Similarly, for many energy technologies, it is common to project cost reductions for each doubling of cumulative deployment, known as the “learning rate.”

However, progress in the semiconductor sector has slowed, and Moore’s Law has not been a good guide for technological development since

around 2010. Experts question whether the learning rate for a technology like electric vehicle batteries, which IEA analysis projects at 15%, can be maintained over future decades. Recent inflation in technology prices, partly caused by mismatches between supply and demand for critical material inputs, are a reminder that factors such as manufacturing capacity and trade can also impede the innovation process.

Some analysts see AI as a means to keep current learning rate projections on track despite these concerns. Others see it as a more disruptive force that could make today’s rates look very conservative. To inform this debate, it is necessary to take a closer look at the specific ways in which AI could boost the pace of innovation.

AI discoveries on energy-related

materials are

promising

Finding a higher-performing material for a task, or one that does not contain certain undesirable inputs, has typically relied on human ingenuity and knowledge of how different compounds behave. But the number of possible

options is often vast. AI techniques are already excellent at solving problems by optimising for well-understood relationships across large and well-structured data sets.

In July 2024, researchers from a US government laboratory and Microsoft published results of a study that used AI to assess 32.5 million possible new solid-state electrolytes for lithium-based batteries and found 23 new ones with the right characteristics. Scientists in Sweden recently screened 45 million potential new battery cathode molecules and found nearly 4,600 promising candidates. Other teams have achieved similar results, and one has pursued their findings through to synthesis and testing.

Notably, these types of techniques are increasingly attracting financing: Anionics, an AI start-up, recently partnered with the battery manufacturing subsidiary of Porsche, while Mitra Chem has raised USD 80 million with its promise of shortening the lab-to-production timeline by over 90%.

Recent breakthroughs have not

RATES

only been battery related. Researchers using AI tools have also found they can engineer enzymes for biofuel synthesis, predict high-yielding biofuel feedstocks, identify industry-beating catalysts for hydrogen-producing electrolysers and generate materials for carbon dioxide (CO2) capture.

As AI becomes an increasingly indispensable part of the research process for energy technologies, innovators will also benefit from developments in adjacent areas, including improved robotics and automation. A recent study of the impact of using AI tools in an industrial research setting showed a 39% increase in patenting by the company in under two years.

Major obstacles remain

Still, serious challenges must be overcome before AI techniques can fulfil their full potential on innovation. One key issue is data availability. Datasets used today have incomplete information

A recent study of the impact of using AI tools in an industrial research setting showed a 39% increase in patenting by the company in under two years.” “

about possible materials and represent a restricted subset of molecules or reactions.

The development of massive, structured, specialised datasets to train AI models, such as the Materials Project and Cambridge Structural Database, is underway, but they must be further expanded if real-world scientific problems are to be solved.

While creation of “synthetic data” to train models can overcome some of the data gaps, there is no substitute for experimental data, and the fastest route to large and reliable experimental datasets is co-operation between laboratories, including at the international level. The Mission Innovation M4E platform is an example of an international initiative that could demonstrate how governments can support common protocols and jointly curated data.

Another challenge is finding ways for AI to optimise results for more than just a narrow set of characteristics and incorporate considerations that are essential for a material to be integrated into a functional product. Today, substantial human checking and testing is still required –for example, to assess performance at different temperatures or interactions with all other components of a device. Also, working out the recipe for manufacturing the materials designed by AI can create considerable follow-on work. Having AI perform these more complex tasks appears feasible, but it leads to high computational requirements and costs that must be assessed.

If discovery is accelerated but testing and commercialisation are not, then half the challenge will stay unaddressed.

Identifying a new material for an energy application via a computer-based method is less than half of the innovation task. Prototyping, followed by commercialisation, mass manufacturing and widespread market uptake, can take years or even decades. Yet other AI-related tools in development could compress these timetables, too.

One is known as the self-driving lab. The A-Lab at the US Department of Energy’s Lawrence Berkeley National Laboratory contains a series of robots that, since February 2024, can synthesise the energy storage chemicals predicted by computer calculations to offer major performance improvements. This self-driving laboratory can process up to 100 times more samples per day than a human-run equivalent.

For large, complex systems, a computer-based aid known as a “digital twin” can significantly reduce the costs and risks of design and scale-up. Digital twins, which are virtual representations of all the elements of a specific facility or process, have been used to optimise manufacturing for over a decade but are now being powered by AI and applied to innovation.

In sectors such as nuclear fusion, they are helping design and test equipment. The hope is that the costs of complex engineering design will be sharply reduced, particularly for expensive, first-of-a-kind projects. This could be a significant fillip for innovators of industrial decarbonisation technologies, geothermal energy, synthetic fuel processes and CO2 capture and storage.

However, difficulties also persist in applying AI to this phase of the innovation process. Currently, these tools are not all widely accessible to innovators in the scale-up stage. Additionally, skills gaps could be an issue in such a fast-moving field, while responsive regulatory and standards frameworks will be necessary to support and accommodate new approaches to testing and commercialising products and services.

The time to consider policy context is now There is clear potential for AI to enhance and accelerate innovation to tackle a wide range of energy technology challenges. There are exciting examples of this happening already, but the full potential of AI in this area will not be realised unless governments focus on some key emerging issues upfront.

To drive scientific discovery towards the most impactful outcomes, there is a need to invest in searchable databases that follow common protocols and are widely accessible, including by interconnecting laboratories across international

Simon Bennett covers new technology analysis in the International Energy Agency’s Energy Technology Policy Division, leading work on innovation tracking, policy and outlooks. He previously worked at the European Commission’s DG Energy and holds MSc degrees in chemistry and environmental technology. His doctorate in energy policy is from Imperial College.

THOMAS SPENCER

Thomas has been at the IEA since 2021, where he works on decarbonisation pathways, climate negotiations and digitalisation. He was one of the lead authors on the 2023 report “Net Zero Roadmap: A Global Pathway to Keep the 1.5 °C Goal in Reach”. He holds an MSc in Carbon Management from the University of Edinburgh.

borders. Investments in skills and equipment will also be required, and policy makers can guide efforts to the most pressing technological needs. To support commercialisation, policy makers should also consider how to make new digital tools widely available to innovators and help investors adjust to the resulting reductions in project risk. At the same time, the computing and energy needs of AI for these important tasks, as well as potential risks such as those related to intellectual property, must be discussed in multilateral fora.

If successful, AI will not only accelerate and improve innovation outcomes but also deliver economic competitiveness, too. Once new products are ready for market, analysis with AI of data generated by new products can raise their value to consumers. Better decision-making by software for controlling new technologies can likewise reduce risks and add value for their users. The benefits will be shared by all countries, their innovators, investors and firms if efforts are anticipated, directed and cooperative.

This article originally appeared in November 2024: IEA (2024), How will artificial intelligence transform energy innovation?, IEA, Paris https://www.iea.org/ commentaries/how-will-artificial-intelligence-transform-energy-innovation, Licence: CC BY 4.0

SIMON BENNET

UNLEASHING THE EU’S CIRCULAR ECONOMY POTENTIAL

Anum Sheikh, policy analyst at Cambridge Institute for Sustainability Leadership

Europe prides itself on leading the charge for sustainability, but when it comes to transitioning to a circular economy it has been stagnating. Despite consistent legislative efforts and ambitious rhetoric, the EU is still far from reaching its ambition to double its circularity rate by 2030.

Europe prides itself on leading the charge for sustainability, but when it comes to transitioning to a circular economy, it has been stagnating. Despite consistent legislative efforts and ambitious rhetoric, the EU is still far from reaching its ambition to double its circularity rate by 2030.

To do this, Europe must shift from a linear to a circular mindset and quickly build on its current advantage, maintaining its lead in the technologies, services and industries that will drive the circular economy transition.

It’s time for the EU to showcase its commitment to competitive sustainability, the ability of an economy to excel relative to international competitors in their transition to sustainable development, starting with the Circular Economy Act that Commission President Ursula von der Leyen highlighted in her recent political guidelines.

European material consumption far exceeds sustainable levels, contributing to the global triple climate change crisis, biodiversity loss and pollution. In 2022, the average per capita CO2 material footprint in the EU 27 was 14.9 tonnes—900 kg more per person than in 2013, which was more than double the sustainable consumption level of around 6-8 tonnes per capita. The EU also generates about 2.2 billion tonnes of waste annually, an astonishing 4,815 kg per capita.

Europe’s dependence on global imports for critical raw materials and fossil fuels is increasing, particularly those needed for the green transition, such as rare earths for wind turbines, silicone for solar panels and lithium for batteries.

The extraction and processing of critical raw materials is geographically concentrated and exposes the European Green Deal Agenda to geopolitical

fluctuations and external shocks. The EU currently sources virtually all its rare earths from China plus more than 90% of its magnesium needs, 68% of the EU’s cobalt comes from the Democratic Republic Congo; 78% of its lithium from Chile.

Allowing these resources to slip through linear processes and value chains represents an inexcusable loss of value.

There has been some encouraging progress. Resource use in Europe has declined over the last decade, decoupling from economic growth. Waste generation has also decreased, with total per capita waste falling by 4.2% in the EU between 2010 and 2020.

The EU boasts a recycling rate of 11.6%, higher than most regions globally. And the EU’s own research suggests that thanks to its policy leadership, it holds a technological edge over foreign competitors in critical value chains such as heavy industry, textiles and construction.

However, resource use and waste generation have dropped by less than 5%; the trend has plateaued in recent years.

So why is progress so slow when the EU was one of the first to push for circularity? It placed the Circular Economy Action Plan at the heart of its Green Deal, passed landmark legislation like the Critical Raw Materials Act and continues to enact regulations to reshape the single market toward circular solutions, including the Taxonomy Regulation, the Ecodesign for Sustainable Products Regulation and the Right to Repair Directive.

Its progress has been patchy due to the linear thinking of consumers and business leaders. While EU policymakers have laid the groundwork for developing policies to promote the circular economy, implementation has been uneven.

Policies have also suffered from a lack of clearly defined targets, resulting in limited impact at a sectoral level, particularly in high-waste sectors like plastics and chemicals. While EU funding is available, it is under- or ineffectively utilised. Capital flows have been redirected towards green

innovation but there has been a lack of focus on circular innovation as investors lack an understanding of the benefits.

Market failures, driven by entrenched linear thinking across consumer behaviour and value chains have kept individuals and businesses locked into the “take-makedispose” model.

It is key, then, that the Circular Economy Act avoids framing it simply as a waste management strategy or means to generate critical feedstocks, presenting circularity and economic success mistakenly as an either-or proposition when it could be a game changer – circular economy initiatives could unlock €1 trillion in potential investments, market opportunities, and CO2 savings by 2040, while generating up to 700,000 jobs by 2030.

Policymakers and business leaders need to seize the moment and capitalise on the transformative potential of the circular economy to fundamentally reshape how the EU produces, consumes and treats its trash the treasure it could be.

That is why the new climate commissioner Wopke Hoekstra recently stated that he wants European companies to be the leaders in circular, and why the Taskforce on Climate Neutral and Circular Materials and Products, led by the Corporate Leaders Group (CLG) Europe, has produced this report showing how it is possible.

The taskforce is a collaborative initiative designed to drive the transition towards sustainable and resilient material systems. With industries like construction, manufacturing, and packaging contributing significantly to greenhouse gas emissions and resource depletion, the taskforce focuses on embedding climate-neutral and circular principles across the product lifecycle.

Aligned with the EU’s Green Deal and Circular Economy Action Plan, the taskforce advocates for ambitious policies, promotes cross-sector collaboration, and fosters innovation to reduce emissions, minimize waste, and optimize resource use. Its goal is to reshape traditional linear consumption models into circular systems that support the EU’s target of achieving climate neutrality by 2050.

By enabling businesses to lead this transformation, the taskforce not only addresses environmental challenges but also enhances competitiveness, strengthens resilience, and supports a sustainable economic future.

The University of Cambridge Institute for Sustainability Leadership’s (CISL) report, “No Time to Waste: Driving the EU’s Resilience and Competitiveness through a Circular Economy,” underscores the urgent need for the European Union to transition to a circular economy.

It underlines the economic and environmental benefits of adopting circular economy practices - which can significantly reduce carbon emissions, decrease energy consumption, and minimise material use. These measures, of course, are vital for achieving the EU’s climate neutrality goals and bolstering industrial competitiveness.

The report also emphasises the necessity for a cohesive policy framework that aligns circular economy initiatives with the EU’s broader climate and industrial strategies. This integration is crucial for the effective implementation of sustainable practices across various sectors.

The report authors also posit that companies can play a

ANUM YOUSAF SHEIKH

Anum Yousaf Sheikh works at CISL as a policy analyst and leads research across the organisation’s priority areas including accelerating the renewable energy transition, industrial decarbonisation, raising climate and nature ambition and community engagement. Previously, she has worked as a journalist in Pakistan writing longform features and editorials, a programme development officer at the UN working to rehabilitate war-torn areas as well as an academic researcher at the University of Cambridge Research for Equitable Access to Learning Centre.

pivotal role in this transition by innovating and adopting circular business models. Such models not only contribute to environmental sustainability but also open new economic opportunities and markets.

The report recommends strengthening policy frameworks to promote resource efficiency, reduce waste, and encourage the use of sustainable materials. By developing and enforcing robust policies, the EU can create a foundation for achieving its circular economy goals. Supporting businesses is also critical in this transition. Offering incentives, funding innovation, and facilitating knowledge exchange can help companies adopt circular practices, which not only contribute to sustainability but also open up economic opportunities.

Collaboration is highlighted as a vital component, requiring partnerships among governments, businesses, and civil society to drive systemic change. These collective efforts are essential for creating a cohesive approach to a circular economy. Furthermore, investing in research and development is identified as a key driver of progress. Allocating resources to develop new technologies and processes will enable more effective and innovative solutions to facilitate the shift.

The report concludes that only a more ambitious and integrated approach can ensure the EU achieves its goals of climate neutrality, industrial success, and social equity. Without a comprehensive circular economy framework, these strategic objectives risk remaining out of reach.

For a more comprehensive understanding of the insights and recommendations, the full report is available here: https://www.corporateleadersgroup.com/files/cisl-no_time_ to_waste_report_2024.pdf

A version of this article originally appeared at https://www.euractiv. com/section/circular-economy/opinion/from-rhetoric-to-reality-unleashing-the-eus-circular-economy-potential/

BUILDING RESILIENT GRIDS: THE BACKBONE OF A SUSTAINABLE ENERGY FUTURE

As the world accelerates towards net-zero goals, the demand for robust and expansive electricity grids has never been greater. Meeting climate targets while ensuring energy security requires bold action to add or replace 80 million kilometres of grids globally by 2040, addressing challenges such as extreme weather events and cross-border energy flows. “The Future of Energy” Editor Will Rankin explores what needs to be done…

The Need for a New Grid Paradigm

A report from the International Energy Agency (IEA) spotlighted a critical infrastructural gap in the global transition to clean energy. To align with climate targets and safeguard energy security, the Agency suggests an estimated 80 million kilometres of new or refurbished power lines are required by 2040 — equivalent to the world’s current grid length . This expansion is crucial to accommodate increasing renewable energy penetration, the electrification of transportation and heating, and the need for reliable energy access.

As nations intensify efforts to decarbonise, power grids have emerged as both a critical enabler and a potential bottleneck. Without sufficient capacity and resilience, grids could falter under the weight of clean energy demands, undermining climate ambitions. Modernising these systems involves more than just scale—it demands innovative approaches to technology integration, climate resilience, and international cooperation.

Strengthening Resilience Against Extreme Weather

Climate change poses an immediate and escalating threat to electricity grids worldwide. From hurricanes to heatwaves, extreme weather events are testing the limits of grid reliability, often leaving millions without power. A grid

designed for the 20th century cannot meet the demands of today’s volatile climate.

To combat this, modernisation efforts must prioritise resilience. Enhancing grid infrastructure with advanced materials, underground cabling, and decentralised energy storage can mitigate the risk of outages. Moreover, predictive analytics powered by artificial intelligence (AI) can help anticipate disruptions and optimise recovery efforts. For instance, real-time monitoring systems are already enabling utilities to respond dynamically to grid stresses during extreme weather.

Policymakers must act swiftly to mandate climate-resilient grid standards. Investment in these measures today will yield significant cost savings and ensure uninterrupted energy supplies for future generations.

The Case for Multi-Country Corridors

International energy cooperation is increasingly viewed as a cornerstone of sustainable energy systems. Multi-country energy corridors, which facilitate cross-border electricity flows, represent a strategic solution to balance supply and demand across regions. These corridors enable countries to pool renewable resources, stabilise grid operations, and reduce redundancy.

Multi-country energy corridors, which facilitate cross-border electricity flows, represent a strategic solution to balance supply and demand across regions.

Europe’s interconnected energy network provides a model for such collaboration. By linking diverse energy markets, the continent has reduced its dependency on fossil fuels and enhanced grid stability. For instance, when solar production peaks in southern Europe, surplus energy can be routed to northern regions experiencing higher demand.

Similar projects are gaining momentum in other parts of the world. The African Union’s “Desert to Power” initiative seeks to harness the Sahara’s solar potential to electrify the continent. Meanwhile, cross-border corridors in Asia are helping integrate hydropower from Nepal and Bhutan into India’s energy mix. Scaling these efforts globally will require concerted political will, regulatory alignment, and financial investment.

Integrating Advanced Technologies

Digitalisation is revolutionising the way grids operate. Smart grids, powered by the Internet of Things (IoT) and AI, are enabling a more dynamic and efficient energy system. These technologies allow for real-time communication between grid operators and consumers, enabling better management of variable renewable energy sources like wind and solar. Energy storage solutions, such as battery systems, also play a pivotal role. By storing surplus renewable energy during periods of low demand and releasing it when needed, these systems help stabilise the grid and minimise waste. Furthermore, advances in hydrogen technology offer promising avenues for long-duration energy storage, creating new pathways for grid flexibility.

As we adopt these innovations, cybersecurity must remain a top priority. Increased connectivity heightens the risk of cyber threats, necessitating robust protective measures to safeguard critical infrastructure. Governments and utilities must collaborate to establish secure digital ecosystems that protect grids from emerging vulnerabilities.

Aligning Investment with Climate Goals

The IEA’s report emphasises that achieving these ambitious grid targets requires an estimated $800 billion in annual investment by 2030(Brief). Yet, current funding levels fall short of this figure. Mobilising capital will depend on

strong public-private partnerships, innovative financing mechanisms, and clear policy directives. Governments must create favourable regulatory environments to attract investment in grid expansion and modernisation. Tax incentives, green bonds, and risk-sharing frameworks can encourage private sector participation. Simultaneously, international institutions like the World Bank and regional development banks have a critical role to play in financing grid projects in developing countries, where access to capital is often limited.

the length of new or refurbished power lines required by 2040 80 million kilometres

Equally important is aligning investment with national and global climate strategies. Grid projects must prioritise low-carbon technologies and renewable energy integration to maximise their impact on decarbonisation efforts.

A Roadmap for Action

The transition to a sustainable energy future hinges on strengthening and expanding electricity grids. As the backbone of modern energy systems, grids must evolve to meet the dual challenges of climate mitigation and energy security. This transformation requires a multifaceted approach that combines resilience against extreme weather, integration of advanced technologies, and the development of international energy corridors.

Leaders at forums such as the World Future Energy Summit must seize the opportunity to prioritise grid investments and foster global collaboration. By acting decisively, the energy sector can overcome current limitations and pave the way for a cleaner, more reliable energy future.

Sources: International Energy Agency: Electricity Grids and Secure Energy Transitions; IEA News: Grids as the Weak Link in Clean Energy Transitions; World Bank: The Role of Grids in Achieving Net Zero Goals; European Union: Energy Interconnections and Cross-Border Collaboration; African Union: Desert to Power Initiative

TADWEER GROUP: TURNING WASTE INTO A VALUABLE RESOURCE

Tadweer Group has outlined an ambitious plan to divert 80% of Abu Dhabi’s waste from landfills by 2030, driven by innovative technologies, strategic partnerships, and community engagement. This vision aligns with its mission to revolutionise waste management, transforming waste into a valuable resource and promoting circular solutions that benefit both the environment and the economy. Tadweer is committed to empowering communities to view waste not as a problem, but as an opportunity for positive environmental and economic impact.

How does Tadweer plan to achieve the goal of diverting 80% of Abu Dhabi’s waste away from landfills by 2030, and what technologies or innovations are central to this vision?

Central to achieving our goal of diverting 80% of Abu Dhabi’s waste from landfills by 2030 is the integration of advanced technologies and pioneering projects. A cornerstone of Tadweer’s efforts is Abu Dhabi’s first greenfield Material Recovery Facility (MRF), designed to enhance waste segregation and recycling at scale. With a processing capacity of 1.3 million metric tonnes per year and spanning over 90,000 square metres, this facility will be one of the

INTERVIEW

Ali Al Dhaheri, CEO, Tadweer

(The Center of Waste Management, Abu Dhabi)

largest of its kind in the region. Strategically located in the Al Mafraq Industrial area, just 36 kilometres from Abu Dhabi’s centre, it is set to play a vital role in reducing waste sent to landfills.

Another innovative initiative is Tadweer Reverse Vending Machines (RVMs), which incentivise recycling by collecting plastic bottles and aluminium cans. These machines are paired with the Tadweer Rewards app, developed in collaboration with partner merchants, to encourage community participation. With 25 machines already installed in high-footfall areas such as Abu Dhabi Airport, Umm Al Emarat Park, and the Ministry of Finance, this is fostering a

culture of recycling and sustainability.

In collaboration with Emirates Water and Electricity Company (EWEC) and a Japanese consortium, Tadweer is also developing a state-of-the-art waste-to-energy (WtE) plant near the Al Dhafra landfill. This facility, which will process up to 900,000 tonnes of waste annually, is expected to generate enough electricity to power 52,500 UAE households. Employing advanced moving grate technology, the plant will convert municipal solid waste into energy via a high-efficiency steam turbine generator, showcasing a sustainable solution to waste disposal.

We are advancing waste innovation through partnerships with organisations like Masdar to develop Sustainable Aviation Fuel (SAF) and biofuel projects. Recognising that waste emissions contribute more greenhouse gases than the aviation industry, these initiatives aim to create renewable energy sources and reduce reliance on traditional jet fuels. By converting waste into aviation fuel, Tadweer is simultaneously addressing two significant environmental challenges.

Beyond technology, Tadweer places a strong emphasis on community engagement to ensure the success of its waste diversion goals. By promoting recycling, waste reduction, and segregation at the source, Tadweer is fostering a collective commitment to sustainability. Through educational campaigns, the organisation raises awareness about the importance of recycling, the implementation of the 3Rs (reduce, reuse, recycle), and the national goals for waste reduction. Tadweer’s collaboration with the Emirates Foundation’s Ne’ma initiative to reduce food waste is a prime example of its community-focused approach. Together, they deliver campaigns and projects, particularly during key events such as Ramadan, to minimise food waste and promote sustainable consumption practices.

As Tadweer Group expands its operations internationally, what specific strategies are being implemented to ensure global impact, particularly in regions with less developed waste management infrastructure?

We are employing targeted strategies to create a global impact, with a particular focus on regions that lack developed waste management infrastructure. By leveraging advanced technologies, addressing energy security, and prioritising emerging markets, Tadweer aims to revolutionise waste management practices on a global scale.

A core element of this strategy involves harnessing cutting-edge technologies to establish robust waste management infrastructures in key international markets. A notable example is the Joint Development Agreement (JDA) signed with the Government of Uzbekistan to develop an innovative waste-to-energy plant in the Navoi and Bukhara regions. This project marks a significant milestone in the partnership between the UAE and Uzbekistan, addressing local waste management challenges and advancing sustainable waste conversion practices.

We do not believe waste is a challenge, but an opportunity to be harnessed

Tadweer is also committed to bringing global best practices back to the UAE, creating a continuous exchange of knowledge and innovation. Through a Memorandum of Understanding (MOU) with Levidian, a leading UK climate innovator, Tadweer is introducing LOOP technology to Abu Dhabi. This pioneering technology converts waste into hydrogen, a critical alternative energy resource that aligns with global efforts to diversify energy sources and reduce carbon emissions.

Addressing energy security is another pivotal aspect of Tadweer’s international expansion. With global energy demands on the rise, particularly in developing regions, Tadweer’s projects focus on converting waste into alternative energy resources. Waste-to-energy initiatives not only provide a sustainable solution to waste management but also contribute to the growing need for secure, reliable energy supplies. By turning waste into a valuable resource, Tadweer helps support energy security while addressing environmental challenges. Through these strategic efforts, Tadweer Group is positioning itself as a global leader in waste management innovation. By introducing advanced technologies, addressing energy security, and focusing on emerging markets, the organisation is creating scalable solutions that transcend borders and set new benchmarks for sustainability in waste management. In doing so, Tadweer not only addresses immediate challenges but also establishes a foundation for a more sustainable future worldwide.

Could you share any recent success stories or pilot projects where waste was transformed into a significant resource or economic driver?

Tadweer Group is revolutionising waste management and recycling practices locally and globally. Below are examples of how we’re unlocking the value of waste and transforming it into an alternative resource, contributing to the circular economy and driving positive change.

Enviroserve

Tadweer Group acquired 50% shares of Enviroserve, an integrated e-waste facility. The facility recycles all e-waste including phones, laptops, chargers, and car engines/ parts of airplanes. Recycled items are processed then transformed into precious materials such as aluminium.

One of Tadweer’s advanced recycling stations

Al Dhafra solar-powered crushing plant

Our recycling plant in the Al Dhafra region has made significant contributions to the sustainability sector. It is dedicated to recycling all construction and demolition in the Al Dhafra area. With 80%-90% of its energy operated through solar panels, this is the region’s first crushing plant powered by solar power.

Abu Dhabi’s first greenfield Material Recovery Facility (MRF)

As mentioned, this facility is designed to maximise waste diversion from landfills while promoting a circular economy.

Waste to energy with the Emirates Water and Electricity Company

We are collaborating with EWEC and a Japanese consortium to develop a world-class WtE plant, to be located near the existing Al Dhafra landfill in Abu Dhabi. This will have an expected processing capacity of 900,000 tonnes of waste per year, and will generate enough electricity to power up to 52,500 UAE households. The plant will use advanced moving grate technology to convert municipal solid waste into electricity via a high-efficiency steam turbine generator set.

What role does artificial intelligence and data analytics play in Tadweer Group’s approach to revolutionising waste management, and how are these technologies shaping the future of circular economies?

Artificial intelligence (AI) and data analytics are pivotal to Tadweer Group’s mission to revolutionise waste management and drive the transition to circular economies. These technologies enable us to enhance operational efficiency, optimise waste collection systems, and significantly improve recycling rates. By integrating smart solutions into its processes, we are shaping a more sustainable and data-driven future for waste management. One of the standout innovations in this regard is the deployment of smart bins. Unlike conventional waste receptacles, these high-tech bins are equipped with sensors that measure the volume and type of waste deposited. Residents use a barcode scanner to open the bin, deposit their

waste, and close it, after which an integrated app calculates the weight of the waste. This technology incentivises responsible disposal behaviours and provides valuable data on waste generation patterns. For waste collection teams, the sensors help streamline operations by signalling when bins need to be emptied, optimising collection routes and reducing unnecessary trips. These smart bins represent an efficient solution to managing the increased waste generated by Abu Dhabi’s growing population and evolving consumption habits, contributing to a cleaner and more sustainable urban environment.

Our Reverse Vending Machines (RVMs),launched in partnership with Nadeera, accept empty plastic bottles and aluminium cans, rewarding users with incentives to encourage recycling. Equipped with advanced sensors and software, RVMs simplify the recycling process and generate actionable data on recycling trends and behaviours. This data is instrumental in developing targeted strategies to enhance recycling rates and optimise waste management systems.

The UAE has ambitious sustainability goals under initiatives like the UAE Net Zero 2050. How does Tadweer align its efforts with these broader national and international climate objectives?

In addition to our projects and partnerships, Tadweer Group is also a member of Waste to Zero, a global coalition for decarbonisation of the waste sector, initiated by Tadweer Group and endorsed by the UAE’s Ministry of Climate Change and Environment

(MOCCAE), supported by Roland Berger. Originally launched at COP28, Waste to Zero has grown into a powerful coalition aiming to drive impactful, scalable solutions in waste management.

Waste to Zero aims to formalise waste management practices and engage stakeholders worldwide to decarbonize the sector, unlock economic opportunities, and contribute to global climate change mitigation efforts.

With 3-5% of the world’s greenhouse gas emissions arising from waste, our waste conversion projects (waste to energy i.e hydrogen, graphene, sustainable aviation fuel, etc) help lower emissions. And by lowering emissions, we are contributing to achieving net zero and promoting the circular economy, in line with the UAE’s national agenda.

During COP29, we announced two key updates to our Waste to Zero initiative for decarbonisation. Her Highness

EcoWASTE Exhibition and Conference

The 11th EcoWASTE Exhibition and Conference, January 14-16, is part of the World Future Energy Summit, and Abu Dhabi Sustainability Week. This platform brings together thousands of business and political leaders, industry specialists, academics and technology pioneers, to network and explore new commercial opportunities.

Sheikha Shamma bint Sultan bin Khalifa Al Nahyan, President and CEO of UAE Independent Climate Change Accelerators (UICCA), will become Chair of Waste to Zero and steer the initiative’s next phase of impact.

We announced the findings of a white paper, which focuses on the waste sector’s significant role in global emissions, with methane from mismanaged organic waste alone contributing 20 percent of global methane levels.

By embracing advanced waste-to-resource technologies, such as waste-to-hydrogen and sustainable aviation fuel, the sector holds immense potential for cost-effective decarbonisation.

As waste generation surges, innovative tech-driven solutions and essential infrastructure upgrades are critical to mitigating emissions.

With over 50 global institutions

endorsing the initiative, Waste to Zero champions data-driven, collaborative approaches to transform waste management and support global climate goals.

Tadweer Group has continued to participate in the global platform, bringing waste to the forefront of the sustainability agenda. With the support of partners, we have continued to showcase the value of waste and share our insights on the importance of shifting perspectives to promote the circular economy.

As sole custodian of waste management in Abu Dhabi, and with its strategic focus on unlocking its value and harnessing conversion opportunities, how does Tadweer Group balance short-term operational goals with long-term sustainability commitments?

Tadweer Group achieves this balance

As Strategic Partner and Co-organiser of EcoWASTE, Tadweer Group’s participation will focus on recycling, waste management and waste-to-plus industries, as well as advancing new business opportunities and inspiring best practice for a more sustainable future.

Through our participation, we aim to accelerate the circular economy while redefining waste as a catalyst for a positive environment and economic impact.

In line with strategic ambitions and following last year’s successful engagement, we will host two exhibition spaces (the first in the main space within EcoWaste, and in the Energy Zone to promote the concept of waste to plus.

We will also host our Sustainable Stand Awards, an annual platform encouraging exhibitors to create their stands from sustainable materials, and an EcoMajlis

Networking Lounge and opportunities for students to engage at our stand and learn more about the importance of waste.

Key themes we will showcase at Tadweer Group will include:

• Showcasing the myriad opportunities with waste conversion projects and initiatives.

• Harnessing partnerships for our transformation and expansion as a pioneer of our sector.

• Tadweer Group’s innovative thinking and advanced technologies positively impact the UAE’s waste management sector.

by embedding sustainability into its operational and strategic frameworks. While meeting short-term goals such as enhancing collection and landfill diversion rates, our organisation simultaneously invests in long-term initiatives such as our greenfield Material Recovery Facility, WTE projects, and enhancing Abu Dhabi’s recycling infrastructure.

We have also introduced a third ‘pillar’ into our ESG principles, framework and business operations- the circular economy – to create ESGC. This ensures operational priorities align with sustainability ambitions, fostering economic, environmental, and net zero ambitions.

We hire strong talents and bring experts in-house to support us on our transformation journey, and have dedicated teams focused on looking into international expansion, growth opportunities, and research into our sector to promote and cultivate value creation in our operations.

What trends or advancements do you foresee defining the waste management industry in the next decade, and how is Tadweer Group preparing to stay ahead?

With the rapidly evolving industry, and advancements in our transformation journey, we harness our resources to remain ahead of the curve. From enhanced waste collection strategies, to converting waste into various types of alternative resources, we believe key trends in the future include:

Harnessing established and emerging technologies:

Advancements in AI and robotics for waste sorting and conversion are redefining the industry. We are at the forefront of this by adopting cutting-edge technologies and forming strategic partnerships with global leaders in innovation. From our RVMs to bringing international expertise to Abu Dhabi, we constantly look for new ways to innovate.

Exploring new techniques and research

Our dedicated research team also focuses on exploring new techniques to understand how we can further enhance our recycling and waste infrastructure. From sensors in our bins to looking at alternative resources we can create from waste, our experts are experimenting and understanding how we can create a

ALI AL DHAHERI, Managing Director and Chief Executive Officer, Tadweer Group

Ali Al Dhaheri oversees the company’s mission to create an ecosystem that combines world-class waste management infrastructure, streamlined waste collection solutions, and recycling services. His role also includes development and implementation of integrated waste management strategies, establishing partnerships locally and internationally, and supporting Abu Dhabi’s efforts in achieving an optimal waste management system and transforming waste into an economic resource.

Before joining Tadweer Group, Al Dhaheri served as an Advisor to the Energy and Utilities Cluster at ADQ, where he led several key initiatives, such as restructuring the waste management framework and monitoring market opportunities.

Al Dhaheri previously held various senior roles and has over 20 years of experience in asset management, energy investments, new business development and project delivery. He holds a bachelor’s degree in Civil Engineering from the University of Southern Colorado.

sustainable future. We are also looking into expanding the waste we can convert – and the alternative solutions we can convert this into – i.e. hydrogen, graphene and biofuels, for example

How can the global community better collaborate to address the pressing challenges of waste management, and what role does Tadweer Group see itself playing in this global effort?

We do not believe waste is a challenge, but an opportunity to be harnessed, and when processed sustainably, it can significantly reduce greenhouse gas emissions, contributing to a net zero future.

We need to shift perspectives on how we view waste, which we are actively pursuing through our community engagement and awareness activities across schools, events and festivals.

In terms of the global community, it’s important to be open to public and private sector collaboration, as well as G2G discussions.

Our collective ambitions cannot be achieved alone, and we need to not only discuss but action our ideas for real results. Tadweer Group actively engages in international partnerships and knowledge exchange with international entities; from agreements with Japanese partners to MOUs with governments such as Egypt, we are paving the way for international collaborations. By being part of initiatives such as Waste to Zero and participating in global platforms such as COP29, we are driving collective action, offering innovative solutions, and sharing our expertise to promote sustainable practices worldwide.

HOW THE WORLD CAN ACHIEVE THE 1.5°C CLIMATE TARGET: INSIGHTS FROM IRENA’S 2024 OUTLOOK

By Francesco La Camera, Director-General of the International Renewable Energy Agency

IRENA’s World Energy Transitions Outlook 2024 presents a comprehensive roadmap for aligning global energy systems with the 1.5°C climate target. This ambitious pathway focuses on tripling renewable energy capacity, doubling energy efficiency improvements, and ensuring a just and inclusive transition. While progress is being made, significant challenges remain, requiring urgent global cooperation, financial investment and redoubled commitments.

Accelerating the Energy Transition: Progress and Challenges

The global energy transition is at a crossroads. While 2023 saw record growth in renewable energy deployment within the power sector, progress across regions and sectors remains uneven. Fossil fuels still dominate energy systems in major economies, leaving a significant gap between high-level political commitments and the action needed to meet them. IRENA’s World Energy Transitions Outlook 2024 reveals that current national plans will deliver only half of the necessary growth in renewable power by 2030, underscoring the urgent need for accelerated action.

The critical goals for this decade are clear: the world must triple its installed renewable power capacity and double the rate of energy efficiency improvement by 2030. Achieving these benchmarks will require global cooperation, enhanced financial flows, and substantial investments in infrastructure and innovation.

Meeting the 2030 Milestones

Tripling renewable power capacity means adding over 1,000 gigawatts of capacity annually to reach 11.2 terawatts by 2030. This ambitious target requires expanding renewable energy deployment beyond its current strongholds and diversifying energy sources to meet decarbonization objectives.

IRENA’s World Energy Transitions Outlook 2024 provides a clear and actionable roadmap to achieve the 1.5°C target by 2050. However, success will depend on unprecedented levels of global cooperation, financial investment and systemic transformation.

FRANCESCO LA CAMERA

Francesco La Camera is Director-General of the International Renewable Energy Agency (IRENA). He was appointed at the Ninth Assembly of IRENA, the ultimate decision-making body of the Agency. Mr. La Camera took office on 4 April 2019 and brings more than thirty years of experience in the fields of climate, sustainability, and international cooperation.

In his role, Mr. La Camera is responsible for leading the delivery of IRENA’s work programme and strategy in cooperation with the Agency’s member states. At a critical time for climate change and the achievement of the Sustainable Development Goals, Mr. La Camera is tasked with redefining the structure and operations of the Agency in response to the urgent needs of its members.

Under his leadership the Agency has forged a series of new strategic partnerships with UN organisations including UNDP, UNFCCC and Green Climate Fund among others. A key priority of his tenure is to implement a more actionoriented approach to the Agency’s work.

In parallel, energy efficiency improvements must accelerate to achieve a 4% annual improvement in energy intensity, which is critical for reducing demand and integrating renewable energy into global systems.

While the 14% year-on-year growth in renewable energy capacity achieved in 2023 marks a record, maintaining this rate through 2030 would still leave the world 1.5 terawatts short of its cumulative target. Bridging this gap requires an annual growth rate of 16.4%, which hinges on addressing deep-rooted structural and systemic barriers hindering progress.

This includes modernizing and expanding energy transition infrastructure, such as grids; developing regulatory frameworks and market designs tailored to the renewable energy era; and building the institutional and human resource capacities essential to driving the energy transition forward.

The Pathway to 2050: A Renewable Energy Future

IRENA’s 2050 vision is centred on electrification and renewable power generation. By mid-century, 91% of global electricity is expected to come from renewable sources, with solar photovoltaic and wind energy accounting for 70%. Electricity’s share of total energy consumption will rise to 52%, reflecting its critical role in decarbonizing the energy system.

A rapid scale-up in renewables is only part of the energy transition. Pairing electrification with energy efficiency reduces emissions and optimises renewable energy use. Innovative technologies like heat pumps and electric vehicles are key to this effort, driving both decarbonisation and energy savings. For sectors where electrification is more difficult, such as industry and shipping, clean hydrogen and its derivatives will provide essential solutions for deep decarbonization.

Grid flexibility will also be crucial. Enhancing grid infrastructure, improving system operations, and deploying energy storage solutions will help balance supply and demand effectively. These advancements, coupled with regulatory reforms, will create the conditions needed for high shares of renewable energy in global systems.

Investing in a Just and Inclusive Transition

To achieve the 1.5°C target, the world must triple annual investments in renewable energy to USD 1.5 trillion by 2030. Current investments, concentrated in a few countries like China, the United States, and Germany, must expand to regions such as sub-Saharan Africa, where abundant renewable resources remain underutilized due to financial constraints.

Mobilizing capital will require public-private collaboration. For renewable energy projects to attract private investors and institutional investors in particular, effective policy measures

The critical goals for this decade are clear: the world must triple its installed renewable power capacity and double the rate of energy efficiency improvement by 2030. “

1,000GW

How much capacity must be added annually to triple renewable power to reach 11.2 terawatts by 2030

14%

The year-on-year record— breaking growth in renewable energy capacity achieved in 2023

and financial instruments must be put in place in order to diversify and mitigate risk.

The energy transition must also be equitable. Regions and communities that rely heavily on fossil fuels, or those without reliable energy access, must not be left behind. International cooperation is essential to support capacity building, technology transfer, and financial assistance, ensuring a fair distribution of benefits and burdens. Addressing energy access deficits, particularly in sub-Saharan Africa, is critical to achieving universal energy access and fostering sustainable development.

The Call to Action

IRENA’s World Energy Transitions Outlook 2024 provides a clear and actionable roadmap to achieve the 1.5°C target by 2050. However, success will depend on unprecedented levels of global cooperation, financial investment and systemic transformation. Renewable energy must become the backbone of global energy systems, energy efficiency must be pursued with urgency, and the transition must be inclusive and equitable.

This is more than a technological or financial challenge—it is a moral imperative for the planet and future generations. By acting decisively, the world can secure a sustainable and resilient energy future that benefits everyone.

Sources: International Renewable Energy Agency (IRENA), World Energy Transitions Outlook 2024: 1.5°C Pathway, International Renewable ; Energy Agency, Abu Dhabi. ; Available at: IRENA ; Available for download: www.irena.org/publications

WATER

Profiling desalination start-ups

Taking a look at innovative ways of dealing with global water woes

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Solving the water-energy nexus

We need water to generate energy, and energy for clean water – but climate change threatens our ability to provide both. Alexei Levine, COO of Desolenator, explores the scale of the issue.

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WATER

Exploring the Relationship Between Water, Rural Development, and Food Security

Addressing this relationship is essential to building resilient agricultural systems and sustainable rural economies

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Optimising water in cities

Population growth, climate change and inefficient infrastructure are exacerbating water stress, writes Editor, Will Rankin.

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PROFILING DESALINATION STARTUPS: CETOS WATER

As the global water crisis intensifies due to population growth, shifting climate patterns, overexploited groundwater, and escalating demands from agriculture and energy, desalination has emerged as a vital solution to unlock fresh water supplies. Yet traditional desalination methods like reverse osmosis and thermal evaporation face critical limitations: high energy consumption, environmental impact, and challenges treating hypersaline or complex brines.

Enter CETOS Water, a startup pioneering a next-generation desalination approach that prioritizes sustainability, cost-efficiency and scalability for the most challenging water sources.

By Shannon Knee, co-founder and CEO of CETOS Water

The company is on a mission to redefine water treatment by turning complex wastewater from an environmental challenge into a critical solution for water scarcity and resource recovery. Through cutting-edge science and engineering, CETOS is unlocking new sources of water for use while recovering essential minerals, driving sustainable water management for industries and communities alike.

Disruptive Innovations

CETOS Water has developed a breakthrough in water treatment technology: Temperature Swing Solvent Extraction (TSSE). Unlike membranes which have upper limits to the salinity and contaminant profiles they can treat before the filters become clogged, and thermal evaporation, which is prohibitively energy intensive, TSSE utilizes advanced chemistry to selectively separate freshwater from the most contaminated feed streams using minimal energy and resources. By extracting freshwater from hypersaline brine, a space underserved by existing desalination technology, CETOS is both unlocking additional water resources while minimizing the byproducts from desalination.

Its liquid-liquid extraction technology works by adding a solvent which selectively absorbs freshwater, leaving behind a concentrated brine. The two streams naturally separate, like oil and water, eliminating the need for high pressure or extreme temperatures. Readily available waste heat or solar energy releases the freshwater from the

“

CETOS is alleviating pressure on freshwater resources and reserving them for human consumption.

solvent, allowing their solvent to be recycled in a continuous loop. The extracted water undergoes final treatment to meet specific quality standards, and the remaining brine can be used for resource recovery, such as lithium extraction, or safely disposed of.

This membrane-free, low-energy approach addresses critical gaps in existing desalination systems, particularly for industries like mining, hydraulic fracking, geothermal energy, concentrated brine management, and thermoelectric power.

Key Advantages

CETOS’ approach offers several advantages over traditional desalination methods.

At its core, their membrane-less technology can treat hypersaline and complex brines up to 10x saltier than seawater—an area beyond the reach of reverse osmosis. The thermally light approach relies on minimal temperature swings, which can be powered by industrial waste heat or solar energy, reducing both operational costs and carbon emissions. System builds avoid expensive components like specialty anti-corrosion materials, membranes, and high-pressure pumps, lowering both capital and maintenance expenses, as well as service disruptions. Adding to the ease of deployment is a modular design, facilitating offsite assembly, decreasing site disruption and allowing for scalable solutions tailored to various industries, including lithium production, thermoelectric power, mining, and geothermal sectors.

By focusing on producing fit-for-purpose water—essential for the largest consumers of freshwater in agriculture, energy, extractive and industrial processes—CETOS is alleviating pressure on freshwater resources and reserving them for human consumption. The ambitious goal is to treat one billion gallons of wastewater annually by 2026, significantly increasing the allocation of freshwater where it is needed most.

Driving Sustainability and Circularity

By extracting freshwater from currently untreatable feedwater sources, recovering valuable elements like lithium for renewable energy, and minimizing waste, CETOS is truly advancing a circular water economy.

1 billion gallons

the annual wastewater treatment goal, by 2026

For instance, its systems are capable of increasing the efficiency of mining critical minerals like lithium, which can be used in battery manufacturing, thus linking water management with the renewable energy sector. By turning industrial byproducts into usable materials and enabling the reuse of treated water, they’re helping industries move toward zero-waste processes.

In addition, TSSE’s low energy demands align with global efforts to transition to cleaner energy systems, positioning CETOS as a cornerstone of sustainable development in water treatment.

CEO Shannon Knee underscores CETOS Water’s transformative approach: “We’re rewriting the narrative around water treatment. Complex wastewater is no longer a problem to dispose of—it’s a solution to freshwater scarcity. As water scarcity continues to challenge communities and industries across the globe, it’s clear that we need innovative solutions that go beyond just producing freshwater. Technologies like TSSE hold the key to not only providing more water but also tackling the environmental challenges of brine disposal” CETOS Water actively collaborates with governments, NGOs, and industries to implement pilot projects worldwide. These initiatives serve as proving grounds for the technology, demonstrating the potential to address water scarcity while reducing environmental impact. From brine concentrate management in the Middle East, to treating complex mine tailings that risk environmental harm, to unlocking inland brackish water desalination through zero liquid discharge, to increasing the efficiency of evaporative pond mining across Latin America, CETOS Water’s systems are transforming how desalination is both perceived and implemented.

SHANNON KNEE

Shannon Knee is co-founder and CEO of CETOS Water. Shannon brings deep expertise in commercializing products and technologies through her career as a private and public markets investor at Goldman Sachs’s Principal Investment Area, Glenview Capital and Cornell Capital where she drove significant value creation through active collaboration with management teams. Shannon also worked as an investment banker at Goldman Sachs, advising large institutional clients on mergers and acquisitions, capital raising, and strategic financial planning strategies.

Shannon has a BSE with concentrations in finance and management from the Wharton School at the University of Pennsylvania where she held distinctions as a Joseph Wharton Scholar and Benjamin Franklin Scholar.

SOLVING THE WATER-ENERGY -FOOD NEXUS

By Alexei Levine, COO of Desolenator

We need water to generate energy, and energy for clean water – but climate change threatens our ability to provide both. In this Q&A, Alexei Levine, COO of Desolenator, explores the scale of the issue, as well as how the water system can be decarbonised and made more efficient to solve this tension.

How does the reliance on energy for water production—and vice versa—impact global efforts to combat climate change and achieve sustainability goals?

The energy and water sectors are deeply interrelated, as most water activity requires energy, and most energy activity requires water. Our quest to address global challenges, such as those categorised under SDGs 6 (clean water and sanitation for all), 7 (clean energy for all), and 13 (climate action), among others, requires a system-thinking approach departing

from the water-energy nexus, without tackling water and energy separately. We must prioritize low-carbon and efficient technologies that address both water and energy demands.

Water and wastewater activities account for ~4% of global electricity consumption, and that figure is expected to double by 2040 (Mortenson Center in Global Engineering, 2024). Water management more broadly is responsible for around 10% of global greenhouse gas emissions (ibid.). This is mainly related to energy use for water treatment and transport, as well as emissions from wastewater decomposition, decomposition of organics in reservoirs, and destruction of wetlands.

As natural freshwater resources are increasingly depleted, polluted, and impacted by climate change, this will likely lead to a greater reliance on energy-intensive sources of water supply such as desalination. In the Middle East, desalination’s share of

“

Global energy demand for desalination has already nearly doubled since 2010, and current trends point to another doubling to 2030

total final energy consumption is expected to increase from 5% today to almost 15% by 2040 (IEA, 2020). Global energy demand for desalination has already nearly doubled since 2010, and current trends point to another doubling to 2030 (IEA, 2024). It is estimated that global GHG emissions from desalination will increase from around 76 megatonnes of CO2e today, to 218 megatonnes by 2040 (Jones et al., 2019).

Conversely, energy generation often depends on vast quantities of water, especially for power plants and energy is required to drive all other processes. Energy is prosperity and water is essential for almost every aspect of producing energy, from electricity generation to fossil fuel extraction to biofuels cultivation. The energy sector accounts for roughly 10% of total global freshwater use (IEA, 2023). As we shift towards renewable technologies like solar and wind, the energy system’s dependence on water will also decrease.

What are the most critical challenges in balancing the interdependence between water and energy systems, particularly as climate change intensifies?

As producing clean water often requires significant energy, and energy production relies on water-intensive processes, this feeds a feedback loop that intensifies resource scarcity and environmental degradation. Some key challenges in balancing this interdependence include:

Climate change: Climate change complicates the water-energy nexus by altering both the energy and water systems, for example by exacerbating water scarcity through droughts, or by increasing energy demand for cooling due to increasing temperatures. Striking a balance requires innovative

solutions that decouple water and energy systems from fossil fuel dependence, as well as focusing on technologies that are resilient to emerging climate shocks.

AI boom: It is now well known that data centers consume 1-2% of global electricity and is expected to grow 160% by 2030 to power the AI boom (Goldman Sachs, 2024). However, less known is how data centers also consume water, either directly for cooling, or indirectly through the water requirements of non-renewable electricity generation. For example, around one-fifth of the direct water footprint of US data centers comes from moderately to highly water stressed watersheds, while nearly half are powered by power plants located in water stressed regions (Asthine and Mytton, 2024). This brings to light the importance of efficient data centers, both in terms of energy use as well as water use.

Water-energy-food nexus: As 70% of global water withdrawals are from the agricultural sector, it is essential to look at the broader energy-water-food nexus. With a growing global population and rapid urbanization, water demand for irrigation and food production will grow, potentially introducing resource competition and tension between different water using sectors. This is particularly acute in regions where water security and food security are national priorities, such as in the Middle East. In the UAE for example, 85% of all food is imported, and freshwater withdrawals exceed renewable freshwater resources by 160x (AGSIW, 2024). Water-energy solutions therefore need to strike a balance between broader social and human priorities, such as food security.

These three converging megatrends of climate-induced water scarcity,

fast-growing AI datacenters, and food systems stress can be jointly addressed through resilient, efficient and sustainable technologies to produce both water and energy.

From a technological perspective, what advancements are needed to decarbonise water systems and make them more energy-efficient?

The decarbonization of water systems requires:

-Integration of renewable energy into desalination and water treatment processes.

-Development of closed-loop systems (e.g. Minimal or Zero Liquid Discharge) that reduce waste and energy consumption.

-Adoption of digital technologies, such as AI and IoT, to optimize water production and distribution in real-time.

-Investment in modular, decentralized systems that bring water solutions closer to the point of use, reducing energy-intensive distribution networks.

What role do renewable energy sources play in addressing the water-energy nexus, and how can they be integrated into water production and treatment systems?

Some low-carbon forms of energy, such as solar and wind, require much less water, and therefore an accelerated energy transition will also reduce the energy sector’s water dependence. Renewable energy sources like solar, wind, and geothermal are key to breaking dependence on fossil fuels for water production. For example, solar-powered desalination, such as the technology developed by Desolenator, is a game-changer. By leveraging renewable energy, we can address water scarcity while minimizing carbon emissions. Integration can be achieved through hybrid systems that combine renewable energy with energy storage for 24/7 operation. The renewable energy systems can even feed electricity back into the grid in times of excess consumption. Another option that Desolenator is bullish on is retrofitting existing industrial facilities to utilize waste heat, therefore avoiding an increase in energy demand.

However, it is also important to note that solar and wind are 4%

Water and wastewater activities account for around 4% of global electricity consumption

intermittent sources of energy. Hence, we will need energy storage and/or water treatment systems that can handle the variability of renewables to address the challenges in the energy-water nexus. Moreover, some low-carbon alternatives, such as biofuels, carbon capture, utilization and storage (CCUS), or nuclear power are also relatively water-intensive (IEA, 2020), so we must always consider the suitability of different energy sources for certain water applications. Moreover, as energy processes generate waste heat, we should learn to integrate waste heat in water treatment and desalination processes to make the overall systems more efficient.

Many vulnerable regions face a dual crisis of water scarcity and energy poverty. What scalable solutions do you envisage that might address these intertwined challenges?

Decentralized, off-grid solutions hold immense promise for addressing this dual crisis. Technologies like solar-powered desalination and purification systems can provide clean water and energy to remote areas without reliance on extensive infrastructure. Community-based water-energy hubs that integrate renewable energy production with water treatment can

In the UAE, 85% of all food is imported, and freshwater withdrawals exceed renewable freshwater resources by 160x “

create localized, scalable solutions. Additionally, investment in capacity-building and training ensures communities can sustain these systems independently.

How can policymakers and industries collaborate to create frameworks that accelerate the decarbonisation of water systems?

Policymakers and industries can collaborate effectively by focusing on several key areas to accelerate the decarbonisation of water systems. First, they must set ambitious decarbonisation and water reuse targets specifically tailored for industrial water users, creating a clear roadmap for sustainable water management. Incentive structures and market-supporting mechanisms are essential to encourage industries to adopt low-carbon technologies, making these innovations more accessible and financially viable.

Promoting public-private partnerships is another critical aspect of collaboration. By pooling resources and expertise, these partnerships can drive the funding and implementation of innovative solutions that might otherwise be out of reach. Additionally, establishing robust regulatory frameworks is vital to ensure renewable energy integration in water production processes, enabling a transition to greener energy sources and further reducing emissions.

Through these combined efforts, policymakers and industries can create a cohesive framework that accelerates the transformation of water systems towards sustainability and resilience.

In your view, what are the most promising innovations or approaches emerging globally to address the water-energy nexus?

Globally, several promising innovations and approaches are emerging to address the complex water-energy nexus. Solar thermal desalination systems stand out by combining renewable energy with advanced design to enhance efficiency and sustainability. Expanding water treatment capacity at both existing plants and new builds is another critical area, with innovative integrations such as waste heat utilization playing a key role. Exploring alternative energy sources like geothermal energy offers untapped potential for water processing.

Circular water systems are gaining traction, focusing on recycling wastewater, recovering energy, and minimizing waste through technologies like Zero Liquid Discharge. AI-driven optimization tools are also transforming the field by reducing inefficiencies in both water and energy systems, ensuring smarter resource management.

Energy-positive water treatment plants, which generate more energy than they consume, represent a breakthrough in sustainable water management. Decentralized modular

ALEXEI LEVINE

Co-Founder

& Chief Growth Officer

at Desolenator. He is a serial entrepreneur, having worked in innovation for 30+ years. He is also the Founder of Abundance (raised from crowdsourcing) and Founder of Gooseberry Inc (successful exit).

ABOUT DESOLENATOR

In a world where water scarcity threatens global industry and agriculture, Desolenator is revolutionizing sustainable water security through breakthrough solar-powered desalination technology. Our flagship SP40 system delivers what traditional desalination cannot: a modular, zero emission solution producing 1,000 m³ of customized water daily while eliminating toxic brine discharge.

solutions further complement these efforts by adapting to local conditions and reducing reliance on centralized infrastructure. These innovations collectively pave the way for a more integrated and sustainable approach to managing the water-energy nexus.

What steps should global initiatives and summits like the World Future Energy Summit take to prioritise and act on the water-energy issue in coming years?

Global initiatives and summits like the World Future Energy Summit should take decisive steps to prioritise the water-energy nexus as a critical focus area in the coming years. Highlighting the interconnected challenges of water and energy as a central theme can elevate its importance on the global agenda. These platforms should actively facilitate knowledge exchange by bringing together stakeholders from the water, energy, and climate sectors, fostering collaboration and the sharing of innovative ideas.

Promoting sustainable water-energy solutions requires innovative financing mechanisms, and summits can play a role in showcasing and advocating for these models. Encouraging the adoption of renewable-powered water technologies is also essential, and this can be achieved through collaborative efforts and pilot projects that demonstrate the feasibility and impact of such solutions.

Finally, aligning policies to integrate water-energy considerations into national and international climate goals is crucial. By advocating for this integration, summits can help shape a coordinated approach to tackling the water-energy nexus on a global scale.

Sources: Water: A Key Towards Resilient Livelihoods and Agri-Food System TransformationImpact on Food Security and Rural Development of Reallocating Water from Agriculture; UN Water for Life Decade: Food Security

EXPLORING THE RELATIONSHIP BETWEEN WATER, RURAL DEVELOPMENT, & FOOD SECURITY

Water is the lifeblood of agriculture, sustaining rural livelihoods and underpinning global food security. Yet, in many regions, water resources are becoming increasingly scarce, strained by growing populations, climate change, and competing demands from industry and urban areas.

In this context, the intricate relationship between water availability, rural development, and food security is coming under greater scrutiny. Addressing this nexus is essential to building resilient agricultural systems and sustainable rural economies, writes Will Rankin.

“

Globally,

agriculture accounts for approximately 72% of freshwater withdrawals, a figure that climbs to over 90% in some arid and semi-arid

regions.

Water and Food Security: A Critical Interdependence

Globally, agriculture accounts for approximately 72% of freshwater withdrawals, a figure that climbs to over 90% in some arid and semi-arid regions. Irrigation enables higher yields, contributing to nearly 40% of global food production despite being applied on only 20% of cultivated land. Rainfed farming produces 60% of the world’s food on 80 percent of cultivated land. However, inefficient irrigation practices and the over-extraction of groundwater have led to the depletion of vital water sources in many regions, particularly in North Africa, South Asia, and parts of the Middle East.

This water scarcity is a direct threat to food security, particularly in rural areas where farming is the mainstay of livelihoods. Without adequate water, crop yields decline, livestock suffers, and food availability diminishes. This, in turn, drives food prices higher, disproportionately affecting vulnerable populations. Climate change exacerbates these challenges, bringing erratic rainfall patterns, prolonged droughts, and intensified competition for dwindling water resources.

The Role of Rural Development in Water Management

Rural development initiatives play a pivotal role in improving water access and management, enhancing agricultural productivity, and strengthening food security. Investments in rural water infrastructure—such as irrigation systems, reservoirs, and rainwater harvesting technologies—can significantly improve water availability and distribution. For

example, community-managed irrigation systems in sub-Saharan Africa have enabled smallholder farmers to maintain production even during dry seasons.

For instance, in Zimbabwe’s Chipinge district, solar-powered community gardens provide reliable water access, allowing farmers to cultivate crops like onions, leaf cabbage, and cowpeas year-round. Meanwhile, US— led aid programmes and training has seen low income farmers switch from growing rain—dependent corn to more resilient, heat resistant crops like chilis and millet. This approach has reduced dependence on unpredictable rainfall and improves food security.

Similarly, in Niger, smallholder farmers have adopted innovative irrigation technologies, such as solar-powered pumps, to enhance water access during dry periods. The African nation, where 80 percent of the population relies on agriculture for their livelihood, now ranks among those with the fastest pace of irrigation expansion, with 20 percent of its agriculture GDP coming from irrigated agriculture.

In Kenya, the Africa Sand Dam Foundation collaborates with local communities to build sand dams, which store water within sand particles, reducing evaporation and contamination. These structures provide a reliable water source during dry seasons, enhancing water security and supporting agricultural activities.

Such innovative systems have proven effective in arid regions, improving livelihoods, increasing agricultural productivity and bolstering resilience against climate variability.

Education and training programmes also form a crucial aspect of rural development, equipping farmers with the knowledge to adopt water-efficient practices. Techniques such as drip irrigation, mulching, and conservation tillage have been shown to reduce water use while maintaining or even improving crop yields.

Water Reallocation: Balancing Competing Needs

As water becomes an increasingly contested resource, reallocating water from agriculture to other sectors has emerged as a potential solution. However, this approach comes with trade-offs. While urban and industrial water users may generate higher economic returns per unit of water, reducing water for agriculture can jeopardise rural livelihoods and food security, particularly in developing countries.

Research suggests that carefully managed reallocation, accompanied by investments in water-saving technologies and compensation mechanisms for farmers, can mitigate negative impacts. For example, programs in Spain and Australia have successfully implemented water trading systems that allow farmers to sell surplus water, generating additional income while conserving resources.

In Australia, the Murray-Darling Basin (MDB) exemplifies this approach. The MDB is the country’s largest river system, accounting for 97% of all water allocation trades and 77% of entitlement trades. This trading system has enabled water to be redirected from low-value to high-value agricultural uses, enhancing economic efficiency and promoting water conservation. Notably, during periods of drought, such as the Millennium Drought from 1995 to 2010, water trading allowed farmers to maintain operations that might otherwise have been devastated.

Similarly, Spain has implemented water trading mechanisms to address water scarcity and improve allocation efficiency. Since the 1999 Reform of the Water Act, formal water markets have been incorporated into Spain’s legal framework, permitting voluntary exchanges of water rights. Although traded volumes in dry years represent less than 1% of all annual consumptive uses, these markets have facilitated the reallocation of water resources among users, improving water use efficiency and directing water to higher-value applications.

Transforming Agri-Food Systems Through Water Resilience

Building water-resilient agri-food systems is essential for addressing the dual challenges of food security and sustainable rural development. Circular water management practices, such as wastewater reuse and rainwater harvesting, offer promising solutions. In India, for example, integrated watershed management programmes (IWMP) have improved groundwater recharge, reduced soil erosion, and increased agricultural productivity in rural communities, while promoting sustainable development.

India’s Integrated Watershed Management Programme, launched in 2009, aims to restore ecological balance by harnessing, conserving, and developing degraded natural resources such as soil, vegetative cover, and water. The IWMP adopts a participatory approach, involving

19% of the world’s renewable water resources is being withdrawn, after taking into account environmental flow requirements (SDG indicator 6.4.2, 2021)

local communities in planning and implementing watershed activities. This strategy has led to improved water availability for irrigation, diversification of cropping patterns, and increased farm incomes. Additionally, it emphasises capacity building and the promotion of sustainable livelihoods, contributing to poverty alleviation in rural areas.

Policy frameworks must also prioritise equitable water access. Ensuring that smallholder farmers have a fair share of water resources is critical to reducing rural poverty and improving food security. Collaborative governance models, involving local communities, governments, and private stakeholders, are key to achieving this goal.

In Chile’s Rapel River Basin, for example, a collaborative water governance model has been implemented to address complex water management challenges. This approach involves stakeholders from various sectors, including government agencies, local communities, and private entities, working together to manage water resources effectively. By combining stakeholder analysis, social network analysis, and participatory processes, this model has facilitated social learning, built trust among stakeholders, and mobilised efforts towards practical collaborative water governance.

Such a collaborative framework has enabled the identification of key stakeholders and the establishment of networks that promote information flow, financial exchanges, and cooperative ties. These efforts have been instrumental in advancing water governance in the Rapel River Basin, demonstrating the potential of collaborative models in managing water resources in developing regions.

The Environmental Impact of Water Use in Agriculture

Beyond its social and economic implications, water use in agriculture has a significant environmental footprint. Excessive water withdrawal contributes to the degradation of ecosystems, reducing biodiversity and disrupting the natural water cycle. Runoff from agricultural fields, laden with fertilizers and pesticides, pollutes rivers, lakes, and groundwater.

Transitioning to sustainable practices, such as agroforestry and regenerative agriculture, can help address these

“Techniques such as drip irrigation, mulching and conservation tillage have been shown to reduce water use while maintaining or even improving crop yields.

challenges. Agroforestry, for example, enhances water retention and reduces soil erosion, while regenerative practices improve soil health and carbon sequestration.

The relationship between water, rural development, and food security is complex and deeply interconnected. Addressing water scarcity in agriculture requires a holistic approach that combines investments in infrastructure, the adoption of efficient practices, and supportive policy frameworks. Rural development must prioritize water resilience to sustain livelihoods and ensure food security for growing populations. By transforming water use in agriculture, we can build a more sustainable future that balances the needs of people, the economy, and the planet. Collaborative efforts from governments, communities, and the private sector will be critical in making this vision a reality.

Sources: Water: A Key Towards Resilient Livelihoods and Agri-Food System Transformation; Impact on Food Security and Rural Development of Reallocating Water from Agriculture; UN Water for Life Decade: Food Security

According to the World Bank, by 2030, nearly 60% of the world’s urban areas are expected to face water scarcity, with demand outstripping supply by as much as 40%.

This startling projection highlights the urgency for sustainable water management in cities, where population growth, climate change and inefficient infrastructure are exacerbating water stress. Will Rankin reports…

OPTIMISING WATER IN CITIES: POLICIES AND TECHNOLOGIES FOR COMBATING URBAN WATER SCARCITY

Abrief examination of water—stressed cities across the world reveals a growing list of cities of all sizes that are facing water issues, from South America to China.

Cities are increasingly facing water stress due to a combination of environmental, demographic, and infrastructural factors. Rising global temperatures and changing precipitation patterns are exacerbating droughts and reducing freshwater availability. Cities in arid and semi-arid regions are particularly vulnerable, as prolonged dry periods strain limited water resources.

Meanwhile, the global urban population is growing rapidly, with millions moving to cities annually. This surge in population increases demand for water for domestic, industrial, and agricultural use, often outpacing the supply capacity of existing infrastructure.

Poor planning and inefficient water use are further compounding the problem. Many cities rely heavily on a single water source, leaving them vulnerable to shortages. Additionally, aging infrastructure results in significant water losses through leaks.

Pollution of rivers, lakes, and groundwater by industrial waste, agricultural runoff, and untreated sewage is further exacerbating the global water shortage problem, reducing the amount of clean water available in our cities. Over-extraction of groundwater for urban needs further depletes this critical resource, often faster than it can be replenished.

Water stress is also worsened by uneven distribution and access, often meaning marginalised communities bearing the brunt of shortages.

Addressing water stress requires sustainable planning, investment in resilient infrastructure, and global cooperation to adapt to changing climatic realities.

Policies and technologies

Urban areas worldwide are increasingly adopting innovative policies and technologies to combat water scarcity, with a renewed sense of urgency. Newspaper headlines share terrifying prospects of extreme water shortages, causing city authorities and federal departments to take decisive action.

For instance, Cyprus plans to enhance its reliance on desalination plants due to a series of arid winters that have significantly reduced dam water levels. The government aims to implement four additional mobile desalination units by October 2025, each providing 30,000 cubic meters of potable water daily, to address immediate shortages and ensure long-term water security.

In the United States, the northeastern region is experiencing historically dry conditions, prompting experts to advocate for major changes in water management. Proposed solutions include replenishing groundwater through permeable surfaces and injecting treated wastewater, encouraging water conservation via incentives, and reusing water for non-potable purposes like flushing toilets and cooling buildings. These measures aim to mitigate future water shortages exacerbated by climate change.

Similarly, California is facing significant challenges to its water supply due to prolonged droughts. In response, efforts are underway to develop and implement on-site water reuse systems — water recycling — to conserve and diversify water resources.

San Francisco’s Public Utilities Commission launched the Onsite Water Reuse Program in 2012 to facilitate this initiative. The programme has led to the development of permitting processes for private sectors to adopt these systems. With the goal of making water recycling more accessible and efficient,

Ten water—stressed cities

• Chennai, India: Chennai faces severe water shortages, with a water-stress score of 3.48 out of 5. Statista

• São Paulo, Brazil: São Paulo’s main reservoir fell below 4% capacity, leading to a major water crisis. BBC

• Beijing, China: Beijing has experienced significant water stress due to high demand and limited water resources. BBC

• Cairo, Egypt: Cairo relies heavily on the Nile River, facing challenges from pollution and increasing demand. BBC

• Jakarta, Indonesia: Jakarta struggles with water scarcity due to pollution and over-extraction of groundwater. BBC

• Mexico City, Mexico: Mexico City faces water scarcity challenges due to over-extraction of groundwater and infrastructure issues. BBC

• Istanbul, Turkey: Istanbul has experienced water stress due to rapid population growth and limited water resources. Statista

• Tehran, Iran: Tehran faces water scarcity challenges due to high demand and limited water availability. Statista

• Hyderabad, India: Hyderabad has experienced water stress due to rapid urbanization and limited water resources. Statista

• Los Angeles, USA: Los Angeles has faced water stress due to drought conditions and high water demand.

Singapore has developed a water management strategy, the Four National Taps: local catchment water, imported water, reclaimed water and desalinated water “

Silicon Valley startups like Epic Cleantec have emerged, offering solutions for large buildings and integrating energy-saving mechanisms.

These systems not only address water scarcity but also provide economic benefits to developers. However, retrofitting existing buildings remains a challenge due to infrastructure constraints. California’s agriculture sector, a heavy user of water, also benefits from recycled water, crucial for crop irrigation.

Public awareness campaigns and legislative support have been essential in promoting water conservation and the safe use of recycled water. These efforts are paving the way for stronger water infrastructure and sustainable water management in California.

Singapore

Singapore, the densely populated city-state in Southeast Asia, has historically grappled with significant water scarcity challenges due to limited natural freshwater resources and a growing urban population. It has imposed water rationing since the 1960s, but continued to face water stress, especially in light of the fact that it has no natural freshwater sources of its own. Even so, Singapore is successfully meeting the increasing water needs of its rapidly growing population and economy.

To address its water issues, Singapore has developed a comprehensive and

innovative water management strategy known as the “Four National Taps,” which includes local catchment water, imported water, NE water (reclaimed water) and desalinated water.

The city—state now maximises rainwater collection by designating two-thirds of its land surface as water catchment areas. Rainwater is collected through an extensive stormwater drainage system and stored in reservoirs before treatment for potable use.

Historically, Singapore has imported water from Malaysia under long-term agreements. However, to reduce reliance on external sources, Singapore has diversified its water supply through other means.

NE Water — Reclaimed Water — for example, is an advanced wastewater treatment process which produces high-grade reclaimed water, branded as NEWater. This reclaimed water meets up to 40% of the nation’s current water demand and is used primarily for industrial purposes and reservoir augmentation.

And to further enhance water security, Singapore has invested in desalination plants that convert seawater into potable water, contributing significantly to the nation’s water supply.

These integrated approaches have enabled Singapore to achieve a robust and resilient water supply system, effectively mitigating the impacts of water scarcity and supporting sustainable urban development.

Mexico City

Mexico City could take a leaf from Singapore’s innovative approach. This mega—city, home to over 22 million residents in its metropolitan area, is grappling with a severe water crisis exacerbated by climate change and decades of unsustainable water management. Once abundant in freshwater lakes and rivers, the sprawling city now faces chronic shortages, leaving many residents with unreliable access to clean water.

A Perfect Storm of Challenges

The crisis stems from a combination of environmental and structural factors. Prolonged droughts, driven by changing weather patterns, have reduced rainfall, while increasing temperatures accelerate evaporation rates. These climatic shifts significantly impact the aquifers beneath Mexico City, which supply 70% of the city’s water but are being depleted faster than they can recharge.

Urbanisation compounds the problem. As Mexico City expands, its concrete landscape prevents effective rainwater absorption, reducing natural aquifer replenishment. Meanwhile, aging infrastructure causes massive water losses, with leaks accounting for an estimated 40% of the city’s water supply.

Uneven Impacts and Coping Strategies

Water stress disproportionately affects marginalised communities.

While wealthier neighbourhoods often have consistent access to water, low-income areas rely on infrequent and unpredictable deliveries from water trucks. This inequality underscores the broader challenge of providing equitable water access across the city.

In response, residents and officials are adopting short-term solutions. Many households store water in tanks when supply is available, while local authorities ration water distribution. However, these measures provide only temporary relief.

Searching for Long-Term Solutions

Efforts are underway to address Mexico City’s water woes sustainably. Rainwater harvesting systems are being implemented in homes and schools to capture and store rain for domestic use. Wastewater recycling initiatives are also gaining traction, aiming to supplement freshwater sources.

Meanwhile, reforestation projects in the surrounding areas are being promoted to restore natural water cycles. Planting trees can help prevent erosion, improve soil absorption, and ultimately aid aquifer recharge.

Yet, these measures face significant obstacles. Political and financial constraints, combined with the sheer scale of the city’s water needs, make rapid progress difficult.

Experts argue that a comprehensive approach, involving stricter water conservation policies and investments in infrastructure modernisation, is essential to prevent future crises.

Lessons for Global Cities

Mexico City’s water crisis is a stark reminder of the growing pressures urban centres face worldwide. As populations swell and climate change intensifies, cities must prioritise sustainable water management and invest in resilient infrastructure.

The situation in Mexico City demonstrates the urgent need for collective action, innovative technologies, and inclusive policies to ensure residents have access to a reliable water supply.

Without widespread adoption of such measures, the global urban water crisis will only worsen, jeopardising public health, economic stability and the future of the world’s cities.

Ten ways to address urban water challenges

• Water Conservation and Efficiency Programs: Implementing initiatives that promote efficient water use can significantly reduce demand. For example, California has developed on-site water reuse systems to conserve and diversify water resources.

• Leak Detection and Infrastructure Maintenance: Regular monitoring and repair of water distribution systems can minimise losses due to leaks, ensuring that more water reaches consumers.

• Diversification of Water Sources: Developing alternative sources such as desalination plants can enhance water security. Cyprus, for instance, plans to increase reliance on desalination due to arid winters reducing dam capacities.

• Rainwater Harvesting and Stormwater Management: Capturing and utilis ing rainwater can supplement existing supplies. The “sponge city” concept, which involves designing urban areas to absorb and reuse rainwater, has been implemented in various cities to manage stormwater effectively.

• Wastewater Recycling and Reuse: Treating and reusing wastewater for non-potable purposes, such as irrigation and industrial processes, can alleviate pressure on freshwater sources.

• Public Awareness and Education Campaigns: Educating residents about the importance of water conservation encourages responsible usage and supports the success of conservation programs.

• Implementation of Water-Smart Landscaping: Promoting xeriscaping and the use of drought-resistant plants reduces outdoor water consumption. Programs like Southern Nevada’s “cash for grass” initiative have incentivized such practices.

• Integrated Urban Water Management (IUWM): Coordinating the management of water supply, wastewater, and stormwater systems ensures a holistic approach to urban water challenges. This strategy addresses poorly coordinated management that can lead to water scarcity crises.

• Policy and Regulatory Measures: Establishing regulations that mandate water-efficient appliances and fixtures, as well as setting limits on water usage during droughts, can enforce conservation efforts.

• Investment in Smart Water Technologies: Utilising sensors and data analytics for real-time monitoring of water systems enhances the ability to detect issues promptly and optimise water distribution.

By adopting a combination of these strategies, cities can build resilient water systems capable of sustaining growing populations and adapting to changing environmental conditions.

SOLAR CLEAN FUELS

Trends Reshaping Solar, Wind and Hydrogen

The clean energy sector faces complex challenges — and unprecedented opportunities — for a sustainable future. We talk to Professor Phil Hart, Chief Researcher, Renewable and Sustainable Energy Research Center at the Technology Innovation Institute (TII), UAE p68

The Energy Trilemma: Balancing Transition, Sustainability And Security

Oxford Institute for Energy Studies Director, Dr Bassam Fattouh says addressing these dimensions demands innovative policies, robust investment, and global cooperation p72

A Clearer Flight Plan for Tackling Aviation’s Climate Impact

Aviation remains one of the toughest climate challenges to solve, says Aether Fuels’ Sustainability Director, Alyssa Norris p74

& CLEAN

Bold Steps in Green Hydrogen

Green hydrogen offers a truly clean energy made with ubiquitous materials. Green hydrogen expert Frank Wouters, Chairman, MENA Hydrogen Alliance, delivers an insightful overview p76

Promoting A Circular Economy In The Us Renewable Energy Sector

What lessons can the US take from the rest of the world to ensure it isn’t overwhelmed by waste from solar and wind projects? asks Joanna Davies, Senior Researcher, G20 Research Group p80

The Power of Solar in Taking Us Closer to Net-Zero

Solar energy is now the fastest-growing source of electricity. Andres Anijalg, Co-Founder and CEO of Roofit. Solar examines the new low— carbon economy. p84

Net Zero Through Clean Fusion

“Clean Energy’s Holy Grail,” holds the promise of limitless, zero-carbon power. Peter Liu, CEO, Alpha Ring International, explains p86

Strengthening solar and clean energy at COP29

Despite progress, significant gaps in funding and implementation remain, writes Dr Ella Kokotsis, Director, Climate Finance Strategy, Global Governance Program, University of Toronto. p88

How Can we Secure a Sustainable Climate Future?

The reality of an emissions-neutral energy future has never felt so achievable, writes Vasyl Zhygalo, Managing Director RX Middle East and Emerging Markets, WFES organiser p92

NAVIGATING THE CLEAN ENERGY REVOLUTION: TRENDS RESHAPING SOLAR, WIND, AND HYDROGEN

As solar and wind power lead the charge in renewables, emerging technologies like AI and clean hydrogen promise to optimise energy systems and drive innovation. From grid integration to global disparities, the clean energy sector faces complex challenges—and unprecedented opportunities—for a sustainable future. Here, we talk with Professor Phil Hart, Chief Researcher, Renewable and Sustainable Energy Research Center at the Technology Innovation Institute (TII), UAE

What are the most significant trends currently shaping the solar and clean energy sector, and what do you see as the driving forces behind these changes?

The driving forces in energy are extremely complex at this moment. Positive forces are the cost of renewables, as these continue to fall rapidly, and the scale of renewable manufacturing capacity, which continue to grow rapidly. Solar is benefiting from these the most and might be entering an overcapacity regime which would do some

interesting things to the market. Negative forces in the market are supply chain issues, especially for critical minerals and uncertain geopolitics. We’ve seen immense upheaval in energy supply since the Russian activity in Ukraine, and I think it is fair to say that Europe’s energy mix took quite the beating and world fossil energy flows were re-written.

The rapid expansion of LNG sources to plug the hole left by Russian gas re-wrote supply chain dynamics and led to a boom in new LNG capacity.

Over the next few years, a bunch of new capacity will come online, and the supply of LNG will potentially outstrip demand; we should see meaningful downward pressure on pricing there.

Flow that back into low carbon energy sources and their pace of roll out, and we get into a very complex position where climate concerns and excellent pricing drives downward pressure on renewables costs, while capacity growth in LNG should make it very competitive and economically difficult to move away from.

We could then get into an energy price war, which would be a complete reversal of the situation of the last three to four years. Then, bring into the mix the critical mineral position and concerns over single countries dominating critical supply chains.

As trade tends towards less globalization and more protectionist behaviours, cost alone might not be the dominating factor, and energy security concerns might rise to the top. I guess all that goes to say “it’s complicated…”

Nuclear energy is expanding to record-breaking levels. What are the implications of this growth for the broader renewable energy landscape?

Nuclear expansion is not something many predicted a decade ago, but it now has significant traction and will probably play an increasing role in the energy mix going forward. The advantages of nuclear energy in a clean energy grid are obvious. Baseload, highly reliable supply with very low carbon emissions are very attractive properties. Coupled with that is longevity, with plants routinely having lifetimes of 50 years plus.

Decisions made now to build nuclear plant will result in power generation systems that are going to be with us as we approach the year 2100.

The drive to triple nuclear by 2050, although probably overly optimistic in my view, is testament to the advantages nuclear can bring to a renewables dominated power grid.

New Small Modular Reactor (SMR) plants are an interesting deviation from the nuclear norm. The ability to

bulk manufacture stand designs could mean much faster adoption, much wider distribution and less costs.

If SMRs successfully hit the streets, many of the drawbacks of traditional nuclear energy production will be removed. How does this impact renewables? That depends, in my mind, on cost. If they can be made cost effectively then all bets are off, and we would get into a proper race between the options, but it is unlikely that nuclear will get there any time soon (if ever).

So, gazing into the hazy landscape of the future I think nuclear has a core position as a sustainable base load supply, but will not displace wind or solar as the future main power supplier. But then we all know how dangerous it is to try to predict the future…

Solar PV and wind are leading the charge in driving renewables uptake. How do you foresee their roles evolving in the next decade? Solar is likely to dominate the future of renewables; I don’t see

Solar is likely to dominate the future of renewables; I don’t see any technology on the near horizon that could compete with the cost and simplicity of PV technology. “

“

Nuclear has a core position as a sustainable base load supply, but will not displace wind or solar as the future main power supplier.

any technology on the near horizon that could compete with the cost and simplicity of PV technology. And it continues to improve, which means more energy per panel at less cost, with reliability and resulting longevity meaning we can expect each panel to last 30 years on average.

Wind is less clear but equally vital. The technology is more complicated and less suited to high volume manufacture, and thus incremental gain continually introduced is more difficult than with solar. Project economics are also less compelling, and there are signs of some project developers being less enthusiastic than they were, certainly for offshore wind projects. But, in areas of less solar resource, wind is the very definite next best option.

There are significant disparities in clean energy capacity across regions. What do you think are the key challenges and opportunities in addressing these global differences?

In a perfect world, developing nations would skip over the fossil fuel power age and go right to renewables, building a grid optimised around the variability these technologies have. To do this, however, they need to raise finance and bring to the table bankable projects with low-risk profiles and good payback characteristics. Instability and historical biases in these areas make this difficult with international financial institutions, and we need to get creative with

how we blend-finance or put guarantees in place to make projects more widely investable. If we can pull that off, then we’ll be in good shape as feedback from a senior financial panel at COP29 suggested money was available for investable projects.

I think the situation in the developed world is very amenable to renewables, as they represent the most cost-effective power generation option in very many cases.

The challenge there is politics, and whether governments and political parties have the will and long-term vision to play their part in addressing climate change within their critical infrastructure.

The integration of renewables into existing energy grids remains a challenge. What innovations or policy changes do you believe are critical to overcoming these obstacles?

I don’t think that’s really the case. We could build out grids in a way that allows very large renewable capacity to dominate the generation side. Technologies exist to deal with most of the challenges, but we need continual improvement in them and volume demand to come into the supply chain to make these technologies viable.

Perhaps the biggest outstanding issue is long term / inter-seasonal storage, but there are options like chemical storage or compressed gas storage - and for the right sites more pumped hydro – and these all need further consideration.

To make this a reality, we need to continue development of battery technology for the hourly to 12 hourly storage needs, using lower cost minerals/metals to drive costs down and increase capability, and then push hard on power to liquid/gas options and making them economically viable.

Policy and financial support by governments in these areas is crucial, but those countries that win the race will be in an excellent position to export these solutions globally, so it would seem like a good investment.

In your view, what role do emerging technologies, such as AI and machine learning, play in optimising clean energy generation and consumption?

I think AI is going to be very useful as we try to optimise our future energy systems, but we will need to figure out the best way to employ their capabilities and that aspect is relatively nascent. Our future grids will become more complicated, in terms of distribution of generation systems and sizes, directional flow of power across local and macro grids, distributed stationary and mobile (vehicle) power storage systems, prevalence of smart metering solutions at consumer and industrial levels, demand side response systems, weather induced variation in power production and inter-seasonal changes and other aspects. Monitoring and controlling these systems will be challenging: making the most of them and maximising their efficiency will be a mammoth and unending task. AI would appear to be perfectly suited to this type of task, and I think this is where it will make its biggest impact.

With increasing investment in green hydrogen, how do you see its potential to complement or compete with solar, wind, and nuclear energy?

I think we’re missing the point here by overplaying the “green” card. What we must ensure is hydrogen brought to the market is beneficial, or at least non-detrimental, to the climate.

That means we need “clean” hydrogen not necessarily “green” hydrogen, and by specifying “clean” we widen the production mechanisms to include non-electrolyzing methods. We need to focus on the prize: it would be very useful to our 2050 net zero ambitions to have hydrogen as an economic fuel option.

Within the hard-to-abate industrial and transport sectors, hydrogen could have a very wide contribution and enabling function. But to do that, it needs to be able to compete economically against the other options. We need an efficient, large scale hydrogen economy in place.

PROFESSOR PHIL HART

Prof. Phil Hart is Chief Researcher at the Renewable and Sustainable Energy Research Center at the Technology Innovation Institute (TII), a cutting-edge UAE-based scientific research center. He is responsible for research and development of the next generation of energy systems and solutions - from fuel cells and batteries to alternative fuels, bioenergy and renewable energy production, and carbon capture and reduction technologies, as well as energy system design and modelling. He has more than 35 years of experience in the field of energy and power technologies. He specializes in sustainable net zero energy infrastructure and technologies, next generation energy systems, wind and marine energy systems, and the role/impact of business and society within the energy transition.

As we move to a renewable based power grid, applications for direct use of electricity are numerous. Diverting these to produce hydrogen feels somewhat inefficient and could prevent electrification of other more beneficial areas. So, in my opinion, alternative methods of hydrogen production at scale with minimal climate impact should be investigated, and invested in.

That means reforming technologies applied to natural gas have a core role to play here, so long as we are rigorous about how we capture and store away or use the CO2 that is produced. If we maintain the prize as wanting to establish a hydrogen economy, take pragmatic decisions about how we get there, and then go for it wholeheartedly, hydrogen could play a pivotal role in energy storage and in direct displacement of fossil fuel use in hard to abate applications. I wrote a piece about this type of approach some time ago called “Pragmatic Idealism”, I think the title says it all.

As the global energy landscape shifts, the interconnected challenges of sustainability, affordability, and security have come into sharper focus. Addressing these dimensions demands innovative policies, robust investment, and global cooperation, says The Oxford Institute for Energy Studies Director, Dr Bassam Fattouh.

THE ENERGY TRILEMMA: BALANCING TRANSITION, SUSTAINABILITY AND SECURITY

Energy policy has long sought to strike a delicate balance between multiple objectives: ensuring sustainability, affordability, access, and security.

For many nations, this balancing act extends into development policy, enhancing competitiveness and driving industrialization. However, the room for trade-offs has become increasingly narrow. Falling short on any objective risks undermining not only the energy sector but also broader goals such as economic growth, competitiveness, and achieving sustainable development.

As energy is fundamental to economic progress, its secure supply remains a top priority for policymakers worldwide. However, secure energy alone is insufficient. Energy must also be affordable, promoting economic competitiveness and ensuring universal access while maintaining public support for transitions. High energy costs disproportionately impact low-income households, creating significant burdens in both developed and developing economies. In the latter, where incomes are lower and access remains a critical issue, affordability is an even more pressing concern. At the same time, energy systems must align with global climate targets, requiring fundamental changes to infrastructure, investment strategies, and international cooperation.

This article explores key dimensions reshaping the energy transition, from the evolving role of hydrocarbons to financing challenges and the geopolitical landscape.

The Role of Hydrocarbons Reconsidered

Despite the global push towards renewables, oil and gas remain integral to the energy mix in most regions. The challenge lies in minimizing greenhouse gas emissions associated with hydrocarbons. For decades, oil and gas players competed on operational costs, capital efficiency, and reserves replenishment. Today, the competition has expanded to include lowering carbon intensity and reducing emissions—a critical component of maintaining a social license to operate.

Achieving these goals demands significant investments in electrifying platforms, carbon capture and storage (CCS), and low-carbon fuels for aviation and transport. It also requires harmonizing standards for emissions measurement, reporting, and verification. The resilience of hydrocarbons also remains vital. The Russia-Ukraine war highlighted the dangers of over-reliance on single energy suppliers. While this over-reliance stemmed from policy failure rather than market failure, it underscored the importance of infrastructure investments made over decades. Gas markets demonstrated remarkable adaptability, redirecting trade flows and rationalizing demand through pricing signals. Nevertheless, these adjustments came at significant costs, particularly to low-income countries.

Similarly, oil markets have weathered substantial shocks, including COVID-19, geopolitical conflicts, and interventions such as embargoes and price caps. These

events have transformed trade flows, increasing logistical complexity and costs. Despite these challenges, the resilience of the oil sector has ensured continued supply stability, with prices stabilizing in the $75–$85 range throughout 2023.

Investment in Infrastructure

As renewables and hydrogen gain prominence and electrification extends to new sectors, infrastructure security and resilience are crucial. Robust investments in supply chains, storage, transmission, and distribution networks are essential to ensuring affordability and reliability.

Attracting large-scale investment requires sustainable business models, supported by government mechanisms that price emissions and share risks between public and private sectors. Scaling emerging technologies is vital for cost reduction and achieving net-zero goals. Even for renewables, which have seen declining costs, addressing supply chain issues and integrating infrastructure remains critical.

Financing the Energy Transition

The scale of investment needed for new energy infrastructure places immense pressure on financing systems. While global capital markets are deep enough to support the transition, the challenge lies in directing capital where it is most impactful—particularly to developing countries, where energy access and emissions reductions remain pressing issues.

Many developing nations face deteriorating financial conditions, rising borrowing costs, and underdeveloped local markets. This creates a reinforcing cycle: limited investment in climate projects reduces resilience and creditworthiness, further increasing financing costs. Breaking this cycle requires intervention from multilateral development banks (MDBs) to provide stable, affordable climate finance.

DR BASSAM FATTOUH

Dr Bassam Fattouh is the Director of the Oxford Institute for Energy Studies (OIES) and Professor at the School of Oriental and African Studies (SOAS). He has published a variety of articles on energy policy, the international oil pricing system, OPEC behaviour, the energy transition, and the economies of oil producing countries. Dr Fattouh served as a member of an independent expert group established to provide recommendations to the 12th International Energy Forum (IEF) Ministerial Meeting in Cancun (29-31 March 2010) for strengthening the architecture of the producerconsumer dialogue through the IEF and reducing energy market volatility. He is the recipient of the 2018 OPEC Award for Research. He acts as an advisor to a number of governments and companies. He is a regular speaker at international conferences.

The Rise of Industrial Policy

Industrial policy is experiencing a resurgence as governments seek leadership in clean technologies and energy supply chains. China’s dominance in solar and critical minerals supply chains underscores the success of targeted industrial strategies. Recent US initiatives, such as the Inflation Reduction Act, aim to establish leadership in clean technologies while enhancing economic competitiveness.

Europe has responded with the Net Zero Industry Act, designed to accelerate domestic renewable manufacturing. These policies reflect a broader trend, raising questions about technological diffusion, global competition, and the inclusion of resource-rich but technologically underdeveloped nations.

The Geopolitical Context

The energy transition must integrate emerging technologies, robust infrastructure, and inclusive financing mechanisms, ensuring no country is left behind.

The energy transition unfolds against a backdrop of geopolitical polarization, exacerbated by conflicts like the Russia-Ukraine war and deteriorating US-China relations. Divergence between the Global North and South has widened over issues like climate finance and loss-and-damage compensation.

As countries seek to reduce reliance on foreign energy and minerals, supply chains are becoming increasingly localized. However, this fragmentation comes at a time when global cooperation is most needed to address shared climate goals.

Navigating the energy trilemma—balancing sustainability, affordability, and security—requires coordinated efforts across policy, investment, and innovation. The energy transition must integrate emerging technologies, robust infrastructure, and inclusive financing mechanisms, ensuring no country is left behind. By addressing these interconnected challenges, the global community can pave the way for a more sustainable, secure, and equitable energy future.

A CLEARER FLIGHT PLAN FOR TACKLING AVIATION’S CLIMATE IMPACT

Alyssa Norris, Sustainability Director, Aether Fuels

Air travel represents around 2.5% of global CO2 emissions – a proportion that is likely to grow if air travel continues on a business-as-usual trajectory, and as other sectors start to decarbonize. While many forms of land-based transport can rely on electricity via batteries or fuel cells, aviation, particularly long-haul aviation, relies on high energy-density fuel, which cannot be easily substituted by the battery technology of today, so scaling up sustainable aviation fuel (SAF), which can offer up to 100% net emission reductions and work with existing fleets, has emerged as the best option for the sector.

In response, we’ve seen intense innovation in the SAF industry, with major breakthroughs in production technology and new feedstock utilization pathways – as well as widespread policy support, as countries around the world have established SAF mandates and incentives, requiring flights to start using small, but increasing, percentages of SAF.

But the required scaling curve is steep - in an assessment published in Bloomberg, SAF supply needs to grow 16-fold by 2030 to stay on track to meet the industry’s net-zero goals.

The global airline industry’s post-COVID comeback showed no sign of stopping in 2024, as passenger numbers hit an all-time high of 5 billion, according to the International Air Transport Association (IATA). This growth represents a major turnaround for an industry that suffered years of losses under the pandemic – but it also represents one of the toughest climate challenges to solve as we enter the second quarter of the century.

The Feedstock Challenge

One of the biggest challenges with SAF is the search for the right sources of sustainable feedstocks, with many SAF projects struggling with feedstocks that are too expensive, too scarce, or both. Today, SAF is overwhelmingly produced using the hydro-processed esters and fatty acids (HEFA) process, which converts fats, oils, and greases from sources like used cooking oil (UCO) and animal fats. Some SAF is also produced via the HEFA process using crop-based feeds like canola oil and soybean oil, but because such feeds compete with food production, these are usually not considered part of the long-term SAF solution. HEFA-based SAF has paved the way for the industry, but there are already feedstock constraints for this process and SAF adoption is still in the low single-digit percent range.

China, the world’s largest producer of UCO is on track to run out in the near future. Pressure on the supply chain not only means HEFA feedstocks are more expensive, but it also creates a strong incentive towards fraudulent behaviours, like bad actors classifying virgin oils as UCO. HEFA fuels have created the foundation for the industry – but those looking to scale up SAF production ethically are struggling to meet demand using waste streams like UCO alone. Developing new (and more scalable) carbon feedstock streams, and the process technologies to convert them cost-efficiently into drop-in liquid fuel, is therefore a core requirement of the next phase of SAF growth.

Broadening Horizons

In response to the supply challenges with UCO-derived fuels, the industry has begun exploring using green

hydrogen, combined with captured CO2, to produce “e-fuels” as the ultimate solution for SAF, because the feedstocks are functionally unlimited. E-fuel boosters argue that such theoretical feedstock abundance means that no other pathways are needed, and in the long run there will only be e-fuels. E-fuel skeptics on the other hand argue that high cost of green hydrogen makes e-fuels prohibitively expensive, and argue that it will be decades, if ever, that e-fuels make economic sense (when compared to other sustainable fuel routes.)

Underlying the sceptics’ concerns, however, is the vast amount of renewable power that e-fuels require, and the increasing market competition for such renewable power, from, e.g., electric vehicles and data centers - much larger and more powerful industries. As is often the case, the future reality will likely be more complex – and more than one feedstock will be needed.

This argues for the deployment of versatile technologies capable of processing a variety of feedstocks, including green H2 and CO2 (as in the e-fuel process), but also sustainably sourced CO and CH4 and bio-derived H2 which in many places are more readily available at reasonable costs today. Such streams can be obtained from forestry and agricultural residues, municipal solid waste and biogas. Taking a diversified approach will enable the SAF industry to scale production faster and more cost effectively in the medium term than if it remains focused solely on HEFA or e-fuel, which is critical to insuring the nascent recent growth doesn’t stall.

Further Optimizing the Fischer-Tropsch Process

One key way to scale SAF economically is to further optimize, intensify and simplify the well-established Fischer Tropsch (FT) process through Aether Fuel’s Aurora technology. There are three basic steps to producing SAF through the FT process: syngas generation (where the feed gases are converted into H2 and CO), the FT step (where the syngas is converted into raw hydrocarbons), and upgrading (where the raw hydrocarbons are converted into finished fuels).

Over the last decade, the FT step has seen great innovation at the scales relevant to sustainable fuel production, such that it no longer dominates the

ALYSSA NORRIS, SUSTAINABILITY DIRECTOR, AETHER FUELS

One of SustainabilityX Magazine’s Global 50 Women In Sustainability, Alyssa Norris, Director of Sustainability at Aether Fuels, is a driving force in the pursuit of sustainable aviation and marine fuel. Raised on an airstrip in North Pole, Alaska, Alyssa developed a unique connection to aviation and environmental stewardship, which has defined her career path. Before joining Aether Fuels, she worked with McKinstry on energy projects across the U.S. and served as a contractor at the U.S. Department of Energy, where she focused on advancing the clean energy transition.

At Aether Fuels, she leads sustainability initiatives with a particular emphasis on decarbonizing fuel for aviation and marine shipping, aiming to make sustainability in travel accessible and impactful.

plant capital expenditure for sustainable fuel projects. With our Aurora technology, we slash the CAPEX of the syngas generation and upgrading steps, so that combined with state of the art FT, we can realize dramatically lower overall costs at the right scale to make use of a diverse range of feedstocks.

Aether’s Aurora technology was also engineered from the beginning for high feedstock flexibility, and can utilize six different types of input streams:

• Biogas from anaerobically digested biomass waste

• Forestry waste, such as forestry residues (e.g. slashes or thinnings) and wood processing waste (e.g. bark, shavings, and sawdust)

• Agricultural waste such as waste from sugar cane production (e.g. bagasse), vegetable oil production (e.g. empty fruit bunches and fronds from oil palm processing), grain production (e.g. rice husks, wheat straw, corn stover/stalks), or natural fabric production (e.g. cotton or hemp stalks)

• CO2 and Hydrogen (H2)

• Industrial off-gases, produced by various industrial processes (like steel production, chemical production, and oil refining)

• Municipal solid waste

All of these feedstocks require certain kinds of preprocessing using existing technology to get them into a gas phase form suitable for feeding into a plant. In some cases, the input streams are already gas phase and may require just clean-up to remove certain trace impurities. In other cases, the input streams are solids and require gasification (a known process for making a mixture of CO2, CO, CH4 and H2 gases from solids) followed by clean-up. With this technology, we then further process the gas in our electric Tri-Converter, followed by third-party FT conversion into raw hydrocarbons and our proprietary upgrading, with by-products recycled to the Tri-converter to maximize liquid hydrocarbon fuel yield.

As Aether Aurora can efficiently convert CO2 and H2 feeds, it is ideally suited to produce e-fuel and scale e-fuel production commercially once DAC CO2 and green H2 costs come down. At the same time, it can also be applied (and crucially, scaled commercially) today using other feed stocks that are already available and cost effective right now.

This means the industry can get access to more economical sustainable fuels in the near term, and we can start accumulating the critical learning (and resulting cost efficiencies) that will come from repeat builds of production facilities.

SAF has a steep slope to climb to scale up; but the route the industry needs to follow is becoming much clearer.

BOLD STEPS NEEDED TO ENSURE GREEN HYDROGEN FULFILS ITS TRANSFORMATIVE POTENTIAL

Green hydrogen promises to revolutionise various sectors by offering a truly clean energy made with ubiquitous materials. Here, Frank Wouters, Chairman, MENA Hydrogen Alliance and Director, Mediterranean Green Electrons and Molecules Network (MED-GEM), underscores the systemic importance of hydrogen, and champions the establishment of a strategic hydrogen reserve, which could accelerate market development, stabilise supply-demand dynamics, and bolster energy security.

By Frank Wouters, Chairman, MENA Hydrogen Alliance and Director, Mediterranean Green Electrons and Molecules Network (MED-GEM)

How do you view the role of green hydrogen in revolutionising the energy sector, and what key challenges must be addressed to achieve commercial viability?

Our energy system primarily runs on molecules. Molecules are easy to transport and store, but the issue with molecules currently is that if we burn them, they produce harmful greenhouse gases. Our analysis shows that even in a future energy system without harmful emissions, molecules are required to guarantee a functional, affordable, reliable and secure energy system. So, we must clean up those molecules and hydrogen is one of the few feasible options to replace hydrocarbons.

Contrary to what some people think, hydrogen is therefore systemically important and not a nice to have.

Policy support has been identified as critical for green hydrogen development. What specific policy changes do you believe could accelerate the transition to a hydrogen economy? There are several issues that require policy support.

First and foremost, we need to find a way to tackle and reduce the cost gap with alternatives. Several pathways in terms of sticks, for example quota, and carrots, such as subsidies, are currently being debated and implemented worldwide. Probably we

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Green hydrogen has the potential to connect areas where it can be produced cost effectively with areas that have high energy demand

will need a combination of all those measures in the short term.

A second area where policy support is needed is in providing the necessary supporting infrastructure. This involves the construction of pipelines, conversion of natural gas pipelines to accommodate hydrogen, ports, storage facilities and refueling stations. Most of these will struggle in the beginning, and the business case is difficult for years to come. Policy support can overcome this.

Thirdly, regulation that supports trade, for example standards and certificates that determine the carbon intensity of the hydrogen molecules, is a prerequisite for trade. Such standards and certificates require international coordination and harmonization.

Can you elaborate on the importance of global cooperation in the green hydrogen space, and what regions or countries are leading the charge?

Global cooperation in the green hydrogen space is very important. Green hydrogen has the potential to connect areas where it can be produced cost effectively with areas that have high energy demand, but lower potential for low-cost green hydrogen production.

Europe, Japan and Korea are all net energy importers and will remain net importers in the future, even after the energy transition. They have been actively working on global cooperation frameworks to source green molecules for their future energy demand. These frameworks incorporate government to government agreements, including the build out of supporting infrastructure but also harmonization on trade facilitation elements, such as standardization and certification. On the exporting side, various countries and regions stand out. The MENA region has understood the significance of green hydrogen and export potential years ago but a growing number of

6.8 million tons: Estimated hydrogen demand in 2030

countries such as Chile, Namibia and Australia are following suit.

In your recent paper, you advocate for a strategic hydrogen reserve. What are the primary objectives of such a reserve, and how could it address current market challenges?

Strategic energy reserves have been a feature of a secure energy system for a long time. When you consider that Europe has had strategic petroleum reserves since the IEA was founded, and has more recently upped the ante for strategic gas reserves, it is very logical that Europe will also introduce a strategic reserve for hydrogen.

It should be noted that Europe has more than 1000 terawatt hours of each oil and gas in strategic reserves, covering more than 25% of annual demand. If you understand that, you may want to consider starting with a strategic hydrogen reserve right now.

This would have several advantages. You would create an immediate pool into which potential producers could sell their hydrogen into. And we would have a solution for the current

conundrum where large-scale producers are struggling to find sufficient bankable off takers that would like to lock in their demand for long enough to enable the producer to finance their investment. Although it is not entirely clear how much hydrogen demand there will be in 2030, a fair estimate could lead to 6.8 million tons based on the obligations articulated in the Renewable Energy Directive III. 25% of that would be 1.7 million tons of hydrogen by 2030, which would kickstart the European market for hydrogen immediately.

How do you envision the infrastructure requirements, such as salt caverns and hydrogen backbones, evolving to support a strategic hydrogen reserve?

If we assume a strategic reserve of 1.7 million tons of hydrogen by 2030, we will need more than 100 salt caverns by then. This is a huge undertaking so we should start immediately. It should be noted that salt caverns are available, but not equally available across the continent. A hydrogen backbone would allow access to European strategic reserves, which may be in another EU member state.

The paper mentions disconnecting supply from demand to kickstart the hydrogen market. How can a strategic reserve play a role in stabilizing this dynamic?

Like oil and gas reserves, a strategic hydrogen reserve would be publicly mandated but would not necessarily be managed by a public entity, this could be outsourced. However, it would immediately create a buying pool into which producers could sell their hydrogen, let’s say for a period of initially 10 years. Once the reserves are full, the entity that manages the reserve could also sell from that reserve and that would allow for a decoupling of production and demand.

What lessons can be drawn from Europe’s existing strategic reserves for oil and natural gas when designing a reserve for hydrogen?

There are current mechanisms that govern the way strategic reserves are managed. But also recently, especially after the Russian invasion of Ukraine, Europe has designed mechanisms to strategically

We need broader understanding of the systemic role that hydrogen plays in any future clean energy system. Too many people still think it is a nice to have and not essential.

purchase natural gas on global markets as an alternative to Russian gas. This entity, AggregateEU, could be operationalized for the purchasing of green hydrogen, for example using the mechanisms designed and tested by the German entity H2global. Lastly, the European hydrogen bank has successfully carried out inner-European auctions for hydrogen, and this could be applied internationally, using the mechanisms championed by H2 global and AggregateEU.

From a commercial perspective, how might a strategic reserve impact hydrogen pricing and the bankability of green hydrogen projects?

If we kickstart a market, over time prices are expected to go down due to economies of scale and increased competition. Having a large initial off taker, a strategic reserve, serves to kickstart this market. Since the strategic reserve has sovereign backing, bankability should be guaranteed.

How do you see hydrogen storage infrastructure contributing to energy security and resilience in the face of geopolitical and economic uncertainties? The primary nature of a strategic reserve is to provide energy security and reduce price shocks. So, it is, by definition, a buffer against geopolitical and economic uncertainties.

Looking ahead, what milestones or developments would signal that the global hydrogen market is moving toward maturity and commercial scalability?

First, I think we need broader understanding of the systemic role that hydrogen plays in any future clean energy system. Too many people still think it is a nice to have and not essential. Because molecules play such an important and crucial role in our current and future energy system, unless we introduce clean molecules such as hydrogen, we will remain with polluting hydrocarbons. So that is number one, we need more awareness.

One of the issues in the energy transition is that we don’t price external costs of pollution into our energy carriers. A study published earlier this year by Harvard economist Bilal Hammoudi, calculated the social cost of carbon emissions to be more than $1000 per ton. [1] This figure starkly contrasts with earlier estimates.

Unfortunately, 75% of all global emissions are free, making it difficult for cleaner alternatives to replace conventional energy carriers. Pricing carbon fairly would Level the playing field and make the introduction of clean hydrogen into our energy systems much easier

Green hydrogen evangelist Frank Wouters takes to the podium

PROMOTING A CIRCULAR ECONOMY IN THE US RENEWABLE ENERGY SECTOR

While renewables hold the promise of a secure energy future for all, what of the waste this sector creates? What lessons can the US take from the rest of the world to ensure it isn’t overwhelmed by waste from solar and wind projects?

By Joanna Davies, Senior Researcher, G2O Research Group

Renewable Energy Waste Challenges

While China leads wind energy production, producing three times more than the US, they had, until recently, also been absorbing global waste. In 2018, China’s “National Sword” policy halted the import of global plastics and other materials destined for its recycling processors. The US, second place in wind energy, is now scrambling to find new ways to dispose of its turbine waste.

Glass and fiberglass recycling has had trouble creating a sustainable post-consumer-based profit model due to impurities that cannot be easily eliminated for re-use. New research in polymerization allows the consideration of new plastic, glass and fiberglass waste streams, even as planting substrates.

Despite having appointed fossil fuel executive Chris Wright - a climate change sceptic who criticises zero-emission targets and actively opposes the transition to renewable energy - as secretary for the Department of Energy, President Elect Donald Trump has spoken (on the Joe Rogan podcast) about the amount of waste produced by the wind industry in the US. While the majority of his remarks focused on the negative effects of the vibrations emitted by wind turbines on marine life (“I’d love to be a whale psychologist”), he has since vowed to ‘end’ offshore wind.

He claims it is the most expensive and least environmentally friendly source to develop, opposing the Inflation Reduction Act which allowed billions to be invested into the green transition and meeting the requirements of the Paris Agreement.

While Trump might be guided by market logic rather than a real concern for the environment, it remains essential to the circular economy to incentivise the proper waste management since, more than anything else, it is consuming valuable space on US soil.

The Life of a US Wind Turbine First generation wind farms installed as early as the 1990s - after having

exhausted the refurbishment cycleface three potential endings for wind turbine blades, once the metal parts have been extracted: repurposing, recycling or landfill. As a result, blades account for most unrecycled wind turbine materials. Turbine blades are partially composed of fiber-reinforced polymer (FRP) materials (glass and carbon fibers, epoxy resin), making conventional recycling complex, costly and potentially hazardous.

Up to 86% of total lifecycle emissions for wind power comes from raw materials extraction and turbine manufacturing, while the remaining 14% comes from transportation, installation, operation and maintenance, decommissioning and disposal. The average turbine height has more than doubled over the last 20 years and continues to increase. While this makes power generation more efficient, indirect emissions are impacted. While there are solutions currently available, costs will need to come down significantly to make

What is a circular economy?

A circular economy is a sector-specific system that aims to reduce waste, costs, and achieve environmental and financial sustainability by keeping materials and products in circulation for as long as possible. In a circular economy, materials are reused, refurbished, recycled and composted, and products are designed at inception to be less resource intensive in their deconstruction or adaptive re-use. In many cases, products which may be highly ergonomic and efficient are largely unsustainable outside of their designcontext. Once they are retired from use, their future lies in landfill.

these approaches to recycling commercially viable. Meanwhile, decommissioned capacity is set to increase six-fold between 2020 and 2030: 1.2 million blades will be disposed of in the US by 2050, while 72,000 utility-scale turbines were installed. The estimated cost of disposal by 2050 is US$25 billion. The decommissioning of turbines is the renewable energy industry’s primary and most significant waste stream. After twenty-five years, blades are sometimes shredded and used as filling in cement or burned, but they are most often buried in landfills. This has remained the most affordable and convenient option. Consequently, by 2050, there will be more than 40 million tons of landfill waste from wind turbine blades.

Wind turbine blades entering the waste stream over the next 20 years will come predominantly from turbines already in operation. The U.S. Wind Turbine Database (USWTDB) provides a comprehensive list of nationwide turbines. As of April 2020, 63,794 turbines, ranging in capacity from 50 kW up to 6 MW, were installed between 1981 and 2020. An estimated 400,000 tons of turbine blades may be decommissioned annually by 2030 , with this figure projected to double to 800,000 tons by 2050.

Blade decommissioning trends reflect the chronological development of wind energy, beginning in Europe and later expanding to regions like the United States and China. Due to this, early research on blade waste has been Europe-focused. Variations in regional policies and waste management practices underscore the need to develop and evaluate blade waste strategies tailored to the U.S. context.

The adaptive reuse of decommissioned turbines is highly commercially viable due to existing and evolving ESG reporting requirements, the growth of green finance like green bonds and environmental impact bonds, and changing national legislation. Wind farms in the US can now pay up to $40,000 for the disposal of wind turbine blades. The sheer size and quantity of blades make disposal not only

US$25bn

The estimated cost of disposal of end-of-life wind turbine blades by 2050

400,000 tons

The estimated weight of turbine blades that may be decommissioned annually by 2030 — a figure projected to double by 2050.

a loss of high-quality materials but also take up considerable space, which is economically and environmentally unsustainable.

Decommissioning costs for a single turbine can range from $114,000 to $195,000, and disassembly and removal can take 6-24 months due to high-skill labour.

Decommissioning of turbines is the renewable energy industry’s primary and most significant waste stream. “

Renewable energy loses its promise of sustainability if these blade carcasses fill graveyards, rather than be repurposed to address other environmental challenges.

However, glass recycling is a well-established industry, making solar panels - of which 75% is glass - easily recyclable, and the silicone and precious metals can be separated and refined via chemical and electrical processes. The recycling of solar is highly profitable and is expected to grow from $170 million in 2022 to $2.7 billion in 2030 and $80 billion in 2050 with companies like SOLARCYCLE partnering with solar providers to show us how 95% of materials can be re-integrated into the supply chain.

Circular Economy Solutions

Veolia is a processing plant in Missouri which shreds turbine blades. This mechanical method can recover more than 90% of the weight of the blades: 65% in the form of a raw material, replacing sand, clay and other materials, and 28% as an alternative fuel, replacing coal to provide the energy needed for the chemical reaction in the cement kiln . Cement produced this way has exactly the same properties as traditional cement. This process, however, jeopardizes the main qualities of the fiberglass, which is not cost-effective, as the energy expended impacts material quality. Moreover, while alternative fuel is more efficient than burning coal, cement manufacturing still contributes 8% to gas emissions.

Tennessee—based Carbon Rivers has developed and commercialized technologies such as second-generation polymer composites, providing end of life recycle and upcycle processes for turbine blades. Currently, they recover clean mechanically intact glass fiber. But what about other cost-effective reuse projects which don’t put materials through chemical or mechanical processes, or which adapt the turbines’ defined form?

Global and Regional Perspectives

Legislation in the EU may act as a model for promoting circular economy initiatives in the green technology supply chain. The EU has long understood downstream waste-stream reduction. WindEurope called for an EU-wide ban on landfilling turbines, creating cross-industry collaborations in 2020, and this acted as a ‘key driver of post-COVID-19 economic recovery’ .

Joanna Davies is a Senior Researcher at the G20 Research Group, where she analyzes global policy and governance. She also works as a Project Development Associate at a renewable energy company in New York, contributing to innovative climate resilience projects and sustainable energy solutions. Joanna holds an MA in Bioethics from NYU’s School of Global Public Health, where her research explored the intersections of technology and neuroethics, health economics, and resource conflicts. Her work examines how legal frameworks and economic factors shape public health systems, with a particular focus on environmental sustainability. @g20rg www.g20.utoronto.ca

The main technologies for recycling composite waste in the EU are through cement co-processing such as the type of mechanical processing, which involves transforming blades into a raw material.

Legislative developments across several states reflect a widespread recognition of the need for responsible waste management strategies for wind farms. In Ohio, for example, Law SB 52 mandates that local authorities play a more significant role in the approval of wind project bids, requiring developers to submit detailed decommissioning plans prior to construction. Plans must outline estimated costs, responsible parties, relevant timelines and financial assurances ensuring that funds are available when needed. The same improvements and mandates to renewable energy facilities are applicable to developers in California, South Dakota, Oklahoma, Minnesota, Maine and Iowa.

1 Cooperman, A., Eberle, A., Lantz, E., 2021, Wind turbine blade material in the United States: Quantities, costs, and end-of-life options, Resources, Conservation and Recycling Volume 168. 2 Andersen, P.D. et al., 2014. Recycling of wind turbines, DTU International Energy Report 2014 grow from $170 million in 2022 to $2.7 billion in 2030 and $80 billion in 2050 with companies like SOLARCYCLE partnering with solar providers to show us how 95% of materials can be re-integrated into the supply chain. 3 Rystad Energy Press Release 6 July 2022: Reduce, reuse: Solar PV recycling market to be worth $2.7 billion by 2030. 4 https://www.up-to-us.veolia.com/en/recycling/recycling-used-wind-turbine-blades 5 https://windeurope.org/newsroom/press-releases/ cross-sector-industry-platform-outlines-best-strategies-for-the-recycling-of-wind-turbine-blades/

JOANNA DAVIES

THE POWER OF SOLAR IN TAKING US CLOSER TO NET-ZERO

Solar energy has become the fastest-growing source of electricity, surpassing 1 terawatt of capacity in 2022. As Europe leads the way with ambitious targets, innovative designs, and workforce training, solar power is driving a low-carbon economy, creating millions of jobs, and fostering sustainable communities across the continent.

Solar energy is now the fastest-growing source of electricity globally, with installed solar capacity surpassing 1 terawatt (TW) in 2022 - a milestone that highlights its central role in the global energy transition. Solar is also one of Europe’s most mature renewable energy sources, having been widely adopted and integrated into the energy grid over the past two decades.

As the solar market continues to evolve, innovative players in the industry now focus on integrating solar capabilities with architectural design, making solar installations more aesthetically pleasing and even suitable for heritage buildings. This attention to design helps broaden the adoption of solar technology, ensuring it fits seamlessly into a variety of building styles while addressing the growing public demand for sustainable energy solutions.

Solar energy, especially photovoltaics (PV), is growing rapidly in the EU for several key reasons. The cost of PV technology has dropped dramatically over the last decade, by 90% globally, making it more accessible and affordable. Additionally, the EU’s strong policy framework and commitment to renewable energy targets have created a supportive environment for solar investments.

In May 2022, the European Commission adopted a forward-thinking solar energy strategy as part of the

by Andres Anijalg, Co-Founder and CEO of Roofit.

The strategy focuses on accelerating solar installation, fostering innovation, and creating a robust European supply chain. By setting these goals, the Commission is driving the industry forward, contributing to this transformative journey.

Economic growth through renewable energy

For us, it’s not just about reducing carbon emissions; it’s about creating a sustainable future that also drives economic growth and job creation. I often think back to when we first started our business in 2016 - our team was small, but we had big dreams. Fast forward to today, we see how the industry has evolved, creating a wide array of jobs from design and manufacturing to installation and maintenance. 7.2 million solar PV jobs existed globally in 2023, accounting for more than one-third of the total renewable energy workforce.

The impact of solar extends beyond the solar industry itself. New jobs and required new skills in other industries have emerged. Each PV installation represents a step towards a greener future and a new opportunity for employment and innovation across various sectors. The scalability and sustainability of solar power make it a cornerstone of Europe’s strategy to build a resilient, low-carbon economy. Every project contributes to a more sustainable and economically vibrant Europe.

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Solar energy has become the fastest-growing source of electricity, surpassing 1 terawatt of capacity

How the EU is building a skilled workforce to make green ambitions a reality

The launch of the European Solar Academy by the European Commission in 2024 is a significant step forward in securing the future of solar by ensuring we have the teams to make it happen. It’s the first of several EU Academies under the Net-Zero Industry Act (NZIA), aimed at equipping our labour force with the skills needed for net-zero technologies. The Academy will ensure that there is necessary expertise across the entire value chain, from design to installation, which is crucial for meeting sustainability goals and maintaining leadership in the market.

The Solar Academy’s goal to train 100,000 workers in the next three years is ambitious but absolutely necessary. It plans to achieve this through a mix of practical and theoretical training tailored to various roles within the PV value chain. Having skilled professionals, from those designing products to those installing them on rooftops across Europe, is crucial. The Academy will work with industry leaders and educational institutions to create comprehensive training programs, using online platforms and workshops to reach as many people as possible. This initiative will help close the skills gap and support the rapid growth seen in the solar sector.

Fostering a sustainable community

Energy sharing is another exciting development that’s becoming more common. When we talk about sharing surplus solar power, it’s important to understand that anyone whose solar plant is connected to the grid is already sharing energy. It may not be directly with their immediate

ANDRES ANIJALG

Andres Anijalg is Co-Founder and CEO of Roofit.Solar, a revolutionary solar technology startup. With his extensive experience leading large-scale international energy projects and his visionary leadership, Andres is driving innovation and transforming the solar industry.

grid and used by others in the community.

Excellent solar products are designed to maximise energy production, ensuring that any surplus can contribute to the overall grid supply. This increases the efficiency of renewable energy use and supports a more resilient and sustainable energy system for everyone. Every solar roof or solar panel installed helps power homes and businesses nearby, creating a more interconnected and green community.

As we look towards the future, the potential for solar energy is limitless. Innovation will continue to power the transition, bolstered by initiatives like the European Solar Academy and driven by the vision of a greener tomorrow illustrated by ambitious energy targets. Together, with every solar panel installed, we can build a sustainable, low-carbon economy that benefits not only our environment but also our communities and

NET ZERO THROUGH CLEAN FUSION

Fusion energy, often called “Clean Energy’s Holy Grail,” holds the promise of limitless, zero-carbon power. By combining groundbreaking technology with interdisciplinary innovation, fusion could transform energy systems, tackle climate change, and drive progress across industries — from AI to healthcare.

In the global push toward sustainable and clean energy, fusion energy has emerged as one of the most promising solutions. Fusion, the process that powers the stars, including our Sun, offers the potential for limitless, clean energy without the harmful emissions or long-lived radioactive waste associated with existing nuclear fission technologies. As the world races to achieve net-zero carbon emissions by 2050, fusion energy represents a pivotal opportunity to transform the energy landscape, addressing climate change while fostering technological and economic progress.

Dubbed by the Time Magazine as “Clean Energy’s Holy Grail”, fusion combines light elements to release immense amounts of energy without producing greenhouse gases. Among the many promising approaches, aneutronic proton-boron (pB11) fusion stands out for generating energy

By Peter Liu, CEO, Alpha Ring International and Chairman, WI Harper Group

without harmful radiation. Unlike traditional approaches, which produce neutron-based radiation, pB11 fusion creates clean energy with minimal safety or waste concerns, paving the way for widespread adoption. While renewables like solar and wind play crucial roles in the clean energy mix, fusion offers the reliable, on-demand power needed to complement these intermittent sources. As the demand for energy-intensive technologies, such as artificial intelligence, grows, fusion’s ability to provide abundant, decentralised power becomes ever more important. It is not just a technical breakthrough; it is

an opportunity to build an ecosystem that bridges education, research, and commercialisation, ensuring it becomes a practical and widespread energy solution.

Why Fusion is Essential for the Future of Energy

The United Nations has officially stated that “it will be almost impossible to decarbonize by 2050” without nuclear energy. While traditional nuclear fission is reliable, it faces significant challenges, including high costs, public resistance, and waste management concerns. Fusion, however, offers a solution to these barriers by providing a clean, safe, and virtually inexhaustible energy supply.

Fusion reactions produce no greenhouse gases, making it a zero-carbon energy source critical for combating climate change. Furthermore, it relies on isotopes such as hydrogen and boron, which

are abundant and virtually limitless, ensuring a sustainable and secure fuel supply. Unlike fission, fusion avoids the problem of long-lived radioactive waste, eliminating the need for complex and costly disposal solutions. These characteristics make fusion energy a transformative option for addressing both energy and environmental challenges.

One of the key advances in this groundbreaking technology is the ongoing development of compact, table-top fusion devices. These small-scale systems could one day decentralise energy production, empowering communities and industries to generate power locally while reducing transmission losses. Such innovations make fusion adaptable to diverse applications, from powering cities to supporting remote or underserved regions.

The Energy of the New Generation: Building a Fusion Ecosystem

While fusion technology represents a leap forward in clean energy, its success depends on more than just scientific breakthroughs. The creation of a skilled, interdisciplinary workforce is critical to advancing fusion research and commercialisation. The rapid growth of the fusion field has created an urgent need for new talent—an opportunity for young people to enter and shape this transformative industry.

Building a robust educational ecosystem is crucial to bridging this gap. A strong educational foundation will inspire the next generation of scientists, engineers, and innovators, providing the hands-on learning opportunities that can accelerate fusion’s development. Compact fusion systems, for example, are enabling students and researchers to conduct practical experiments in plasma physics and nuclear reactions, making fusion’s theoretical principles accessible and tangible.

By prioritising education and collaboration, the fusion community can ensure that the field not only meets its technical milestones but also inspires a generation to take ownership of the clean energy revolution. This focus on “the energy of the new generation” is vital for realizing fusion’s full potential and accelerating progress toward a sustainable future.

While renewables like solar and wind play crucial roles in the clean energy mix, fusion offers the reliable, on-demand power needed to complement these intermittent sources. “

Fusion’s Role in Climate Action

The urgency of addressing climate change is undeniable. As global temperatures rise and extreme weather events become more frequent, transitioning to clean energy sources is imperative. Fusion energy, with its zero-carbon footprint and ability to provide reliable, on-demand power, is uniquely positioned to play a central role in this transition.

Renewables like solar and wind are vital to the clean energy future, but their variability and storage challenges mean they cannot meet all energy needs alone. Fusion complements these sources by offering a consistent, scalable energy supply that can power industries, cities, and nations without interruption. In regions where renewable energy infrastructure is limited, its decentralised model provides an equitable solution, giving communities the power to achieve energy independence.

Nuclear fusion technologies, like the one developed by Alpha Ring International, are helping to create a path toward clean, sustainable energy that aligns with principles of environmental stewardship, equity, and innovation. The development of aneutronic fusion, in particular, underscores fusion’s potential to address both energy needs and safety concerns simultaneously.

Early Applications: Health, AI and Semiconductors

Fusion’s potential extends far beyond energy generation. Its interdisciplinary nature opens doors to ground-breaking applications in healthcare, artificial intelligence, and advanced manufacturing, creating a ripple effect of benefits across these critical sectors.

One of the promising early applications of this innovative technology is in healthcare, for instance in Boron Neutron Capture Therapy (BNCT), a

targeted cancer treatment that uses neutron generation to destroy cancer cells with precision. Modular BNCT devices, leveraging fusion technology, could significantly improve patient outcomes and advance cancer therapy. As AI continues to transform industries, its energy demands are skyrocketing. Fusion’s ability to provide clean, decentralised power offers a sustainable solution for powering AI data centres, reducing their carbon footprint and ensuring scalability. In many ways, fusion is AI’s future, providing the scalable and reliable energy it needs. But in turn, AI is also fusion’s present – driving advancements in the field through data analysis, modelling, and optimisation, helping to accelerate fusion’s development. Fusion technology also relies on high-quality components, many of which overlap with the needs of the semiconductor industry. Collaboration between these sectors fosters synergies that accelerate progress in both fields, demonstrating fusion’s potential to drive innovation across disciplines.

A Vision for Fusion’s Future

Achieving net zero requires bold innovation, collaborative efforts, and an unwavering commitment to clean energy. Fusion, as the only truly clean energy source ever conceived, represents a transformative opportunity to address climate change, empower communities, and drive technological progress.

With governments, academia, and industries working together, fusion’s promise can become a reality. By advancing this technology, building educational ecosystems, and fostering interdisciplinary innovation, the global community can unlock fusion’s full potential and create a cleaner, more sustainable future for generations to come. Achieving net zero by 2050 is an ambitious goal, but with fusion at the forefront, it is within reach.

STRENGTHENING SOLAR AND CLEAN ENERGY AT THE UN’S COP29

At COP29 in Baku, nations agreed to triple climate finance to $300 billion annually by 2035, operationalize carbon markets under Article 6, and set ambitious targets for renewable energy, hydrogen and efficiency. Despite progress, significant gaps in funding and implementation highlight the urgency for transformative action ahead of COP30, writes Dr Ella Kokotsis

As a climate finance deal at COP29 in Baku, Azerbaijan, in November teetered on the brink of collapse, negotiations went into overtime, with delegates finally finalizing a deal to triple public finance to developing countries, from the previous goal of $100 billion to $300 billion annually by 2035. This new collective quantified goal (NCQG) was agreed to following two weeks of intensive negotiations and several years of preparatory work – in which all participating countries had to unanimously agree on the final amount, date and specific text.

Many countries, particularly developing ones, regarded the deal as wholly inadequate, falling significantly short of the $1.3 trillion they demanded. But as United Nations secretary general António Guterres commented in his closing remarks in Baku, this deal represented a significant “starting point” in protecting those on the frontlines of climate disasters, with much more needed, and soon.

With climate finance representing the central theme at COP29

Tera Med, led by IRENA, pledges to develop 1 terawatt of installed renewable energy capacity in the Mediterranean region by 2030 “

and capturing most of the international media attention, other notable advances related to clean energy and renewables such as solar power were overlooked.

One of the most consequential was the deal brokered on the carbon market mechanisms of the Paris Agreement, commonly referred to in climate circles as Article 6. After almost 10 years of heavily contested negotiations, this last-tobe-resolved section of the 2015 Paris Agreement now enables the country-to-country process for emissions trading and carbon credits to become fully operationalized under the UN’s centralized carbon market mechanism.

Other notable clean energy initiatives emerging from COP29 include:

● A reaffirmation of COP28’s commitment to triple global renewable energy capacity to approximately 11,000 gigawatts by 2030 and to double the global annual energy efficiency rate from 2% to 4% every year by 2030. Annual investments in energy efficiency globally would need to reach $1.8 trillion by 2030 to achieve this goal.

● The Global Energy Storage and Grids Pledge, which is designed to accelerate COP28’s renewable energy targets by building resilient, interconnected power systems. This includes a six-fold increase in global energy storage capacity to 1.5 terawatts by 2030, with 25 million kilometres of new or refurbished grids proposed by 2030.

Although progress has been made, our work is far from complete…this is no time for victory laps. We need to set our sights and redouble our efforts on the road to Belém.”

UN Climate Change

Executive Secretary Simon Stiell

● The Green Energy Zones and Corridors Pledge to facilitate the integration of renewable energy capacity by linking green energy zones across large geographic regions. A key aim of this initiative is to launch stronger regional cooperation in renewable energy development and deployment.

● The COP29 Hydrogen Declaration, which commits parties to scale up the demand for and deployment of zero-emissions hydrogen by integrating hydrogen into national climate and energy plans and accelerating global hydrogen standards.

● Additional pledges of $85 million for the Loss and Damage Fund, bringing the total contributions to $720 million. Notable new contributions were announced by Australia, Austria, Luxembourg, New Zealand, Korea and Sweden. In 2025 the fund will begin financing new clean energy projects in those countries most affected by climate change.

Significant regional clean energy initiatives were also launched, including:

● Tera Med, led by IRENA, which pledges to develop 1 terawatt of installed renewable energy capacity in the Mediterranean region by 2030.

● The No More Coal-Fired Plants initiative in Latin America, a regional agreement to halt the construction of any new coal-fired generation facilities in the region and accelerate the transition to clean energy.

● The African Energy Efficiency Alliance, which aims to align Africa with global targets to double energy efficiency by 2030, while growing Africa’s energy productivity by 50% by 2050.

As the gavel dropped to mark the close of COP29, UN Climate Change executive secretary Simon Stiell cautioned that although “progress has been made, our work is far from complete … This is no time for victory laps. We need to set our sights and redouble our efforts on the road to Belém.”

To translate Baku’s agreements into tangible outcomes and pave the way for COP30 in November 2025, the international community must prepare to submit all the Nationally Determined Contributions (NDCs) by February 10, 2025, with updated, ambitious targets for 2030, and aligned with the outcomes of COP28’s first Global Stocktake in 2023.

Technical work on the Article 6 mechanisms must continue, in preparation for discussions at the UNFCCC subsidiary bodies session in Bonn in June 2025.

The accelerated implementation of the carbon market mechanisms is vital for enabling governments and non-state actors to trade greenhouse gas emission credits. Stricter standards in building codes, industrial processes and appliances, and stronger incentives for energy retrofits and new technologies are cost-effective means of scaling up energy efficiency efforts to meet the climate goals.

$85 $300 billion

The climate finance figure nations agreed to provide by 2035

11,000 gigawatts

The COP commitment to global renewable energy capacity by 2030 million

Additional pledges made by nations at COP29, for the Loss and Damage Fund, bringing the total contributions to $720 million

Continued progress in clean energy technology is also critical. Increased public and private investment and rapid commercialization in advanced energy storage, green hydrogen production and next-generation solar cells should be prioritized. Sharing best practices to address supply chain challenges for clean energy technology offers another low-cost mechanism to advance clean energy development and deployment. Finally, robust monitoring and accountability systems for tracking and reporting on clean energy deployment are vital. To ensure the needle moves in the right direction, mechanisms to hold countries accountable for their renewable energy commitments should be considered.

Yet although the NCQG from COP29 is a step forward, the clean energy investment gap remains significant. Concessional finance to support clean energy projects in developing countries must be scaled up. Developing innovative financing mechanisms to attract private capital is critical.

The transition to a climate-resilient future hinges on an unprecedented mobilization of equitable and innovative climate finance. In the absence of transformative financial commitments, the road to COP30 in Belém risks encountering unmanageable obstacles in the global effort to supply clean energy to adapt to and mitigate the massive harms from a dangerously warming planet.

ELLA KOKOTSIS, PHD

Ella Kokotsis serves as the Director, Climate Finance Strategy at the GlobalGovernance Program, University of Toronto.

With nearly three decades of experience attending G7 and G20 summits, Ella has established herself as a leading expert in summit compliance and accountability. Her scholarly contributions include numerous publications on global summitry, and she is frequently invited to present her insights at conferences focused on global governance policy.

Ella is the author of Keeping International Commitments: Compliance, Credibility and the G7, co-author of The Global Governance of Climate Change and Reconfiguring the Global Governance of Climate Change, and co-editor of Financing a Just Transition, with John Kirton. Ella holds a PhD in international politics from the University of Toronto.

CLEAN ENERGY TRANSITION HOW CAN WE SECURE A SUSTAINABLE CLIMATE FUTURE?

Vasyl Zhygalo, Managing Director, RX Middle East and Emerging Markets

With new technological advancements across all manner of sustainability sectors, renewables scaling up rapidly and whole industrial sectors decarbonising at pace, the reality of an emissions-neutral energy future has never felt so achievable. 2024 was, despite plenty of setbacks, a milestone year for building momentum for a global energy systems transformation.

In line with the commentary and action plans outlined in this yearbook by our varied and highly respected contributors, we wanted to break down the constituent parts of what is needed to help bring this transformation to fruition, what tangible actions must be taken to support the broader targets, and how feasible such outcomes are.

Minimal time is left – 2024 data sounds the alarm 2023-2024 held another record-breaking series of months for global average temperatures. By June 2024, a full 11 months in a row saw this global average reach, breach, and rise beyond the 1.5°C threshold. Record-breaking monthly heat averages in specific regions and countries were a near-constant factor across much of the world. Overall, Jan-Sept 2024 global average temperature represented 1.54 (±0.13) °C above pre-industrial levels. As 2024 draws to a close, it is on track to be the hottest year since records began. 40+°C heatwaves in Europe, devastating wildfires in South America and a deluge of flooding disasters worldwide all reinforce the tangible and deadly impact of these sustained rises in global temperatures.

What timeline should we be aiming for?

While the global scientific community continues to debate the timeframes involved in either securing or failing to meet our targets of limiting global warming to 1.5°C =, there is broad consensus when it comes to the optimal outcomes on moving from a hydrocarbon-dependent energy industry to a fully clean energy future.

“

Jan-Sept 2024 global average temperature represented 1.54 (±0.13) °C above pre-industrial levels.

It breaks down into three key targets:

● Triple the world’s combined renewable energy capacity to at least 11,000GW by 2030.

● Phase out fossil fuel usage in energy production from 60% to 30% of global energy production mix by 2030.

● Achieve net-zero emissions across the global energy sector by 2050.

What is needed to get us there?

Determining whether whole nations, regions, and the broader global energy industry can decarbonise within these set timelines is too complex to predict with sufficient accuracy. Such predictions must routinely be readdressed to fit the constantly shifting realities of both the political and economic spheres.

However, as with the above targets, there is also consensus across the academic and business communities regarding the broader pathways to attain them. For each pathway, we assess its feasibility, considering the current trajectories, political promises and potential obstacles involved.

Tripling Global Renewable Energy Capacity

The last 14 months or so, saw over 200 countries pledge to triple the world’s (then) renewable capacity up to at least 11,000GW by 2030, a critical enabler of reducing global emissions by 43% by this date. This outcome envisions solar and wind representing around 90% of all new additions. Despite limited, temporary setbacks in areas as varied as material and component shortfalls and funding shortages for large-scale projects, the broader picture on scaling up renewable capacity worldwide remains bright.

The latest report from IRENA puts global efforts

30%

The International Energy Agency’s suggestion of the proportion of energy derived from fossil fuels by 2030, to keep the 1.5°C target

60% China will install 60% of all renewable energy capacity worldwide between now and 2030

on track for a 2.7-times increase in global renewable energy capacity, by adding 5,500GW. While this is still short of the tripling goal, the agency says that this estimate could easily be revised upwards with more ambitious planning.

Like ending deforestation, the environmental imperative for the global clean energy transition is clear. Moreover, the economic case is being made more strongly every month, with every new installation and with every new per-unit price drop. Wind and solar PV are already the cheapest options to add new electricity generation in almost every country, making them the go-to choice in practically every scenario.

Success reinforces success, and nowhere is this truer than with renewables. China and India, the emerging economic superpowers, are leading the charge and both have plenty to gain by securing global leadership in this new energy frontier. The former will account for 60% of all capacity installed worldwide between now and 2030, while the latter is growing its

renewable capacity at the fastest rate across all major economies.

Phasing Out Fossil Fuels

As renewables scale up, coal, oil and gas must wind down. The age of hydrocarbon dependency for energy production will reduce, but to meet the necessary 2030 and 2050 deadlines, more needs to be done globally.

Accordingly, the likelihood of this integral part of the global energy production being entirely phased out within the next five years is in question. The International Energy Agency believes that a more viable target, one that could be vital in keeping the 1.5°C target alive, is that this proportion halves from 60% to 30% by 2030, with renewables scaling up sufficiently to cover the gap.

Achieving a Net-Zero Energy Industry by 2050

As mentioned previously, any prediction made about the state of an entire global industry 25 years into the future can only ever hope to deal in generalities. However, there remains

“ Developing world-changing ideas and technological concepts isn’t enough; they must be evaluated, recognised, supported, implemented and upscaled.

plenty to be hopeful about, even if there are substantial challenges to overcome. Greater ambition is needed, combined with faster and firmer action. Whether or not this occurs will depend greatly on three major factors: attracting more investment capital, oil and gas companies’ participation, and unlocking the potential of green hydrogen.

Capital remains key. Global investments across all energy transition technologies reached a record high of $1.3 trillion in 2022. Politics can play a central role in galvanising greater investment in the energy transition, with tax breaks and regulatory frameworks designed to better clarify the rules on previously unclear markets such as carbon credits. Similarly, greater public funding of energy transition technologies and projects would help to build private investors’ confidence in this area, allowing them to “follow the money”, and give stronger signals that public policy is to back the transition.

Similarly, O&G companies are already a critical piece of the puzzle. A recent McKinsey report outlines how they are perfectly poised to play a meaningful role in the energy systems transformation. They have the expertise, the resources, the risk appetite and the increasing pressure of regulators and customers to consider, as they look to decarbonise their own operations while investing directly into greener energy production methods.

As for green hydrogen, this nascent industry is still so relatively new that it is difficult to accurately map its current demand potential, let alone its growth trajectory for the next two and a half decades. However, observers across the energy industry and beyond agree that it is likely to play a pivotal role, given the speed of technological innovation boosting its efficiency and ubiquity levels. IRENA’s latest data suggests that if the energy industry can achieve net zero by 2050, 94% of hydrogen will be renewables-based. If this occurs, it will mean the relatively rapid development of a vastly impactive new industry based on clean energy production, storage and transport that is connected to global markets with sufficient logistical efficiency. In other words, a game-changing prospect for a clean energy future.

Supporting the Change – The Role of the World Future Energy Summit

Across these three targets, the interplay of business, technology and politics can be seen. Even the most clear-cut cases of environmental expediency must be backed by the economic feasibility to cut through the priorities that people and governments hold today, allowing us to strive for a sustainable tomorrow. This is what makes the World Future Energy Summit and sustainability-based events like it so integral to the global vision. It is a nexus for decision makers across the political, business and academic spectrum to come together, learn from one another and collectively forge a path towards clean energy goals. As a platform for supporting this change, its role can be separated into three parts.

● Showcasing cutting-edge technologies: The World Future Energy Summit routinely attracts over 400 top-tier exhibitors every year, who bring with them the very latest technological solutions designed to secure a clean energy future.

● Providing a Business Gateway: The Middle East is poised to be a regional hub and exporter of renewable energy production capacity and expertise. This makes it immensely attractive as a market expansion prospect for clean energy players across the world, and the World Future Energy Summit is the ideal platform for exploring and familiarising themselves with the current regional business landscape. Providing access to global players to network, seize new opportunities and ink deals is integral to the rapid upscaling of renewables worldwide.

VASYL

ZHYGALO, MANAGING DIRECTOR, RX

MIDDLE EAST AND EMERGING MARKETS

Vasyl Zhygalo oversees the development and execution of some of the region’s most impactful trade events. A trained economist, Vasyl’s career spans multiple continents, spearheading regional initiatives contributing to RX’s continued success in the Middle East and beyond.

Under RX and as part of his portfolio, he brings together more than 5,000 exhibitors and attracts over 100,000 attendees annually across events such as the World Future Energy Summit, World Travel Market, Arabian Travel Market, and IBTM. With over two decades of experience in the events industry, Vasyl has successfully led multiple key launches, initiatives, and high-level partnerships in Europe, the Americas, Africa, Asia, China and more recently has played a role in RX Global’s expansion into Saudi Arabia, a key growth market for the company.

● Supporting Sector and Inter-Sector Collaboration: Alongside billions of dollars-worth of deals inked very year, each edition hosts engaging conferences, startup support, sector policy debates and disclosures, all with the explicit goal of fostering partnerships between and across every set of stakeholders in the global energy ecosystem.

All three parts of this broader role are closely interconnected. Developing world-changing ideas and technological

concepts isn’t enough; they must be evaluated, recognised, supported, implemented and upscaled. This can only be achieved in a rapid and equitable manner when every part of the value chain is working in harmony. The World Future Energy Summit aims to facilitate that, by creating a platform to bring all interested parties together, allowing them to find the right pathway ahead.

As we strive to realise a shared clean energy future, this kind of transparent, equitable partnership is needed more than ever.

Sources: https://www.scientificamerican.com/article/were-approaching-1-5-degrees-c-of-global-warming-but-theres-still-time-to/; https://wmo.int/publication-series/wmo-global-annual-decadal-climate-update-2024-2028; https://press.un.org/en/2024/sgsm22203.doc.htm; https://www.reuters.com/business/environment/2024-will-be-hottest-year-record-eu-scientists-say-2024-12-09/#:~:text=C3S%20said%20data%20from%20January,year%20on%20record%20 was%202023; https://climate.copernicus.eu/new-record-daily-global-average-temperature-reached-july-2024; https://wmo.int/news/media-centre/2024track-be-hottest-year-record-warming-temporarily-hits-15degc; https://ourworldindata.org/world-lost-one-third-forests; https://www.bbc.co.uk/news/science-environment-59088498; https://daxueconsulting.com/chinas-reforestation-efforts/; https://www.bbc.co.uk/news/world-latin-america-67962297; https:// www.pv-magazine.com/2024/04/26/key-takeaways-from-abu-dhabis-world-future-energy-summit-2/; https://www.irena.org/Digital-Report/Tripling-renewable-power-and-doubling-energy-efficiency-by-2030; https://www.iea.org/news/massive-global-growth-of-renewables-to-2030-is-set-to-match-entire-power-capacity-of-major-economies-today-moving-world-closer-to-tripling-goal; https://www.iea.org/reports/cop28-tripling-renewable-capacity-pledge; https:// www.prnewswire.com/ae/news-releases/wfes-2024-sungrow-showcases-its-advanced-all-scenario-renewable-energy-solutions-in-abu-dhabi-302120388. html; https://www.iea.org/reports/renewables-2024/electricity; https://www.prnewswire.com/ae/news-releases/wfes-2024-sungrow-showcases-its-advancedall-scenario-renewable-energy-solutions-in-abu-dhabi-302120388.html; https://www.worldfutureenergysummit.com/en-gb/news/partnerships-and-positivechange-hallmark-abu-dhabis-14th-wfes.html; https://www.mckinsey.com/industries/electric-power-and-natural-gas/our-insights/how-oil-and-gas-companies-can-be-successful-in-renewable-power

SUSTAINABLE CITIES

History Of Smart Cities

An engaging timeline describing the development of urban areas over the last 50 years from Computer-Aided Design to quantum computing and digital twinning.

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The Smart Blueprint: How Emerging Technologies Are Shaping Cities of the Future

Urban areas have always been innovation hubs, but the 21st century presents challenges requiring cities to be more than functional— they must be intelligent, writes Editor, Will Rankin.

p102

SUSTAINABLE

Driving the Future: How the UAE is Leading the Charge in E-Mobility and Smart Transportation

As the UAE races toward its Net Zero 2050 ambitions, it is pioneering the future of transportation through groundbreaking innovations in electric vehicles, autonomous transit and next-generation infrastructure. Sophia Sheikh, Director of Marketing and Content, World Future Energy Summit, reports.

p104

HISTORY OF SMART CITIES

What is a Smart City?

A smart city uses technology and data-driven solutions to improve the quality of life for residents, enhance sustainability, and optimise urban services. By integrating advanced technologies like IoT, AI and renewable energy systems, smart cities aim to create efficient, connected, and inclusive urban spaces.

1980s:

THE DAWN OF URBAN INNOVATION

The concept of “smart cities” began to take shape as cities adopted rudimentary urban planning technologies. Computer-aided design (CAD) tools revolutionised infrastructure planning, and early telecommunication networks started connecting people in new ways.

1990s: THE DIGITAL FOUNDATION

Advancements in technology (ICT) laid the groundwork for smart city projects. Singapore launched its National IT Plan, an early example of a city leveraging technology for urban governance and development.

1992: Singapore’s “Intelligent Island” Vision

Singapore unveiled its Intelligent Island vision, aiming to become a global leader in information technology. This initiative integrated ICT into public services, businesses, and everyday life, establishing Singapore as a pioneer in leveraging technology for urban transformation.

1992: Hammarby Sjöstad Development Begins

Stockholm began transforming Hammarby Sjöstad from a polluted industrial area into an eco-friendly urban district. The project, initiated as part of Stockholm’s (failed) bid for the 2004 Olympics, integrated sustainable systems for energy, water and waste management, setting a precedent for environmentally conscious urban design.

1994: Amsterdam’s Digital City (De Digitale Stad)

Amsterdam launched The Digital City, an online platform that offered residents access to municipal information and services. This project encouraged civic engagement and was an early example of virtual smart city concepts.

1994: Los Angeles: The First Steps

The smart city concept began in Los Angeles, USA, which introduced the “Smart City Initiative” to address traffic congestion through data collection and digital tools. This marked the earliest known move toward smart city planning.

1994: Stockholm’s Stokab Project Begins Stockholm initiated the Stokab Project, creating an open-access fibre-optic network to support digital connectivity. This forward-thinking infrastructure laid the foundation for Stockholm’s future smart city innovations.

The proliferation of the internet and sensor technologies catalysed data-driven urban management. Barcelona became a pioneer with its smart water management system and integrated energy grid, setting a benchmark for integrating tech into urban infrastructure.

2000s: THE RISE OF CONNECTED CITIES

2000: Singapore’s E-Government Action Plan

Singapore introduced its first E-Government Action Plan, laying the groundwork for integrating technology into public services and urban management.

2003: Stockholm’s Smart Traffic Management System

Stockholm, Sweden, implemented its Congestion Tax System, using smart traffic sensors to reduce congestion and emissions.

2011: Songdo International Business District Opens

Songdo, South Korea, became a hallmark project, as one of the first purpose-built smart cities, featuring integrated IoT systems managing waste collection, energy-efficient buildings, and real-time traffic management.

2017: Dubai Blockchain Strategy

Dubai launched the Dubai Blockchain Strategy, aiming to become the world’s first blockchain-powered government by 2021.

2008: Barcelona’s Urban Transformation Begins

Barcelona, Spain, launched its smart city programme, starting with the installation of smart water and energy grids.

2010s: IoT AND

BIG DATA TRANSFORM CITIES

The Internet of Things (IoT) emerged, enabling cities to collect and analyse data in real-time. IoT revolutionised smart city development, connecting devices and sensors to manage services.

2014: India Announces 100 Smart Cities Mission

India’s Prime Minister Narendra Modi introduced the 100 Smart Cities Mission to transform urban areas into digitally connected and sustainable hubs.

2012: Amsterdam Smart City Platform Launches

Amsterdam, Netherlands, launched its Smart City Platform, bringing together businesses, government, and residents to collaborate on innovative urban projects.

2020s: SUSTAINABILITY AND CITIZEN-CENTRIC DESIGNS

Climate change and urban population growth shifted priorities toward sustainable and inclusive development. Cities like Dubai, Singapore and Copenhagen embraced renewable energy, smart mobility, and green building technologies, making urban living more sustainable and inclusive.

2020: Copenhagen Plan Achieves Milestone Copenhagen, Denmark, reached 70% carbon neutrality under its plan to become the world’s first carbon-neutralcapital by 2025.

2022: Saudi Arabia’s NEOM Project Advances

Construction of The Line, a smart linear city within the NEOM megaproject, began as part of Saudi Arabia’s Vision 2030

FUTURE DEVELOPMENTS: AI AND THE AUTONOMOUS ERA - THE HYPERCONNECTED CITIES OF TOMORROW

By 2050, the next phase of smart cities will see widespread adoption of AI, autonomous vehicles, bioengineered solutions and blockchain for seamless urban governance. Predictive analytics, digital twins and quantum computing will optimise everything from traffic to energy consumption, creating cities that adapt dynamically to residents’ needs. Cities will be more resilient, adaptive and personalised for their residents, achieving unprecedented levels of sustainability and liveability.

Technologies on the Horizon

• Quantum Computing: Solving complex urban challenges, from logistics to climate modelling.

• Digital Twins: Virtual replicas of cities to test and implement infrastructure changes safely.

• 5/6G Networks: Enhancing connectivity for ultra-reliable, low-latency applications in healthcare, education and transport.

THE SMART BLUEPRINT: HOW EMERGING TECHNOLOGIES ARE SHAPING CITIES OF THE FUTURE

Urban areas have always been hubs of innovation, but the 21st century presents challenges requiring cities to be more than functional—they must be intelligent, writes Editor, Will Rankin.

With rapid urbanisation, climate change and resource constraints, technologies like digital twins, the metaverse, data analytics, IoT and AI are increasingly emerging as essential tools for sustainable city planning. These technologies enable authorities to create smarter, more sustainable urban spaces while enhancing efficiency and the quality of life for residents.

Digital

Twins: Cities in the Virtual Mirror

Digital twins—virtual replicas of physical assets— are revolutionising urban planning. These dynamic simulations allow city planners to model scenarios, test new green solutions and predict outcomes in real time, offering unprecedented foresight.

Take Singapore as an example, the city-state has developed a digital twin of its entire urban environment through its Virtual Singapore initiative. This model provides insights into traffic flow, energy consumption and urban heat islands, for example, allowing planners to address challenges before they materialise. For instance, when considering new developments, they can simulate how these will affect the surrounding area’s infrastructure, environment and population density.

The potential extends beyond planning. Digital twins can be used for disaster preparedness. By simulating extreme weather events, cities can identify vulnerabilities and improve emergency response strategies, as demonstrated in the Netherlands’ flood management systems.

The Metaverse: A New Dimension for Urban Engagement

While the metaverse might evoke images of gaming and entertainment, its application in urban planning is equally transformative. Involving citizens in city development has always been challenging, but virtual reality (VR) environments offer an engaging solution.

For example, Helsinki created a VR model of its Kalasatama district to involve residents in shaping public spaces. Citizens could “walk through” the district in a virtual world, offering feedback on layouts, aesthetics and amenities. This approach

enhances transparency and creates designs more aligned with public needs.

In future, the metaverse could enable global collaboration on urban challenges. Architects, engineers and policymakers from different continents could co-create city designs in shared virtual spaces, reducing travel and fostering innovation.

Data Analytics: The Engine Behind Smart Cities

Data is the currency of modern urban planning. Analysing data from IoT sensors, public services, and citizen feedback allows cities to identify patterns, predict trends and optimise resource allocation.

Barcelona exemplifies the power of data analytics. By implementing IoT sensors throughout the city, authorities track everything from waste management to water usage. This data-driven approach has resulted in smarter waste collection routes, saving time and reducing carbon emissions.

Data analytics has empowered cities like Copenhagen to improve air quality. Using real-time air pollution data, authorities adjusted traffic flows and promoted green transport routes, resulting in cleaner air and healthier urban living.

IoT: Connecting the Urban Fabric

The Internet of Things (IoT) integrates disparate city systems, turning them into a cohesive, intelligent network. By connecting devices and infrastructure, IoT enables real-time monitoring and control.

In Dubai, IoT forms the backbone of its Smart Dubai initiative. The city leverages connected devices to optimise energy use, monitor traffic and improve public services. Smart meters, for instance, allow residents to track and reduce their energy consumption, aligning individual behaviour with broader sustainability goals.

Additionally, IoT technology is proving indispensable vital in creating safer cities. London’s extensive CCTV network, integrated with IoT and AI analytics, helps law enforcement prevent crime by detecting unusual behaviour patterns in real-time.

AI: The Brain of Smart Cities

Nowadays, Artificial Intelligence underpins the efficiency and intelligence of smart cities. AI algorithms can process vast amounts of data quickly, providing actionable insights and enabling autonomous decision-making.

One striking example is Beijing’s use of AI to optimise traffic flow. Through predictive algorithms, the city adjusts traffic lights in real-time, reducing congestion and cutting commuting times. This technology could be adapted to other sectors, such as optimising energy

Virtual Singapore, the city—state’s digital twin, provides insights into traffic flow, energy consumption and urban heat islands

distribution during peak demand.

AI also supports sustainable urban development. In Stockholm, AI monitors building energy efficiency, automatically adjusting heating and lighting based on occupancy and weather conditions. The result? Reduced energy consumption and lower carbon emissions.

A Vision of the Future: Cardiff in 2100

Looking forward, cities could evolve into self-sustaining ecosystems where every element of urban life is seamlessly connected. Cardiff’s speculative vision for 2100 offers a glimpse into what this might look like.

The city envisions AI-driven transport systems with autonomous vehicles, self-sustaining buildings powered by renewable energy, and urban farming integrated into skyscrapers. Digital twins would continuously optimise urban planning, while IoT and data analytics ensure efficient use of resources. Cardiff’s vision highlights the potential for smart cities to balance technological innovation with environmental sustainability.

Challenges and Considerations

Despite the enormous promise, challenges remain. Digital twins and the metaverse require robust digital infrastructure and substantial investment, which may not be accessible to all cities. Privacy concerns around IoT and AI deployment must be addressed to ensure citizen trust. And the ever—growing the digital divide could exacerbate inequalities if vulnerable populations are excluded from these benefits.

To overcome these hurdles, policymakers must prioritise inclusive urban strategies, emphasise data security, and foster public-private partnerships to fund innovation.

Smart Cities as Living Organisms

The technologies shaping smart cities—digital twins, the metaverse, IoT, data analytics, and AI—are transforming urban areas into living, breathing organisms. These innovations enable cities to adapt dynamically to challenges, from climate change to population growth.

The journey to fully realised smart cities is still unfolding, but the foundation is being laid today. By leveraging these technologies wisely and inclusively, cities can achieve the delicate balance between efficiency, sustainability and quality of life, ensuring a brighter urban future for all.

DRIVING THE FUTURE: HOW THE UAE IS LEADING THE CHARGE IN E-MOBILITY AND SMART TRANSPORTATION

By Sophia Sheikh, Director of Marketing and Content, World Future Energy Summit

As the UAE races toward its Net Zero 2050 ambitions, it is pioneering the future of transportation through groundbreaking innovations in electric vehicles, autonomous transit and next-generation infrastructure. From scaling EV adoption to unveiling driverless taxis and sustainable megaprojects like Dubai Green Spine, the nation is setting new benchmarks in smart and sustainable mobility…

Transformation, sweeping reforms and embracing sustainability – these factors are at the heart of the UAE’s ongoing economic success story, as the country transitions into the next phase of its technology-led growth and regional leadership.

The economic reshaping of the UAE remains fast, and the pace is still accelerating. In 1971, 90% of the UAE’s GDP came from its burgeoning oil sector. By 2023, a mere 52 years later, this proportion had shrunk to just 30%. While oil and gas are still an economic mainstay for the UAE, the rapid development of its increasingly smart cities and wider infrastructure, renewable energy industry and non-emitting sectors all underlines where its future growth engines are to be found.

Transportation – a crucial element affecting every nation’s environmental health and the everyday lives of its citizens and visitors – is now a vehicle for the UAE’s Net Zero by 2050 ambitions, as it harnesses the power of clean energy, smart solutions and next generation infrastructure to create better, safer, cheaper and cleaner ways to get millions of people from A to B.

2024 Pulse Check – Where is UAE on its smart transportation ambitions?

Smart and sustainable mobility is a highly visible part of both the broader national strategies (Net Zero, We the UAE 2031, etc) and the specific development plans at the emirate and city level. Converting policy into practical adoption methods

“

ADNOC and TAQA are targeting an expansion to 70,000 EV charging points across the emirate by 2030

for emerging technologies isn’t easy, but it appears to be meeting sustained success in the UAE.

2024 has been yet another year of solid, demonstrable progress regarding the UAE’s targets on electric vehicle (EV) adoption, integration of autonomous vehicles and smart transportation solutions, and the ongoing partnership between the public and private sectors to make favourable, workable policies that encourage change at a fast yet equitable pace.

For EVs, Dubai is the foremost emirate in the growing national adoption trend — according to DEWA there were almost 26,000 on the roads there at the end of December 2023 — a jump of more than 70% from 2022. EV charging stations – essential to the transition – are also widening their footprint, with around 382 in Dubai and 250 in Abu Dhabi. Both emirates have set their sights much higher. Dubai, steered by DEWA, aims to triple its charging stations to over 1,000 by the end of 2025, while Abu Dhabi has ADNOC and TAQA targeting an expansion to 70,000 charging points across the emirate by 2030.

Pushing the EV adoption rate relies on fusing convenience with economics. The UAE government continues to make the case for EVs by setting favourable, stable tariffs for consumer charging, tax breaks (for consumers and manufacturers/service providers), low interest loans and other incentives. The public sector has led the way: 20% of federal government agency vehicles are now EVs. This prompted an upwards revision of the target to have at least 50% of all such government vehicles using EV or hybrid powertrains by the end of 2050.

This combination of financial incentivisation, improved infrastructure access and the increasingly attractive total cost of ownership (the cost of purchasing, owning and operating the

…the rest of the decade should be pivotal in turning the UAE into a global standard bearer for smart transportation “

vehicle) has led to a tangible shift in UAE consumer mentality. The prospect of owning an EV is no longer fanciful –it is a viable consideration for a growing proportion of UAE motorists looking for a better long-term prospect for the environment and their household budget.

Public transport

Public transport is as vital as private vehicle ownership in completing the sustainable transportation puzzle. Here, the UAE has much to celebrate in 2024 as well. The central target of making 25% of all transportation modes autonomous by 2030 continues to galvanise efforts in adopting driverless taxis, buses, trams, trains and more.

In December 2024, driverless taxis, dominating headlines for years, became a commercial reality for the first time in the history of the Middle East. Uber and WeRide launched the service in areas of Abu Dhabi including Saadiyat Island and Yas Island and routes to and from Zayed International Airport. While safety operators remain behind the wheel for now, the companies involved aim to phase them out during 2025, allowing the taxis to become fully autonomous.

This is just one example of how smart transportation concepts that were pipe dreams a decade ago are now a purchasable service in the UAE. Flying taxis are due to make this leap from theory to reality; last November

26,000

382

Dubai 250

Abu Dhabi

25%

it was confirmed that the country’s first ‘vertiport’ is being built at Dubai International Airport, and by early 2026 you’ll be able to take a trip to Dubai Marina, Downtown or the Palm Jumeirah, in roughly a third of the time it would take to go by car.

Infrastructural plans remain high on the priority list. Foremost among them include July 2024’s announcement of the Dubai Green Spine megaproject, creating a 64-kilometre-long highway that will act as a sustainable corridor. Electric trams running on 100% renewable energy will glide over solar panels running the length of the highway, with each side bracketed by urban farms and gardens, further promoting biodiversity, sustainability and improved public health.

Alongside renewed interest in jumpstarting the stalled Dubai Hyperloop project (feasibility studies have resumed after new plans for an Italy-based system were announced), the development of highly advanced, ambitious and well-funded transportation projects remains a priority for the UAE government and its urban planning priorities for the rest of the decade and beyond.

Will 2025-2030 Cement the UAE’s Dominance in E-Mobility and Smart Transportation?

The next five years will be crucial in building momentum for the smart transport systems and concepts that

The percentage goal for autonomous transportation modes in the UAE by 2030

The number of EVs in the UAE as of December 2023

The number of EV charging stations in each emirate

are already in place or in their infancy across the UAE.

Taking EVs, all necessary components are in place to rapidly accelerate the transition from ICE to electric and hybrid powertrains. Though the UAE currently lacks the availability (around 90% of vehicles in dealerships are ICE) and infrastructure to make EVs a viable mass-market consumption option, its government and individual operators have repeatedly demonstrated a strong willingness to work together, reinforce these early successes and approach each factor necessary to make EV ownership more attractive.

With ambitious targets to massively upscale the availability of EV models and charging stations, while keeping operating costs low with favourable policies, the UAE is on the right course to make EVs a sizeable proportion of vehicles on its roads by the decade’s end. By then, EVs should represent at least 15% of all new vehicles sold to the public, and 25-30% of all government-owned vehicles.

Similarly, the first four years of the 2020s have already shown that there is significant appetite from the UAE government and private sector to implement advanced public transportation projects. While many are impressive in scale and design, such as Dubai Green Spine and the Hyperloop, equally important are the smaller and more gradual integrations of smart solutions into citywide, emirate-wide and nationwide transport systems. For every autonomous taxi, driverless tram car and cashless bike hire available to the public, the broader smart transport agenda is pushed forward, proving the commercial case for such technologies and encouraging other institutions (private and public) to reinforce their success.

Policy and commercial prospects are creating a smart transport boom

The UAE’s strengthening prospects as

a global leader in e-mobility and smart transportation are driven by three factors – substantial investments, a willingness to embrace technological advancements, and a consistent commitment from the government towards sustainable development.

At every turn, we can see a deepening acceptance that advanced digital technologies are vital to overhauling and futureproofing the UAE’s entire transportation network. This visualisation of transport systems that are increasingly cashless, seamless and autonomous has become ingrained, not

just in government policy, but also in the minds of commercial enterprises that see the UAE as fertile ground for their ideas and capital investments. If this pace of change and level of ambition can be maintained, the rest of the decade should be pivotal in turning the UAE into a global standard bearer for smart transportation. Just as each technology and new mode of transportation enjoys greater presence and market share, there is a broader opportunity to demonstrate their full potential by joining up the entire ecosystem and allowing everyday users to complete their journey of any distance using clean, affordable, safe and convenient public transport options that best suit their schedule.

Sophia Sheikh is the Director of Marketing and Content for the World Future Energy Summit, a leading global event focused on renewable energy and sustainability. With extensive experience in strategic marketing and content creation, Sophia is responsible for driving the summit’s brand presence and shaping its engaging content strategy. Her expertise in global communications and thought leadership positions her at the forefront of the energy transition, where she works to highlight innovative solutions and foster industry collaboration. Passionate about sustainability and the future of energy, Sophia is committed to advancing impactful conversations that inspire change on a global scale.

Sources: https://www.mofa.gov.ae/en/Missions/Paris/The-UAE/UAE-Economy; https://www.pwc.com/m1/en/publications/emobility-outlook-2024-uae-edition.html; https://www.assetmanagement.hsbc.co.uk/en/institutional-investor/news-and-insights/frontier-opportunities-the-uae; https://www.trade.gov/country-commercial-guides/united-arab-emirates-smart-and-sustainable-mobility; https://www.pwc.com/m1/ en/publications/documents/2024/emobility-outlook-2024-uae-edition.pdf; https://www.thenationalnews.com/business/energy/2024/02/04/dubaiev-numbers-hit-nearly-26000-in-2023-amid-green-mobility-drive/#:~:text=The%20number%20of%20electric%20vehicles,Dewa%20statement%20 reported%20last%20February; https://www.thenationalnews.com/future/technology/2024/12/06/uber-launches-its-first-international-driverless-taxi-service-in-the-uae/#:~:text=Abu%20Dhabi%20already%20has%20a,bus%20service%20for%20race%20fans.; https://www.wam.ae/en/ article/b1mlejw-uae-shortens-distances-land-sea-air-through-smart; https://www.moec.gov.ae/en/future-economy ;https://www.designboom.com/ architecture/urb-worlds-greenest-highway-dubai-solar-powered-trams-green-spine-07-09-2024/ ;https://en.vogue.me/culture/dubai-green-spineworlds-greenest-highway/; https://www.thenationalnews.com/uae/2024/02/17/new-hope-of-uae-hyperloop-system-as-italian-passenger-line-getsgreen-light/

SOPHIA SHEIKH

Balancing Needs in a Changing Climate

Agriculture’s reliance on water is one of the primary factors shaping global water security. We explore how arid region farmers can adapt to climate challenges

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Empowering Consumers: The Human Catalyst For The Energy Transition

Miguel Sabel Pereira, Global Director of Strategy and Sustainability at Designit, believes unlocking the potential of the energy transition means designing inclusive, intuitive solutions and empowering individuals

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CLIMATE CHANGE

The First Fuel: Why energy efficiency should be the first stop on our path to Net Zero Energy efficiency offers an unparalleled opportunity to meet ambitious climate goals, says Nye Gordon, Director, Energy, Sustainability, & Infrastructure, Guidehouse

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What Is The Role Of Capital Markets In

Alleviating The Climate Crisis?

Arunma Oteh, former World Bank Treasurer, and previous Director General of Nigeria’s SEC, discusses the vital role capital markets need to play in generating a more sustainable world

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Three Leaders Showing Business How To Build A Sustainable World

Dr Andrew White, CEO of Transcend.Space, speaks with three forward—looking leaders tackling global challenges with innovative solutions that balance profitability and purpose

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Carbon Capture at a Crossroads

CCUS is gaining momentum as a critical climate change tool. We get the lowdown from Prof. Mohammad Abu Zahra, Head of Middle East and Africa, Global CCS Institute

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Shaping the World’s Energy Future

Exploring the G7 and G20’s ongoing roles in climate change mitigation with John Kirton, Director of the Global Governance Program

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CLIMATE CHANGE

Unlocking Green Finance: Transparency As The Key To Climate Action

Blockchain, standardized reporting and ownership registries offer transformative finance solutions, creating a transparent ecosystem to attract investments and ensure climate finance delivers measurable impact, says founder and CEO of Cēlandaire Capital, Lida Preyma

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The Gender-Energy Nexus in the AI Era

Exploring the intersection of gender, energy, and AI with analysis from Sustainable Energy For All’s Rosemary Idem and Ava Strasser

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Boards As Architects Of A Sustainable Future: A Visionary Call To Action

Liza Tullidge, CEO and Founder at Netā, discusses how a priority shift is needed at board-level to ensure enterprises are more accountable and governance plays a significant role in a sustainable future

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AGRICULTURE AND FOOD SECURITY: BALANCING NEEDS IN A CHANGING CLIMATE

The delicate interplay between agricultural practices, water management, and climate change warrants exploration, with a particular focus on how farmers in arid regions can adapt to these challenges, Will Rankin writes.

It seems that the relationship between agriculture, water, and food security has never been more critical. In arid and semi-arid regions, for example, water consumption by agriculture often accounts for 70–90% of available supplies, placing immense strain on already fragile ecosystems.

At the same time, rising demand for food, water, and energy is exacerbating these pressures. Compounded by the challenges of a warming climate, farmers are increasingly tasked with balancing resource use while maintaining productivity and contributing to a sustainable global food system.

The Water-Agriculture Nexus Agriculture’s reliance on water is one of the primary factors shaping global water security.

Irrigated agriculture plays a crucial role in global food production, accounting for approximately 20% of cultivated land yet contributing about 40% of the world’s food supply.

However, inefficient irrigation practices, combined with the cultivation of water-intensive crops, have led to significant water depletion in regions such as North Africa, the Middle East, and parts of South Asia.

In these areas, agriculture consumes a substantial portion of available water resources—up to 90% in some cases— exacerbating water scarcity.

Continued reliance on traditional, less efficient irrigation methods, along with increasing demand for crops that require

large amounts of water, intensifies the strain on limited water supplies.

Addressing these challenges necessitates adoption of more efficient irrigation technologies and practices, as well as a shift towards cultivating crops better suited to arid environments. Implementing such measures is essential to ensure sustainable water use and maintain agricultural productivity in these vulnerable regions.

This challenge, of course, is magnified by climate change. Rising temperatures accelerate evaporation rates, reduce soil moisture, and alter precipitation patterns, making water management a critical priority for farmers. To address this, innovative irrigation methods such as drip irrigation, vertical farming and precision agriculture have emerged. These techniques minimize water waste by delivering water directly to plant roots, optimizing usage while maintaining crop yields.

Adapting to Climate Change

Farmers in arid areas must contend with unpredictable weather, increased frequency of droughts, and heatwaves.

But there is hope. Climate-smart agriculture offers a set of strategies to enhance resilience. These include introducing more drought-resistant crops, better soil management and agroforestry.

Advances in agricultural biotechnology have produced drought-resistant crops that require less water and are more resistant to extreme weather. For

example, certain varieties of maize and wheat now thrive under water-scarce conditions.

In terms of soil management, practices such as mulching, cover cropping and conservation tillage help retain soil moisture and protect against erosion, ensuring better water retention and nutrient availability.

Agroforestry is a more sustainable land-use system that integrates trees and shrubs with crops or livestock on the same piece of land, creating a synergistic ecosystem. It helps combat climate change by sequestering carbon, improving soil health, conserving water and enhancing biodiversity, while also providing resilience against extreme weather events.

In arid and semi-arid regions of Kenya, farmers are now practicing agroforestry by integrating drought-resistant trees like acacias with crops such as millet and sorghum. These trees improve soil fertility through nitrogen fixation and provide shade, which reduces water loss and boosts crop yields.

The Indian state of Andhra Pradesh has also embraced agroforestry with practices such as planting mango and teak trees alongside agricultural crops. This approach enhances farmer incomes by diversifying yields, sequesters carbon, and mitigates the effects of soil erosion.

In the Brazilian Amazon, agroforestry systems like the cultivation of cacao under native forest trees are widely adopted. This practice preserves biodiversity, improves soil quality, and

provides farmers with sustainable income while reducing deforestation pressures.

The Link Between Food Systems and Emissions

We know the global food system is a significant contributor to greenhouse gas emissions, accounting for approximately 31% of total emissions, driven largely by land use change, deforestation, and livestock farming. Animal agriculture is particularly emission-intensive, requiring more water, land, and energy than plant-based alternatives.

Cattle alone contribute nearly an undoubtedly large, but much mooted percentage of global greenhouse gas emissions, via enteric fermentation, manure, feed production and transport, land use change, energy usage — in farm inputs and feed, and for ventilation, cooling, and other activities, and in processing the animals.

Today, farmers in arid areas face a dual challenge: mitigating the contribution to emissions while adapting to the realities of climate change. Innovative solutions, such as integrating renewable energy sources into agricultural operations and adopting circular practices, can help address both.

Strategies for Sustainable Food Production

Sustainable food production requires a multi-pronged approach that addresses environmental challenges while maintaining productivity and resilience. Among the most impactful strategies are regenerative agriculture, decentralized renewable energy systems, and food waste reduction—each offering significant benefits for both ecosystems and economies.

Regenerative Agriculture

Regenerative agriculture emphasizes restoring soil health, boosting biodiversity and capturing carbon in the soil to mitigate climate change. This holistic approach relies on techniques like crop rotation, agroforestry, cover cropping and reduced chemical use, which enhance the resilience of ecosystems while minimising greenhouse gas emissions. For example, crop rotation interrupts pest cycles, reduces the need for synthetic pesticides, and improves soil fertility. Cover crops, such as clover or rye, protect soil from erosion, improve water retention and sequester carbon. Agroforestry offers a dual benefit by stabilising the soil and providing

additional income sources through fruit, timber, or other tree products. Regenerative practices are particularly effective in addressing degraded land and making it productive again, ensuring food security for growing populations.

Decentralised Renewable Energy Systems

Energy is critical to modern agriculture, especially for irrigation, processing, and storage. But continuing reliance on fossil-fuel-powered systems contributes to greenhouse gas emissions and is often costly for farmers. Decentralized renewable energy solutions, such as solar-powered irrigation systems, provide a sustainable and affordable alternative. These systems harness solar energy to pump water, reducing dependence on diesel or electric pumps and cutting carbon emissions significantly.

Decentralized grids allow farmers to access reliable energy in remote areas, enhancing productivity while reducing costs. These renewable energy systems are particularly beneficial in regions with limited infrastructure, enabling sustainable agricultural practices that would otherwise be difficult to implement.

Reducing Food Waste

Food waste represents one of the most significant inefficiencies in the global food system. Nearly one-third of all food produced globally—approximately 1.3 billion tonnes—is wasted annually, contributing to 8-10% of global greenhouse gas emissions, and costing $1 trillion a year. Addressing food waste is clearly essential for sustainable food production.

Strategies to minimise food waste include improving post-harvest storage through technologies such as hermetically sealed bags, which reduce spoilage, and cold storage units powered by renewable energy. Enhancing transport infrastructure ensures food reaches markets faster and in better condition, reducing losses during transit. Additionally, digital platforms can connect farmers directly with markets, minimising surplus production and ensuring fairer prices.

Implementing strategies such as regenerative agriculture, decentralized renewable energy, and waste reduction creates a strong foundation for a sustainable food system.

These approaches address environmental challenges, improve livelihoods, strengthen resilience to climate change and enhance food security.

Global Collaboration and Policy Support

Addressing these challenges demands collaborative global efforts at public and private level. Policymakers can play a pivotal role by creating enabling environments for sustainable agricultural practices. Financial incentives for adopting water-saving technologies, investment in research and development, and access to climate-resilient seeds, to name a few examples, are essential components. International frameworks like the United Nations’ Sustainable Development Goals (SDGs) provide a roadmap for integrating water, energy, and food systems into national development plans. Partnerships between governments, NGOs, and private sector entities can accelerate the implementation of these solutions.

In arid and semi-arid regions, water consumption by agriculture often accounts for 70–90% of available supplies “

Balancing the needs of agriculture, water, and food security in arid regions demands a multifaceted approach. By adopting innovative technologies, enhancing climate resilience, and addressing food systems’ environmental impact, farmers can navigate the complex challenges of a changing climate.

However, achieving sustainable food production at scale will require sustained global collaboration and investment. By prioritizing water management and sustainable agriculture in policymaking and international summits, we can ensure that both humanity and the planet thrive in the decades to come.

EMPOWERING CONSUMERS: THE HUMAN CATALYST FOR THE ENERGY TRANSITION

The energy transition is well underway, with technology, supply chains and financial incentives paving the path of progress. Yet, unlocking its full potential depends on consumer behaviour and systemic innovation. By designing inclusive, intuitive solutions and empowering individuals, organisations can accelerate a fair and impactful transition, says Miguel Sabel Pereira…

The reality of the energy transition is beyond dispute. All elements of industry analysis arrive at the same conclusion: it’s a deep, transversal and ongoing process that brings hope in the fight against climate change. It can also deliver positive social and financial returns –particularly where energy providers are willing to adopt a forward-thinking approach.

However, consumer uncertainty and artificial polarisation persist in some contexts, leading to reservations about our collective ability to progress with the energy transition at the required pace. Despite being set against this challenging backdrop, the data paints a clear and optimistic picture. The drivers of progress are more powerful than the stoppers.

In fact, it’s a realistic expectation that we can

actually accelerate the energy transition, rather than simply maintain the status quo. The key to achieving this lies at the intersection of innovation, behaviour and systems design.

The foundations are laid

We’re already in a strong position to accelerate the energy transition. The technology and supply chains are in place, while the level of potential efficiency gains and cost reduction to be achieved can credibly be described as exponential. These gains will be accessible at scale, as solar and battery manufacturing capacity reaches the requisite levels to hit net-zero targets between 2022 and 2025.

The financial and societal incentives are well established, too. For most locations and scenarios, renewables are the rational and financially savvy option. And, of course, the climate emergency hasn’t gone anywhere. On the contrary – its implications are getting closer and closer for all of us.

Human behaviour is crucial

Yet the fact remains: a technology and business transformation wave of the scale and depth of the energy transition needs more than technological and commercial drivers. Customers’ attitudes and behaviours greatly affect innovation adoption at an individual level, and diffusion at a macro one.

We must acknowledge that it’s us humans who will greatly define the pace of the energy transition – our attitudes and behaviors rule our purchasing preferences, the lifestyles we lead and how we influence policymakers, after all.

Equally, though, we should be mindful that most people still don’t have the time or the inclination to fully understand their energy bills. Set against this backdrop of minimal engagement, it’s unsurprising that energy consumers rarely take proactive steps such as switching providers or adjusting their choices to reflect their environmental concerns.

Consumers are surrounded by an unstoppable energy transition, but their behaviours haven’t yet evolved sufficiently to play the active role required to increase the pace of change. This is where organisations can step in to help catalyse customer empowerment and behavioural change.

Designing for adoption

Some changes are and will remain invisible to customers, but many others will require or benefit from their active participation. So, organisations must make it easier for them to do so.

A key step in the right direction would be to reduce complexity of communication. A focus on delivering conversational experiences, for example, could help to make efficiency insights more understandable and actionable for the layperson. Complexity also makes it difficult for customers to ensure they are making the right decision for them and their wallets, and for the security of supply and the planet. In this context, organisations can help by providing automated decision-making as a service. For example, this could manifest itself through appliances that turn on or off based on information provided by the grid (such as current status, demand or cost).

Above all, we must increase motivation. Providers need to realign with consumers by introducing business models that incentivise true efficiency over consumption.

All these initiatives should be implemented with an empathetic approach to customers at the fore. To aid a transition that moves at the required pace, we must design energy propositions and experiences with people at the centre.

Systemic change, scalable impact

The essential role of energy in our lives means that the energy customer experience is interconnected with every aspect of our daily existence, and any intervention must acknowledge this.

Organisations will need to zoom in to understand consumers and zoom out for a more holistic view of the systems in which we all operate. This will allow them to make concrete interventions that trigger real change, while collaborating across the broader system to enhance the scale of impact.

In effect, this should lead to multiple entities working closely together to create a network of services. These services must address individuals’ real situations and find the correct balance between supporting short-term adjustments and building roadmaps to solutions with the biggest long-term

MIGUEL SABEL PEREIRA

Miguel Sabel Pereira is the Global Director of Strategy and Sustainability at Designit, tasked with creating new business models through design.

Miguel has led Business Design, Venture Creation, and Service Design projects internationally in a range of industries, with category leaders like ING, ThyssenKrupp, BBVA or Ferrovial. Sustainability and technological innovation have been central themes in his career, from creating SaaS for carbon emissions management to building data-based digital products for risk reduction in hazmat transportation fleets.

impact. Any successful intervention at scale will be systemic by design.

Innovation for all

As the energy industry evolves, technology and propositions have evolved alongside it. Alternative approaches have come to the fore and sophistication has increased. What once was a monolithic sector in the eyes of the customer is now full of options and innovation. But not all customers are prepared to take advantage of these opportunities.

Diversity of abilities – whether economic, technological or of any other nature – can very easily cause a fragmented market and frustrated customers. Organisations must avoid leaving those who are especially vulnerable behind.

A fair transition should be a convincing enough argument to do so, but this approach will also ensure a smooth one. Success at scale will require adopting the attitude to inclusion that purpose-led businesses have, and the responsiveness that true innovators can deliver.

Energy customers have the power to curb or accelerate the energy transition, and there are clear levers at the disposal of organisations to help ensure that everyone can play an active role: developing simpler experiences, offering better incentives for change, contributing at a systemic level and creating inclusive propositions for all, to name a few. Through humanity-centric innovation, we can accelerate the energy transition and amplify its impact.

CARBON CAPTURE AT A CROSSROADS: PIONEERING TECHNOLOGIES AND SCALING CHALLENGES

With more than 600 CCS projects in development globally, the technology is gaining momentum as a critical tool for combating climate change. Yet, achieving the gigatonne scale needed to meet climate goals demands accelerated deployment, stronger policies, and innovative funding models. How close are we to turning potential into reality?

What are the most promising developments in carbon sequestration technology that have emerged recently, and how close are we to achieving large-scale deployment?

CCS continues to show significant year-on-year momentum globally, driven by strong policy support. In the Global Status of CCS 2024, the Institute counted 628 projects across all stages of development, with a cumulative capture capacity of 416 Mtpa.

There are now 50 operational CCS projects, with the capacity to capture and store 51 Mtpa of CO2. Global CO2 capture capacity is on track to double to over 100 million tonnes per year (Mtpa), once facilities currently under construction commence operation.

Despite the positive outlook, the deployment rate of CCS will need to grow significantly to reach the required gigatonne scale to help meet global climate targets.

Q&A with Professor Mohammad Abu Zahra, Head of Middle East and Africa, Global CCS Institute

Despite consistent promises, commercial viability remains elusive for carbon sequestration technologies. What are the primary obstacles, and how are they being addressed?

Carbon management technologies are, in fact, commercial and ready to deploy. While good policymaking has strengthened the financing prospects for CCS, over the last year we’ve seen progress in the sector partially impacted by cost inflation, rising interest rates, permitting challenges and political uncertainty. In the absence of a strong global carbon price, public support offered by governments is crucial to realising wide-spread deployment.

What role do you see governments playing in accelerating the adoption of CCS technologies, particularly in terms of policy frameworks and financial incentives?

Policy, legal, and regulatory interventions in jurisdictions around the world have strengthened

CCS support and spurred commitments to commercial deployment. Clear and consistent regulations can provide the certainty needed for private sector investment, while policies, such as carbon pricing mechanisms, establish the market conditions that make CCS commercially viable. Financial incentives - including grants and tax credits – and the facilitation of infrastructure development, lower uncertainty and enable deployment at scale.

Governments also have a crucial role to play in collaborative and multilateral policy forums. An outstanding example of this is the Carbon Management Challenge - a collective of 22 countries and the European Commission, working

50

The number of operational CCS projects globally, with capacity to capture and store 51 Mtpa of CO2.

44 Mps

Saudi Arabia’s annual CCS target for 2035.

to raise CCS ambition and realise one gigatonne of CO2 abated through carbon management projects by 2030.

As head of the Middle East division at the Global CCS Institute, how do you view the region’s readiness and commitment to adopting CCS technologies compared to other global regions?

CCS is progressing rapidly in the Middle East, with a growing number of countries and companies integrating CCS into their decarbonisation strategies. There are currently three projects in operation and another six in construction, with significant CO2 storage capacity available.

222

The number of dedicated transport and storage projects in the global CCS pipeline.

The region’s focus on sustainable development and economic diversification, as well as the opportunity to leverage existing infrastructure, such as natural gas fields and industrial clusters, has positioned the Middle East to realise significant emissions reductions through carbon management projects.

Governments are collaborating closely with energy companies, industrial players, and international organizations to pool resources and expertise, ensuring that CCS projects align with both national goals and global climate targets.

The emergence of CCS hubs in the Middle East underscores the effectiveness of this collaborative model, offering economies of scale and shared infrastructure that reduce costs and accelerate deployment.

Public support and awareness are also gaining traction, with governments and industry leaders emphasizing the role of CCS in securing a just transition to a low-carbon economy. CCS is being positioned as a solution that preserves industrial competitiveness while creating new economic opportunities, such as job creation and innovation in carbon management technologies. Through strategic alignment, robust policy support, and collective action, the Middle East is well-positioned to lead in CCS deployment, contributing significantly to global decarbonization efforts.

Which industries stand to benefit most from CCS, and are there any notable regional examples where CCS is being successfully implemented?

CCS is a highly versatile technology suite which can decarbonise aspects of society we can’t live without, that produce emissions we can’t live with. CCS is being applied to a diverse range of industries, including cement, steel, fertilisers, clean hydrogen production, power generation and natural gas processing.

In the region, CCS has been used since 2016 at the Al Reyadah facility operated by ADNOC in the UAE to produce low-carbon steel by capturing 0.8 Mtpa

of CO2 at the EMSTEEL’s facility. Qatar is also applying CCS to capture and store 2.1 Mtpa of CO₂ at its Ras Laffan LNG Facility.

In Saudi Arabia, the Uthmaniyah project, a CCS initiative that commenced operations in 2015, is capturing 0.8 Mtpa of CO2 at the Hawiyah Naturals Gas Liquids plant. The country is also taking important steps towards the development of the Al Jubail CCUS industrial Hub, the largest CCS hubs in the world and the first of its kind in the region, aiming to decarbonise industrial facilities, by capturing and storing 9 Mtpa by 2027, which is part of the kingdom’s overall target of 44 Mtpa by 2035.

One of the significant barriers to CCS adoption has been cost. Are there innovative funding models or collaborations that could make it more feasible for industries to adopt CCS?

Cost has traditionally been a significant barrier to the widespread adoption of clean technological solutions including CCS, but innovative funding models and collaborations are making it increasingly feasible for industries to deploy these technologies. CCS networks have emerged as the dominant model for deployment, as shared infrastructure for transport and storage helps improve project economics, reduce costs, and accelerate adoption. As of mid-2024, 222 dedicated transport and storage projects are in the global CCS pipeline, underscoring the growing prominence of the network model.

In the Middle East, countries like Saudi Arabia, the UAE, Oman, and Bahrain are leading the way in evaluating and developing CCS hubs, which enable multiple industries to share the costs of infrastructure and benefit from economies of scale.

Abu Dhabi has been at the forefront of CCS efforts in the UAE, leveraging its advanced industrial base and expertise in oil and gas to create a strong foundation for CCS deployment. ADNOC’s focus on low-carbon solutions, highlights the region’s commitment to making CCS economically viable through public-private partnerships.

Additionally, regional initiatives in Saudi Arabia’s Jubail industrial CCS hub and Sharjah National Oil Company’s CCS hub showcase how governments

“

Through strategic alignment, robust policy support, and collective action, the Middle East is well-positioned to lead in CCS

deployment..

and industries are working together to create integrated CCS ecosystems. These hubs not only address cost barriers, but also position the region as a leader in CO2 sequestration and carbon trading.

Government support through financial incentives, such as grants and tax credits, is also playing a crucial role. Public and private stakeholders are aligning to secure funding for large-scale projects. We are seeing the creation of innovative financial mechanisms and exploring new models like carbon capture as a service, carbon storage as a service and carbon contracts for difference. These measures ensure that CCS will become a commercially viable and competitive solution for decarbonization.

How can CCS technologies be integrated with the growing renewable energy sector to create a more comprehensive strategy for emission reduction?

To reach our shared climate goals and limit the negative effects of climate change, countries will need to design their own energy mix based on their needs and the availability of resources, working towards the deployment of renewables and other key climate mitigation options that can support their national decarbonisation strategies.

There is no ‘one-size-fits-all’ solution to reducing greenhouse gas emissions, and CCS is an important component of the climate mitigation toolkit we have at our disposal, needed to reach carbon neutrality by 2050.

In addition to representing a crucial climate solution for energy-intensive industries, CCS can enable net-zero power generation, supporting decarbonization of power grids while maintaining their reliability and resilience. This ensures there are dispatchable sources in the power mix to complement the variable nature of renewables.

Integrating CCS with renewable energy can create synergies, such as using renewable electricity to power CO2 capture processes or combining CCS with hydrogen production from renewable sources to produce low-carbon fuels. Together, these technologies can form a comprehensive and resilient strategy for achieving carbon neutrality by 2050.

Public understanding and acceptance of CCS technology vary widely. What efforts are being made to improve awareness and trust in these technologies?

Public perception and stakeholder engagement are essential for the successful deployment of carbon management technologies and should be a core element of all CCS projects.

Building trust requires transparent communication of CCS’s role as a critical climate mitigation solution and its broader benefits, such as supporting net-zero targets, creating and sustaining jobs in heavy-emitting industries, and enabling a just transition by helping existing industries remain competitive in low-carbon economies.

Education and capacity building are also vital. Programmes aimed at raising awareness, training local talent and fostering expertise in CCS technologies can help ensure widespread understanding and acceptance. Engaging academic institutions, industry leaders and governments in these efforts strengthens the foundation for long-term adoption and community trust in CCS solutions.

What milestones do you believe CCS technology needs to achieve in the next decade to meet global climate goals effectively?

Achieving global climate targets will require annual CO2 storage rates of approximately 1 gigatonne per annum by 2030, and multiple gigatonnes per annum by 2050. For CCS to support reaching our shared climate goals, it is essential to speed up the deployment of the technology and have more projects reaching final investment decisions and ultimately commencing operations. Difficult investment settings, community concerns and regulatory barriers are among the key challenges that must be addressed. Over the coming years, governments, industries and research institutions should continue working together and increase efforts towards removing barriers, lowering costs and driving investment in CCS.

What initiatives is the Global CCS Institute currently leading or supporting in the Middle East to promote CCS technologies, and what outcomes are you expecting?

PROFESSOR MOHAMMAD ABU ZAHRA

Prof. Mohammad Abu Zahra joined the Global CCS Institute in January 2022 as Head of Middle East Africa (MEA) region. He holds 20 years’ of deep experience and international expertise in the Carbon Capture field. Prof. Abu Zahra is also an experienced university professor and a current member of the UN Council of Engineers for Energy Transition (CEET). Previous responsibilities included the management of projects in carbon dioxide capture and CCS integrated systems, consultancy, chemical engineering, and process design.

Prior to joining the Institute, Prof. Abu Zahra worked as a professor and CO2 capture research leader at Masdar Institute and Khalifa University (20112022). He also worked at the International Energy Agency Greenhouse Gas R&D Programme (IEAGHG) as a project manager for the carbon capture and integrated energy systems team.

The Global CCS Institute continues to work closely with its members and regional stakeholders to accelerate the adoption of CCS technologies in the Middle East, focusing on cost-effective and timely deployment. To achieve this, the Institute actively shares expertise, builds capacity and provides critical guidance on policy, regulation, and business model development.

Exemplary of these efforts, the Institute recently partnered with Petroleum Development Oman (PDO) to develop guidance to support the government of Oman in the design and implementation of CCS-specific legislation.

The Institute has been actively engaged in working with the Saudi Ministry of Energy (MOE) on strategies to integrate CCS into the Kingdom’s broader climate and economic goals by evaluating potential business models and commercialization of CCS.

Collaboration with ADNOC, a

regional leader in CCS deployment, aims to capacity building and developing new initiatives to enhance carbon management capabilities in the UAE.

Furthermore, the Institute is building partnerships with academic institutions across the region to enhance research and development, support local talent and advance education and capacity-building initiatives essential for the long-term success of CCS technologies.

The outlook for CCS in the region is certainly promising. The capture capacity of CCS projects in the pipeline across the Middle East and Africa is expected to exceed 65Mtpa by 2035. This will continue to be driven by regional decarbonisation strategies, and collaboration across the public and private sectors in areas including carbon markets, technology development, and various cross-border initiatives and projects.

SHAPING THE WORLD’S ENERGY FUTURE THROUGH G7 & G20 GOVERNANCE

The future of world energy will be shaped by the response to several interconnected crises –climate change’s relentless global warming and extreme weather events, deadly conflicts in Ukraine and elsewhere, cyberattacks on North America’s critical energy infrastructure, and crippling debts and deficits in developing and key developed countries. Yet the global community still lacks a comprehensive, competent world energy organization to respond to them — and the United Nations’ periodic energy-related summits have failed to meet the need, writes John Kirton.

The future of world energy will be shaped by the response to several interconnected crises – climate change’s relentless global warming and extreme weather events, deadly conflicts in Ukraine and elsewhere, cyberattacks on North America’s critical energy infrastructure, and crippling debts and deficits in developing and key developed countries. Yet the global community still lacks a comprehensive, competent world energy organization to respond to them and the United Nations’ periodic energy-related summits have failed to meet the need.

The task of governing global energy in the way we need today and tomorrow thus falls to the world’s two key plurilateral summits institutions – the Group of Seven (G7) major advanced democratic powers and the Group of 20 (G20) systemically significant states. Their performance and prospects show that a clean, green, economically and ecologically sustainable, equitable energy future is possible, but they still have much to do to deliver it.

G7 Energy Governance

The G7 has been the first, fastest, most far-reaching and formidable global energy governor. At its first summit, in 1975, it recognized the existence and value of energy, with a focus on the future in an ecologically supportive way. Its leaders declared: “The industrial democracies are determined to overcome … serious energy problems … Our common interests require that we continue to cooperate in order to reduce

our dependence on imported energy through conservation and the development of alternative sources.” Thus, energy conservation and clean energy from the development of alternatives to oil fuels was the future they foresaw and sought to foster.

From then until their most recent summit in Italy in June 2024, G7 leaders made 656 energy commitments, constituting 9% of those on all subjects and second among all subjects. G7 governments have complied with them at an average of 85%. They were led by the European Union at 95%, followed by the United States at 94%, the United Kingdom 92%, Germany 89%, Canada 87%, France 84%, Japan 80% and Italy 70%, with Russia at 62% during the expanded G8. Over the last four years alone, the G7 made 198 energy commitments, complied with them at 96%, with the US under President Joe Biden at 100%. Almost all were on clean, renewable energy and a just transition.

G7 summits have made many commitments on energy, climate change and the environment that are due for delivery in 2025, with five promising to end fossil fuel subsidies by then. Complying with this one commitment would conserve energy, spur the shift to renewables, save governments and their taxpayers $7 trillion a year according to the International Monetary Fund, cut greenhouse gas emissions by 20%, curb crime and corruption, and improve people’s health.

The next G7 summit, on June 15-17, 2025, chaired by Canadian prime minister Justin Trudeau, could act on this. When Trudeau hosted the G7 summit in 2018, the leaders – including US president Donald Trump – made five energy commitments, which secured complete compliance of 100%.

G7 summits have also repeatedly promised to support the UN’s 17 Sustainable Development Goals (SDGs) by 2030, including SDG 7 to “ensure access to affordable, reliable, sustainable and modern energy for all.” Almost all are now off track. But with Covid’s crippling impact fading fast, and Trump due to depart before 2029, a heroic two-year G7 effort could meet the SDG 7 and the other closely related SDGs.

G20 Energy Governance

The newer, bigger, broader, North-South–balanced G20 has joined the G7 to help shape the world’s energy future in a slower but still supportive, increasingly ecologically sustainable, just way. It will do so much more after 2026.

The G20’s energy governance started at its first summit, in Washington DC in 2008, stating: “We remain committed to addressing other critical challenges such as energy security and climate change.”

At the second summit, in April 2009, G20 leaders “pledged to do whatever is necessary to … build an inclusive, green, and sustainable recovery … [and] make the transition towards clean, innovative,

JOHN KIRTON

John Kirton is the director of the Global Governance Program, which includes the G20 Research Group, the G7 Research Group and the BRICS Research Group, base at the University of Toronto where he is a professor emeritus of political science. He is author of G20 Governance for a Globalized World, co− author of Reconfiguring the Global Governance of Climate Change, and co-editor of G20 Brazil: The 2024 Rio Summit and G7 Italy: The 2024 Apulia Summit as well as a global health series, including the recent Health: A Political Choice – Building Resilience and Trust.

@jjkirton www.g7g20.utoronto.ca

resource efficient, low carbon technologies and infrastructure.”

At their third summit, in September 2009, they made their historic commitment “to phase out and rationalize over the medium-term inefficient fossil fuel subsidies while providing targeted support for the poorest. Inefficient fossil fuel subsidies encourage wasteful consumption, reduce our energy security, impede investment in clean energy sources and undermine efforts to deal with the threat of climate change.”

During their 19 G20 regular summits through to November 2024, G20 leaders made 200 energy commitments, for 5% of all, putting energy in fifth place. Their governments’ compliance averaged 70%, led by France, the UK and Korea at 82%, followed by the US at 78%, Germany 76%, Brazil and China 74% each and India 72%. The above-average scores for the US, China and India, now the world’s largest fossil fuel–fired climate

polluters, suggests the G20’s promising potential for leading a clean energy future from the key developing countries of both the Global South and North.

However, constraints will come from the 2025 G20’s host, South Africa, at 58% compliance, and from petro-power Saudi Arabia at 55%, Turkey 46%, coal-fueled Indonesia 60%, fossil fuel–rich Russia 62% and Argentina at 64%. Moreover, G20 compliance with its “dirty” energy commitments has averaged only 44%, and with its many commitments to phase out fossil fuels in the medium term only 56%. Still, G20 commitments on clean energy and renewables, technology transfer and innovation, energy efficiency, sustainability, a low- or no-emissions future, and SDG 7 average a high 86% compliance.

The G20 will help generate a greater clean energy future, but only starting three years from now.

As host of the G20’s Rio Summit in November 2024, Brazilian president Lula da Silva did little to govern energy, advance clean energy, or provide a boost for the UN’s climate summit that he will host in Belém in November 2025. The Rio Summit declaration made only one commitment on energy with a deadline, and it was five years away. It stated: “We support the implementation of efforts to triple renewable energy capacity globally and double the global average annual rate of energy efficiency improvements globally through existing targets and policies, similarly support the implementation with respect to other zero and low-emission technologies, including abatement and removal technologies in line with national circumstances by 2030.”

The next G20 host, for its summit in late November 2025, is coal-dependent South Africa, whose president, Cyril Ramaphosa, has put economic development ahead of clean energy and climate change control as his summit priorities. Then due to host in 2026 is Donald Trump. Only by 2027 does greater promise arise, when the UK’s clean energy committed Keir Starmer is likely to host. If the G20 repeats the hosting order of its first cycle, then come similarly committed Canada, Korea and France.

Propellors of Future G7 and G20 Energy Performance

Past and future advances in the G7 and G20 summit’s energy governance are propelled by six key forces. The first are the shocks that activate the vulnerability of the members, including the oil embargo in 1973, the Iranian revolution in 1979, the oil price spike in July 2008 to $147 a barrel, which helped ignite the American-turned-global financial crisis in August 2008, and Russia’s full-scale invasion of Ukraine in 2022. As 2025 starts, such shocks will be very strong, primarily from the growing extreme weather events from the climate

The global community still lacks a comprehensive, competent world energy organization to respond to them — and the United Nations’ periodic energy-related summits have failed to meet the need

change created by the world’s reliance on fossil fuels.

The second force, also very strong, is multilateral organizational failure, from the absence of a world energy organization, the competition among the partial, fragmented international organizations, and the failure of the UN’s climate summits to keep 1.5°C alive as post-industrial temperature rise target, and to revive 1.5°C at its most recent COP 29 meeting in November.

The third force is the globally predominant and internally equalizing overall and energy capabilities of G7 and G20 members, who must take up the task in effective, combined ways that all members craft and fully support. Such internal equality is currently small, due to America’s strong dollar, oil and gas production and growth, but will grow by 2027.

The fourth force, the common and converging democratic principles of the members, will be constrained by the actions of Trump, and the G20’s autocracies of China, Russia and Saudi Arabia, but should slowly grow after 2026.

The fifth force, the domestic political control and support of G7 and G20 leaders, is similarly small for the clean, green energy pioneers of Germany, France, the UK and Canada and stronger for the fossil fuel devotes of Saudi Arabia, Russia and China. But the results of the US mid-term elections in late 2026 should force Trump to adjust in greener energy ways, backed by most of his G7 colleagues with a much stronger political position at home by then.

The sixth force is the value the leaders place on the G7 and G20 as their personal clubs at the hub of an expanding network of global governance. This will be low for Donald Trump and Vladimir Putin for the next year or two, but should be stronger for Trump and other leaders after that.

This will enable the G7 to lead and the G20 to support a just transition to the clean, green, healthy, safe, world energy future that all will know they need, before it is too late.

The First Fuel: Why energy efficiency should be the first stop on our path to Net Zero

Energy efficiency is the first fuel – the fuel you do not have to use – and in terms of supply, it is abundantly available and cheap to extract. However, demand for the first fuel needs to grow, and that’s where policy action matters the most. Despite its immense potential, energy efficiency remains an overlooked and underutilized solution for decarbonizing the global housing stock. Nye Gordon discusses how, by reducing waste, improving building performance, and minimizing the need for energy generation and infrastructure, energy efficiency offers an unparalleled opportunity to meet ambitious climate goals while addressing energy equity and security.

The scale of the Net Zero challenge is immense.

Globally, residential buildings are responsible for nearly one-fifth of energy-related greenhouse gas emissions and poorly insulated homes exacerbate the emissions impact of the fossil fuelled generation, while imposing significant economic costs on their occupants.

During the global energy crisis, governments spent close to $940 billion on short-term measures to shield households from surging energy prices, with $535 billion spent at

the crisis’s peak in 2022. Despite this spend, millions of households remain at risk due to energy-inefficient homes, leading to higher energy bills, poorer health outcomes, and a significant, ongoing strain on public resources.

The disparity in progress across regions underscores the need for systemic action. While the USA charged ahead from 2020, powered by the Inflation Reduction Act, Europe has fallen behind due to an inability to fund both efficiency investments and crisis interventions. Differences in rollout are also seen at a micro level, with certain populations or geographies in advanced economies locked out of the energy transition, and thereby unable to access the economic and resiliency benefits that flexibility can provide, due to older or poorly built housing stock. The uneven distribution of advancements reflects the complex and interconnected nature of this challenge, requiring a systemic approach to overcome historical issues

and address effectively.

Addressing energy efficiency requires navigating a web of interdependent factors. It is fundamentally a systems problem— one that transcends individual actors or sectors. The lack of coordination between policymakers, utilities, private investors, and consumers has led to piecemeal solutions that benefit only those who can afford the transition. As an example, due to policy changes including the switch to the ECO and Green Deal schemes and insufficient coordination between government bodies, local authorities, energy companies and contractors, the UK went from more than a million homes insulated a year in the 2000s, to just 60,000 in 2022. This fragmented approach has left significant emissions reductions, and resiliency benefits, unrealized, and a human cost that is hard to quantify or accept.

Typically, only wealthier households have been able to afford necessary upgrades, such as insulation or low-carbon heating. The poorest 10% of households in advanced economies spend four times as much of their income on energy as the wealthiest 10%, despite consuming half as much energy (IEA – Energy Efficiency 2024). Without systemic reform, energy efficiency risks becoming another dimension of inequality, rather than a universal benefit.

However, if we succeed in removing these blockers and increasing demand for the first fuel, the opportunities are transformative. Accelerating energy

efficiency improvements could deliver over a third of all carbon dioxide emission reductions required by 2030 to align with net zero goals (IEA –Energy Efficiency 2024). The ripple effects extend beyond emissions reductions: households would enjoy lower energy bills, improved health and enhanced comfort, while nations would achieve greater energy security and resilience to price shocks. Moreover, scaling energy efficiency could enable a rapid deployment of other low-carbon technologies, such as heat pumps, by reducing unnecessary investment to cover transitory peaks in capacity requirements. The result

would be faster decarbonization and enhanced grid stability, especially given the global supply crunch we are already feeling relating to electrical and systems engineers. The health, wealth, and resilience benefits would also uplift vulnerable communities globally, creating a fairer and more sustainable energy transition.

Key Interventions to unlock and benefit from “the first fuel”

To unlock these benefits, international actors should collaborate to identify, share, and blueprint examples of three key interventions:

By the 2020s insulation installation had dropped to only 5% of the annual households of 2009-2012

Digital Evaluation of Household Emission Reductions

Digital tools are essential for accurately assessing and tracking emissions reductions at scale. By leveraging smart meters, cloud-based systems, and real-time monitoring, policymakers can craft evidence-based strategies, derisk policy and thereby ensure accountability. This infrastructure enables transparent reporting and allows governments to identify and address gaps in energy efficiency programs effectively.

Utilizing and Scaling

Property-Linked Finance

Addressing ownership and financability issues is critical for scaling energy efficiency. Property-linked finance allows decarbonization costs to be tied to the property rather than the owner, enabling smoother transitions between tenants and reducing financial barriers to technology uptake where there are still long payback periods. This model ensures that upgrades, such as insulation or efficient heating systems, can be implemented without requiring significant upfront investment from current occupants, unlocking opportunities and aligning incentives for all stakeholders.

Automation of Flexibility Benefits

Automated technologies such as integrated energy management systems, smart appliances, and AI-driven flexibility tariff optimization can simplify consumer engagement and maximize energy efficiency. Wrapping these technologies into single-touch delivery models ensures adoption, streamlining the customer journey and ensuring maximum benefit for both the household and the grid, particularly for low-income and marginalized communities. In developing economies, where electrification has been growing steadily but unevenly and capacity constraints are more severe, automation can play a vital role in bridging gaps and delivering resiliency in addition to economic benefits.

The path forward demands ambition, innovation, and collaboration across sectors. Energy efficiency offers a pathway to a sustainable future, delivering environmental, economic, and social benefits. While the energy transition will no doubt continue to prove demanding, by prioritizing the first fuel, we can build a world that is more resilient, equitable,and prepared for the challenges ahead.

He advises global energy infrastructure providers on critical issues for the energy transition including energy efficiency and climate resilience. In past roles, he has advised Ofgem on how to incentivise energy efficiency improvements and support fuel poor communities. Nye also sits on an advisory panel for National Grid and Chairs the Governing Board for Cadent’s Warm Homes Network, a £2.4m fund to support fuel poor customers.

NYE GORDON

Nye Gordon is a Director in the Energy, Sustainability & Infrastructure team in Guidehouse.

Cavity wall Loft Solid

WHAT IS THE ROLE OF CAPITAL MARKETS IN ALLEVIATING THE CLIMATE CRISIS?

To achieve the United Nations’ SDGs by 2030, an unparalleled scale of investment is required, highlighting the pressing need for substantial financing across diverse sectors and regions. Here, Arunma Oteh, former Treasurer of the World Bank, and previous Director General of Nigeria’s Securities and Exchange Commission, discusses the vital role capital markets need to play in generating a better and more sustainable world for the future.

To achieve the United Nations’ Sustainable Development Goals (SDGs) by 2030, an unparalleled scale of investment is required, highlighting the pressing need for substantial financing across diverse sectors and regions. At their best, capital markets serve humanity by providing the necessary capital to build infrastructure, develop resilient economies, and, crucially, fight climate change. We cannot shy away from the role that capital markets need to play in generating a better and more sustainable world for the future.

SDG investment gaps

Beyond social issues, one of the primary focuses of the SDGs is environmental sustainability, recognizing the urgent need to address climate change, protect ecosystems, and ensure the sustainable use of natural resources. Goals related to clean water and sanitation aim to provide universal access to safe and affordable drinking water while promoting sustainable management of water resources. Affordable and clean energy goals focus on ensuring access to modern, sustainable energy for all.

Meeting the SDGs by 2030 will require unprecedented levels of investment, underscoring the critical financing needs that span across various sectors and regions.

According to the United Nations Conference on Trade and Development (UNCTAD), achieving the SDGs will necessitate an estimated annual investment of US$5 trillion to US$7 trillion globally1.

This substantial funding requirement encompasses a wide array of critical areas, including infrastructure, healthcare, education, and climate action. UNCTAD further notes that developing countries alone face an annual SDG financing gap of about US$4 trillion, up from US$2.5 trillion in 2015 2.

This highlights the urgent need for world-class capital markets, the mobilization of private sector resources, innovative financing solutions, and enhanced international cooperation to bridge this massive shortfall. Moreover, the COVID-19 pandemic which diverted resources toward immediate health and economic responses, and away from long-term development goals, further exacerbated the financing challenges. UNCTAD notes that the US$4 trillion annual investment needs are less than 1% of total global financial assets, estimated at US$440 trillion according to 2021 data from the Bank of International Settlements (BIS) 3.

The Organization for Economic Co-operation and Development (OECD) reports that official development assistance (ODA) remains a vital source of funding for many low-income countries, yet it alone is insufficient to meet the SDG targets 4. Enhanced global financial architecture, including debt relief initiatives and increased development aid, alongside innovative financing mechanisms from the capital markets, such as green bonds and social impact bonds, are imperative to ensure sustained progress.

Capital markets, with their expansive reach and deep pools of liquidity, offer an unparalleled

[Africa] has about 60% of the world’s best solar resources, yet it currently generates less than 1% of global solar electricity “

opportunity to attract private sector investment into SDG-aligned projects. For example, green bonds, social impact bonds, and sustainability-linked loans can tap into the growing appetite among investors for socially responsible and environmentally sustainable investments. This not only helps bridge the financing gap, but also aligns the interests of investors with the long-term goals of sustainable development, fostering a more resilient and inclusive global economy.

Since the adoption of the SDGs in 2015, there has been a significant surge in the issuance of green bonds, social impact bonds, and sustainability-linked loans, reflecting a growing commitment to sustainable finance. According to the Climate Bonds Initiative, the global climate bond market experienced remarkable growth, with annual issuance increasing from just US$42 billion in 2015 to over US$870 billion in 20235.

As of March 2024, the cumulative issuance of green bonds had surpassed US$4.4 trillion across 43,000 instruments, driven by strong investor demand and heightened corporate and governmental focus on environmental sustainability. This dramatic increase highlights the critical role of green bonds in financing projects that address climate change and environmental protection, aligning with SDG goals.

Sustainability-linked loans, which tie borrowing costs to the borrower’s performance on sustainability metrics, have also gained traction. According to The Asset, annual issuance of sustainability-linked loan issuance soared from virtually zero in 2015 to approximately US$300 billion in 2023, although down from a peak of about US$500 billion in 2021 6. This growth underscores the increasing importance of incorporating environmental, social, and governance (ESG) criteria into financial decisions, encouraging companies to adopt more sustainable practices in line with the SDGs. These trends demonstrate the financial sector’s critical role in advancing sustainable development through innovative financial instruments.

Furthermore, capital markets can stimulate greater collaboration between the public and private sectors.

Public-private partnerships (PPPs) can play a pivotal role in scaling up investments, as governments can provide initial funding and policy support to de-risk projects, making them more attractive to private investors. Additionally, innovative financial mechanisms such as blended finance can combine public and private capital to enhance the viability and impact of SDG initiatives. By fostering such synergies, capital markets can amplify the efforts to close the SDG financing gap, ensuring that the global community moves closer to achieving the 2030 SDGs.

Africa’s potential

Achieving the SDGs by 2030 presents a challenge of gigantic proportions for Africa specifically, with massive investment gaps that need to be addressed. According to UNCTAD, Africa faces an annual SDG financing gap of about US$200 billion to US$300 billion 7. This funding shortfall spans critical areas such as infrastructure, healthcare, education, and climate action. The AfDB estimates that the continent needs around US$130 billion to US$170 billion annually for infrastructure development alone, yet current investment levels are only around US$67 billion, leaving a substantial gap 8.

Africa’s wealth of resources, if harnessed effectively, can significantly contribute to meeting the SDGs. Africa holds 39% of the world’s renewable potential. Our continent possesses immense potential for renewable energy generation, with its vast solar, wind, and hydro resources significantly underutilized compared to global figures.

The continent has about 60% of the world’s best solar resources, yet it currently generates less than 1% of global solar electricity9. According to a study commissioned by the IFC, Africa possesses wind resources capable of meeting its entire electricity demand 250 times over. The study, which assessed the continent’s technical wind potential, revealed that Africa could generate more than 59,000 gigawatts of wind energy – more than sixty times the current global installed wind capacity10. Despite this vast potential, wind power remains largely underutilized in Africa, with the continent accounting for less than 1% of the world’s installed wind capacity.

Hydropower also remains largely untapped despite the continent’s extensive river systems. This disparity underscores the need to accelerate investment to begin tapping into Africa’s renewable energy resources fully.

US$5 trillion to US$7 trillion

the amount of investment needed annually to achieve the UN SDGs

ARUNMA OTEH

Arunma Oteh is a highly accomplished leader and expert in global capital markets with 40 years experience in finance, governance, and international development. A former Treasurer of the World Bank, she has also served as Director General of Nigeria’s Securities and Exchange Commission, driving crucial capital market development initiatives and reforms post-global financial crisis. Currently, Arunma is an academic at Oxford University’s Saïd Business School.

US$870 billion

the value of climate bonds issued in 2023

Arunma’s new book All Hands on Deck is launching on January, 14, 2025. Arunma offers a profound case study for the type of leader needed to build sustainable capital markets, drawing on practical anecdotes and insightful reflections from her journey leading Nigeria’s Securities and Exchange Commission. This is a must-read for those looking to unleash the potential of capital markets to generate true global economic and social transformation.

Overall, to achieve the SDGs by 2030, we must all come together to produce unprecedented global investment and create innovative financial solutions. Capital markets can play a pivotal role in mobilizing resources and aligning investor interests with sustainability goals through instruments like green bonds and sustainability-linked loans.

Utilizing the resources of underfunded regions such as Africa will not only support the financial development of several economies but also benefit the planet for the better.

Accelerating sustainable finance is not just a necessity—it is a shared responsibility to ensure the lasting progress of our world and our future.

1UN Trade and Development, Financing for Sustainable Development Report 2024 (UNCTAD, 2024), https://unctad.org/publication/financing-sustainable-development-report-2024; 2UN Trade and Development, “SDG investment is growing, but too slowly: The investment gap is now $4 trillion, up from $2.5 in 2015,” SDG Investment Trends Monitor, 4 (2023), https://unctad.org/publication/sdg-investment-trends-monitor-issue-4; 3The IMF estimates this could actually have been as high as US$450 trillion in 2021; 4Organisation for Economic Co-operation and Development (OECD) Global Outlook on Financing for Sustainable Development 2021: A new way to invest for people and planet (OECD Publishing, 2020); 5Climate Bonds Initiative, Sustainable Debt: Global state of the market 2023 (2024), www.climatebonds.net/files/reports/cbi_sotm23_02h.pdf; 6L. Tang, “Sustainability-linked bonds, loans sink in 2023,”The Asset (January 13, 2024), www.theasset.com/article-esg/50731/sustainability-linked-bonds-loans-sink-in-2023; 7UN Trade and Development, World Investment Report 2022: International tax reforms and sustainable development (UNCTAD, 2022), https://unctad.org/webflyer/world-investment-report-2022; 8African Development Bank, “African Economic Outlook 2022” (2022), www.afdb.org/en/documents/african-economic-outlook-2022; 9International Renewable Energy Agency, “Renewable capacity statistics 2020” (IRENA, 2020), www.irena.org/publications/2020/Mar/Renewable-Capacity-Statistics-2020; 10International Finance Corporation (IFC), Wind Energy: A Review of the potential in Africa (2013)

THREE LEADERS SHOWING BUSINESS HOW TO BUILD A SUSTAINABLE WORLD

The business world is shifting, and today’s leaders are redefining what it means to lead. No longer confined to profit-driven goals, they are tackling global challenges with innovative solutions that balance profitability and purpose. From transforming waste into opportunity to creating human-centric brands and rewilding oceans for a sustainable future, these visionaries are paving the way for business to be a force for good. This is the new face of leadership: bold, creative, and committed to building a better world…

Dr Andrew White, CEO of Transcend.Space

What should business leadership look like today? It’s a question I’ve been asking over two decades of coaching and academic work - and one that has become ever more pertinent during the past five years of extreme global disruption.

The world has changed, and it means leaders and companies can no longer live in their bubbles. Increasingly, they are being called out to serve something greater than themselves and their shareholders. They are being forced to consider what impact they want to have on the world.

One example of this shift can be seen in attitudes to climate change and sustainability. There is no doubt business has done huge amounts of good for the world, from lifting people out of poverty to creating innovative products which make our lives better. But there is also no doubt 20th century business models, predicated on mass production and unlimited use of the earth’s resources, have caused huge amounts of damage. Long ago, we reached a point where this became unsustainable. A rethink was needed.

With that has emerged a new archetype of business leaders who are reframing environmental challenges as opportunities for their organisations — and the wider world. Today, the best leaders aren’t just executors, but also innovators, creators and bridge builders. They reconcile things we didn’t think were reconcilable. They combine oil and the water. And through that, new strategies emerge.

I’ve had a unique insight into this shift through my Leadership 2050 podcast, which I hosted as part of my previous role as senior fellow in management practice at the University of Oxford’s Saïd Business School. Through the podcast, I interviewed leaders who are setting the agenda for a more sustainable and equal future by confronting the challenges humanity faces and, most importantly, finding business-based solutions. Here are three leaders I spoke to who are leveraging their businesses to bring the world back into balance.

Today, [business leaders] are being forced to consider what impact they want to have on the world.

David Katz, Plastic Bank CEO

The World Wide Fund for Nature (WWF) estimates plastic waste in oceans kills 100,000 marine mammals globally every year. Think about this statistic for a minute and it’s easy to get tangled in emotions such as angst and guilt. But David Katz is different: he thought of a solution.

Katz saw this crisis and reframed it as a business concept — Plastic Bank — where people in under-privileged coastal communities are paid to collect waste which has washed up on beaches and deposit it at Plastic Bank branches. The plastic is later processed into raw materials and sold to consumer goods companies to use for recycled packaging.

As of December 2024, the company estimates it has removed the equivalent of 7.5 billion bottles from the oceans. But Katz is not only removing plastic from the sea, he’s also helping people out of poverty and providing circular packaging for other businesses… all while making a profit.

As he told me on the podcast: “What we’ve done is create a monetary standard that reveals value in what was once considered waste.”

Pinar Akiskalioglu , Takk founder

One aspect of where business can cause problems is in the pursuit of growth for growth’s sake: aggressively making, marketing and selling products regardless of whether people need them, and the impact this has on the planet.

Pinar Akiskalioglu is an antidote to this. Her ecommerce business, Takk, is an “essentials only” personal care brand which urges customers to only buy the bathroom products they need.

It’s part of a stand against the “choice overload” many beauty companies force on consumers. There is only one version of each product, while ingredients are kept to an absolute minimum.

DR ANDREW WHITE

Dr Andrew White is founder and CEO of Transcend. Space, an executive coaching company. He was formerly senior fellow in management practice at the University of Oxford’s Saïd Business School. Search “Leadership 2050” on your podcast provider to listen to the interviews featured in this article.

As it says on the website: “We have no interest in convincing you to buy more and more different products when one can do the job.”

It takes a different type of leader to tell customers to limit their spending. But in doing so, Akiskalioglu has actually created a loyal customer base which is driving success anyway. As she told me, it’s part of “a more human-centric attitude towards business”.

Daniel Hooft,

Kelp Blue founder and CEO

Kelp is a fast-growing giant seaweed that provides a habitat for marine life while sequestering large amounts of CO2, possibly more than typical land forests. In the midst of the COVID pandemic, having left his corporate role at Shell, Daniel Hooft created a business out of this.

Kelp Blue plants kelp forests in the oceans — currently around Namibia, Alaska and New Zealand — which are harvested for use in agriculture, food, pharmaceuticals and textiles: a for-profit solution to climate change and rewilding oceans.

As Hooft told me on the podcast: “It’s a combination of an impact business which should have a very healthy bottom line.” He highlighted an important point: that social responsibility works even better when it is underpinned by innovative business models which drive profitable growth.

A common thread runs between Katz, Akiskalioglu and Hooft: they are seeing their companies as a means to have an impact, not as an end itself. They are bursting out of traditional business bubbles and asking what they can do to make the world a better place. When I consider the work that needs to be done to transition to net zero by 2050, this is what the new archetype of leadership looks like.

UNLOCKING GREEN FINANCE: TRANSPARENCY AS THE KEY TO CLIMATE ACTION

Developing nations struggle to access climate funds as private sector hesitancy persists due to corruption and financial risks. Technologies like blockchain, standardized reporting, and ownership registries offer transformative solutions, creating a transparent ecosystem to attract investments and ensure climate finance delivers measurable impact, says Lida Preyma.

Developing nations face several challenges in accessing sufficient funding for climate adaptation and mitigation despite global pledges. The private sector’s hesitation to invest in green projects stems from several factors, including financial risks, regulatory challenges, and market dynamics.

The transition to a low carbon economy is creating unprecedented opportunities for growth, profitability, and market leadership. We are looking at a trillion-dollar industry spanning a multitude of sectors, including renewable energy, transportation, infrastructure, and agriculture.

Over $100 trillion in investments is needed by 2050. Countries and companies alike have committed to net-zero targets creating an enormous total addressable market. The political will is there, even if it takes a hiatus for a few years in some countries. But political mandates are also short in comparison to current climate and more importantly, business strategies. While some companies use political cycles as an excuse for inaction, market leaders understand the opportunity before them.

Transparency and Corruption Mobilizing the private sector has

proven to be elusive and some very real challenges exist. Global banks have allocated billions of dollars toward climate action, yet the emerging markets cannot seem to access these funds. Aside from the financial, regulatory, and market dynamics at play, the lack of transparency and corruption in some of these markets play a significant, albeit seldom spoken about, factor. Make no mistake, private money will not flow when corruption is simply a part of doing business; or even if there is the slightest chance that money is averted to the wrong hands and regulatory fines could be levied in multiple countries that might be ten times or more the value of the investment. Reputational risk is simply not worth it.

The key is transparency; not only in the project itself but of the participants involved. Technologies like blockchain, standardized reporting frameworks, and beneficial ownership registries can significantly enhance transparency and accountability in climate finance allocation.

Blockchain could be key Blockchain and distributed ledger technology can ensure that data is trackable and kept secure on immutable ledgers. Once data is entered, it cannot be altered, ensuring a reliable and verifiable audit trail of fund allocation, usage, and reporting of outcomes. It can also provide real-time transparency where stakeholders (governments, donors, investors) can track the flow of funds in real-time, reducing the risk of corruption, misappropriation, and fraud.

Smart Contracts ensure that funds are released only when predefined conditions (e.g., project milestones) are met which minimizes delays and ensures accountability. Independent validators can confirm transactions, promoting trust without relying on central authorities. Blockchain can create transparent carbon markets, reducing double-counting and fraud in carbon credit issuance and trading which enhances market integrity and investor confidence. Project funding can be tokenized, enabling fractional

ownership and democratizing investment in green projects.

Challenges of blockchain are correspondingly plentiful. There is a technical complexity present, where implementing and maintaining blockchain systems requires specialized knowledge that may be scarce in some developing countries.

Often, an infrastructure investment is necessary which can require significant capital. While transparency is paramount, sensitive financial data may need protection, requiring careful system design. Ensuring that blockchain systems comply with local and international data protection laws can be complex. Some blockchain networks, especially those using Proof-of-Work (PoW), consume large amounts of energy. However, Proof-of-Stake (PoS) and other energy-efficient models are emerging as alternatives.

Many countries lack clear regulations for blockchain applications, creating uncertainty for investors and project developers and different regulatory environments can complicate

Global banks have allocated billions of dollars toward climate action, yet emerging markets cannot seem to access these funds.

international climate finance transactions. In some regions, basic digital infrastructure and internet access are insufficient for implementing blockchain solutions.

Training and partnerships

Overcoming these challenges is not insurmountable. Capacity building including training and technical assistance will help countries build expertise.

Partnerships between governments, technology companies, and non-governmental organizations (NGOs) should be encouraged to co-develop and implement blockchain solutions.

Multilateral institutions could be leveraged to fund pilot projects. As an example, the World Bank has issued blockchain-based bonds to enhance transparency and efficiency in fund allocation.

Clear regulations for blockchain use in climate finance should be established, ensuring compliance with international standards. Countries should prioritize building the infrastructure needed for digitization.

Many technological advancements were born out of necessity during the global pandemic, yet some countries were left behind because they did not have adequate infrastructure. Entrepreneurs saw the world open as an obtainable market, if they had access to the internet.

Climate finance is certainly driving innovation in clean tech and green tech, but to deploy this technology,

reliable infrastructure is needed. This infrastructure investment brings a myriad of benefits, including increased financial inclusion which is necessary for financial products like micro-lending. With the advent of Artificial Intelligence, countries without proper digital infrastructure risk falling even further behind.

Standardized Reporting

Blockchain on its own is only one piece of the puzzle. Standardized reporting ensures that all stakeholders use consistent metrics, definitions, and formats when documenting climate finance activities.

The Task Force on Climate-Related Financial Disclosures (TCFD) and Global Reporting Initiative (GRI) are two such frameworks that have received international acceptance and adoption.

Standardized reporting enables comparison of climate finance performance across countries and organizations, reducing ambiguity. Clear, uniform reporting requirements make it easier to identify discrepancies or misuse of funds and provides enhanced accountability.

Evidence-based decision making provides reliable data for policymakers, investors, and civil society to assess project impacts and allocate resources effectively. Clear protocols on how to disclose financial flows and climate-related risks ensure transparency in investment decisions and facilitates independent verification of reports, strengthening credibility and trust.

Building trust

When combined, these tools offer a powerful transparency ecosystem where blockchain ensures data integrity, while standardized reporting provides the framework for collecting and interpreting this data.

By leveraging blockchain and standardized reporting, developing nations can build trust with international investors and donors, demonstrate effective use of climate funds, and attract further investment for critical adaptation and mitigation projects.

This ecosystem will be enhanced with public beneficial ownership registries as they provide clear information about who ultimately

LIDA PREYMA

Lida Preyma is the founder and CEO of Cēlandaire Capital, facilitating capital introductions for corporate climate projects. Previously, she was director of strategic initiatives for capital markets and head of global anti-money laundering risk management for a major Canadian bank. She was also part of the management team that build Canada’s first alternative trading platform and stock exchange,and managing director of corporate citizenship of a multinational auto parts manufacturer. She has served on B20 taskforces including anti-corruption, finance and infrastructure, energy transition, and climate. She is a member of the board for Transparency International (Canada) and a mentor for Creative Destruction Labs’ Paris Climate stream.

www.celandairecapital.com

owns and/or controls the companies involved in climate projects, both participants and beneficiaries. They ensure funds are not funneled to hidden interests or shell companies because they reveal hidden ownership structures thereby preventing companies with poor environmental records from establishing new entities to access financing under a different name. They can also reveal potential conflicts between project developers, government officials, and funding institutions, reducing the risk of favouritism. For investors and funding agencies, they can use ownership data to assess the

credibility and risk associated with potential climate projects and ensure that recipients meet anti-corruption and ethical standards before receiving funds.

Taken together, these tools can provide a transformative role in ensuring climate finance is transparent, traceable, and impactful. Trust and integrity among stakeholders are essential in attracting private money to developing countries. By integrating technology, clear standards, and robust governance, the world can move closer to ensuring climate funds deliver real, verifiable impact.

THE GENDER-ENERGY NEXUS IN THE AI ERA: CHALLENGES AND OPPORTUNITIES

An overview of a Sustainable Energy for All report, originally compiled by Ava Strasser and Rosemary Idem, SEforAll.org

Summary

The Gender-Energy Nexus in the AI Era: Challenges and Opportunities report was produced by Sustainable Energy for All’s (SEforALL) Gender and Youth team. It explores the intersection of gender, energy, and AI, highlighting challenges and opportunities for gender equality and sustainable development.

The intersection of gender, energy and Artificial Intelligence (AI) presents both challenges and opportunities for achieving gender equality and sustainable development.

AI can be a critical enabler in accomplishing 134 of the 169 targets under the framework of the Sustainable Development Goals (SDGs), with over 600 AI-enabled use cases identified. However, the impact of AI at the intersection of SDG7 (Affordable and Clean Energy) and SDG5 (Gender Equality) requires significant attention, as these objectives are deeply interconnected in their implications and outcomes.

While AI shows positive potential for supporting SDG7 by ensuring universal access to affordable, reliable,

sustainable and modern energy for all, SDG5 has the lowest number of AI-enabled use cases, with only 10 out of approximately 600 cases identified.

This imbalance is further highlighted by stark funding imbalances: between 2018 and 2023, total AI grant funding for SDG7 amounted to only USD 0.03 billion, while SDG5 received just USD 0.04 billion. Similarly, in private sector investment, USD 49 billion was directed towards AI applications for SDG7, compared to a negligible USD 0.62 billion for SDG5. This disparity is concerning considering that lack of energy access disproportionately affects women and girls.

UN Women has reported that if current trends continue, by 2030, an estimated 341 million women and girls will still lack electricity, with 85 percent of them in Sub-Saharan Africa.

A transformative yet complex landscape

The intersection of gender, energy, and artificial intelligence (AI) presents a transformative yet complex landscape in the global pursuit of sustainable development. The report underscores the importance of addressing these interrelated domains, highlighting both the challenges and the potential for meaningful progress.

AI emerges as a key enabler in addressing global challenges, with its capacity to process vast amounts of data, enhance decision-making, and optimise resource allocation.

“By 2030, an estimated 341 million women and girls will still lack electricity, with 85 percent of them in Sub-Saharan Africa

Its application spans numerous areas within sustainable energy, from designing mini-grids for rural electrification to improving the efficiency of renewable energy grids. However, the unequal distribution of these benefits and persistent gender disparities create significant barriers to realising AI’s full potential.

Women, particularly those in low-income and developing regions, often lack access to the resources, education, and infrastructure needed to benefit from or contribute to these technologies. This disparity is not only a missed opportunity but also a challenge that risks entrenching existing inequalities.

The gender-energy nexus highlights a critical gap in energy access that disproportionately impacts women

The gender-energy nexus highlights a critical gap in energy access that disproportionately impacts women. Current trends suggest that by 2030, an estimated 341 million women and girls will still lack access to electricity, with the majority in Sub-Saharan Africa. Women’s limited access to modern energy services, such as electricity and clean cooking technologies, significantly affects their health, education, and economic opportunities. Additionally, the burden of energy poverty often falls on women, who are typically responsible for household energy management in many cultures.

The reliance on polluting fuels and technologies for cooking not only harms women’s health but also consumes their time, limiting their ability to pursue education, employment, or entrepreneurial ventures.

Exacerbating the challenges

At the same time, women’s underrepresentation in the energy and AI sectors exacerbates these challenges. In the energy sector, women account for only 32% of the renewable energy workforce and occupy just 11% of ministerial roles related to energy.

Similarly, in AI development, women are significantly underrepresented, particularly in technical and decision-making roles. Even when women manage to break into the field, companies founded by women receive, on average, six times less funding than those led by men, highlighting a stark funding disparity. This underrepresentation and lack of financial support lead results in the exclusion of women’s perspectives and needs in the design and implementation of technologies and policies. The lack of gender-sensitive approaches in AI further reinforces biases and limits the effectiveness of solutions aimed at promoting energy equity.

The digital gender divide compounds these issues. Globally, men are 21% more likely than

women to use the internet, a gap that widens to 52% in the least developed countries. Women’s limited access to digital technologies and connectivity restricts their ability to engage with and benefit from AI applications.

This divide is particularly pronounced in regions with poor energy infrastructure, where unreliable or unavailable electricity further limits access to digital tools. The result is a cycle of exclusion, where women are unable to participate in the digital and energy transitions that are shaping the future.

In the energy sector, women account for only

32%

of

11%

ministerial roles related to energy.

Globally, men are

21% of the renewable energy workforce and occupy just

more likely than women to use the internet, a gap that widens to 52% in the least developed countries.

Despite these challenges, AI offers unprecedented opportunities to address gender and energy inequities. Its ability to process complex data can help close the gender data gap, a critical barrier to developing effective policies and technologies. By integrating sex-disaggregated data into AI systems, policymakers and developers can create solutions that better address the specific needs and experiences of women. For example, AI-driven models can map energy access needs in underserved communities, forecast demand, and design cost-effective solutions that prioritise inclusivity.

AI in energy planning

In addition to closing data gaps, AI can play a transformative role in enhancing energy planning and management. Smart grids powered by AI enable more efficient use of renewable energy sources, such as solar and wind, by matching supply with demand in real time. These technologies not only improve energy efficiency but also reduce costs, making clean energy more accessible to communities that need it most.

AI can also be employed in optimising the design and deployment of off-grid solutions, such as mini-grids, which are essential for electrifying rural areas. By tailoring these systems to local needs, AI ensures energy access initiatives are both equitable and sustainable.

The integration of gender equity into AI and energy projects is crucial for maximising their impact. Diverse and inclusive teams are better equipped to identify and address biases in data and algorithms, ensuring that technologies serve all users equitably. Representation in these fields must go beyond tokenism to actively include women in decision-making roles and technical positions. Such inclusion not only enhances the quality of solutions but also ensures that women’s perspectives inform the development and implementation of policies and projects.

A moral imperative and an economic opportunity

Investing in gender-sensitive approaches to energy and AI is not just a moral imperative;

it is also an economic opportunity. Research indicates that companies with gender-diverse leadership outperform their peers in terms of innovation and financial performance.

In the context of AI, diverse development teams are more likely to produce systems that are ethical, unbiased and responsive to the needs of diverse populations. Similarly, in the energy sector, involving women in leadership and technical roles leads to more effective and inclusive decision-making, ultimately accelerating the transition to sustainable energy.

The transition to a sustainable and inclusive energy future demands a concerted effort from governments, private sector actors and civil society. Public and private investments must prioritise projects that advance gender equity and sustainable energy access. This includes funding for education and training programmes that empower women to pursue careers in STEM and energy-related fields.

Additionally, policies must address the systemic barriers that limit women’s participation, such as discriminatory legislation, cultural biases, and unequal access to resources.

AI’s transformative potential extends beyond its technical capabilities; it lies in its ability to catalyse systemic change. By leveraging AI to address the gender-energy nexus, stakeholders can create a future where gender equality and sustainable energy access are not just aspirational goals but shared realities. This vision requires a shift in mindset—from viewing energy and AI as isolated domains to recognising their interdependence and their collective role in shaping a more inclusive world.

As the SEforALL report emphasises, achieving this vision will require resilience, collaboration, and a commitment to leaving no one behind. By aligning technological innovation with social equity, we can unlock the full potential of AI and energy to drive progress towards a more sustainable and equitable future.

To download the full report, please visit: https://www. seforall.org/publications/the-gender-energy-nexus-in-the-ai-era-challenges-and-opportunities

ROSEMARY IDEM

Rosemary Idem is Programme Manager, Gender and Youth at Sustainable Energy for All, responsible for leading efforts on removing current barriers to women and youth participation in the clean energy workforce; and in identifying, supporting, and championing the next generation of women and youth energy leaders to close the energy access gap and ensure no one is left behind.

Rosemary is an energy expert with extensive experience in the off –grid energy sector, clean energy transition and energy financing. Her expertise includes off-grid renewable energy development, policy design, power sector reform, risk and business continuity management, infrastructure financing, and gender mainstreaming. Prior to her role at SEforALL, she worked in the Nigerian Rural Electrification Agency, where she supported the design and implementation of the Nigerian off-grid electrification programme and Nigeria Electrification Project- a $550m Facility to rapidly increase and develop solar mini grids and deploy solar home systems across the country.

AVA STRASSER

Ava Strasser is a Gender & Youth Analyst at Sustainable Energy for All (SEforALL), where she leads initiatives to advance gender equality and youth inclusion in the sustainable energy sector. Her work includes implementing SEforALL’s STEM Traineeship programme in Sierra Leone and Panama and spearheading the organization’s efforts to mainstream gender and youth across its work. At SEforALL, Ava has conducted research on standardizing gender indicators for tracking progress towards SDG 7 and the intersections of gender, energy, and artificial intelligence. Prior to joining SEforALL, Ava held positions with the NGO Working Group on Women, Peace and Security and the United Nations Department of Peace Operations. Ava holds a Master of Science in Global Affairs with a concentration in Peacebuilding from New York University and a Bachelor of Arts in Political Science: International & Comparative Politics and Gender & Women’s Studies from Western Michigan University.

Liza Tullidge, CEO and Founder at Netā, discusses how a priority shift is needed at board-level to ensure enterprises are more accountable and governance plays a significant role in a sustainable future.

BOARDS AS ARCHITECTS OF A SUSTAINABLE FUTURE: A

VISIONARY

CALL TO ACTION

In boardrooms around the globe, decisions are being made that can define the future of business and society. Yet too often, these decisions are constrained by outdated mindsets, short-term pressures, and an aversion to risk. Boards today are at a crossroads: they can either be guardians of the status quo or architects of a bold, sustainable future.

The stakes have never been higher. Climate change, social inequity, and technological disruption are not distant threats—they are immediate challenges. The companies that thrive in this era will be those whose boards embrace sustainability and innovation as core responsibilities, not optional extras. This is a moment for leadership with vision, courage, and accountability.

The Bold Steps Boards Must Take

To truly lead, boards must redefine what governance looks like in the 21st century. This starts with a fundamental shift: treating sustainability not as a box to be ticked but as a strategic imperative.

Every decision made in the boardroom—from investments to supply chain strategies—must be viewed through a sustainability lens.

Consider a leading renewable energy company overhauling its operations to achieve net-zero emissions.

The board’s leadership is instrumental in effectively delivering this work: from mandating measurable sustainability goals across all departments to tying executive compensation to ESG performance. To successfully deliver on their commitment, the board must commit unequivocally to making this target happennot as an optional or half-commitment, but to a mandatory requirement the same way they would view a financial or traditional risk mandate. It will take new strategies, bold thinking and deviating from the norm.

This isn’t just a moral decision—it is a business one. It benefits the bottom line and ensures vitality for your company in the years to come. How? It can improve your risk profile and reactive expenditure by minimising climate and resilience risks which enables better forecasting and planning. It minimises risk of regulatory or compliance deviation and the expenses as well as reputational risk that arises with breaches.

Additionally, investors increasingly reward companies with robust ESG strategies, and boards that fail to act risk losing both capital and credibility.

Yet embedding sustainability into governance requires more than policy shifts. It demands a cultural transformation within the boardroom itself. Risk aversion, often a hallmark of traditional

“Boards today are at a crossroads: they can either be guardians of the status quo or architects of a bold, sustainable future

governance, must give way to a mindset that embraces calculated risks in pursuit of long-term resilience. Innovation cannot thrive in an environment where caution trumps ambition. Boards must foster a culture where experimentation and learning are encouraged— even when they carry the risk of failure.

Fostering Innovation and Diversity of Thought

The key to unlocking this cultural shift lies in diversity—not just demographic diversity, but diversity of thought, experience, and expertise. Boards dominated by individuals with homogenous backgrounds are ill-equipped to navigate today’s complex challenges.

Instead, companies must prioritize recruiting directors with varied perspectives, particularly in areas like technology, sustainability, and social impact.

Take the case of a tech company that successfully pivoted to AI-driven solutions for climate resilience.

The decision to diversify the board by adding members with deep expertise in AI and environmental science proved transformational, enabling the company to innovate faster and with greater impact. The result? A competitive edge in an emerging market and a stronger reputation with stakeholders.

However, recruiting diverse talent is only the first step. Boards must also create an environment where every member feels empowered to challenge assumptions and contribute meaningfully.

The concept of “groupthink” has no place in a boardroom tasked with shaping the future. Regular innovation workshops and open dialogues with external experts can help boards stay ahead of the curve, ensuring they are not only reactive but proactive in addressing emerging risks and opportunities.

LIZA TULLIDGE, CEO AND FOUNDER AT NETĀ

Liza Tullidge is a visionary entrepreneur, community builder, and boardroom leader known for driving sustainable, impact-oriented business transformations. As CEO and founder of Netā, Liza champions the boardroom as a critical arena for fostering sustainable practices. Netā provides directors with the tools and insights needed to address environmental, social, governance, and technological (ESGT) challenges, guiding organisations worldwide towards sustainable practices, redefining what it means to lead with foresight, ethics and an unyielding commitment to a sustainable future.

“

The question is no longer whether boards can make a difference—it is whether they will step up to the challenge.

The Ripple Effect of Governance

The impact of good governance extends far beyond the walls of the boardroom. When boards prioritize sustainability and innovation, they set the tone for their entire organization—and often for their industry as a whole. Microsoft’s ambitious net-zero commitments, for example, have spurred similar initiatives from suppliers and competitors, creating a ripple effect that amplifies their impact.

But the cost of inaction is equally significant. Boards that fail to lead on critical issues risk not only their company’s reputation but its very survival. The Post Office scandal, where governance failures led to one of the UK’s most notorious miscarriages of justice, serves as a stark reminder of what happens when boards neglect their duty to challenge, question, and evolve.

This is not a time for complacency. The decisions made in boardrooms today will shape the economic, social, and environmental landscapes of tomorrow. Boards must rise to the occasion, recognizing their potential as levers for systemic change.

A Call to Action for Visionary Boards

Being an architect of the future is not a passive role. It requires boards to embrace their power and responsibility with intention and urgency. To drive meaningful change, they must:

1. Embed sustainability into the core of their strategy: ESG a non-negotiable pillar of decision-making.

2. Foster a culture of innovation and risk-taking: ideas and calculated risks that position companies for long-term resilience.

3. Prioritize diversity of thought and expertise: competency matrices to identify and address gaps, ensuring boards are equipped to tackle modern challenges.

4. Lead with transparency and accountability: goals clearly and hold leadership teams accountable for delivering on them.

This is not just about meeting stakeholder expectations—it is about redefining what leadership looks like in the face of unprecedented challenges. Boards have the power to shape not only their companies but the world we all share. The question is no longer whether boards can make a difference—it is whether they will step up to the challenge.