UAE to Revise Energy Strategy to Align with Climate Neutrality Goal

The Minister of Industry and Advanced Technology, Managing Director and ADNOC CEO, Sultan Al Jaber, at the Abu Dhabi CEO Roundtable (Asharq Al-Awsat)
The Minister of Industry and Advanced Technology, Managing Director and ADNOC CEO, Sultan Al Jaber, at the Abu Dhabi CEO Roundtable (Asharq Al-Awsat)
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UAE to Revise Energy Strategy to Align with Climate Neutrality Goal

The Minister of Industry and Advanced Technology, Managing Director and ADNOC CEO, Sultan Al Jaber, at the Abu Dhabi CEO Roundtable (Asharq Al-Awsat)
The Minister of Industry and Advanced Technology, Managing Director and ADNOC CEO, Sultan Al Jaber, at the Abu Dhabi CEO Roundtable (Asharq Al-Awsat)

Emirati Minister of Energy and Infrastructure Suhail al-Mazrouei said the ministry intends to start revising its energy strategy at the beginning of 2023 to align it to achieve climate neutrality by 2050.

Mazrouei said that the review of the energy strategy includes the expansion of renewable energy and the implementation of new projects in areas such as hydrogen energy, hydropower, and waste-to-energy conversion.

It will also include a study of solutions that can be followed regarding traditional methods of electricity production to examine the possibility of adopting carbon dioxide capture, in parallel with a survey about its cost.

The Minister said that the world had witnessed remarkable changes in recent years concerning the climate. The energy strategy review will contribute to determining the optimal mix for the UAE to achieve supply security and reach climate neutrality by 2050.

The minister explained that the volume of electricity production capacity currently amounts to about 35 gigawatts all over the country and will increase in the coming years with the entry of many new projects at total capacity.

Mazrouei was speaking ahead of the launch of the Abu Dhabi International Petroleum Exhibition and Conference 2022 (ADIPEC), which kicked off on Monday.

ADIPEC will be hosting 54 of the top national and international petroleum and integrated energy companies, in addition to 28 international pavilions, providing the optimal platform for stimulating trade activities throughout all segments of the energy sector supply chain.

The event is expected to be attended by more than 150,000 energy experts from 160 countries, alongside 2,200 exhibitors who will unveil the latest innovations in the sector.

Mazrouei said that UAE aims to increase clean projects' share of its energy mix to 50 percent by 2050, while the current allocation of clean energy projects within service or under construction reached 24 percent.

The UAE government is working to keep pace with the increasing demand for energy through its reliance on natural gas and renewable energy sources, said the minister.

Meanwhile, 35 leading energy chief executives discussed delivering energy security, equitable access to energy, and climate progress simultaneously during their participation at the 8th annual Abu Dhabi CEO Roundtable.

They also discussed the building blocks required for a practical, realistic energy transition.

Chairman of the Abu Dhabi Executive Office and Chairman of the Executive Committee of the Abu Dhabi National Oil Company (ADNOC) Board of Directors, Sheikh Khaled bin Zayed Al Nahyan, welcomed world energy leaders to the Roundtable.

Sheikh Khaled stressed the importance of the forum in strengthening Abu Dhabi's position as a global energy center.

The Minister of Industry and Advanced Technology, Managing Director, and ADNOC CEO, Sultan al-Jaber, said that holding this forum annually confirms UAE's ability to create a platform that brings together different opinions and viewpoints with the aim of providing practical solutions to support energy security, equitable access to energy and climate progress with realistic and practical solutions to the energy transition.

The hydrocarbon industry is uniquely positioned to provide practical solutions to the trilemma of secure, accessible, sustainable energy and will play a critical role in delivering a successful energy transition, said the Minister.

"Ensuring energy security is fundamental to economic and climate progress, and global economies will continue to rely on reliable supplies of energy that our industry provides," he said.



US Consumers to Bargain Hunt in Annual ‘Black Friday’ Spree

 A family eats lunch near a store advertising a Black Friday sale at the Pentagon City Mall in Arlington, Virginia, on November 22, 2023. (AFP)
A family eats lunch near a store advertising a Black Friday sale at the Pentagon City Mall in Arlington, Virginia, on November 22, 2023. (AFP)
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US Consumers to Bargain Hunt in Annual ‘Black Friday’ Spree

 A family eats lunch near a store advertising a Black Friday sale at the Pentagon City Mall in Arlington, Virginia, on November 22, 2023. (AFP)
A family eats lunch near a store advertising a Black Friday sale at the Pentagon City Mall in Arlington, Virginia, on November 22, 2023. (AFP)

US shoppers are coming out in force this holiday season, but the festiveness is being tempered by inflationary pressures that have abated but not completely faded.

After the sticker shock during the latter stages of the pandemic, a familiar frustration has settled in towards consumer prices that remain broadly elevated even if they have stopped rising rapidly.

Americans are "ready to open their wallets this holiday season," said the Conference Board ahead of Black Friday -- the day after Thanksgiving, which this year, falls on November 28 -- that traditionally sees US stores kick off the Christmas shopping season with steep discounts.

"US consumers plan to spend more than last year, but inflation reduces how far their dollars can go."

In this environment, nobody expects to pay the full price for items.

"Holiday shoppers are likely to increase their budgets this year versus last year but remain selective and are looking for discounts," said a note from Morgan Stanley.

The investment bank's survey found that 35 percent planned to spend more this holiday season. But nearly two-thirds would skip a purchase if an item is not adequately discounted, meaning a price cut of more than 20 percent.

"It's gonna be a good year, but I don't think that growth is going to be spectacular because consumers are still under pressure," predicted Neil Saunders of GlobalData.

Inflation remains above the Federal Reserve's two percent long-term target, rising in October to 2.6 percent on an annual basis from 2.4 percent in September. But that's significantly below the peak level of 9.1 percent in June 2022.

Other recent economic data has been solid. Unemployment remains low at 4.1 percent, while a preliminary GDP reading for the third quarter came in at 2.8 percent.

But Joe Biden's presidency coincided with about a 20 percent rise in consumer prices as Covid-19 pandemic lockdowns gave way to supply chain bottlenecks.

That inflation played a central role in the 2024 US presidential election, with Republican Donald Trump defeating Biden's appointed Democratic successor, Vice President Kamala Harris.

"There is still a perception among consumers that things are quite difficult," Saunders said. "So people are being quite cautious and careful in their spending."

- Tariff hit? -

How Trump's looming presidency will affect inflation remains to be seen. Industry groups have warned that tariffs favored by the Republican could reignite pricing pressures.

The National Retail Federation projected that a Trump tariff proposal floated during the campaign would dent US consumer budgets by as much as $78 billion annually.

But while tough potential trade actions are already preoccupying Washington trade groups, tariffs are not on consumer radars for the 2024 season, according to Saunders.

One challenge this year will be the shortness of the season.

Black Friday falls at the latest possible date on November 29, shortening the stretch between Turkey Day and Christmas on December 25.

But the impact of that dynamic on 2024 sales should not be overstated. Retailers in recent years have pulled the holiday shopping season ahead, with some vendors launching online "Black Friday" promotions as early as October.

Among the companies that have already begun discounts: the big-box chains Walmart and Target, electronics giant Best Buy and home-improvement retailer Home Depot.

Amazon officially launched "Black Friday Week" on Thursday.

NRF has projected holiday spending growth of between 2.5 and 3.5 percent in the 2024 season compared with the year-ago period, to as much as $989 billion over the two-month period.

Economists with the trade group have pointed to an easing of gasoline prices as a supportive factor.

Online sales are projected to grow as much as nine percent this season, extending a long-term trend. Black Friday itself has become a big occasion for online shopping, along with "Cyber Monday" three days later.

"Over time, we've moved from a period where it was just Black Friday, and maybe a little of the weekend, to it being a period of discounting that starts very early," said Saunders. "It's seasonal discounts."

There has been a diminishment of "doorbuster" sales that are known to draw hordes of waiting crowds, sometimes resulting in injury or worse.

Instead, increasing numbers of consumers are spreading out their purchases or opting to click through Black Friday promotions at home.