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UAE to Invest $163 Billion in Clean Energy to Achieve 2050 Net-zero Targets

Sheikh Mohammed bin Zayed listens to Mheiri’s explanation in the presence of Sheikh Maktoum bin Mohammed bin Rashid and Jaber at the UAE pavilion at "Expo 2020 Dubai" (Asharq Al-Awsat Arabic)
Sheikh Mohammed bin Zayed listens to Mheiri’s explanation in the presence of Sheikh Maktoum bin Mohammed bin Rashid and Jaber at the UAE pavilion at "Expo 2020 Dubai" (Asharq Al-Awsat Arabic)
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UAE to Invest $163 Billion in Clean Energy to Achieve 2050 Net-zero Targets

Sheikh Mohammed bin Zayed listens to Mheiri’s explanation in the presence of Sheikh Maktoum bin Mohammed bin Rashid and Jaber at the UAE pavilion at "Expo 2020 Dubai" (Asharq Al-Awsat Arabic)
Sheikh Mohammed bin Zayed listens to Mheiri’s explanation in the presence of Sheikh Maktoum bin Mohammed bin Rashid and Jaber at the UAE pavilion at "Expo 2020 Dubai" (Asharq Al-Awsat Arabic)

The United Arab Emirates announced the UAE Net-Zero by 2050 Strategic Initiative, a national drive to achieve net-zero emissions by 2050.

The initiative aligns with the Paris Agreement, which calls on countries to prepare long-term strategies to reduce greenhouse gas emissions and limit the rise in global temperature to 1.5 C compared to pre-industrial levels.

The UAE will invest more than 600 billion dirhams ($163.3 billion) in clean and renewable energy over the next several years to achieve net-zero emissions by 2050, Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai, confirmed on Thursday.

The UAE will "play a global role in combating climate change", Sheikh Mohammed posted on Twitter.

"The UAE’s Net Zero 2050 Strategic Initiative announced today is consistent with the longstanding vision of the UAE and its people to make a significant contribution to global sustainability efforts while supporting economic and human development both at home and around the world."

Minister of Industry and Advanced Technology and Special Envoy for Climate Change Dr. Sultan bin Ahmed Al Jaber said, "The UAE Net Zero Strategic Initiative is an open invitation to the world to collaborate with the UAE in developing practical solutions, boosting multilateralism, and creating opportunities for sustainable socio-economic development.”

Minister of Climate Change and Environment and Minister of State for Food Security Mariam Al Mheiri stressed that research will play a key role in dealing with climate change in the coming years.

The energy strategy revealed by the UAE back in 2017 aims to increase efficiency in personal and corporate energy consumption by 40 percent, bring the total share of clean energy from 25 percent to 50 percent and save up to 700 billion dirhams ($190.5 billion) by 2050.

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Political Turmoil Shakes South Korea’s Economy

Protesters take part in a rally calling for the ouster of South Korea's impeached President Yoon Suk Yeol in front of the Gwanghwamun Gate of Gyeongbokgung Palace in Seoul on December 28, 2024. (Yonhap/AFP)
Protesters take part in a rally calling for the ouster of South Korea's impeached President Yoon Suk Yeol in front of the Gwanghwamun Gate of Gyeongbokgung Palace in Seoul on December 28, 2024. (Yonhap/AFP)
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Political Turmoil Shakes South Korea’s Economy

Protesters take part in a rally calling for the ouster of South Korea's impeached President Yoon Suk Yeol in front of the Gwanghwamun Gate of Gyeongbokgung Palace in Seoul on December 28, 2024. (Yonhap/AFP)
Protesters take part in a rally calling for the ouster of South Korea's impeached President Yoon Suk Yeol in front of the Gwanghwamun Gate of Gyeongbokgung Palace in Seoul on December 28, 2024. (Yonhap/AFP)

After South Korea's president and his replacement were both deposed over a failed bid to impose martial law, deepening political turmoil is threatening the country's currency and shaking confidence in its economy.

The won, which plunged Friday to its lowest level against the dollar since 2009, has been in near-constant decline since President Yoon Suk Yeol's attempt to scrap civilian rule in early December.

Business and consumer confidence in Asia's fourth-largest economy have also taken their biggest hit since the start of the Covid-19 pandemic, according to figures released by the Bank of Korea.

Lawmakers impeached Yoon in mid-December on charges of insurrection, and on Friday they impeached his successor, acting president and prime minister Han Duck-soo, arguing that he refused demands to complete Yoon's removal from office and bring him to justice.

That thrust Finance Minister Choi Sang-mok into the additional roles of acting president and prime minister.

Choi has pledged to do all he can to end "this period of turmoil" and resolve the political crisis gripping the country.

- Constitutional question -

At the heart of the stalemate is the Constitutional Court, which will decide whether to uphold parliament's decision to impeach Yoon.

It must do so by a two-thirds majority, however. And because three of the court's nine seats are currently vacant, a unanimous vote is required to confirm the suspended president's removal.

Otherwise, Yoon will be automatically returned to office.

Lawmakers on Thursday nominated three judges to fill the vacant seats, but acting president Han refused to approve them, precipitating his own impeachment.

After an acrimonious day in which lawmakers from Yoon's party erupted in protest, the country's newest acting president sought to project calm.

"Although we are facing unexpected challenges once again, we are confident that our robust and resilient economic system will ensure rapid stabilization," Choi said Friday.

The 61-year-old career civil servant has inherited a 2025 budget -- adopted by the opposition alone -- which is 4.1 trillion won ($2.8 billion) less than the government had hoped for.

"There are already signs the crisis is having an impact on the economy," Gareth Leather of Capital Economics wrote in a note to clients, citing the dip in consumer and business confidence.

"The crisis is unfolding against a backdrop of a struggling economy," he added, with GDP growth expected to be just two percent this year, weighed down by a global slowdown in demand for semiconductors.

"Longer term, political polarization and resulting uncertainty could hold back investment in Korea," Leather wrote, citing the example of Thailand, another ultra-polarized country whose economy has stagnated since a coup in 2014.

- Democratic resilience? -

But other economists noted that the South Korean economy has so far weathered the chaos well.

As early as December 4, the day after Yoon declared martial law following a budget tussle with the opposition, the central bank promised to inject sufficient liquidity to stabilize the markets, and the Kospi Index has lost less than four percent since the start of the crisis.

"Like everyone, I was surprised when Yoon took those crazy measures," Park Sang-in, a professor of economics at Seoul National University, told AFP. "But there was a resilience of democracy."

"We come from being an underdeveloped country to one of the world's most dynamic economies in very few years, and Yoon Suk Yeol is a side effect of the growth," he added.

"Korean society was mature enough to counter his crazy actions."