UAE and US allocate $20bn to fund 15GW renewable projects

Reuters

The UAE and the United States said that the first $20 billion of their $100 billion clean energy partnership will fund 15 new gigawatts (GW) of renewable energy projects before 2035, state-own WAM news agency reported.

The investments, led by the UAE’s renewable energy company Masdar and a consortium of US private investors, will be offered through $7 billion in private sector cash equity and $13 billion in US debt financing and other instruments.

Launched in November 2022, Partnership for Accelerating Clean Energy’s (Pace) goal is to catalyse $100 billion in the financing, investment and other support and deploy 100GWs of clean energy by 2035. It will cover a wide range of proven and emerging technologies, including private and public sector support, and reach broadly into developed and developing economies.

“Already one of the world’s largest renewable energy investors and developers, the UAE is joining forces with the US under Pace to supercharge a just energy transition, enhance energy security and demonstrate that climate action can unlock economic opportunities,” said UAE co-chair Sultan Al Jaber, Cop28 president-designate and Minister of Industry and Advanced Technology.

“The United States and the UAE enjoy a deep and consequential partnership, now strengthened further by our collaboration to advance clean energy innovation and deployment,” said US co-chair Amos Hochstein.

The formation of an expert group and work plan under Pace will help to build momentum toward impactful deliverables at Cop28 and beyond, he added.

Pace financing will support established renewable energy sources, such as solar and nuclear, and new applications like green hydrogen and carbon capture.

The partnership will prioritise efforts to deliver technical, project management and funding assistance for commercially and environmentally sustainable energy projects across the global south, WAM said.