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About Commodity Insights
17 Nov 2023 | 13:59 UTC
Highlights
Industrial sector is biggest polluter among six segments, followed by buildings
Industrial emissions to drop to 7 mil mt by 2050 from 103 mtCO2e in 2019
To cut total GHG emissions by 19% to 182 mtCO2e by 2030 from 2019 level
The UAE's goal of net zero emissions by 2050 will rely mostly on reducing the carbon footprint of its industries, the biggest polluter among six identified sectors, amid plans to cut total greenhouse gas emissions by 19% from 2019 levels by the end of the decade.
The UAE plans to reduce emissions from the industrial sector to 7 million mt in 2050, from 103 mtCO2e in 2019, Mariam Almheiri, minister of climate change and the environment, said in a Nov. 16 statement carried by state-run WAM news agency.
Among the six core sectors, the buildings segment is the second-biggest polluter and will see its emissions reduced to 1 mtCO2e by 2050 from 62 mtCO2e in 2019, followed by the transport segment with emissions cut to zero from 42 mtCO2e in 2019, Almheiri said.
Emissions from the waste sector will fall to 3 mtCO2e by 2050 from 13 mtCO2e in 2019, emissions from the agriculture sector will be at 1 mtCO2e in 2050 from 6 mtCO2e, and emissions from the power and water sector will hit zero from 0.55 million mt per MWh from the same base year.
The UAE has also committed to plant 100 million mangroves by 2030, promoting direct air capture technology and implementing other nature-based solutions that will help achieve 13 mtCO2e by 2050.
Platts, part of S&P Global Commodity Insights, assessed the price of blue carbon CARBEX credits (that include mangrove projects) at $36.38/mtCO2e Nov. 17. It assessed Tech Carbon Capture credits (including direct air capture, current year) at $123/mtCO2 the same day.
The UAE aims to cut its greenhouse gas emissions by 19% to 182 mtCO2e by 2030 from 2019 levels as OPEC's third largest producer seeks to boost renewable power's contribution to the energy mix and become a top producer of low-carbon hydrogen.
The new target constitutes a 40% reduction compared to the business-as-usual scenario for 2030, according to the third update to the UAE's second Nationally Determined Contribution under the Paris Climate Agreement.
In its second update to the second NDC, released in September 2022, the UAE pledged to lower its GHG emissions by 31% by 2030, compared to the business-as-usual scenario for that year.
Emissions under a business-as-usual scenario were projected to amount to 301 million mtCO2e in 2030, assuming a moderate annual economic growth rate based on historical trends.
Related infographic: Global compliance carbon landscape
The UAE is burnishing its green credentials ahead of hosting the UN Climate Change Conference (COP28) between Nov. 30 and Dec. 12 in Dubai.
To achieve its 2050 net zero strategy, the UAE will undertake more than 25 programs covering six sectors: power, industry, transport, buildings, waste and agriculture, according to the statement carried by WAM.
The programs will focus on increasing the deployment of renewable energy, raising consumption efficiency, switching to sustainable transportation systems and green buildings, and using nature-based solutions and carbon capture technologies.
"Specific to the power and water sector, the strategy aims to strengthen storage, while for the industry, the use of alternative materials and enhancing carbon capture and storage will be enhanced," the statement said. "To reduce emissions in the transport sector, the strategy focuses on promoting clean modes of transport, including EVs, while for the buildings sector, there will be greater emphasis on building codes and the use of green building materials."