In the first wave of investment under their $100 billion clean energy partnership, the United States and the United Arab Emirates (UAE) agreed on Sunday to allocate $20 billion to fund 15 gigawatts (GW) of new clean and renewable energy projects in the US before 2035.
In November last year, the two nations signed a strategic Partnership for Accelerating Clean Energy (PACE) to invest $100 billion to produce 100 GW of clean energy globally by 2035.
Led by a consortium of US private investors and the UAE’s Masdar, the first wave of the investments within the partnership was announced during Abu Dhabi Sustainability Week’s briefing for business and climate leaders on Sunday.
According to the joint statement the US and UAE issued, this investment’s wave will be financed through $7 bill in cash equity – provided by the private sector – that will catalyze $13 billion via US debt financing, among other instruments.
The financing will reach broadly into developed and developing economies to cover a wide range of proven and emerging technology and will also include private and public sector support.
The US and UAE also formed a bilateral body composed of public and private sector representatives from both countries and led by the US special presidential coordinator for global infrastructure and energy security, Amos Hochstein, and Dr. Sultan Al Jaber, President-designate of Cop28 and Minister of Industry and Advanced Technology.
David Livingston, the US special envoy for climate John Kerry’s senior adviser, and Majid Al Suwaidi, director-general of Cop28, have been appointed deputy co-chairs of the PACE group of experts that will convene monthly to provide guidance across the four strategic pillars of PACR: clean energy innovation, deployment, and supply chains; nuclear energy; carbon and methane management; and industrial and transport decarbonization.
The UAE is one of the most active investors in US clean and renewable energy projects, and it has backed through Masdar 10 clean energy projects totaling more than 1.75 GW across Texas, New Mexico, Nebraska, and California.
As it aims to achieve net-zero emissions by 2050, the UAE is investing $163.5 billion in clean and renewable energy projects over the next three decades.