Decarbonisation Strategic Conference Programme

The United Arab Emirates is taking centre stage with decarbonisation at the forefront of its efforts to address clean energy security and deliver a just energy and equitable transition and long-term sustainability. Its commitment to decarbonise the energy sector is propelled by a national drive to achieve net-zero emissions by 2050. In what ways can government and industries work together in collaboration with civil society to achieve decarbonisation objectives?

Tackling value chain emissions can help organisations progress in their decarbonisation and sustainability journey, but collecting and tracking these emissions is inherently difficult without reliable data. Energy companies prioritising value chain emissions reductions are facing challenges such as obtaining an accurate measure of current emissions, lack of reporting standards and policies, and transparency between supply chain partners. An alignment amongst companies, suppliers and end-users must be set in place to effectively advance each of their individual and shared mitigation targets.

Direct air capture (DAC) and carbon capture, utilisation and storage (CCUS) are prominent and important technological options to reduce carbon emissions and achieve net-zero ambitions. The source of carbon and technical functionality may differ between DAC and CCUS, but both technologies face the obstacle of being capital- and energy-intensive. To accelerate the deployment of these carbon capture technologies, governments must increase research and development funding, expand carbon offset procurement, and implement progressive regulations and subsidies that support the commercialisation and incentivisation of carbon capture.

While international oil companies (IOCs) are at the forefront of investing in low-carbon initiatives, there is growing pressure for national oil companies (NOCs) to advance at pace with their own decarbonisation journeys. NOCs represent a key opportunity for accelerating decarbonisation with their capacity to diversify energy portfolios, reduce related emissions, produce and promote low-carbon fuel, and advocate for climate policies. What can NOCs individually and collectively do to make an instrumental impact on the energy transition? Can greater collaboration with IOCs help catalyse sustainable funds and immediate solutions to manage the transition to a new age of energy?

Carbon taxes and subsidies are two policy measures that can be used to accelerate emissions reduction. Some experts believe that subsidy policies are more effective than carbon tax policies since they incentivise the development of low-carbon technologies and industries. Others disagree since carbon tax is a market-based mechanism encouraging organisations to eliminate added operating costs, which leads to avoidance of emissions. As a drawback, carbon taxes can be regressive while subsidies can be expensive and may not be sustainable in the long term. In enacting these measures, policymakers must consider factors like policy design, level of tax or subsidy, the sectors covered, duration and the impact of the policy on different stakeholders, including consumers, producers, and the government.

Achieving decarbonisation in the road transportation sector through the application of hydrogen fuel cell technology shows great promise for its capacity to generate electricity while only producing heat and water as byproducts. Over the next few years, it is foreseen that there will be a surge in the number of hydrogen-powered vehicles, including fuel cell trucks, taking to the roads. However, some challenges like lower energy density relative to liquid fuels, high cost, and limited infrastructure for hydrogen refuelling must be addressed to increase the competitiveness of fuel cell vehicles.

Renewable energy has seen its largest increase in global capacity, largely due to the growth of solar and wind power and the further decommissioning of fossil fuel power plants in several large economies. Despite this, barriers remain to fully integrating renewables into the energy mix including intermittency, storage, and grid integration issues. Scaling renewable energy requires significant investment in infrastructure, including transmission lines, energy storage facilities, and new grid technologies. Addressing these challenges will require a coordinated effort among policymakers, industry leaders, and other stakeholders to develop and implement innovative solutions to support renewable energy growth.

According to the International Energy Agency, electrification holds great potential for reducing energy demand due to the higher efficiency of electric technologies compared with fossil fuel-based alternatives. The demand for electrification technologies is mainly driven by transport, building heating, and industrial sectors, while markets for electric vehicles and heat pumps are on the rise. To carry this momentum forward, significant funding for innovation and more policies supporting electricity networks are required to decrease the cost of alternative technologies and encourage key sectors to adopt electrification as part of their value chain.

Nuclear energy has shown steady growth over the years as some countries continue to pursue it as a viable option for their energy needs, despite its risks. Part of this growth can be attributed to its high-capacity factor, the capability to generate reliable and carbon-free power, and the recent developments in reactor technologies such as small modular reactors, advanced reactors, and high-temperature gas-cooled reactors. But a variety of barriers and risks exist, such as the management of radioactive nuclear waste, high costs, and public perception of nuclear energy. The successful deployment of nuclear energy relies on both the public and private sectors collaborating to develop the nuclear industry in a manner that mitigates risks, facilitates swift implementation, and fosters the growth of nuclear energy.

Decarbonising commercial aviation needs large-scale investments in the development of new technology and aircraft, including hybrid-electric aircraft, fuel-burn efficiency applications, contrail mitigation solutions and sustainable aviation fuel. But disadvantages such as the expensive and inadequate supply of biofuels, as well as the limited infrastructure to develop hybrid-electric aircraft could slow its progress. Governments, airlines, and the wider aviation industry must work together to accelerate the transition to a more sustainable aviation sector.

Adopting a circular economy in the energy sector presents opportunities to develop a sustainable and low-carbon energy system by reducing dependence on fossil fuels and mining, supporting carbon recycling, and promoting the long-term use of renewable energy sources and the preservation of critical minerals. While the circular economy enables a promising vision for a more sustainable future, it also faces several challenges that must be addressed to realise its potential. Some of these barriers include the need to build circular economy principles into the design of the energy transition, a significant shift away from traditional linear approaches to economic activity, a lack of suitable technologies for recycling and repurposing materials and energy resources, the high cost of implementation and the lack of supportive policies and regulations that incentivise circular economy practices.

According to the Global Cement and Concrete Association, cement production accounts for approximately 7% of global direct carbon emissions. Major producers are actively taking measures to reduce emissions by 2030, but decarbonising the cement industry by 2050 will necessitate technological innovation, operational enhancements, the adoption of carbon capture technologies, reducing clinker content in cement, and promoting the use of alternative fuels. Additionally, challenges such as high emissions from the calcination process of cement production, along with the limited alternatives to cement substitution, will also have to be addressed to make progress in the decarbonisation efforts.