The Growing Popularity of the UAE's Oil Chief in the Developing World
Amidst Western criticism, the UAE's oil chief gains popularity in the developing world In September 2022, the Seychelles government allowed a Canadian company to explore for oil, expressing hopes of not having to extract it The UAE's oil chief's growing influence is evident
In September 2022, the Seychelles government announced its decision to permit a Canadian company to conduct oil exploration in its waters with the hope of avoiding the need to extract the oil. Despite facing the threat of rising sea levels due to continued use of fossil fuels, the small archipelago nation off the eastern coast of Africa has not yet received the promised financial assistance from wealthy countries to transition to green energy, as President Wavel Ramkalawan explained to CNN in May. Consequently, they have been forced to seek alternatives.
"We hope that as we conduct exploration, all of these promises will be kept," stated Ramkalawan, indicating the possibility of leaving the oil in the ground. However, he emphasized that "ultimately, it's about survival."
While not among the poorest developing countries, Seychelles illustrates a dilemma encountered by many in the Global South: how to expand their economies and manage the costs of climate-related disasters that they had the least contribution to, while also addressing the international demand to cease the use of fossil fuels.
Sultan Al Jaber, the Emirati minister and businessman, will be presiding over the UN-backed COP28 climate talks in Dubai starting on November 30. His appointment has drawn criticism from media organizations, civil society groups, and politicians in the Global North due to his role as the UAE's climate envoy and head of its renewables company, as well as running the state-owned Abu Dhabi National Oil Company (ADNOC). More than 100 members of the US Congress and the European Parliament in May called for him to be replaced as COP28 president-designate.
Al Jaber's decision to prioritize increasing financial support for developing countries transitioning to renewable energy is boosting his popularity in the Global South.
"At the pre-COP opening ceremony in Dubai, in October, Al Jaber emphasized the importance of facilitating the rapid and efficient flow of funding to ensure that the Global South does not have to compromise between climate action and development," he told delegates.
Some leaders see this as a pattern of broken financial promises from developed countries. According to Ramkalawan, countries in the West make promises they don't keep, while urging others to protect the planet. In contrast, the UAE has supported wind and solar projects in the Seychelles, demonstrating a strong commitment.
During the pre-COP28 talks led by Al Jaber, an agreement was reached on the administration of a "loss and damage" fund to provide financial assistance to developing countries for the significant impacts of climate change they have faced. This was a positive outcome following the failure of the rich world to deliver the agreed annual $100 billion to developing nations for two years, with the funds finally reaching climate-vulnerable countries in 2022. However, developing nations argue that this amount is far from adequate.
Sultan Al Jaber, CEO of Abu Dhabi National Oil Company and COP28 president, delivers a speech at the inauguration of the Abu Dhabi International Petroleum Exhibition and Conference on October 2, 2023.
Christopher Pike/Bloomberg/Getty Images
But many critics have cited the UAEs plans to expand production of planet-heating fossil fuels as a conflict of interest in the COP28 talks.
ADNOC is planning to invest $150 billion to expand its operations in the next five years. The company is currently striving to increase its production capacity to 5 million barrels of oil per day by 2027. On the other hand, the UAE government has expressed its intent to maximize its oil reserves for the next 50 years before it runs out, even as scientists recommend reducing the current use of oil and gas.
Al Jaber and ADNOC refute claims of a conflict of interest, arguing that his expertise in both fossil fuels and renewables makes him the ideal leader for the discussions. ADNOC defended this decision, stating that Al Jaber's 20-year experience in renewable and conventional energy sectors, as well as his decade-long involvement in climate diplomacy, makes him the most qualified individual to lead these discussions.
Despiteits plans to expand production, ADNOC previously told CNN that it wasstill aiming "to achieve net zero by 2045 backed by aninitial $15 billion allocation."
Struggling to keep up
Similar to the Seychelles, Kenya is also grappling with the issue of managing the costs of climate-related disasters and increasing investment in renewable energy without sufficient funding. President William Ruto of Kenya, a prominent climate advocate in Africa, was asked about his concerns regarding the UAE, an oil-producing country, hosting COP28. He responded to CNN that he had no issue with it, citing the UAE's significant investments in renewable energy.
The UAE has recently committed $4.5 billion to fund clean energy projects in Africa. In addition, in June, Masdar, the state-owned renewable energy company founded by Al Jaber, was part of a consortium that signed a $10 billion deal to develop a 10GW wind farm in Egypt, touted as the largest in Africa.
"We are dedicating significant resources to address the impact of climate change," Ruto stated, citing Kenya's devastating multi-year drought, which scientists determined was exacerbated 100 times by the usage of fossil fuels that contribute to global warming.
In February 2023, women in Turkana, Kenya were pictured transporting water to their village. Scientists have attributed Kenya's catastrophic multi-year drought to climate change.
Image by Simone Boccaccio/SOPA Images/LightRocket via Getty Images.
While the Global North has fulfilled its pledge of $100 billion in annual funding, experts argue that this is still far from sufficient to support developing countries in addressing the increasingly severe impacts of the climate crisis and transitioning to sustainable energy systems. According to a 2022 UN-backed report, developing countries will require around $2 trillion per year by 2030.
Harjeet Singh, the leader of global political strategy for the Climate Action Network, expressed disappointment in the failure of Western nations to take significant action. "We have observed a pattern of extraction and opportunism from the West, which has kept developing countries reliant on fossil fuels," he stated. Despite his criticism of the UAE's fossil fuel expansion plans, Singh acknowledged that the country has shown promise by expressing interest in investing in renewable energy.
Others, however, are more doubtful. Sanim Vakil, the director of the Middle East North Africa Program at Chatham House, stated that ultimately, the UAE aims to safeguard its interests in the energy transition.
Vakil informed CNN that the UAE aims to extend the diversification of its economy and maximize the utilization of its energy resources. By taking a leading role in discussions, the UAE safeguard its own interests while appearing to support those of the Global South. A spokesperson for the COP28 team informed CNN that the challenge is transitioning to a new energy system while ensuring a continuous power supply.
The spokesperson emphasized that the COP28 team is dedicated to taking "ambitious and achievable measures" to restrain emissions without hindering progress. This includes safeguarding energy security, accessibility, and affordability in order to avoid impeding socio-economic advancement and undermining support for ambitious climate action.
