U.S. and UAE Sign New Energy Framework Agreement to Boost $100 Billion Investment

On November 1, local time, the White House announced that the United States and the United Arab Emirates signed a new energy framework agreement called the United States-UAE Partnership for Accelerated Clean Energy (PACE). According to the White House, the agreement will facilitate $100 billion in financing, investment and other support measures and deploy 100 gigawatts of clean energy globally by 2035 to advance the energy transition and maximize climate benefits. The agreement will be built on four pillars: clean energy innovation, deployment and supply chain, carbon and methane management, nuclear energy, and decarbonization of industry and transport.

The United States and the UAE will accelerate climate action by pursuing and encouraging clean energy investment in emerging economies. Both countries will prioritize and provide technical and financial assistance to commercial projects in developing and low-income countries.

In addition, the agreement intends to reduce costs by accelerating investment and deployment of new technologies. PACE also plans to promote investment in the extraction, production and processing of key minerals and materials. The two countries will promote the further development of new technologies for carbon capture, utilization and storage, as well as the measurement and reduction of greenhouse gas emissions across the hydrocarbon value chain. The agreement will also support the full implementation of civilian nuclear cooperation between the United States and the UAE. The U.S. and UAE also plan to work together to expand clean fuel production in long-haul sectors such as aviation and shipping.