Energy transition toward renewables ‘unstoppable,’ but fossil fuels ‘cannot shut down in a day,’ says IRENA chief Francesco La Camera

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Updated 12 March 2023
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Energy transition toward renewables ‘unstoppable,’ but fossil fuels ‘cannot shut down in a day,’ says IRENA chief Francesco La Camera

  • International Renewable Energy Agency director-general says COP28 summit in the UAE “will be historic”
  • La Camera has “no doubts about the ambition of Saudi Arabia” becoming a leading green hydrogen exporter

DUBAI: For the world to transition to green energy without disrupting existing supply lines, divestment from fossil fuels must be a gradual process, Francesco La Camera, director-general of the International Renewable Energy Agency, told Arab News.

“We have to understand that the old system, the one that is centralized and based on fossil fuels, cannot shut down in a day,” La Camera told Katie Jensen, host of the Arab News program “Frankly Speaking.”

“There will be a slow decline of oil and gas. And to maintain a smooth decline of oil and gas, we need some investment again in oil and gas. If not, there will be a disruption.”

A steady transition away from fossil fuels toward solar, wind, hydro, geothermal and other renewables would help maintain a stable supply for the industrialized world, while also meeting the energy demands of developing nations, he added.

“Everything should be balanced. We have to understand that we have a demand for energy that is needed for development. And this demand will be increasing, especially in Africa and Southeast Asia.”




Frankly Speaking host Katie jensen, left, interviewing Francesco La Camera, director-general of the International Renewable Energy Agency.

IRENA is an intergovernmental agency for energy transformation, supporting countries in their energy transitions and providing data and analyses on technology, innovation, policy, finance and investment.

La Camera, who has served as the agency’s director-general since April 2019, has helped forge a series of strategic partnerships with UN organizations, including UNDP, UNFCCC and the Green Climate Fund, to implement a more action-oriented approach.

However, the Italian diplomat is realistic in his expectations of the pace of the energy transition, especially in the context of the war in Ukraine, which has led to a spike in world energy prices, pushing several nations to readopt cheaper but dirtier alternatives like coal.

Environmentalists have accused developed nations of hypocrisy following recent moves in Europe and the UK to reopen coal mines, at a time when most countries are phasing out fossil fuels.

“In the very short term, to avoid collapses and disruption in the energy supply, countries are trying to do what is possible,” said La Camera. “In some cases, this has been reactivating coal mines, but they are not investing in new coal mines. At least we are not aware of that.”

However, La Camera believes these are only short-term measures, implemented in response to rising energy costs caused by Western sanctions on Russian oil and gas. The long-term trajectory toward green renewables, he says, is “unstoppable.”

He said: “We have to understand that we are living in the time of the Ukrainian crisis and countries have to respond to the lack of the gas coming from Russia. We have to always distinguish between the very short term and the medium to long term.

“In the short term, countries are trying to do what they can to not deprive their own public of the heating and cooling that is needed … they’re trying to find remedies to the shortage of Russian gas. But their policies in the medium to long term are very clear. We are not going backward.

“The last year has been a record year for investment in renewables. We have broken new records in the new installing capacity of renewables. We now have 81 percent of the new installing capacity of renewables.

“This process is unstoppable. The only question that we have now is not the direction of travel — that is clear and nothing can change it. The question is the speed and the scale of this transformation, because it is not at a pace that can achieve the Paris Agreement goals and the UN Sustainable Development Goals.”

The Paris Agreement is an international climate treaty adopted in 2015, covering climate change mitigation, adaptation and finance. The agreement’s overarching goal is to hold the increase in the global average temperature to well below 2 degrees Celsius above pre-industrial levels and pursue efforts to limit the temperature increase to 1.5 degrees Celsius.

“We are not in line with the Paris Agreement goals,” said La Camera. “We say very clearly that we need, this decade, $57 trillion in investment in the energy transition. We are not there at all. We say that we need to triple our installing capacity of renewables by 2030, and this is not happening.

“Where does this money come from? We have a clear idea on that. There is a lot of liquidity in the market. The question is our point of view that today there are not the right policies in place to activate the demand, for example, for green hydrogen.

“And there is not yet enough focus on the infrastructure needed to sustain the building of the new energy system. And when we talk about the infrastructure, we talk about the physical, the legal and the institutional capacity and professional skill careers.”

Saudi Arabia has pledged to achieve net-zero emissions by 2060. It has undertaken $1 billion in climate change initiatives as part of the Saudi Green Initiative, which seeks to establish a regional carbon capture and storage center, an early storm warning center and cloud seeding programs as part of its efforts to create a greener future.

Crown Prince Mohammed bin Salman said the Kingdom will plant 450 million trees and rehabilitate 8 million hectares of degraded lands by 2030, reducing 200 million tons of carbon emissions with additional initiatives to be announced in the years to come.

Saudi Arabia has also announced its ambition to generate 50 percent of its electricity from renewables by 2030, with the remaining 50 percent coming from natural gas.

It has launched several major renewable energy projects, taking advantage of its natural potential in solar and wind, including the Sakaka solar power plant, the first utility-scale solar power project in Saudi Arabia, and Dumat Al-Jandal, its first utility-scale wind project.

Furthermore, the Kingdom aims to become the world’s leading hydrogen producer and exporter. Saudi Aramco and SABIC, in partnership with the Institute of Energy Economics, Japan, announced in 2020 the world’s first blue ammonia shipment from the Kingdom to Japan.

NEOM, the Kingdom’s smart-city giga-project taking shape on the Red Sea coast, has also announced plans to build one of the world’s largest green hydrogen plants.

“They (Saudi Arabia) have ambitions for green hydrogen,” said La Camera. “They are ready to sign contracts to sell not oil and gas, but to sell green hydrogen. The question is that the demand is still not there. And so, the partners of demand have to be one of the elements to be considered for making things happen.”

So, what can be done to encourage greater demand for hydrogen products to make them a viable alternative energy source?

“First is industrial policies,” said La Camera. “Developed countries and others have industrial policies that may favor a demand for green hydrogen instead of fossil fuels. This is very important. This means the legal environment is critical.

“In the meantime, we need the infrastructure to bring what we are producing in terms of green hydrogen into the market. North Africa, they have five pipelines that can perhaps be adapted to transport, not gas, as such, but hydrogen. We may be able to have more ships for trading ammonia. We can think about electroducts that may let countries exchange energy in an efficient way.

“All these are elements of a comprehensive package that may, hopefully, push countries to go faster. But again, I have no doubts about the ambition of Saudi Arabia. I have no doubt about the ambition of the UAE, and I’ve also seen other countries in the Gulf that are moving quickly with this trend.”

COP28, the 28th session of the Conference of the Parties to the UN Framework Convention on Climate Change, convenes from Nov. 30 to Dec. 12 this year in the UAE — marking only the second time the summit has been held in the Arab world following Egypt’s presidency last year.

La Camera believes participating nations must use this year’s summit to go beyond pledges and promises and instead take concerted action on cutting greenhouse gas emissions and transitioning to renewables.

“We need everyone in the discussion. Oil and gas companies, governments, and countries where gases are relevant from an economic point of view. They must be part of the discussion,” he said.

“The UAE and Saudi Arabia have already shown big ambition in going for renewables. Here is a place where you can produce electricity at lower cost. And we have seen that countries in the Gulf are going for net zero, setting their own hydrogen strategy.

“For the first time, COP in the UAE will certify that we are not on track. This COP has to come up with a way to close the gap between where we are and where we should be. IRENA is trying to work on building this narrative, beyond COP28, offering the presidency something to base their work on, in funding compromise among all the other countries.

“We are quite sure that this COP28 will be historic.”

Given the widespread pessimism in many quarters, La Camera’s optimism about the transition to renewables and the proactive role played by the Gulf Arab oil producers is reassuring.

He is not complacent, however, and says he will continue to push for a faster and more ambitious adoption of clean energy at COP28 and beyond.

“Renewables are playing and will play a central role,” he said. “We are going to a new energy system that will be dominated by renewables and with the complement of hydrogen, mainly green hydrogen, and the sustainable use of biomass.

“There is no way to stop this process. The question is how to sustain this process happening at the speed and scale needed.”

 


Washington says Pakistan needs to address barriers to American exports, companies

Updated 05 June 2025
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Washington says Pakistan needs to address barriers to American exports, companies

  • Islamabad, Washington last week kicked off negotiations after President Trump announced tariffs on countries, including Pakistan
  • Talks expected to “sail through” but Pakistan’s textile industry may take a hit if they fail, warns financial analyst Shankar Talreja

KARACHI: Pakistan’s government needs to address its tariff and non-tariff barriers against American exports and companies, a spokesperson at the US consulate general in Karachi said on Thursday as both nations seek to forge closer trade ties through negotiations.

Reva Gupta, the spokesperson at the US consulate general in Karachi, made the comments a week after Pakistan and the US started what the official described as “dynamic” negotiations with Finance Minister Muhammad Aurangzeb on Washington’s imposition of tariffs.

The talks take place as US President Donald Trump imposed steep tariffs on a number of countries earlier this year, a move widely viewed as a setback for the global economy still recovering from the coronavirus pandemic. Pakistan faces a potential 29 percent tariff, currently under a 90-day pause announced in April, on its exports to the US due to a $3 billion trade surplus with the world’s biggest economy.

“In our bilateral engagements with Pakistan, we always message the need to jointly tackle challenges to our trade relationship, including the need for Pakistan to address its longstanding tariff and non-tariff barriers against US exports and companies,” Gupta told Arab News.

The tariffs could be a setback to Islamabad’s hectic efforts aimed at navigating a tricky path to economic recovery. Pakistan hopes to achieve sustainable economic growth driven by exports.

The US is Pakistan’s largest export destination. American exports to Pakistan were valued at $2.1 billion in 2024, up 4.4 percent ($90.9 million) from 2023, according to US government data. The import of goods from Pakistan to the US totaled $5.1 billion in 2024, up 4.9 percent ($238.7 million) from 2023.

“The United States and Pakistan share a robust economic relationship going back decades, of which trade and investment are key elements,” Gupta said. “That the United States remains Pakistan’s largest export market globally is a testament to this strong partnership”.

Gupta, however, referred to US Trade Representative’s (USTR) National Trade Estimate Report which highlights significant foreign barriers to US exports in various countries, including Pakistan.

 The USTR details tariff and non-tariff hurdles ranging from Pakistan charging higher tariffs to US businesses to the closure of Internet services, imposing a ban on US beef imports and “perceived politicization” of the anti-graft National Accountability Bureau body.

“US companies have cited concerns that Pakistan has been imposing high tariff rates and, in some cases, additional duties, on products such as automobiles and finished goods,” the report said.

Qamar Sarwar Abbasi, a spokesperson of Pakistan’s finance ministry, did not respond to Arab News’ request for comment.

Some prominent American companies operating in Pakistan include Pepsi-Cola, General Electric International, Procter and Gamble, Pfizer and DuPont, according to the International Trade Administration, a US government agency.

Experts have warned the tariffs could harm Pakistan’s competitiveness in the global market, especially if regional exporters such as China, Bangladesh and Vietnam redirect more goods to Europe, intensifying competition in alternative markets.

‘LIKELY TO SAIL THROUGH’

However, economist Shankar Talreja, who is also the director of research at Topline Securities Ltd. brokerage form, said talks between Washington and Islamabad are likely to “sail through.”

“Pak-US trade talks are likely to sail through as Pakistan exports are primarily based on labor-intensive industry such as textile,” Talreja told Arab News.

He said Pakistan is likely to increase its import of agricultural commodities such as cotton and petroleum products from the US to fill the trade deficit.

But if talks fail, Pakistani textile exports may be adversely affected, he said.

“If talks are not successful, Pakistan textile exports may get hurt in future assuming other countries will successfully negotiate with the US,” the analyst warned.

The textile industry attracts the largest amount of foreign exchange for Pakistan, fetching $17 billion for the cash-strapped nation in FY2024.


Saudi Arabia, UAE lead global office quality fit-out investments: JLL  

Updated 05 June 2025
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Saudi Arabia, UAE lead global office quality fit-out investments: JLL  

RIYADH: Saudi Arabia and the UAE are leading global investments in high-end office fit-outs, averaging over $2,400 per sq. meter, well above the global benchmark of $1,830, according to a new report.

An analysis by real estate advisory firm JLL, based on data from 25 countries, found that companies in both Gulf countries are prioritizing workspace upgrades as part of broader return-to-office strategies.

In the Middle East and Africa, corporate sentiment remains focused on targeted investments in design and functionality to support hybrid working models and enhance employee productivity. 

The report added that initiatives in Saudi Arabia such as the regional headquarters program are playing a crucial role in driving demand for Grade A office spaces in the Kingdom. It offers incentives such as a 30-year corporate income tax exemption and withholding tax relief, alongside regulatory support for multinationals operating in the Kingdom. 

Maroun Deeb, head of project and development services for Saudi Arabia and Bahrain at JLL, said: “The general optimism toward investing in workspaces is likely to continue throughout 2025 as growth-oriented corporations invest in office fit-outs to support their hybrid workplace policies.”  

He added: “Targeted investments to enhance employee experience will see an increased focus on workplace design, innovative technology solutions, and refurbishment opportunities amid growing interest in healthier, energy-efficient workspaces.”  

According to the analysis, companies in Saudi Arabia and the UAE are investing more on fit-outs to enhance workplace experience and employee performance. 

The report added that Saudi Arabia and the UAE are among the premium global markets for quality fit-out investments on par with London, New York and Sydney. 

JLL analyzed data from 25 countries and found that sustainability is a key driver in many relocation strategies and office fit-outs. 

Some 68 percent of organizations globally plan to increase investment in sustainability performance in the next five years. 

In the Middle East and Africa region, the sentiment is strongest in Saudi Arabia and the UAE, where 78 percent of corporate real estate leaders aim to enhance value through sustainability. 

The report, however, added that organizations in the region face challenges in meeting sustainability requirements due to limited suitable stock and high costs of upgrading older buildings. 

JLL added that early planning and integration of sustainability targets in relocation strategies and fit-out projects is crucial to address challenges. 

“Offices that embrace innovative technologies and sustainable design principles and have higher levels of green certification command a premium, especially in Dubai,” said Gary Tracey, head of project and development services UAE at JLL.  

He added: “Investments to improve sustainability will mitigate future operational expenses, remaining highly attractive to tenants seeking modern, efficient workplaces.”  

The report further said that supply chain disruptions in 2024 disproportionately affected the office market in the Middle East and North Africa, tightening project timeframes and escalating pricing. 

“From environmental and smart building systems to adaptive workspaces and settings, supply chain engagement is critical in managing costs and allowing for innovation in future-focused workspaces,” said JLL.  

The report added that mechanical and electrical services now account for a higher proportion of office spend as stricter environmental and sustainability standards require more complex systems. 

With 39 percent spending on M&E services, Cairo ranks among the top cities globally for average proportion of costs per sq. meter for such services, followed by Dubai at 30 percent and Riyadh at 29 percent. 

In April, in a separate analysis, JLL said that the global office sector is rebounding as companies scale back hybrid employment options, increasing demand for workspaces. 

In that report, JLL revealed that 59 percent of organizations globally are increasing investments in design and fit-outs.


Saudi Arabia and Syria explore investment cooperation in bid to boost economic integration 

Updated 05 June 2025
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Saudi Arabia and Syria explore investment cooperation in bid to boost economic integration 

RIYADH: Saudi Arabia and Syria are set to advance economic cooperation following a virtual meeting between the Kingdom’s Minister of Investment Khalid Al-Falih and the Middle Eastern country’s Minister of Economy and Industry Mohammad Al-Shaar. 

The two sides reviewed prospects for investment partnerships and discussed opportunities to expand collaboration in both public and private sectors, according to a report by the Saudi Press Agency. 

The discussions focused on promoting high-quality investments across productive and service industries, with the goal of supporting Syria’s economic development and enhancing regional financial integration. 

The meeting also examined ways to build a favorable environment for cross-border investments that can contribute to long-term stability. 

Syria is undertaking significant efforts to revive its economy following years of conflict. The transitional government, led by President Ahmed Al-Sharaa, has initiated reforms, including the privatization of state enterprises, the lifting of import restrictions, and the encouragement of foreign investment. 

Notable developments encompass a $7 billion energy infrastructure agreement with a Qatari-led consortium, the reopening of the Damascus Securities Exchange, and a $300 million fiber-optic project involving Gulf telecom firms. 

“Al-Falih emphasized the importance of creating an enabling environment for expanding regional investment partnerships,” SPA said. 

He added that Saudi Arabia is keen to assist in stabilizing and developing the Syrian economy, which he described as essential for serving mutual interests and promoting regional economic prosperity. 

Additionally, the Kingdom and Qatar have pledged financial support for Syrian public sector salaries in May. 

These initiatives, alongside the easing of Western sanctions, aim to stabilize the economy and attract international investment. 

The talks are part of broader Saudi efforts to expand its global investment footprint and strengthen economic ties across regions. 

In May, Saudi Foreign Minister Prince Faisal bin Farhan visited Damascus, where he met Al-Sharaa and pledged Saudi-Qatari support for Syria’s public sector, with a particular focus on energy and infrastructure investments. 

The Kingdom has also ramped up high-level international engagements this year. Minister of Finance Mohammed Al-Jadaan participated in the Saudi-US Investment Forum in Riyadh in May to discuss cross-border investment opportunities. 

In April, Al-Jadaan met with Pakistan’s Finance Minister Muhammad Aurangzeb in Washington to deepen financial and economic cooperation. 

Additionally, Minister of Economy and Planning Faisal Alibrahim signed a memorandum of understanding with Spain on May 22 to promote trade diversification and new investment opportunities. 

Alibrahim also represented Saudi Arabia at the World Government Summit in Dubai in February to advance Vision 2030 partnerships. 

 


Saudi Arabia’s Port of NEOM installs 1st automated cranes, targets 2026 launch

Updated 05 June 2025
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Saudi Arabia’s Port of NEOM installs 1st automated cranes, targets 2026 launch

RIYADH: Saudi Arabia’s $500-billion giga-project NEOM has installed the Kingdom’s first fully automated, remote-controlled cranes at its Red Sea port as it moves ahead with plans to begin operations in 2026. 

The delivery of next-generation ship-to-shore and electric rubber-tyred gantry cranes marks a key milestone in the development of Terminal 1, which will accommodate the world’s largest container ships. NEOM is aiming to position the facility as a global logistics hub connecting Asia, Europe, and Africa. 

The facility supports Saudi Arabia’s Vision 2030 by contributing to economic diversification through enhanced trade, logistics, and industrial capabilities. As global supply chains shift toward resilience and efficiency, NEOM’s strategic Red Sea location positions it as a vital link between Asia, Europe, and Africa. 

Sean Kelly, managing director of Port of NEOM, said: “The arrival of our first automated cranes marks a tangible milestone as we lay the foundations for an advanced, future-ready port.” 

He added: “We’re not only accelerating industrial growth in northwest Saudi Arabia, but we’re also setting a new benchmark for performance, efficiency, innovation and establishing a vital trade gateway for the Kingdom and the region beyond.” 

The new cranes will enable high-efficiency operations while allowing remote control from ergonomic workstations.  

Infrastructure developments, including a 900-meter quay wall and an 18.5-meter-deep channel, ensure the port can handle the largest vessels transiting the Suez Canal. Terminal 1 will also feature horizontal transport automation, boosting logistics capacity and regional industrial growth.

Alongside infrastructure upgrades, the port is investing in local talent development. A specialized program is training Saudi workers, including women, for high-tech roles such as remote crane operations. Ten participants from Saudi Arabia’s Tabuk region are currently in a two-year program combining technical training and mentorship.  

Trainee Hajjer Alatawi said: “This experience has shown me that port logistics is far more complex than just moving cargo; it’s about teamwork, precision and responsibility. Seeing more Saudi women entering this space gives me hope for a future where industries are defined by skills, not gender.” 
 
The press release added that by empowering Saudi workers with high-tech skills, “Port of NEOM is supporting NEOM’s vision of being a catalyst for a sustainable, diverse and innovative ecosystem that enables regional economic resilience and advances the goals of Saudi Vision 2030.”


UAE’s power capacity set to reach 79.1GW by 2035: GlobalData

Updated 05 June 2025
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UAE’s power capacity set to reach 79.1GW by 2035: GlobalData

RIYADH: The power capacity of the UAE is expected to reach 79.1 gigawatts by 2035, registering a compound annual growth rate of 3.4 percent from 2024, according to a report.

Findings from data analytics and consulting company GlobalData stated that annual power generation in the Emirates is expected to increase at a CAGR of 3.8 percent from 2024 to 2035, reaching 281.3 terawatt-hours. 

Boosting power capacity is essential for the UAE as energy demand rises alongside a rapidly growing population, which is expected to reach 11.9 million by the end of the decade, up from 11 million today.

A significant factor contributing to this increased energy consumption is the high expatriate population, which accounts for around 88 percent of the total and drives the growth in residential and commercial energy needs.

“The power sector in the UAE offers abundant opportunities for investors, with the government poised to make significant investments in the expansion and modernization of its generation and supply infrastructure,” said Attaurrahman Ojindaram Saibasan, power analyst at GlobalData. 

He added: “The anticipated increase in capacity is projected to occur predominantly in gas-based thermal power, as opposed to oil, where capacity is expected to remain stable. Manufacturers of gas turbines stand to benefit from this surge in gas-fired power capacity.” 

GlobalData further said that the climate conditions in the UAE are exceptionally conducive to solar power generation, prompting the government to allocate extensive tracts of undeveloped land for solar parks, including both photovoltaic and concentrated solar power installations. 

The report added that the UAE has the capability to not only meet local demand using solar energy but also cater to export needs.

The country is taking significant steps to bolster its renewable energy capacity, especially solar power, as a core strategy to address climate change. 

It is targeting a clean energy capacity of 14.2GW by the end of this decade and is planning to invest between $40.84 billion and $54.45 billion to triple renewable energy contribution by 2030. 

“Over the past decade, the UAE has experienced a marked increase in electricity demand, necessitating the importation of natural gas from Qatar,” said Saibasan. 

He added: “In response to this growing demand and to diversify its energy portfolio, the UAE has strategically shifted away from exclusive dependence on natural gas, expanding into renewable and nuclear energy sectors.” 

GlobalData further stated that the development of mega urban projects, such as Masdar City and Expo City Dubai, also highlights the need for sustainable energy solutions. 

“These smart cities are at the forefront of innovation, yet they also contribute to higher electricity consumption. Consequently, this trend necessitates the expansion of the electrical grid and investment in smart infrastructure to meet the evolving demands,” Saibasan concluded.