Abu Dhabi to issue clean energy certificates to encourage decarbonisation

The permits are tradeable financial instruments that can be used as credits to claim environmental and social benefits

Abu Dhabi, which accounts for nearly all of the UAE's oil production, is updating its policies to hasten the switch to low-carbon energy consumption. AFP

Abu Dhabi's Department of Energy will issue clean energy certificates as part of a new regulatory policy aimed at decarbonising the energy sector and permitting trading in renewable and nuclear energy attributes.

These certificates serve as proof of electricity produced from a renewable source, declaring that each renewable energy plant generated and added 1-megawatt hour of electricity to the grid.

The energy attribute certificates are voluntary, tradeable financial instruments and can be used as credits to claim environmental and social benefits accruing from low-carbon energy consumption.

Anyone wishing to obtain a clean energy certificate can be a participant, who can then purchase and sell the clean energy certificates in whole or in part to end customers, the Department of Energy said.

"This allows anyone, from large corporations to smaller environmentally conscious businesses, to benefit from the system, regardless of their level of consumption. Anyone can buy certificates that guarantee that the electricity they consume does not emit carbon dioxide," the department said.

Abu Dhabi, which accounts for nearly all of the UAE's oil production, is updating its policies to hasten the switch to low-carbon energy consumption.

The UAE, Opec's third-largest oil producer, is looking to raise its share of clean energy generation. The country aims to increase the share of clean energy to 44 per cent by 2050, and plans to invest Dh600 billion by mid-century into growing its renewable energy capacity.

Abu Dhabi is also developing more renewable energy projects, including the world's largest solar plant at Al Dhafra with a total capacity of 2 gigawatts, as part of the UAE's efforts to increase clean energy capacity.

The unveiling of the clean energy certificate initiative supports "the overall integrity of measuring, reporting and accreditation requirements for the issuance and management of such certificates while ensuring alignment with international practices and additional domestic criteria", said Mohamed Al Falasi, Undersecretary of the Abu Dhabi Department of Energy.

Earlier this month, the department said it was streamlining tariffs for electric vehicle charging as the adoption of cleaner forms of transport picks up.

A monthly tariff of Dh92 ($25.05) will be added to the bills of EV users in Abu Dhabi from August 26 until a sub-meter is installed for the charging units.