Abu Dhabi-based energy giant Adnoc is “on track” to meet its 2030 sustainability targets and the company aims to build a platform on which the UAE’s public and private sectors can work together to achieve such goals, a senior executive said on Monday.
Ibrahim Al Zu'bi, the company’s chief sustainability and ESG officer, was speaking to The National on the sidelines of the Global Sustainability Forum in Abu Dhabi.
The event, hosted by Adnoc, the CSO Network and the New York Stock Exchange, brought together chief executives and industry leaders to discuss sustainable technology, the role of artificial intelligence in climate and nature, and the role of data in measuring the impact of climate risk.
“We are discussing here the “how” not the “what” and the “why”…the UAE consensus and the [UN’s] sustainable development goals are the driving force for us (Adnoc),” Mr Al Zu'bi said.
“We would like to create a platform [to explore] how we can work together to achieve the targets and ensure that the UAE as a country, along with the public and private sectors, also achieve their sustainability targets,” he added.
Adnoc, which is responsible for most of the UAE’s oil and gas production, has announced several sustainability targets as part of its 2030 strategy and commitment to net zero by 2045.
The company aims to reduce greenhouse-gas emissions by 25 per cent by the end of the decade and plans to limit its freshwater consumption ratio to below 0.5 per cent of total water use.
Adnoc also plans to boost its carbon capture capacity to 10 million tonnes annually in the next six years.
Carbon credits
The Intercontinental Exchange (Ice), the operator of the New York Stock Exchange, could do “something impactful” in the Middle East region on carbon and environmental markets, a senior executive told The National on Monday.
Ice Futures Abu Dhabi (Ifad), founded in 2021, is home to the world’s first futures contract for Murban crude, Adnoc’s flagship crude grade.
“The UAE consensus was a step change in terms of what was coming out of Cop and we think, through Ifad, there's a really good opportunity to establish Abu Dhabi as a centre of climate finance,” said Gordon Bennett, global head of environmental markets at Ice.
Ice offers futures contracts for carbon credits. These contracts allow companies to buy or sell carbon credits at a predetermined price for future delivery.
“[In the UAE], the bigger opportunity is in the primary market and in the issuance in terms of raising finance for carbon-credit projects,” Mr Bennett said.
“We're hopeful that we can do something in the carbon market at a primary level … and then if you build a good primary market, the secondary market comes on."
Carbon credits, also known as offsets, are permits that allow companies to emit a certain amount of carbon dioxide or other greenhouse gases. These credits can be bought if more are needed and sold if not used, with the proceeds from their sale used to finance climate-action projects that would not otherwise be feasible.
Several countries in the Middle East have been setting up voluntary carbon markets, which act as platforms where those looking to offset their emissions can connect with project developers offering verified carbon offsets.
In other parts of the world such as Europe, policymakers are looking to impose carbon tariffs to tackle climate change and incentivise faster emission reductions in countries that are trailing.
“We don't have to wait on governments, there's a real opportunity for the private sector to contribute. I think that's where the [Middle East] region can really play a big part in stimulating the private sector to create this market,” Mr Bennett said.
