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India’s ‘energy transition’ minister talks net zero goals, green energy investments

Earlier this month, India’s Prime Minister Narendra Modi announced plans at COP26 to reach net-zero carbon emissions in 2070 and boost the share of renewables in India’s energy mix from about 38 percent last year to 50 percent by 2030.

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“When India turns around and says it is not just net zero by 2070, but in 2030, 50 percent will come from renewables or that we move up from 450 GW to 500 GW and you know the implications of that. India means what it says. We are the largest democracy in the world, when the prime minister makes a statement, it sets the template. Now clearly, we have a transition to achieve. Now that transition means you have to manage from where you are today first to 2030 then to 2040 then to 2070,” India’s Minister of Petroleum and Natural Gas Hardeep Singh Puri told Al Arabiya.
“I may be called a minister of petroleum and natural gas but I am actually the minister for energy transition,” Puri said in an interview with Al Arabiya Senior Presenter Naser El Tibi.
For now, coal remains a dominant energy source in India, accounting for 70 percent of its electricity output.
After China, India is the world’s second-largest coal producer at about 730 million tons annually – yet also imports coal to meet the power needs of its domestic industries, according to the government.
Puri said India is already doing a lot.
“When Mr. Modi became a prime minister, one percent of biofuel blending used to take a place, ethanol from sugar. Today, we are already at 8.5 percent, we had a 20 percent blending target by 2030 but we brought that forward to 2025,” the minister said, adding that the country is expecting 60 billion dollars of investment into gas pipelines.
“We started in 2014 when he [Narendra Modi] became prime minister at 14 thousand kilometers. Today, we are 18.5 thousand kilometers, [and in the] next four months we will get another four thousand to [achieve] 22.5 thousand kilometers and we will take that up to 34 thousand kilometers to have the whole country be covered by gas pipelines. I could go on!”
“In renewables, we were one of the founders of the Solar Alliance,” he noted.
India has a “massive program” on green hydrogen, according to Puri.
“We are going to be very big [in green hydrogen], we will be pioneers in that. But we need to bring the price down. [We] need to provide power at a particular price then be able to have electrolizers… we are on that journey,” the minister told Al Arabiya.
“I think Glasgow is what? 10 days old, we are already on drawing board with people to see how we can accelerate some of these things. There is a massive program going on, our traditional oil marketing companies are into electric vehicles. I think we announced that in the next few years we will have 22 thousand petrol stations [which] will have electric charging as well, which in turn gives a fillip to our electric car manufacturers.”
“Equally when you move to 20 percent biofuel mixing, E 20 [20 percent blended petrol ethanol] is going to be available in the pumps from a very short period time. I think in 2022, 2023 we will [offer] 20 percent blended fuel there.”
In reference to Modi’s announcement to achieve net zero emissions by 2070, he noted that while it was an ambitious goal, India has a track record of hitting their green targets.

Strategic reserves

When asked about a deal that India struck with Abu Dhabi’s ADNOC for strategic oil reserves, Puri said that the country has been replenishing its reserves to cater to any kind of emergency such as earthquakes or geopolitical events.
“We have been replenishing out strategic reserves and I think the agreement you are referring to… we are in the process of augmenting our reserves to take it to the global prescribed levels by the international energy agency,” India’s minister said.
“I think we are at 86 days of consumption and the consumption is going up also. We need to go a little farther to make it at 100 days. We are in the process of doing that.”
“I am a student of the energy situation and evolving energy situation I have been oil and natural gas minister- or now I call myself minister of energy transition- for 3 months or so, no country is ever only a consuming country, especially when you are dealing with a big economy,” Puri told Al Arabiya.
“We import crude, our companies refine and export out, we make investments in other countries, in the previous government in the year 2001 we invested in a facility in Sakhalin in Russia’s far east, it has done very well. Investments in Sudan they did well.”

India and the GCC

India and the Gulf Corporation Council (GCC) states have been working together, investing in each other’s countries across a variety of sectors.
“Indian entities are making investments in the gulf as you mentioned, our friends in the gulf cooperation council are making investments in India both upstream and downstream. This is what I call a healthy economic energy cooperation matrix,” said Puri.
“I have many people I talk to including His Excellency the UAE [energy] minister and the [energy] minister from Saudi Arabia, they also want to cooperate with us, not only in traditional energy, but also in green energy. This is an evolving situation and I think it is in one sense a reflection of the maturity of the relationship. That the transactions and investments are going in both directions,” he added.
Last week at Dubai’s megaevent Expo 2020, India invited the GCC member countries to invest in the sustainable energy sectors in the country.
India expects to attract foreign investments of up to $120-160 billion annually, according to a statement released at the India-GCC Business Conference at Expo 2020 last week, which added that Gulf countries are best placed to capitalize on such opportunities given their ties with India.

Read more:

India temporarily shuts five coal-fired power plants amid pollution crisis

India strengthens ties with GCC nations, invites them to invest in sustainable energy

Green energy development is a must as developing world faces poverty by pollution

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Abu Dhabi Overtakes Oslo for Sovereign Wealth Fund Capital in Global SWF’s First City Ranking

Today, industry specialist Global SWF published a special report announcing a new global ranking of cities according to the capital managed by their Sovereign Wealth Funds (SWFs). The findings show that Abu Dhabi is the leading city that manages the most SWF capital globally, thanks to the US$ 1.7 trillion in assets managed by its various SWFs headquartered in the capital of the UAE. These include the Abu Dhabi Investment Authority (ADIA), Mubadala Investment Company (MIC), Abu Dhabi Developmental
Holding Company (ADQ), and the Emirates Investment Authority (EIA). Abu Dhabi now ranks slightly above Oslo, home to the world’s largest SWF, the Government Pension Fund (GPF), which manages over US$ 1.6 trillion in assets. Abu Dhabi and Oslo are followed by Beijing (headquarters of the China Investment Corporation), Singapore (with GIC Private and Temasek Holdings), Riyadh (home to the
Public Investment Fund), and Hong Kong (where China’s second SWF, SAFE
Investment Corporation, operates from). Together, these six cities represent two thirds
of the capital managed by SWFs globally, i.e., US$ 12.5 trillion as of October 1, 2024.
For the past few decades, Abu Dhabi has grown an impressive portfolio of institutional
investors, which are among the world’s largest and most active dealmakers. In addition
to its SWFs, the emirate is home to several other asset owners, including central banks,
pension funds, and family offices linked to member of the Royal Family. Altogether, Abu
Dhabi’s public capital is estimated at US$ 2.3 trillion and is projected to reach US$ 3.4
trillion by 2030, according to Global SWF estimates.
Abu Dhabi, often referred to as the “Capital of Capital,” also leads when it comes to
human capital i.e., the number of personnel employed by SWFs of that jurisdiction, with
3,107 staff working for funds based in the city.
Diego López, Founder and Managing Director of Global SWF, said: “The world ranking
confirms the concentration of Sovereign Wealth Funds in a select number of cities,
underscoring the significance of these financial hubs on the global stage. This report
offers valuable insights into the landscape of SWF-managed capital and shows how it is
shifting and expanding in certain cities in the world.”

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AM Best Briefing in Dubai to Explore State of MENA Insurance Markets; Panel to Feature CEOs From Leading UAE Insurance Companies

AM Best will host a briefing focused on the insurance markets of the Middle East and North Africa (MENA) on 20 November 2024, at Kempinski Central Avenue in Dubai.
At this annual regional market event, senior AM Best analysts and leading executives
from the (re)insurance industry will discuss recent developments in the MENA region’s
markets and anticipate their implications in the short-to-medium term. Included in the
programme will be a panel of chief executive officers at key insurance companies in the
United Arab Emirates: Abdellatif Abuqurah of Dubai Insurance; Jason Light of Emirates
Insurance; Charalampos Mylonas (Haris) of Abu Dhabi National Insurance Company
(ADNIC); and Dr. Ali Abdul Zahra of National General Insurance (NGI).
Shivash Bhagaloo, managing partner of Lux Actuaries & Consultants, will his present
his observations in an additional session regarding implementation of IFRS 17 in the
region. The event also will highlight the state of the global and MENA region
reinsurance sectors, as well as a talk on insurance ramifications stemming from the
major United Arab Emirates floods of April 2024. The programme will be followed by a
networking lunch.
Registration for the market briefing, which will take place in the Diamond Ballroom at the
Kempinski hotel, begins at 9:00 a.m. GST with introductory comments at 9:30 a.m.
Please visit www.ambest.com/conference/IMBMENA2024 for more information or to
register.
AM Best is a global credit rating agency, news publisher and data analytics
provider specialising in the insurance industry. Headquartered in the United
States, the company does business in over 100 countries with regional offices in
London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.

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Future of Automotive Mobility 2024: UAE Leads the Charge in Embracing Digital Car Purchases and Alternative Drivetrains

-UAE scores show highest percentage among the region in willingness to purchase a car
completely online
– Openness to fully autonomous cars has grown to 60% vs previous 32%.
– More than half of UAE respondents in the survey intend to move to hybrid cars during
next car purchase, while less than 15% intend to move to fully electric car.
– UAE sees strong use of new mobility services such as ride-hailing (Uber, Careem, Hala
Taxi)
– The perceived future importance of having a car is not only increasing in UAE but is
higher than any other major region globally, even China

Arthur D. Little (ADL) has released the fourth edition of its influential Future of Automotive Mobility (FOAM) report, presenting a detailed analysis of current and future trends in the automotive industry. This year’s study, with insights from over 16,000 respondents across 25 countries, includes a comprehensive focus on the United Arab Emirates (UAE). The report examines car ownership, electric vehicles,
autonomous driving, and new mobility services within the UAE.

“The UAE is at the forefront of automotive innovation and consumer readiness for new mobility
solutions,” said Alan Martinovich, Partner and Head of Automotive Practice in the Middle East
and India at Arthur D. Little. “Our findings highlight the UAE’s significant interest in
transitioning to electric vehicles, favorable attitudes towards autonomous driving technologies,
and a strong inclination towards digital transactions in car purchases. These insights are critical
for automotive manufacturers and policymakers navigating the evolving landscape of the UAE
automotive market.”
Key Findings for the UAE:
1. Car Ownership:
o Over half of UAE respondents perceive that the importance of owning a car is
increasing, with the study showing the increase higher than any other major
region, including China.
o Approximately 80% of UAE respondents expressed interest in buying new (as
opposed to used) cars, above Europe and the USA which have mature used
vehicle markets

2. Shift to Electric and Hybrid Vehicles:
o While a high number of UAE respondents currently own internal combustion
engine (ICE) vehicles, more than half intend that their next vehicle have an
alternative powertrain, with significant interest in electric and plug-in hybrid
(PHEV) options. Less than 15% plan to opt for pure battery electric vehicles
(BEVs).

3. Emerging Mobility Trends:

o Ride-hailing services are the most popular new mobility option among UAE
residents, with higher usage rates than traditional car sharing and ride sharing.
The study indicates a strong openness to switching to alternative transport modes
given the quality and service levels available today.

4. Autonomous Vehicles:
o UAE consumers are among the most open globally to adopting autonomous
vehicles, with a significant increase in favorable attitudes from 32% in previous
years to 60% this year versus approximately 30% in mature markets. Safety
concerns, both human and machine-related, remain the primary obstacles to
broader adoption.

5. Car Purchasing Behavior and Sustainability:
o The internet has become a dominant channel for UAE residents throughout the car
buying process, from finding the right vehicle to arranging test drives and closing
deals. UAE car buyers visit dealerships an average of 3.9 times before making a
purchase, higher than any other region in the world, emphasizing the need for
efficient integration of online and offline experiences.
o Upwards of 53% of respondents from the region would prefer to ‘close the deal’
and complete the purchase of their car online, which is the highest for any region
in the world.
o Sustainability is a key factor cited by UAE consumers as influencing car choice.
The UAE scored among the top half of regions, highlighting the importance of
environmental considerations.

“Our study confirms the promising market opportunities for car manufacturers (OEMs) and
distributors in the UAE” commented Philipp Seidel, Principal at Arthur D. Little and co-Author
of the Global Study. “Consumers in the Emirates show a great and increasing appetite for cars
while being among the most demanding globally when it comes to latest vehicle technologies
and a seamless purchase and service experience.”
The comprehensive report, “The Future of Automotive Mobility 2024” by Richard Parkin and
Philipp Seidel, delves into global automotive trends and their impact on various regions,
including the UAE. This study is an invaluable tool for industry stakeholders seeking to navigate
and leverage the dynamic changes driving the future of mobility.

 

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