In January 2023, UAE and US officials announced that $20 billion will be allocated to fund 15 GW of clean and renewable energy projects in the US before 2035. This first wave of investments under PACE will be financed through $7 billion in cash equity from the private sector that will catalyze $13 billion through US debt financing and other instruments.
In August 2023, ADNOC and Occidental signed a strategic collaboration agreement to evaluate potential investment opportunities in carbon dioxide capture and storage hubs in the UAE and US. With the help of PACE, both companies will work to develop carbon management platforms to accelerate net zero goals.
“The energy transition needs a realistic, practical and economically viable plan to deliver climate progress together with energy security and inclusive economic growth. The UAE-US Partnership for Accelerating Clean Energy will enable climate action while enhancing global energy security and affordability for the people of the UAE, the US and nations around the world.” - HE Dr. Sultan Al Jaber, UAE Special Envoy for Climate Change.
“PACE is testament to the deep commitment our countries share to urgently address the climate crisis – as quickly as possible. Together, we will spur large-scale investment in new energy technologies, in our own countries, around the world and in emerging economies.” - Amos Hochstein, Senior Advisor to the President for Energy and Investment at the White House
A Shared Vision for Climate Action and Energy Security
The UAE and US are taking climate action together, in line with their net zero 2050 goals. Both countries recognize that a rapid, sustainable and well-managed energy transition is critical to advancing climate change, as well as to enhancing global energy security and accessibility.
Building on five decades of energy cooperation, the UAE and US established PACE to promote projects and new technologies that will quicken the energy transition and create economic opportunities. It will catalyze $100 billion in commercial investment and assistance in: 1) Clean energy innovation, deployment and supply chains; 2) Carbon and methane management; 3) Nuclear energy; and 4) Industrial and transport decarbonization.
The UAE and US have formed an Expert Group to govern the partnership. Led by COP28 President-Designate HE Dr. Sultan Al Jaber and US Special Presidential Coordinator Amos Hochstein, the governing body will meet quarterly to propose new projects and measure progress against the initiative’s goals of ensuring a global clean energy future and long-term energy security.