Definition
Energy transition refers to the structural transformation of global energy systems from a predominant reliance on fossil fuels, including coal, oil, and natural gas, toward renewable and low-carbon energy sources such as solar, wind, nuclear, and hydrogen. The transition encompasses changes in electricity generation, transportation, industrial processes, and building heating and cooling. It is driven by climate change mitigation imperatives, technological cost reductions in renewable energy, government policies including carbon pricing and emissions standards, and shifting investor and consumer preferences. The pace and pathway of the energy transition vary significantly across countries and sectors.
UAE Context
The UAE occupies a unique position in the global energy transition as both a major hydrocarbon exporter and an early investor in renewable energy. Abu Dhabi’s Masdar, established in 2006, was one of the first dedicated clean energy companies in the Gulf and has grown into a global renewable energy developer with a portfolio exceeding 20 gigawatts of capacity across multiple continents. The UAE hosts the headquarters of the International Renewable Energy Agency (IRENA) in Abu Dhabi and presided over COP28 in 2023, where it brokered the first global agreement referencing a transition away from fossil fuels. The nation’s Net Zero 2050 Strategic Initiative commits the UAE to carbon neutrality by mid-century while maintaining its role as a responsible hydrocarbon supplier during the transition period.
Key Facts
| Attribute | Detail |
|---|---|
| Core concept | Shift from fossil fuels to renewable and low-carbon energy |
| Key drivers | Climate policy, technology costs, investor pressure |
| UAE clean energy entity | Masdar (Abu Dhabi Future Energy Company) |
| International body hosted | IRENA headquarters in Abu Dhabi |
| Climate commitment | UAE Net Zero 2050 Strategic Initiative |
| COP28 presidency | UAE hosted in 2023 at Expo City Dubai |
| Nuclear contribution | Barakah plant provides 5,600 MW of clean baseload power |
Vision 2031 Relevance
The energy transition is one of the defining strategic contexts for Vision 2031. The UAE’s approach is to lead the transition rather than be disrupted by it, investing hydrocarbon revenues into renewable energy, nuclear power, green hydrogen, and carbon capture technologies. This dual strategy ensures continued relevance as a global energy power regardless of how quickly fossil fuel demand declines. By building expertise in clean energy technologies and hosting key international institutions, the UAE positions itself as an indispensable partner in global decarbonization, creating new export industries, knowledge economy jobs, and diplomatic influence that extend well beyond the oil era.