meed-logo

line1 line2 line3
SIGN IN / REGISTER

Working towards a common energy-transition goal

28 November 2022

Published in partnership with

In the end, it went right to the wire. Just as it looked like the UN’s 27th Conference of the Parties (Cop27) would conclude without an accord, the weary delegates announced that they had reached a landmark agreement on setting up a fund to help compensate poorer nations for the economic and social destruction caused by climate change. 

The statement, two days after the Sharm el-Sheikh summit’s original 18 November end date, was a culmination of some 30 years of negotiations between developed economies and developing nations. The latter had long argued that the damage they have experienced from global warming should be paid for by richer countries responsible for the crisis in the first place.

Although far from perfect, the global ‘loss and damage’ fund was hailed as an important and symbolic step towards hitting the agreed target of limiting global temperature increases to 1.5C above pre-industrial levels by 2030. It also marked the continuing engagement and collaboration by governments across the globe.

“We rose to the occasion,” said Egypt’s Minister of Foreign Affairs and president of Cop27 Sameh Shoukry. 

“We worked around the clock, day and night, but united in working for one gain, one higher purpose, one common goal. In the end, we delivered. We listened to the calls of anguish and despair.”

Private sector involvement

While Cop27 has been and will continue to be a policy-setting mechanism negotiated at the highest level, companies played a critical role during the conference. 

Firms representing a broad range of sectors, including Vodafone, Microsoft, Boston Consulting Group and Bloomberg, partnered with the event, and many more participated in the main conference and exhibition areas. 

Ultimately, governments understand that the private sector will lead the drive towards net zero. Without corporates worldwide investing in clean energy projects and technology, there is little hope that targets will be reached.

Five consistency points

A key supporter of Cop27 was Siemens Energy. Sharing its expertise through panels covering subjects as varied as the Mediterranean’s North-South Energy Partnership, improving power access in Africa by unlocking its green hydrogen potential, and overcoming the challenges of decarbonisation, the energy technology company played a pivotal role in discussions and thought leadership.

It also participated in the world leader’s summit at a roundtable discussing green hydrogen, reinforcing its positioning of energy transition at the heart of its strategy. 

Before the Sharm el-Sheikh conference, Siemens Energy president and CEO Christian Bruch outlined five points of consistency that his company considers to be unifying elements in the decarbonisation drive.

The first is the acceleration of renewables. Replacing conventional power generation systems with solar, wind, hydro and other forms of renewable energy is essential to reduce greenhouse emissions.

Despite a considerable increase in the overall share of renewables in the past three years on the back of ever-lowering costs and more efficient technology, more must still be done.

For example, the US needs to triple its share of renewable energy as a proportion of the energy mix by 2050 for the energy transition to succeed. The Asia-Pacific region, meanwhile, will have to increase this figure fourfold. 

Regional targets

In the Middle East, every country has now set ambitious targets to increase renewable energy. The likes of Saudi Arabia, Morocco and the UAE are aiming for renewables to account for up to 50 per cent of total production by 2030. To reach these objectives, almost all new power generation projects come in the form of renewables.

However, the impact of greener electricity production could be somewhat offset by continuing demand growth caused by an increasing global population and economic growth. 

In this context, the second point is the requirement for improved energy conservation measures, such as policies to incentivise the electrification of industry and transport. 

Regionally, the industrial electrification of energy-intensive industries is an optimal opportunity to reduce harmful emissions by harnessing electric boilers and/or electricity-based fuels. Future large-scale blue and green hydrogen production will also have a role to play in industrial processes.

Siemens Energy’s third point of consistency is improving electrical efficiency. The increase in renewable energy capacity and the growth in power capacity, in general, require significant investment in transmission and distribution networks. 

This is particularly important in areas such as sub-Saharan Africa, where almost 25 per cent of the population has little to no access to electricity. 

The fourth point covers the requirement to use existing conventional power infrastructure to help bridge the gap between the fossil-fuelled economies of today and the net zero of tomorrow. 

Progress cannot be made in one step alone and requires a gradual transition. In the meantime, existing thermal plants can employ measures such as combined-cycle technology and carbon capture to make them as efficient and environmentally friendly as possible.

The energy transition is the biggest investment programme since the dawn of industrialisation. If governments, business and society work together, energy transition is a massive opportunity

Christian Bruch, Siemens Energy president and CEO

Mineral production

Finally, to achieve all of this, it is necessary to improve supply chains and increase the production of necessary minerals and rare earth metals required in net-zero technologies, such as lithium, nickel, cobalt and chromium. 

Bruch gives the example of a typical electric car, which requires six times more mineral inputs than one powered by an internal combustion engine. He also cites onshore wind plants, which need nine times more than a gas-fired power plant. 

If mineral production is not increased and geographically diversified, there is a risk of future supply bottlenecks.

In the Middle East, a good illustration of this is the potential future supply gap for electrolyser systems, and the anodes and cathodes typically made from metals such as zinc, nickel and lithium. 

MEED estimates that about 75GW of electrolyser production capacity will be required by 2030 to meet the demand for the raft of planned green hydrogen plants in the region alone, compared with a total global output capacity of just 8GW today.

Industrial decarbonisation alliance

All five consistency points make salient arguments. However, they can only be achieved with close cooperation between the private and public sectors. While the former can spearhead and implement the decarbonisation drive, the latter can provide the regulations and incentives to encourage these initiatives. 

The newly formed Alliance for Industry Decarbonization initiated by Siemens Energy and coordinated and facilitated by the Abu Dhabi-based International Renewable Energy Agency (IRENA) is an example of greater collaboration between the public and private sectors. 

The 28-member alliance – which encompasses a range of global energy, renewable, consulting and manufacturing companies – met for the first time during Cop27 to outline its joint vision and implementation plan. Its strategy focuses on six pillars and enablers that tie into the points of consistency: renewables, green hydrogen, bioenergy with carbon capture, utilisation and storage (CCUS), heat process optimisation, human capital and finance.

Only through this kind of stakeholder dialogue can the immense and existential challenges posed by global warming be overcome. Governments or companies acting in isolation will only achieve so much on their own. The points of consistency must be considered as a whole and in unison if the world’s climate objectives are to succeed.

As Bruch says: “The energy transition is the biggest investment programme since the dawn of industrialisation. If governments, business and society work together, energy transition is a massive opportunity. There is no excuse for waiting any longer.”

Related reads:

Click here to visit Siemens Energy 
https://image.digitalinsightresearch.in/uploads/NewsArticle/10387284/main.gif
MEED Editorial

Register for MEED's guest program now to access this article.

Click here to register
Exclusive from Meed
Related Articles
  • Accor expects Dubai hotel recovery by mid-2027

    17 July 2026

     

    Paris-headquartered hotel operator Accor expects Dubai’s hotel market to return to pre-conflict occupancy levels by the end of the first quarter or early second quarter of 2027, with room rates lagging the volume recovery by several months.

    Duncan O’Rourke, chief executive for the Middle East, Africa and Asia Pacific at the hotel operator (pictured right), said the group had maintained profitability across its Dubai portfolio during the conflict period through cost control and revenue management, but acknowledged that rates and occupancy had fallen materially from January and February levels.

    “There is no question that this crisis affected Dubai,” O’Rourke said at a media briefing in Dubai on 26 June. “As for occupancy in Dubai, we managed – through profit protection and cost control – to keep the hotels in a positive position, so we weren’t losing money.”

    He said the arrival of the summer low season provided a degree of relief. “If there is a time to slowly slide out of this crisis, it is the right time, which is now. What I see going forward is that volumes will come back. You will not have the rates immediately that you had in January and February. By the end of Q1 or Q2 next year, I think you will get close to where we were.”

    Luxury first

    O’Rourke said the luxury and upper-upscale segment was likely to lead the recovery, consistent with the pattern observed after previous crises.

    “Generally, when you have a crisis, the first segment to click back quicker is the high-end luxury. People then think: it is not about whether I should go – it is, let’s go. We saw that in Covid. Fairmont is well positioned to do that, and the Sofitel and Maison brands are in the stage of recovery going forward.”

    Jean-Jacques Morin, group deputy chief executive at Accor (pictured right), said the UAE’s underperformance had been contained within Accor’s broader international portfolio that continued to grow.

    “The Middle East is about 10% of the network,” he said. “That also explains why my tone on the capability of the results is so positive – not only do you have the hedging across geographies, but it is also, in the end, only one part of the business.”

    Rate outlook

    Morin dismissed concerns that the conflict had structurally weakened Dubai’s pricing power, drawing a parallel with the period following Covid-19.

    “When we came out of Covid, everybody said those prices would never hold. The question at every analyst call was always the same: your pricing strategy is unsustainable. Guess what? Nothing changed. The prices now, three or four years later, are still the same.”

    He argued that consumers consistently prioritise travel expenditure when reallocating budgets. “What you see when the economy goes sideways is that people reallocate disposable income differently. People are basically redirecting the way they do things and keeping the same amount they want to spend, but spending it differently.”

    Morin also said Dubai has a track record of outpacing expectations after previous disruptions. “The first part of the world, post-Covid, that came back to positive RevPAR was the Middle East – it was Dubai. People forget that. The capacity of this part of the world to rebound, and the capacity of the industry to rebound in general, is always misunderstood.”

    No pullback

    Accor said it had not paused or cancelled any development commitments in the region as a result of the conflict. “We did not change anything from a strategic perspective,” Morin said. “The last thing you want is to pull back, because this is going to rebound.”

    The group has also used the period to accelerate planned refurbishments and redeploy staff across the region rather than reduce headcount.

    “We have 380 hotels here – we are the largest player in the Middle East. Where we accelerated refurbishments, we were able to take key employees and move them to larger hotels elsewhere in the region. What people learned during Covid was the cost of layoffs afterwards – bringing people back and retraining them. There was a massive learning curve. This time, discussions with partners about layoffs were less challenging; it was more about accommodating staffing needs during that period,” O’Rourke said.

    READ THE JULY 2026 MEED BUSINESS REVIEW – click here to view PDF

    Stress test for Gulf aviation; Mixed performance as country outlooks diverge in the Levant; GCC tourism sector pivots from crisis to recovery mode.

    Distributed to senior decision-makers in the region and around the world, the July 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/17695301/main.gif
    Colin Foreman
  • GCC downstream operators urged to seek used European equipment

    17 July 2026

     

    The operators of downstream oil and gas facilities in the GCC that are rebuilding after attacks during the regional war are being advised by the insurance industry to procure used equipment from Europe, where a large number of petrochemical facilities have closed down over recent years.

    A wide range of refineries and petrochemical plants in the region are currently undertaking repairs and replacing damaged equipment after attacks by Iran.

    The attacks started after the US and Israel launched attacks on sites in Iran on 28 February.

    Nick Holland, the head of engineering for India, the Middle East and Africa at the US-based insurance broker Marsh, says that many downstream facilities carrying out repairs in the GCC could cut costs and reduce the time it takes to rebuild by making deals with companies in Europe.

    “Many plants have shut down in Europe over the past five years,” he says. “These refinery and chemical-plant closures may create an opportunity for Gulf operators to acquire high-quality used equipment.

    “We have some incredible demand in the Middle East to recover as quickly as possible, and I would certainly be encouraging operators to take the opportunity to procure second-hand equipment from facilities that have closed down in Europe.”

    Earlier this month, Jim Ratcliffe, the chairman of the London-headquartered chemicals company Ineos, wrote an open letter to Ursula Von Der Leyen, the president of the European Commission, saying that the chemical industry in Europe is “highly stressed” and in the midst of a “closure phase”.

    He said that nearly 200 European chemical plants had closed down during the past five years.

    Holland says that companies in the GCC looking to minimise business disruption and rebuild as quickly as possible should reach out to companies in Europe to obtain equipment that would normally take a long time to procure from equipment manufacturers.

    “A new large high-pressure reactor could have a lead time of approximately 110 weeks, so adapting an existing reactor could significantly accelerate recovery,” he says.

    “Other possible items include pumps, compressors, rotating equipment and boilers.

    “Reusing equipment is unusual but not unprecedented. Used equipment would require inspection, remaining-life assessment, re-engineering and confirmation that it is fit for the new operating conditions.”

    Over recent months, there have been reports of downstream oil facilities being hit by Iranian attacks in Saudi Arabia, Kuwait, the UAE and Bahrain.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17692930/main.jpg
    Wil Crisp
  • Medina tenders Quba Mosque expansion

    17 July 2026

     

    Madinah Region Development Authority (MRDA) has tendered a contract to expand Quba Mosque in the Medina region of Saudi Arabia.

    The tender was issued earlier this month, with a bid submission deadline of 31 August.

    MRDA has appointed local consulting firm Jasara as the project management consultant.

    Jasara, in turn, has appointed London-based firm HKA to provide specialist procurement and delivery-model advice and to support the selection of a suitable contracting partner for the project.

    Dar Al-Omran has prepared the design for the expansion.

    Quba Mosque is located about five kilometres south of the Prophet’s Mosque in Medina.

    Project background

    Quba Mosque is considered the first mosque established in Islam, in 622 AD. The proposed expansion will increase the mosque’s area from 5,035 square metres (sq m) to 53,000 sq m and raise capacity to 66,000 worshippers, from 12,000.

    The expansion will also include the restoration of 57 historical sites and the creation of three pathways to enhance Medina’s spiritual and cultural landscape.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17691327/main.jpg
    Yasir Iqbal
  • Bahrain taps consultants for studying use of nuclear power

    17 July 2026

     

    Register for MEED’s 14-day trial access 

    Bahrain is exploring the use of nuclear power for domestic consumption as well as for potential export of surplus, with state energy conglomerate Bapco Energies tasked with studying the prospect of building a modular nuclear power plant.

    According to sources, the proposed project is being led by BeVentures, the venture capital arm of Bapco Energies, which was launched in July 2024.

    Under the plan being studied, power to be produced by the nuclear facility will be supplied mainly to major industrial complexes in the kingdom, such as Aluminium Bahrain (Alba) and Bapco Refining, for clean production of aluminium and refined products, respectively, in line with Bahrain’s ambition of achieving net-zero emissions by 2060.

    BeVentures has, in turn, approached global consultancy firms such as Bechtel, Fluor, Kent, Technip Energies and Wood to assist with concept study and early-stage planning and assessment of the modular or small nuclear power project.

    Bapco Energies and BeVentures are also considering tapping into private financing and/or equity partnerships, in part or in full, for the proposed project, sources told MEED.

    Bapco Energies did not respond to MEED’s request for comment and additional information on the proposed modular nuclear project.

    Mark Thomas, the group CEO of Bapco Energies, told MEED in an interview in April last year that BeVentures was considering investments in “ … new technologies that can both help existing business, as well as prepare … for the future, for the energy transition”. 

    “We’re looking at opportunities principally within our existing businesses around oil and gas production, refining and petrochemicals. But we’re also looking at elements that will prepare us for the future, more into renewables,” Thomas said, without explicitly mentioning nuclear power.

    Case for nuclear power

    Bahrain’s interest in exploring nuclear power has been driven primarily by the limitations of its hydrocarbon endowment. Given its small territorial size – about 786 square kilometres – Bahrain holds relatively modest hydrocarbon reserves compared with its Gulf peers.

    The kingdom produces about 200,000 barrels a day (b/d) of oil, of which the Awali Field, also known as the Bahrain Field, contributes approximately 42,400 b/d.

    Most of Bahrain’s crude production – about 145,000 b/d – comes from the offshore Abu Safah field, located in Gulf waters between Bahrain and Saudi Arabia and shared between Bapco Energies’ subsidiary Bapco Upstream and Saudi Aramco.

    Bapco Energies has long pursued additional resources to boost oil and gas output. However, the discovery of the Khalij Al-Bahrain basin in 2018 – its biggest find in decades – has yet to live up to its promise. Initially estimated to hold 80 billion barrels of oil and 10-20 trillion cubic feet of gas, the find has not translated into production at the anticipated scale. Other, smaller exploration efforts with foreign players have also yet to yield the desired results.

    The kingdom therefore remains heavily reliant on its larger neighbour, Saudi Arabia, for oil and gas supplies, importing about 350,000 b/d from Aramco via the AB-4 pipeline.

    At the same time, given its environmental sustainability targets, other forms of renewable energy – mainly solar – are unlikely on their own to enable Bahrain to reach net zero by 2060.

    Bapco Energies published emissions-reduction targets in July 2023, in one of the most detailed disclosures by any state energy enterprise in the GCC. It has also engaged advisers including Boston Consulting Group to help devise a strategy to meet its environmental goals, and Standard Chartered to support financing requirements.

    Using 2017 as a baseline year, Bapco Energies has committed to reducing absolute Scope 3 emissions in Bahrain by 30% by 2035, and to reaching net-zero Scope 3 emissions by 2060.

    In addition, Bapco Energies sets out net emissions-intensity reduction targets for Scope 1 and 2 – also using 2017 as a baseline – of 15% by 2025, 25% by 2030, 30% by 2035, 50% by 2040 and 75% by 2050, with the aim of achieving net-zero Scope 1 and 2 emissions by 2060.

    Bahrain has been laying the groundwork to enable it to tap nuclear power for household and industrial needs in the future.

    The kingdom is already operating under a Country Programme Framework (2024–29) with the International Atomic Energy Agency (IAEA), which establishes regulatory and safety benchmarks that must be in place before any commercial reactor construction begins.

    In July last year, Manama also signed a civilian nuclear cooperation memorandum of understanding with the US. Financed under the US Foundational Infrastructure for Responsible Use of Small Modular Reactor Technology (FIRST) programme, the partnership provides Bahrain with technical support to develop secure, weaponisation-free civil nuclear infrastructure.

    Small modular reactor (SMR) technology could be the most viable pathway forward for Bapco Energies in its quest to develop domestic nuclear power. Unlike conventional large-scale, capital-intensive gigawatt reactors, SMR units – typically under 300MW – require only a fraction of the land area needed for solar capacity of an equivalent output.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17689719/main0822.jpg
    Indrajit Sen
  • Qatar seeks to establish new industrial area in Mesaieed

    16 July 2026

    Qatar’s Ministry of Commerce & Industry and state enterprise QatarEnergy have signed an agreement to cooperate on evaluating and allocating hydrocarbon-derived resources to support the establishment of a new medium industries area in Mesaieed Industrial City.

    Under the terms of reference signed between the parties, QatarEnergy will implement a governance mechanism for the allocation of hydrocarbon-derived feedstock to qualifying industrial investment opportunities for the proposed new medium industries area in Mesaieed Industrial City.

    “The agreed terms of reference stipulate the evaluation and allocation of hydrocarbon-derived resources, natural gas, power and related natural resources to downstream derivative industrial investment opportunities,” QatarEnergy said in a statement.

    “It will also ensure the optimal use of national resources and enhance the added value of the industrial sector by establishing a joint governance framework to evaluate and allocate resources required by qualified industrial investment opportunities,” it added.

    QatarEnergy currently operates crude oil refining facilities, including natural gas liquids units, as well as petrochemical production complexes and other units in the hydrocarbon value chain, in Mesaieed Industrial City, situated around 45 kilometres south of Doha.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17688383/main.jpg
    Indrajit Sen