Cop28 must deliver on promises
25 October 2023
Commentary
Jennifer Aguinaldo
Energy & technology editor

There is a good chance that the average delegate attending the 2023 Conference of the Parties of the UN Framework Convention on Climate Change (Cop28) will skip visiting or driving past the key clean energy installations in the UAE.
These include the wind turbines on Sir Baniyas Island, 9.5 kilometres (km) off Jebel Dhana in Abu Dhabi; the $29bn Barakah nuclear power plant in Al-Gharbia, close to the border with Saudi Arabia; the solar farms in Sweihan and Al-Dhafra in Abu Dhabi; and Dubai’s Mohammed bin Rashid al-Maktoum Solar Park, 50km from Expo City, the venue for Cop28.
For many delegates, a trip to these sites is unnecessary. They are aware of the UAE’s green credentials, with the country having ploughed billions of dollars into investments aimed at decarbonising its economy, and more still to come.
For others, however, a single statistic undermines the positive environmental steps that the world’s sixth-largest crude exporter has taken. State-backed energy firm Abu Dhabi National Oil Company (Adnoc) plans to increase its oil production capacity from 4 million barrels a day (b/d) to 5 million b/d by 2027.
Double-edged strategy
Critics, who include the head of the Catholic Church, Pope Francis, have warned of the dangers of a double-edged energy transition strategy. Cop28 president-designate Sultan al-Jaber, managing director and CEO of Adnoc, prefers to describe such an approach as pragmatic.
An agreement requiring developed countries to provide loss and damage funding to countries most affected by climate change was a key takeaway from last year’s UN climate change conference in Egypt (Cop27). However, there was a lack of progress on the phasing down or out of fossil fuels.
The onus is now on the UAE, whose energy transition approach embraces energy sources from fossil fuels to green hydrogen, to deliver a more productive conference.
The hope is that the UAE’s status as an oil- exporting country, and the selection of an oil industry stalwart to lead this year’s negotiations, will not distract from the important tasks that the 12-day event aims to tackle.
Cop28 will see the first global stocktake of the progress countries have made towards their emissions reduction commitments or nationally determined contributions (NDCs).
Al-Jaber has also promised to supercharge climate finance and put more pressure on developed countries to fulfil the commitment they made at Cop15 in Copenhagen to mobilise $100bn annually by 2020. This target has been missed repeatedly.
A UAE finance initiative that will provide $4.5bn to help unlock Africa’s clean energy potential was announced in early September and is an example of such commitment.
Al-Jaber’s insistence on putting oil and gas companies at the heart of the climate dialogue is proving both decisive and divisive, however, depending on which side of the climate debate one supports.
“This is your opportunity to show the world that, in fact, you are central to the solution,” he told the oil and gas-dominated Adipec conference held in Abu Dhabi on 2-5 October.
How can green ammonia compete with grey ammonia if the gas for the grey ammonia is provided at a fraction of world market prices?
Cornelius Matthes, Dii Desert Energy
Cyril Widdershoven, global energy market analyst at Netherlands-based consultancy Verocy, supports Al-Jaber’s views.
“The main Cop28 outcome will be linked to an even and rational transition from hydrocarbons to renewables, taking into account the overall need to cut emissions and [carbon] footprint,” he says.
The summit will lead to a realisation that hydrocarbons will be a major part of the overall energy scene for decades to come, as the world is not yet ready to be fully electrified, Widdershoven adds.
The oil and gas industry’s increased presence at, and participation in, Cop28 is expected to make an impact.
“There will be huge pressure on the oil and gas industry to participate in the decarbonisation of energy systems, first by eliminating methane flaring and then eliminating emissions from their own operations by 2030,” says Paddy Padmanathan, co-founder and vice-chairman of clean energy firm Zhero and former CEO of Saudi utility developer Acwa Power.
“Abu Dhabi can influence the national oil companies to sign up to this, and Adnoc and Saudi Aramco should be able to influence the international oil companies to sign up.”
Top 10 UAE clean energy projects
Walking the talk
The UAE has shown leadership by being the first country in the Middle East and North Africa (Mena) region to initiate the phasing out of fossil fuel subsidies in 2015, Cornelius Matthes, CEO of Dubai-based Dii Desert Energy, tells MEED.
“It was also the first Mena country to introduce a net-zero 2050 target in 2021, and has an unparalleled track record in building some of the largest solar plants in the world at record-low prices.”
Since other countries in the region have already followed the UAE’s lead, the expectation is for Cop28 to provide impetus for similar initiatives to accelerate.
With Abu Dhabi leading, Zhero’s Padmanathan expects it will also be possible to secure financial commitments
to the Loss & Damage Fund that was established at Cop27.
A declaration from the world’s 46 least-developed countries cited a “strong outcome operationalising the new Loss & Damage Fund” among their key expectations and priorities for Cop28.
Home to more than 14 per cent of the world’s population, these countries contribute about 1 per cent of emissions from fossil fuels and industrial processes and most are on the front line of the climate crisis. The majority need funds to deal with the impact of climate change in sectors such as agriculture, while others require funds to develop clean energy sources.
Tripling initiative
The goal of tripling global renewable energy capacity is expected be included in the agenda for Cop28.
This is in line with the International Energy Agency’s recommendation that the world needs to triple global renewable energy capacity by 2030 if the 1.5 degrees Celsius cap on global warming that was agreed in Paris in 2015 is to still be within reach.
However, this goal needs a clear mechanism to be effective, according to an expert in the renewable energy field.
“There will be a big song and dance around the commitment to tripling solar and wind deployment by 2030, but given there will be no mechanism for holding anyone responsible for it, and for sure there will be no consequence … I cannot see how meaningful such pledges can be,” the expert tells MEED.
Hard issues
The wider Mena region, which will share the spotlight and scrutiny associated with Cop28, will have to demonstrate a willingness to talk about the reduction of all harmful emissions, not only carbon, says Matthes.
The easiest option is to phase out fossil fuel subsidies, as they encourage energy waste and profit wealthy populations disproportionately.
“How can green ammonia compete with grey ammonia if the gas for the grey ammonia is provided at a fraction of world market prices?” Matthes asks.
Introducing a cost for all harmful emissions is another opportunity that can automatically improve bankability for energy transformation projects. To their credit, the UAE and Saudi Arabia have recently introduced voluntary carbon markets, which are seen as steps in the right direction.
Initiatives to boost energy efficiency across the Mena region should also be part of the conversation. These range from efforts to use air conditioning, cooling and water more discriminatingly; electrify transportation; deploy battery energy storage systems; and increase the decarbonisation of the production, shipping, refining and upstream use of oil and gas.
“The region’s waste of energy should be reduced and eliminated before even thinking about how to produce energy,” says Matthes.
Possible scenarios
Despite promises of inclusivity and productiveness, there is a strong probability that most Cop28 negotiators will get only a fraction of what they hope to take away from the summit.
“In a complex system like the Cop negotiations, we need to be realistic about what can be achieved,” says Matthes. “As we have seen in the past ... the same countries always manage to dilute compromises and block long-overdue and necessary developments.”
A likely post-Cop28 scenario could include an agreement requiring the oil and gas industry to do and spend more to decarbonise their products and operations, share in the financial burden of climate change mitigation, and if possible, curb production. This could avoid the use of wording that proved contentious at Glasgow’s Cop26 when a deal that called for the “phase out” of coal-fired power had to be amended to “phase down” following pressure from some countries.
Climate change advocates will have to live with the fact that fossil fuels, and their entire supply chain, are not likely to be penalised further or disappear. Major change is unlikely until the world is ready to be fully electrified, or until the fear that halting oil production could cause energy insecurity and economic chaos can be overcome.
The Global North countries will have to weigh the best options to reach their net-zero carbon emission targets by 2050 without risking their economic growth. However, countries such as the UK are in the process of pushing back some of their energy transition targets.
Meanwhile, most Global South countries will continue to bear the brunt of the worsening climate crisis, albeit with some support from top carbon-emitting and wealthy nations.
Rightly or wrongly, this could highlight the merit of Al-Jaber’s preferred pragmatic and inclusive approach to Cop28 in terms of technologies, fuels and the representation of sectors.
“A convergence of interests and the dramatic changes to the status of the global energy transition over the past few years … could help countries find new momentum and solutions that might not have seemed feasible in the past,” says Matthes.
Image: Cop28 president-designate Sultan al-Jaber engages with Pope Francis on driving positive outcomes for climate action. Credit: Cop28
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Sabic awards $3.47bn contract for ammonia and urea complex10 September 2026
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Sabic Agri-Nutrients, an affiliate of chemicals giant Saudi Basic Industries Corporation (Sabic), has awarded the main engineering, procurement and construction (EPC) contract for its seventh project in Saudi Arabia’s Jubail Industrial City, which will significantly expand its ammonia and urea production capacity.
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Sabic had earlier announced receiving approval for feedstock allocation from the Saudi Ministry of Energy in March for the project, which will expand Sabic Agri-Nutrients’ urea production capacity by 54%, from approximately 4.8 million metric t/y to 7.4 million metric t/y.
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Before being restructured into its current form, MEED reported in March last year that Samsung E&A was the frontrunner to win the main EPC contract for the project.
Sabic Agri-Nutrients expects construction on the San VII project to begin in Q4 2026, with commissioning scheduled to start in Q3 2030. The commissioning period will last four months, ahead of the start of commercial production and completion of the project in Q4 2030.
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Sabic Agri-Nutrients
Formerly Saudi Arabian Fertiliser Company (Safco), Sabic Agri-Nutrients was the first petrochemicals company to be established in Saudi Arabia in 1965.
Sabic Agri-Nutrients, in which Sabic owns the majority 50.1% share, is one of the leading global fertiliser producers, with a portfolio that includes urea, ammonia, phosphate and other specialised products.
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Following that milestone, the company struck several deals in 2023 with customers worldwide to supply low-carbon ammonia and urea.
In April 2023, Sabic Agri-Nutrients shipped the first independently certified low-carbon ammonia from Saudi Arabia to Japan, where it is being used as fuel for power generation. The ammonia cargo was produced with feedstock from Saudi Aramco, sold by Aramco Trading Company to Fuji Oil Company and transported by Mitsui OSK Lines.
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Contractor wins Riyadh airport sewage plant deal10 September 2026

The local Safari Company has been selected to build a sewage treatment plant at the King Salman International airport (KSIA) development in Riyadh.
The contract for the facility is yet to be formally signed with King Salman International Airport Development Company (KSIADC), a source close to the project told MEED.
The facility will have a treatment capacity of 92,000 cubic metres a day and is estimated to be worth SR700m ($187m).
In July, MEED reported that Safari was one of seven contractors awaiting a decision on a contract to build the sewage treatment plant.
It is understood that bids were submitted in March, following the tender’s release earlier this year.
The plant will treat wastewater generated by the airport and surrounding developments, including passenger terminals, runways, residential districts, commercial facilities and logistics areas.
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Azizi to announce $8bn Sharjah residential community10 September 2026
Dubai-based real estate developer Azizi Developments is preparing to launch Azizi Florence, a AED30bn ($8bn) masterplanned community in Sharjah.
Named Azizi Florence, the project will mark the developer’s first venture in the emirate of Sharjah.
The community will include 1,130 villas, over 6,000 townhouses and 3,500 apartments.
Planned as a fully integrated destination, Azizi Florence will combine residential, retail, hospitality, education, leisure, and wellness components, anchored by a 1.7 million-square-foot central park.
The development will be organised into six residential clusters, each featuring its own park, clubhouse, community centre and landscaped gardens.
Azizi Florence is another major addition to the developer’s UAE portfolio.
In April last year, Azizi announced plans to develop the Azizi Milan community in Dubai’s City of Arabia area.
According to media reports, the project will be developed at an estimated cost of AED75bn ($20bn) and will offer over 81,200 residential units.
The developer said the project will cover an area of about 40 million square feet, making it one of the largest mixed-use communities in the UAE.
In 2023, Azizi launched the Azizi Venice project in the Dubai South area. The estimated AED30bn ($8.17bn) mixed-use development will offer more than 30,000 residential units, including 100 mid-rise apartment complexes and 400 villas, two five-star hotels and an opera house.
The development will also include schools, a hospital, cycling and jogging tracks, a 3-kilometre-long swimmable lagoon, water features and landscaped parks.
Dubai real estate developments dominate the UAE’s construction market, with schemes worth over $323bn in the execution or planning stages.
This is in line with a forecast by GlobalData, which projects that the output of the UAE construction sector will grow by 4.2% in real terms in 2025, supported by developments in infrastructure, energy and utilities and residential construction projects.
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Saudi Arabia’s power award activity slows10 September 2026

Saudi Arabia’s power market has seen a sharp fall in contract awards in 2026 following a major wave of renewable energy investment last year.
According to regional project tracker MEED Projects, about $3.38bn of power sector contracts were awarded in the kingdom as of early September, compared with $27.5bn in 2025, $54.2bn in 2024 and $26.1bn in 2023.
The relatively low level of contract awards this year has partly been influenced by a shift towards wider infrastructure such as battery energy storage systems (bess) and transmission projects, alongside delays in the procurement of renewable energy projects under the National Renewable Energy Programme (NREP) Round 7.
In September, Saudi Power Procurement Company (SPPC) awarded four Group 1 storage service agreements representing more than SR4.35bn ($1.16bn) of investment. The projects will provide a combined 2,000MW of capacity and 8,000MWh of storage.
Three bess projects, Al-Muwyah, Haden and Al-Kahafa, were awarded to a consortium of Saudi Energy, Acwa and Al-Sharif Contracting & Commercial Development Company. Another consortium of France’s Engie and Haji Abdullah Alireza & Co won the contract for the remaining Al-Khushaybi bess project.
Transmission awards
The battery storage projects are part of a broader shift towards the infrastructure needed to support Saudi Arabia’s expanding power system, with transmission accounting for most of the contracts awarded this year, reaching $3.35bn in new awards.
The largest is the estimated $500m contract awarded to Alfanar Projects in March for the 500kV overhead transmission line linking Saudi Arabia’s Eastern and Central operating areas. The 508-kilometre project will have a transmission capacity of 3,000MW.
Saudi Energy, formerly Saudi Electricity Company, is implementing a $58.7bn grid investment programme through 2030, including 130 high-voltage substations, about 12,900km of overhead transmission lines and 1,100km of underground cables.
Saudi Energy is the largest owner by value so far this year, accounting for about $1.9bn of contract awards, while SPPC has awarded more than $1.1bn in new contracts.
The focus on storage and transmission follows strong growth in renewable generation investment in 2025. Wind power contract awards reached $4.4bn, while 11 major solar contracts were also awarded.
In May 2025, developers signed $8.3bn of power purchase agreements with SPPC for five solar plants and two wind farms with a combined capacity of 15,000MW, somewhat inflating last year’s figures. The projects, backed by the Public Investment Fund, reached financial close in November.
Renewables projects
The next major phase of renewable procurement is now moving through the tender process. The seventh round of NREP, tendered in January, will add 5,300MW through four solar and two wind projects.
Based on the procurement timeline for the Round 6 projects, which were tendered and awarded in 2026, it was reasonable to expect Round 7 to follow a similar schedule.
However, according to one developer, rising supply costs have been a factor in recent deadline extensions for these projects, with those involved “waiting till these come down”.
With the latest bid submission deadlines set for September, the timing of the procurement process means contracts from NREP Round 7 may now fall into 2027 rather than materially lifting this year’s total.
The solar projects comprise the 1,400MW Tabarjal 2, 600MW Mawqqaq, 600MW Tathleeth and 500MW South Al-Ula independent power projects (IPPs). The round also includes the 1,300MW Bilgah and 900MW Shagra wind IPPs.
This helps explain why Saudi Arabia’s power sector contracting could remain relatively subdued in 2026 despite a substantial volume of projects progressing through procurement.
Project pipeline
According to MEED Projects, about $5.1bn of power projects are currently under bid evaluation and a further $7.3bn are at the main contract tender stage.
Solar projects make up the largest share, at about $5.1bn, or 41% of the total. There continues to be relatively strong diversification, with cable and overhead-line projects accounting for about $3bn, followed by wind at $2.2bn, oil and gas-fired power at $1.1bn and substations at about $1bn.
Renewable energy remains a particularly significant part of the development programme. Saudi Arabia raised its renewable energy target to 130GW by 2030 in 2023 and needs to add roughly 20GW of capacity a year to meet it.
Large-scale storage is also expected to continue expanding. The latest SPPC projects build on five bess facilities awarded by Saudi Energy through National Grid Saudi Arabia to Alfanar in 2025. The facilities have a combined capacity of up to 2,500MW, equivalent to about 10,000MWh.
SPPC has also issued the request for proposals for the second phase of its independent bess programme in Saudi Arabia. The Group 2 programme comprises six independent storage provider projects with a total capacity of 3GW, equivalent to 12,000MWh based on a four-hour storage duration. Developers are due to submit bids in October.
The timing means the Group 2 projects could contribute to contracting activity in 2027, alongside this next batch of renewable projects under NREP Round 7.
Nuclear power could provide another potential source of activity over the next 12 months. The US and Saudi Arabia signed a civil nuclear cooperation agreement in July, providing the legal foundation for a long-term, multibillion-dollar nuclear partnership.
While the agreement is unlikely to translate immediately into major contract values, further progress on Saudi Arabia’s nuclear programme could add another area of activity in the sector as the kingdom moves into 2027.
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