Ahead of the United Nations Climate Change Conference, COP29, in November in Azerbaijan, the United Arab Emirates and India have been increasing partnerships in a significant push toward promoting sustainable development and the green economy and to sync their climate change objectives with the global agenda. Most recently, the Abu Dhabi National Oil Company agreed to supply more than 1 million metric tons per year of liquefied natural gas to India for the next 15 years. Additionally, the UAE and India agreed to cooperate on civil nuclear programs and the development of food parks. The agreements build upon memorandums of understanding signed during an official Emirati visit to India in January. Together, the agreements are not only significant steps toward strengthening the bilateral partnership but also reducing the countries’ carbon footprint in the energy sector.
UAE-India Energy Deals
Abu Dhabi Crown Prince Khaled bin Mohammed bin Zayed al-Nahyan visited India September 9-10, when he and Indian Prime Minister Narendra Modi signed several agreements as part of the UAE-India Comprehensive Economic Partnership Agreement established in 2022. Bilateral trade and investments have grown over the last two decades increasing from about $7 billion in 2003 to $85 billion in 2023, with hopes they will reach $115 billion by 2030. The UAE is currently India’s third-largest trade partner after China and the United States. With an estimated investment of $18 billion in 2023, the UAE is also the seventh-largest investor in India.
The crown prince’s visit to India came shortly after the UAE’s announcement of Unit 4 of the Barakah nuclear power plant beginning commercial operation. On nuclear energy, the two countries signed a memorandum of understanding to enhance cooperation in nuclear power plant development, energy procurement, and exploration of investment opportunities. The UAE-India Civil Nuclear Energy Agreement is expected to bolster energy security by diversifying sources, reducing dependence on fossil fuels, and promoting the use of clean energy in efforts to help both countries meet their climate goals. The agreement also aims to facilitate the exchange of technology and expertise in the nuclear energy domain to boost innovation and improve safety standards.
The two countries have emerged as leaders in global renewable energy efforts. Over the last decade, they have found multiple channels to explore cooperation on green hydrogen, solar and wind energy, and grid connectivity involving undersea cables. India’s current renewable energy capacity, at 186 gigawatts, is targeted to reach 500 GW by 2030. It also set a goal of 50% of its electricity generation capacity to come from sources other than fossil fuels by the end of the decade. During COP28, India launched the Green Credit Initiative in partnership with the UAE and with hopes it will expand into a global collaboration. Also at COP28, the UAE announced it would develop 6.6 GW of clean energy capacity in India, including production of 1,200 megawatts of wind and solar energy. These projects are expected to be financed by the UAE’s $30 billion climate fund Alterra.
India’s robust economic growth potential, ambition to achieve net-zero emissions by 2070, and need for an estimated $10 trillion in investments to achieve its net-zero target are expected to make its green ventures enticing to investors and sustainable. The UAE, via the Abu Dhabi Investment Authority, for example, has invested in some of the largest Indian renewable energy companies – ReNew and Greeenko Group. Such partnerships allow the UAE to diversify its investment portfolio, reduce dependence on fossil fuels, and capitalize on India’s vast market potential. They also promote the UAE’s strategy to “decarbonize the energy of today while investing in the energy of tomorrow.” ADNOC has set a target to achieve net-zero emissions by 2045 and is investing as much as $5 billion annually in low-carbon energy.
The UAE and India are also collaborating on a new and strategic food security-for-energy arrangement that opens doors for greater synergy in trade and investments. ADQ Holding Company has committed to establishing an agricultural and food processing industrial complex using advanced technologies.
Multilateral Initiatives
Beyond the bilateral, the UAE and India are involved in a number of climate change mitigation initiatives as part of wider partnerships with other countries. Recognizing the urgent need to transition to cleaner energy sources to combat climate change, such partnerships reinforce the foundations for joint investments in natural and tech-led renewable energy and sustainable development projects.
The International Solar Alliance was founded in 2015 by India, France, the UAE, and others. Headquartered in India, the alliance has a membership of more than 120 countries working together to enhance the transition to sustainable energy via financing, technology, and solar diplomacy.
Some of the recent agreements between India and the UAE also support the goals of the I2U2 grouping, founded in 2021, that also includes Israel and the United States. Within a year after its creation, the bloc announced a deal to advance a 300 MG wind-solar hybrid project complemented by a battery energy storage system in India, all tied to a food corridor project linking the Middle East.
Taking this geographically one step further is the India-Middle East-Europe Economic Corridor, which was announced at the G20 summit in India in 2023. In addition to India, the UAE, and Israel, the project includes Saudi Arabia, Jordan, and some European countries. While it is primarily a rail-sea trade connectivity initiative, the project also includes pipelines to deliver hydrogen produced in the region.
Additionally, at COP27 in Egypt in 2022, Indonesia, Sri Lanka, Japan, and others joined the UAE and India in the Mangrove Alliance for Climate. The initiative uses nature-based climate change solutions, accelerating the conservation and restoration of mangrove ecosystems for the benefit of communities worldwide.
Expanding Access to Renewables
Moving forward, the UAE and India should think of low-tech cooperation in the age of high-tech collaboration to address the energy security concerns of the Global South, which has limited resources and purchasing power. The two countries have the capabilities to expand the provision of affordable, clean energy to people across the world with limited access.
This can be supported by fostering research and development on clean energy initiatives as well as facilitating the transfer of emerging technology and knowledge. India’s cost-effective sustainable solutions are easily scalable and replicable in the developing world, and the UAE could find opportunity in financing them. This would also help to contribute to enhancing sustainable development as part of their South-South cooperation initiatives.
