On November 11, 2024, the Industrial Transition Accelerator (ITA) announced the inclusion of the United Arab Emirates (UAE) and Bahrain as the first countries in the Middle East and North Africa (MENA) region to support green industrial projects. This initiative aims to expand efforts to reduce carbon emissions in the industrial sector.
The expansion follows the success of a similar program launched in Brazil earlier this year. The ITA has identified over six industrial facilities in the UAE that align with climate neutrality goals, which could contribute approximately 30% to the UAE's climate target for 2030 if they reach the final investment decision stage.
Among the first companies to sign agreements with ITA in the UAE are Gulf Steel Industries, Amsteel, and Emirates Global Aluminium. Additional countries are expected to join the initiative in the coming months.
The ITA will collaborate with regional governments, industry leaders, and funding entities to support investments in emerging green industries, aiming to mobilize necessary capital for significant carbon emission reduction efforts.
The MENA region represents the second global destination for the ITA's efforts to accelerate emissions reductions, with the industrial sector contributing 40% of the region's GDP, surpassing the global average of 26%. The sector is well-positioned to lead global initiatives to mitigate emissions from heavy industries.
According to the ITA's analysis, numerous green industrial projects have been announced in the MENA region, but their future relies on securing billions in investments to commence the production of green goods. A stronger market demand is essential to bolster investor confidence and encourage actionable steps in this field.
Bahrain's Minister of Industry and Trade, Abdullah bin Adel Fakhro, expressed pride in joining the UAE in this crucial initiative, emphasizing the commitment to sustainable manufacturing in alignment with the country's industrial strategy (2022-2026).
Fostine Delassal, Executive Director of ITA, noted that this new partnership reflects the UAE and Bahrain's serious outlook on accelerating carbon emissions reduction efforts in a region known for its non-renewable energy resources.
The ITA will work with the UAE's Ministry of Industry and Advanced Technology to identify and support major industrial projects to expedite final investment decisions by 2026, with operations commencing by 2030, in line with the Paris Agreement climate goals.
In summary, the ITA is set to provide tailored support to ensure project implementation, addressing barriers, and stimulating demand for green products in the MENA region.