Unlocking Green Investment Opportunities in the EU GCC MENA Energy Mega Region

Thank you very much indeed your excellencies. Uh thank you sir for joining us on the stage for what is set to be a very very interesting conversation indeed. Your Excellency Abdullah Al Balala, can I start with you please, sir? Because with the UAE set to host the 2026 UN water conference, how can this moment be used to attract European and Gulf Capital towards integrated water, energy and climate projects that really do address regional resilience needs?

Hello everyone. Uh allow me at the beginning to thank uh EDGM and the team in Abu Dhabi finance week for convening us today for convening in Abu Dhabi a great week uh of interaction and partnerships that can be created. So to your question uh yes the UAE will be hosting the United Nation Water Conference. Uh or maybe before that I should speak about how great of a relationship uh between GCC and EU we have uh in general and in the UAE EU in specific uh trade between between us is going uh into unprecedented level. Uh Lucy is doing a great job being the ambassador of the EU in in Abu Dhabi.

Uh and we've been working with the EU uh member states and EU uh itself in so many ways. We are a firm believers both of us with the nexus between energy, water and climate. As you recall, we hosted the word in cup 28 in Dubai in 23. A big number of initiatives uh went out of that uh uh platform. One of them I can speak about is the energy efficiency alliance for example where UAE, EU uh and other member states have joined.

The other thing I want to highlight is what we made sure that given the alignment we have as GCC and UAE in specific with the EU to ensure that this nexus is not missed away uh from the water conference. So we made sure when we launched our interactive dialogue which got adopted by by consensus in July this year for the UN water conference to ensure that there is an interactive dialogue that addressed all climate issues and it's called water for planet. The water for prosperity is other uh interactive dialogue that we are uh we will be hosting in the event which is shedding the light on energy, climate and water uh nexus. And the sixth interactive dialogue will be investments in water and here we look forward to create more partnerships between UAE and GCC with our friends in in Europe. Uh and we are We're happy and honored to have EIB ABRD representative with us uh today.

So it is the time to today to work on these partnerships in order to get something done by the UN water conference.

Mr. Takiris, along those lines, how does the EIB view this EU GCC MINA region within the context of the EU's new pacts for the Mediterranean? And then of course we also have the forthcoming T-ED clean tech and renewables agenda.

So thank you for the question. I know maybe this is better. So thank you for the question. Uh it's an honor for me to be here and uh also to introduce let's say in a way to such an event the European Investment Bank which is the European Union's uh climate development bank uh let's say and we actually see this European Union GCC MENA corridor as a core strategic region for our external engagements. uh because as although we are the European financing arm uh a lot of project we are of course operating globally with 10% of our annual uh financing to be outside the European Union and this particular region uh which is the mana including the north and Africa is key for our uh for our investment.

So uh we are operating in a clear mandate to support partner countries uh in meeting their development and climate goals. So uh as I said before the Mediterranean, the Gulf region, it's not peripheral to what we see. It's a core area for cooperation and finance. uh the new uh pact for the Mediterranean uh uh which you which was launched uh in 2025. It's a political major political shift from the European Union and it reflects the let's say the recognition that energy transition climate resilience and economic stability in the region cannot happen in isolation.

They have to be coordinated. they have to be aligned and funded uh from all the relevant uh stakeholders. So for the European Investment Bank, this gives us uh a clear strategic direction uh in uh our uh financing and I would put on top the forthcoming team uh clean tech and renewables agenda which take all this effort a step uh a step ahead

building partnerships. Your excellency Majad also what's been your experience in collaborating with Europe on climate change and the energy transition?

Well Georgia Georg firstly thank you so much for having us here today. It's fantastic. The conference this week has been amazing. I think everybody can agree and um you know we at Alterara have had a fantastic engagement with the European Union. Um, the UAE in general is very like-minded with the European Union when it comes to climate and the energy transition and how we want to be investing in that future energy system.

Um, and that's the whole purpose of Alterara. When we were launched at COP 28 um, in the UAE, we were launched with the purpose of mobilizing 250 billion using 30 billion of our own capital. So it was a real commitment by the UAE that from day one we committed 6.5 billion of our capital to Black Rockck TPG in Brookfield to start deploying capital right away into their funds and we're invested across a suite of funds, seven funds. Um we've made uh created two brand new global south funds with them because as you know of our 30 billion five billion is for the global south.

Um, with these two funds, we were told that we could raise maybe one or 1.5 our capital. We've managed to raise with Brookfield nine times our capital with TPG about four times our capital which shows the appetite and the interest and a lot of that has come from European partners. We're invested already. We've started to do co-investments as well uh towards the end of this year and we're invested in two fantastic European uh companies.

Neoen which is based in France and Absolute Energy which is based in Italy and we're investing across the globe and we want to see more and more collaboration and cooperation between the UAE and the European Union. We've had a long track record of working with European countries and I'm really confident that that's going to continue to grow in the future.

It's really exciting to hear there of the progress that's been made since of course COP 28. Um, your Excellency Abdullah Balala, I I'll turn to you again if that's okay. Um, because as the UAE strengthens its role in regional climate diplomacy, how do you see this EU GCC collaboration evolving? And I'd like to ask particularly in translating these highlevel frameworks into concrete investment ready renewable and maybe hydrogen projects across the region. Uh I think it's undeniable fact that uh the UAE and EU uh share lots of uh similarities and common factors when it comes to uh deploying uh or energy.

Speaking about maybe specifically about energy uh transition uh EIB ABRD have been working with the UAE institutions for a long period of time. So we have projects with the IB remember more than 10 years ago. But speaking mainly about frameworks and if we and as a host country of the cup 28 a number of declarations a number of uh alliances uh were endorsed and is on the making today to be translated into actions and projects on the ground. Um I can name uh a few of them. I actually named one of them in my in my previous uh uh remarks when I spoke about the alliance for energy efficiency.

So this came as an outcome of a declaration of tripling renewable energy and doubling energy efficiency and today we have this alliance uh alive. Another thing we're working on as well is how we can strengthening and aligning our regulations between the EU and and and the UAE. And of course when we talk when I'm when I talk about the UAE the way you should understand it is that it's extended also to the GCC countries given that UAE is a country and EU is a block. So GCC EU are always uh uh available on our table to be to be to be discussed and the the the the future of these projects to be deployed be it energy or be it uh in water or also be it in alliances uh have been working very well. I can name the loss and damage fund.

I can name the methane. Those are all outcomes of COP 28 as of today and every single one of them you will find GCC of course UAE but other GCC member countries and of course EU uh representatives.

Now I know we've got three very important people on the stage but I'm aware that there are also very important people in our in our audience and and with the the sort of major European finance institutions and Gulf develop developers sort of present today um Mr. Johannes, what I suppose what um would you what blended finance or d-risking models could enable immediate EUGCC co-investment in things like hydrogen, renewables, sustainable infrastructure? You know, what what can we do right now effectively?

Thank you. It's an excellent and very timely question. In general, uh theoretically speaking, there is always a misalignment between uh demand and supply, demand for funding and supply of funding when it comes to uh infrastructure investments and uh so there is the someone might says there is a surplus of liquidity. Uh the other side says yes but there is uh underfunded and uh here it comes the a method that we are always using in the European investment fund which is blending uh blending and the risking our the finance that we are doing uh either with guarantees uh with grants from uh the European Commission so that uh to crowd in also private investors and uh let's say multiply our uh the firepower that uh that uh we can have. Uh I can tell you an example, a recent example that we have financed with uh 400 billion 400 million euros uh uh with a results oriented loan uh the water for water security in uh Jordan where with this type of structure we we managed also to get uh a lot of uh of other finances from the private sector.

So what we are usually uh doing is trying to have this type of smart as we call it financial structures that uh uh it's they're suitable for a lot of type of investors depending on their risk appetite and the risk uh uh the risk uh return let's say uh target. So blending is a key is a key uh instruments that uh we are using

a surplus of liquidity. Uh your excellency, from your experience, what forms of partnerships would accelerate those capital flows into emerging markets?

You know, this is a really important question. When we were at COP 28, we spent a lot of time traveling around the world. Do SAN, our COP president, as you know, um and I traveled extensively. I think we almost went to every country. Um but the thing that we heard time and time again was that money or capital was not being mobilized to the global south.

So we actually see a great deal of investment in um climate and renewable technology happening in the developed world because it makes economic sense because it's the cheaper form of energy today. It's the the green electrons are the cheapest form of energy today. So it's the great investment. But then when you come to the global south, often that doesn't happen because investors will still rate these as new technologies or riskier technologies to take on which is actually not the case. And so a key part of what we were trying to what we're trying to do with Altera is to have that mobilization.

So remember I mentioned our our one of our main goals is to mobilize 250 billion and that's why we need to create these vehicles like the two we've created with Brookfield and Black Rockck where we start to reduce the risk to to the private sector. Um we know that sometimes markets in the developing world can be more challenging to invest in and those can be perceived risks by the way. They're not necessarily um real risks. We saw we did a a white paper this year that showed clearly that that there were plenty of investable projects out there that were investable today and that we need to see more and more um private capital moving to the global south. We in the UAE of course are used to investing in the global south.

We are of the global south. We do this all the time. We have we've got decades of experience. If you look at Mustar, our renewable energy company, it's been investing in Africa, in Asia, Latin America for years and years. So, we know how to do this.

What we would love to do is work with partners from the EU, from from other parts of the developed world to say, hey, we can bring our knowledge and expertise in investing in the global south and our capital, by the way, because we're going to put our money here and can we have partners who are going to come alongside us to help us to mobilize that capital to derisk and create the pipeline that then encourages the private sector to come in and creates that snowball effect. So you see more and more private sector capital coming to the global south.

In many ways a very exciting call to action there um to you know to bring that liquidity and and start investing in these sustainable projects. uh your excellency I mean given Europe's new pact with the Mediterranean and this emerging T-ED clean tech and renewables agenda where do you see the strongest opportunities for EU GCC and EU UAE specifically cooperation um I mean is it in things like investment regulation is it green finance is it market creation or is it all four

the simple answer is is all the above Um first I want to commend the EU for the pact. I think uh it's a great step forward and strategic one. Uh today as uh Majid mentioned earlier if we take master our renewable champion in in the way we exist in Europe and in the Mediterranean and we exist in North Africa as well. We we uh also announced at the beginning of this year a project to connect Albania to Italy. Albania as you all know is a country that almost 100% relies on renewables mainly hydro power.

So supplying Italy with renewable is something we are we are for and we are uh supportive of. So uh the pact can serve as a great opportunity uh between the UAE and the EU and of course GCC is welcome to join. But speaking more about green financing uh I'm chairing a real estate real estate investment fund called the master green read here in ADGM and we have we are valuated at almost 3.2 2 billion dirham as of today and it's a testament of the UAE and Abu Dhabi in specific beliefs when it's come to green financing um such financing mechanisms of course with like-minded partner like EIB and our friends in Europe is what's required to ensure that we have a full green cycle when it's come to financing and delivering renewables uh between the Mediterranean and North Africa. So we have the liquidity, we have the willing, we have the projects, we have the enthusiasm.

Uh but do we have the bankability requirements? What does the EU and the Gulf need to consider together to accelerate this shared investment pipeline over the next let's say 12 to 24 months. A short deadline.

Well, you have put it very right. That's the last ingredient. uh let's say to complete the last piece to complete the whole puzzle uh so in order to accelerate uh the progress that we have done and it's significant progress so far to accelerate it more because I think it's it's very important to go even faster uh first of all we need uh uh regulatory clarity it's very important everybody to understand the rules of the uh and given that you know there are different different frameworks legal framework different uh countries it's not easy all the time to understand each other uh this uh this uh this framework uh the second which is equally important is uh the preparation of the projects which is also a part of what I said that there is a misalignment between you know the excess liquidity and the underfunded projects uh because projects are not well prepared. Projects uh are not at a stage where uh a financeier can see can analyze and take a well-informed investment decision. So we need to work a lot uh on preparing the projects.

For example, we as European Investment Bank, we are offering together with our financing free technical assistance. So we're giving we are free resources for the projects to mature and make clear you know uh make visible what are the pros and cons and where attention has uh uh has uh to be take for example talking about hydrogen or uh let's take hydrogen there's most of the times there's no let's say uh very clear view who are the offtakings. It has to be very clear for someone to finance finance the project. And what else? The third thing that we need is a continuous and I'm insisting on this uh when it comes to our partner countries a continuous flow of information uh information on projects on pipelines so that a constant communication uh it's crucial to accelerate not only the existing projects that are in the pipeline but also to create a significant pipeline for the future because as you know you the chances for a project to be financed in a pipeline they're not 100%.

They're less. So you have to maintain the pipeline. So you need continuous cooperation when it comes to scouting of of new projects.

I mean in many ways that's why it's so exciting to see this second edition of this conference happening because of course it is opening those pipelines of of communication and that was our sort of throw ahead just 12 to 24 months. Um, your excellency, I'm going to ask you to look ahead to 2030. So, we've got a few more years there. What would success look like for you at Alterara in terms of reshaping capital flow in terms of accelerating the energy transition?

Well, the the advantage we have at Altera is that we're able to be a long-term thinker. So, we can in we're investing over the long term and 2030, although we think of it as far away, is not that far away, is it? People forget that Altera is only about two years old. And if you think about the achievements that we've had already in the fact that we have two global south funds that we've co-created with our partners that are deploying capital today, we have 20% of our capital already committed and and in the process of being deployed. I think that we've already achieved a lot, but our goal is to never stop.

By 2030, we want to be mobilizing capital. That's why we're always looking to work together with partners. We have this ambitious goal of achieving 250 u billion mobilized using our capital and that's why we need to have more and more partners uh working with us and we would love to see more European partners working with us. Um I would also like to see that we're able to be um not just capturing those lowhanging fruit but going into more challenging uh markets. So being able to understand how we can help develop um uh develop these these new energy systems.

Remember Altera doesn't only invest across energy. We invested industrial decarbonization, climate technology, and what we call sustainable living, which allows us to invest in things like water, agriculture, other areas. So what we hope or I hope is that by 2030 that we're able to scale and expand these future technologies that are going to lead to us living in a cleaner, more sustainable um environment. I think that that's what's exciting about what we do. A lot of people look at us and say, "Oh, they're a green fund.

That's what they do. They're sustainability." But they forget that what we are is a future fund. We are investing in the technology of the future that is going to make your life more efficient. It's going to make your life cleaner, healthier.

It's going to make our our environment better. And that's what I think I would like to see us by 2030 scaling up those technologies. We don't invest in one-off projects or pilot projects for a reason. It's because we want to take technologies or we want to take solutions and we want to expand them and see them grow and scale them. Um, and so I think that that's what's really different about Altera.

is that next step or that next generation um of investing that is going to take us into the future.

It's very in keeping of course with the UAE's vision and enthusiasm for innovation and forwardlooking.

I mean it's exactly within the ethos of the UAE and when you live here and you come and visit the UAE you can see we're a we're a young country. who are only 54 years old. But thanks to the visionary leadership that we've been lucky to have and our president bin Zed who has done just such a phenomenal job and other leaders here in the UAE to really drive progress and development within the UAE. I think it's incredible um the success that we've achieved and we've done that through creating the right investment environments through putting smart investments and that's really a testament to the leadership we have here who've been able to drive investment into the right sectors and then to couple that by bringing in the private sector to scale it up. So that is exactly what Alterara does.

That's that's the same model um and we're really excited about the results that we see today. um even before we've gotten to 2030.

Your excellencies, it's been an absolutely wonderful conversation, Mr. Curis, as well. Um it I mean this is this is the I mean it's not the start of it because of course there was a there was a forum last year as well, but you do get a sense here of these ongoing conversations that I'm sure are going to uh continue offstage as well as on stage. Uh but I'm deeply grateful to all three of you for joining us uh for this panel discussion. Thank you very much indeed.

A round of applause, please, for our panelists. Thank you very much.