MUFG Research: Contours of the GCC ESG ecosystem set to accelerate

MUFG Research: Contours of the GCC ESG ecosystem set to accelerate

- COP 27 and COP 28 in Egypt and the UAE to accelerate conversations around transition to clean energy in the Middle East, including hydrogen, solar and wind

- Favourable regional intrinsics translates into extremely low costs for renewable power, which in turn underpins the economics of green hydrogen production in the region

Dubai, UAE – The GCC is undergoing a series of impactful transitions, ranging from energy and fiscal reforms to market dynamics and now a burgeoning ESG agenda, according to a recent study by MUFG titled “ESG in the GCC region: Journey towards the next normal is underway.” As oil and gas intensive states, climate change and the energy transition are top of mind, but social and governance considerations are equally part of the strategy. Rapid development of ESG disclosures continues to propel corporates’ sustainability plans which is enabling investors to strengthen engagement.

Ehsan Khoman, Head of Emerging Markets Research (EMEA) at MUFG and co-author of the report says: “The stars are aligned for the GCC to become a market leader in the global hydrogen space. The region’s abundant low-cost land, low cost of capital, existing industrial capacity, excellent solar and wind resources, geographic proximity to growth markets, low-cost natural gas,