The Emirati sovereign wealth fund Mubadala Investment Company signed a memorandum of understanding today with the French energy company ENGIE related to electric vehicles.
Per the agreement, Mubadala and ENGIE will work to develop a “digital platform” for charging electric vehicles in Abu Dhabi. The platform will relate to the installation and operation of charging infrastructure for the vehicles, the official Emirates News Agency reported.
Why it matters: The United Arab Emirates is seeking to improve its environmental record by investing in green technology. Abu Dhabi recently rolled out a plan to place bicycles on buses to this end. The UAE is also working with Israel to develop clean hydroelectricity, and the Abu Dhabi-based Etihad Airways is experimenting with flight technologies that slightly reduce fuel consumption.
Elsewhere in the region, Dubai’s AMEA Power just agreed to build two solar power plants in Morocco.
The UAE is having some success in its pursuit of greener technology. Use of nuclear power for electricity is increasing, for example.
Oil and gas remain a large part of the Emirati economy. About 30% of the UAE’s gross domestic product is directly based on oil and gas.
Electric vehicles are appealing because they emit less carbon dioxide than vehicles that rely on petroleum. However, manufacturing electric vehicles can also harm the environment, such as with the mining of rare earth minerals.
Know more: Mubadala also signed yesterday an investment agreement with a Greek development bank.