UK–UAE Collaboration for a Clean Energy Future

Analytical Summary of the World Future Energy Summit Roundtable

RX

Full Report PDF

Introductory Overview

The report captures the findings of a roundtable hosted by the World Future Energy Summit in partnership with Masdar, focused on strengthening collaboration between the United Kingdom and the United Arab Emirates in advancing clean energy systems. The discussion brought together senior representatives from government, finance, and the clean energy industry to examine how the complementary strengths of both countries could be aligned to accelerate progress toward net-zero objectives. The analysis reflects consensus views emerging from the discussion rather than attributed individual opinions, in accordance with the Chatham House Rule under which the roundtable was conducted.

Purpose, Context, and Scope

The primary purpose of the roundtable was to identify practical pathways for deepening UK–UAE cooperation on clean energy, while also surfacing the key obstacles slowing the pace of deployment and investment. The geographic focus is bilateral, centered on the UK and UAE, but with explicit consideration of third-country markets where joint investment and influence could be applied. The industry scope spans renewable energy generation, enabling infrastructure, emerging clean technologies, and associated supply chains. The discussions were grounded in the contemporary policy and market environment of mid-2025.

Publishing Organizations and Convening Framework

The roundtable was convened by the World Future Energy Summit in partnership with Masdar and hosted at Masdar’s London offices on 24 June 2025. Attendance included approximately twenty senior executives and policymakers representing clean energy companies, financial institutions, industry bodies, and government-related organizations. The report serves as a synthesized review of themes and recommendations emerging from this convening, rather than a formal policy statement or institutional position.

Barriers to Scaling Up Clean Energy

A central focus of the discussion was the identification of systemic barriers constraining the scale-up of clean energy deployment. Participants consistently highlighted political and market uncertainty as the dominant challenge. Recent geopolitical and economic turbulence was described as contributing to a cooling of investor confidence, affecting both private capital flows and government-backed project pipelines.

Within the UK context, participants noted an emerging “anti-hype” cycle around several clean energy technologies, particularly hydrogen. While earlier enthusiasm drove expectations and early investment, the subsequent backlash and heightened scrutiny have made investors more cautious. This environment was described as making it difficult to build momentum, as potential investors wait for clearer signals on which technologies and markets will achieve durable scale.

Political hesitancy was also identified as a significant factor. Participants pointed to growing scepticism toward net-zero policies within parts of the UK political landscape, often framed around cost concerns during a period of economic pressure and competing public spending priorities. This scepticism was seen as translating into reduced ambition and slower decision-making at multiple levels of government, reinforcing investor caution.

Collectively, uncertainty, hesitancy, and scepticism were identified as mutually reinforcing dynamics that slow the clean energy transition. While not unique to the UK, these factors were viewed as particularly relevant to strategies for attracting long-term capital and accelerating large-scale projects.

Government Signals and the Importance of Policy Certainty

Across the discussion, participants emphasized that clear and credible government action is essential to counter prevailing uncertainty. From the UK perspective, scaling clean energy infrastructure is recognized as a priority, but one constrained by fiscal pressures and political cycles. Major investment decisions, particularly those involving long asset lifetimes such as nuclear power, were described as difficult to commit to beyond a single parliamentary term.

The report highlights concerns that the structure of public spending reviews and political oversight can inhibit the approval of long-term, fully funded infrastructure plans. This dynamic was seen as undermining the confidence of investors who require predictable policy frameworks over periods spanning a decade or more.

Foreign direct investment was identified as critical to unlocking the UK’s clean energy potential. Participants viewed the UAE as a natural partner in this regard, given its capital reserves and experience in scaling clean energy projects. However, they stressed that capital alone is insufficient without explicit and coordinated signalling from both governments that deeper collaboration is a strategic priority.

Mechanisms to de-risk investment were discussed in detail. Long-term offtake arrangements, including contracts for difference, fixed-price power purchase agreements, and carbon capture service contracts, were highlighted as essential tools for providing revenue certainty prior to construction. Given the long development timelines and significant upfront costs associated with projects such as nuclear plants, offshore wind farms, and carbon capture infrastructure, participants stressed the importance of bankable cash-flow guarantees rather than reliance on future market demand.

Regulatory frameworks were also framed as demand-creating instruments. The report references the UK Sustainable Aviation Fuel mandate introduced in January 2025 as an example of how binding requirements can signal long-term direction and stimulate investment. In contrast, the absence of equivalent mandates in the UAE was described as potentially limiting adoption, given the reliance on voluntary guidelines.

Co-Investment and Bridging the Finance Gap

While governments were recognized as essential in setting direction, participants agreed that public funding alone cannot meet the scale of investment required for the clean energy transition. The discussion highlighted a persistent funding gap affecting early-stage and mid-sized clean energy companies that have proven concepts but lack the capital to move from pilot projects to full-scale deployment.

Participants from the finance sector described a recurring challenge in which viable companies struggle to secure relatively modest sums needed to cross this critical “middle” phase. This financing bottleneck was characterized as leading to the loss of potentially transformative technologies before they reach commercial maturity.

Masdar’s track record of targeted investments was cited as an example of how strategic capital deployment can yield both financial and technological returns. Attendees encouraged UAE-based investors to apply similar entrepreneurial approaches within the UK market, noting the availability of investable opportunities. Early-stage leadership by well-capitalized investors was described as a catalyst that can attract broader participation once projects demonstrate initial operational success.

At the infrastructure scale, participants emphasized the need for investment not only in generation assets but also across the broader supply chain. Production facilities, transport vessels, ports, transmission infrastructure, and associated logistics were all identified as areas requiring substantial capital. The UAE’s experience in developing integrated supply chains was seen as directly applicable to UK needs.

Public–Private Partnerships and International Capital Flows

Public–private partnerships (PPPs) were repeatedly highlighted as effective vehicles for de-risking large-scale projects, particularly those involving emerging technologies or unproven markets. By aligning government policy objectives with private sector expertise and capital, PPPs were described as enabling a broader distribution of risk and a more resilient investment structure.

The discussion extended beyond bilateral investment to consider joint engagement in third-country markets. London’s role as a global hub for green finance was emphasized, with participants noting that a significant share of global renewable investment capital flows through the city. Strengthening UK–UAE financial ties was seen as a way to channel Emirati capital more efficiently into global clean energy opportunities.

Conversely, the UAE was described as an increasingly attractive gateway for UK investors seeking access to African clean energy markets. Participants highlighted the UAE’s network of trade agreements and its positioning as a regional hub, suggesting that closer collaboration could facilitate UK participation in markets that are currently underinvested relative to their potential.

Across these discussions, the concept of securing “first mover” advantages emerged as a unifying theme. Participants argued that despite current uncertainty, markets are likely to become increasingly crowded once regulatory frameworks and industrial strategies solidify, making early, coordinated action strategically advantageous.

Priority Areas for UK–UAE Collaboration

The report identifies several clean energy sectors where the UK and UAE possess complementary capabilities and shared interests.

Carbon Capture, Utilisation, and Storage (CCUS)

Both countries’ oil and gas heritage was framed as an asset rather than a liability, providing technical expertise and industrial capacity that can be redeployed toward carbon management. Participants stressed that CCUS is viewed as a necessary complement to renewable deployment, particularly in managing emissions from existing hydrocarbon use.

Offshore Wind

The UK’s established offshore wind market, including significant grid-connected capacity, was highlighted as a source of expertise for the UAE. Floating offshore wind was identified as an area of growing interest, with potential for UAE investment to support further expansion while benefiting from UK experience.

Geothermal Energy

Geothermal energy was discussed as a more tangential but promising area for cooperation, referencing recent UK developments that could scale electricity and heat production. This sector was presented as offering opportunities for co-investment and knowledge exchange.

Solar Energy

Solar was characterized as a comparatively low-risk and rapidly growing technology. The UAE’s leadership in large-scale solar deployment and supply chain development was seen as a valuable source of learning for UK stakeholders, while also presenting opportunities for UK investment in the Gulf region.

Battery Storage

Energy storage was identified as a critical enabler for renewable integration, addressing intermittency and grid balancing challenges. Both countries were described as prioritizing projects that combine generation with substantial on-site storage capacity.

Waste-to-Energy

Waste-to-energy technologies were highlighted as an area of accelerating activity in the UAE, with advanced facilities demonstrating increasing efficiency. The UK’s interest in waste-to-energy as part of its net-zero and circular economy strategies was seen as a basis for deeper technical collaboration.

Action Recommendations and Strategic Implications

The report concludes with a set of action-oriented themes distilled from the discussion. Participants called for greater ambition within the UK, expressing concern that delays in scaling domestic innovation risk eroding its leadership position. Faster decision-making, clearer policy signals, and more stringent regulatory measures were presented as mechanisms to restore momentum.

Clarity and consistency in government communication were emphasized as foundational to rebuilding investor confidence. Demand guarantees, de-risking instruments, and long-term policy commitments were viewed as essential to unlocking larger project pipelines.

Speed emerged as a recurring imperative. Participants argued that relatively modest increases in early-stage and scale-up financing could yield disproportionately high returns by securing valuable intellectual property and accelerating deployment before global competition intensifies.

A long-term perspective was urged for both governments and companies. Rather than focusing narrowly on short-term growth or job creation, stakeholders were encouraged to articulate and commit to strategies aligned with the structural transformation required for net zero.

Finally, the discussion stressed the importance of a “big picture” approach. Linking supply chains, coordinating investments across technologies, and building integrated clean energy ecosystems were presented as necessary steps to maximize the benefits of UK–UAE collaboration.

Closing Synthesis

Overall, the report presents UK–UAE collaboration as a potentially transformative partnership grounded in complementary strengths: UK innovation and technical expertise alongside UAE capital and project delivery experience. The discussions underscore that while uncertainty and hesitancy currently constrain progress, coordinated government action, targeted co-investment, and strategic alignment across priority sectors could accelerate the clean energy transition. The near- to mid-term implications emphasize urgency, clarity, and integration as defining characteristics of effective collaboration in the evolving global energy landscape.