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Cienna Henderson and Brighten Braegger

Mr. Webster

UAE Economy and Finances

27 March 2024

Energy Access for all

One of the biggest problems that the world is facing currently is making sure that

we have sustainable energy all across the globe. More than 1/16 of the world's population has no

energy at all, while more than 2/8 of the world's population relies on unsustainable energy for

cooking and heating. (“Basic Energy Access Lags amid Renewable Opportunities, New Report

Shows”). If we were to address this problem, we would not only allow for the development of

these countries and a better global economy; we would also be creating job opportunities and

industry opportunities for the countries. (Jack)

Previously, the UN has tried to address the situation through many things. A lot of the action that

they had taken concerning the environment was focused around, simply, bringing attention to it.

All of these goals have been achieved effectively. The main one that we continue to focus on

today is SDG 7 which talks about providing more sustainable energy. The United Nations had

made inconsistent progress in the past year but was recently set back, however all of the progress

has been significant and should continue to be encouraged.

The UAE understands how critical this shift to sustainable energy is. Although the UAE

is the 3rd largest oil producer in the world, they are also making significant movements towards
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sustainability. The UAE has three of the world's largest solar parks and is rapidly building more.

One of these solar parks will help power 800,000 homes in the next year. (“UAE Energy

Diversification | UAE Embassy in Washington, DC”). The UAE supports making sure that

energy is sustainable for everyone by donating money to many UN funds, such as the UNDP.

The UAE is firmly on the side of encouraging sustainable energy. (“Foreign Policy | UAE

Embassy in Washington, DC”)

We can do these through a series of accurate policy solutions. The first thing that we can

do is make sure that we are making it one of our biggest priorities by investing a significant

amount. The United Nations is currently investing 358 billion dollars into more renewable

energy globally (United Nations) We propose to increase these donations by 42 billion dollars.

This would make it to where we are investing 400 billion dollars towards this. A lot of this

would be going towards already existing things, such as Sustainable Development Goal 7. We

also need to create budget outlines to ensure that this money is being distributed equally

throughout the globe. Thirdly, we need to ensure that larger countries such as the US and the

UAE use resources already within the country and create resources that would help move

towards a more sustainable future in a plan similar to the Green New Deal. If larger countries

make this shift, other countries will be encouraged to do so in the future, which will also

encourage a global market for sustainable energy. Then we will see private investors take an

interest in this growing market, just like they did with oil. Finally, we need to make sure that

when we are providing renewable resources to developing countries, they do not turn to fossil

fuels and instead are investing in all renewable energy.

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External Debt Sustainability and Development

The global external debt crisis is becoming an increasingly challenging situation. This

year, statistics show that the total global external debt is over $300 trillion. (World Economic

Forum) The debt-to-GDP ratio is around 230% on average worldwide. Developing countries

have an average debt-to-GDP ratio of about 45% for low-income countries and 55% for

middle-income countries. It's crucial for countries to implement effective debt management

strategies to ensure sustainability and promote economic growth. The United Nations has taken

several steps to address external debt and promote sustainability and development. They have

recognized the importance of debt relief for developing countries and have established initiatives

like the Heavily Indebted Poor Countries (HIPC) Initiative and the Multilateral Debt Relief

Initiative (MDRI). These programs aim to reduce the debt burden of eligible countries and create

more favorable conditions for sustainable development. The UN also advocates for responsible

lending and borrowing practices, encouraging transparency, accountability, and debt

sustainability assessments. They provide technical assistance and capacity-building support to

countries in managing their debt effectively. Furthermore, the UN promotes international

cooperation and dialogue on debt-related issues through platforms like the Financing for

Development Forum and the Debt Management Conference. These forums facilitate discussions

among governments, international organizations, and other stakeholders to find solutions and

promote sustainable development. As of 2020, the UAE's external debt was estimated to be

around $221 billion. The country has a strong economy and has implemented prudent fiscal

policies to maintain debt levels within manageable limits. Additionally, the UAE has a

diversified economy, with sectors such as oil, tourism, real estate, and finance contributing to its
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growth and ability to service its debt. It's worth noting that the UAE's debt-to-GDP ratio, which

measures the debt relative to the country's economic output, is relatively low compared to many

other countries. This indicates that the UAE's debt burden is manageable in relation to its overall

economic strength. The UAE recognizes the importance of addressing the challenges posed by

external debt and promoting sustainable development. The UAE has actively participated in

international forums and discussions on debt-related issues, working alongside the UN and other

countries to find effective solutions. Through its engagement with the UN, the UAE has

contributed to the development of initiatives like the Heavily Indebted Poor Countries (HIPC)

Initiative and the Multilateral Debt Relief Initiative (MDRI). These programs aim to alleviate the

debt burden of eligible countries and promote sustainable development. To improve external debt

sustainability and development, the UAE proposes two things: the implementation of a

certification program and transparent and inclusive negotiations. By creating a certification

program, the UN can incentivize the private sector to prioritize sustainable practices and engage

in conversations about external debt. This certification could be based on criteria such as

responsible lending, transparency in financial reporting, and commitment to social and

environmental sustainability. Private sector entities that meet the certification requirements could

receive benefits like preferential access to funding, tax incentives, or enhanced business

opportunities. The UAE also proposes that the UN facilitate a platform for transparent and

inclusive negotiations between debtor countries and their creditors. This would ensure that all

stakeholders have a voice in the restructuring process and help build trust and cooperation. By

going through with both of these policy solutions, the UN would be promoting both sustainable

development and external debt sustainability.

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Works Cited: Energy Sustainability

“Basic Energy Access Lags amid Renewable Opportunities, New Report Shows.” World Bank, 6

June 2023,

www.worldbank.org/en/news/press-release/2023/06/06/basic-energy-access-lags-amid-re

newable-opportunities-new-report-shows.

Jack, Kelsey. “How Much Do We Know about the Development Impacts of Energy

Infrastructure?” Blogs.worldbank.org, 29 Mar. 2022,

blogs.worldbank.org/energy/how-much-do-we-know-about-development-impacts-energy

-infrastructure.

“UAE Energy Diversification | UAE Embassy in Washington, DC.” UAE Energy Diversification

| UAE Embassy in Washington, DC,

www.uae-embassy.org/discover-uae/climate-and-energy/uae-energy-diversification#:~:te

xt=Renewable%20Energy%20and%20Sustainability%20Initiatives&text=The%20UAE

%20has%20three%20of.

“Foreign Policy | UAE Embassy in Washington, DC.” Foreign Policy | UAE Embassy in

Washington, DC, www.uae-embassy.org/discover-uae/foreign-policy.

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Works Cited: External Debt

Masterson, Victoria, and Madeleine North. “Global Debt Is at $307 Trillion. Why Does It

Matter?” World Economic Forum, 5 Apr. 2024,

www.weforum.org/agenda/2023/12/what-is-global-debt-why-high/#:~:text=Financial%20

and%20Monetary%20Systems. Accessed 5 Apr. 2024

“UAE Economic Overview | UAE Embassy in Washington, DC.” UAE Economic Overview |

UAE Embassy in Washington, DC,

www.uae-embassy.org/business-trade/uae-economic-overview.

“UAE GDP & Growth | UAE Embassy in Washington, DC.” UAE GDP & Growth | UAE

Embassy in Washington, DC, www.uae-embassy.org/uae-gdp-growth.

World Bank. “GDP (Current US$) - United Arab Emirates | Data.” Worldbank.org, 2022,

data.worldbank.org/indicator/NY.GDP.MKTP.CD?locations=AE.