Qatar and the UK have announced a massive partnership on climate technologies as Qatar’s emir, Sheikh Tamim bin Hamad Al-Thani, rounds off his state visit to London.
Doha will invest £1bn ($1.27bn) as part of the arrangement into start-ups focused on green technology, according to 10 Downing Street.
The Gulf emirate sits on one of the world’s largest reservoirs of gas and its economy is heavily reliant on fossil fuels.
Yet its large investment into climate technologies appears to be part of Qatar’s broader strategy to respond to climate change and its geopolitical repercussions, as many wealthy nations, especially in Europe, seek to reduce their reliance on hydrocarbons.
One of the driest countries on the planet, Qatar is also heating faster than almost anywhere else, making it particularly vulnerable to the potential effects of global warming.
New MEE newsletter: Jerusalem Dispatch
Sign up to get the latest insights and analysis on
Israel-Palestine, alongside Turkey Unpacked and other MEE newsletters
While few details regarding the £1bn investment have been released so far, Downing Street has said that the funds will focus on three areas: energy efficiency, carbon management and green power.
This is likely to involve a strong emphasis on developing carbon-capture technologies, with the goal of capturing carbon dioxide at emission sources like power stations, before storing it underground to reduce the amount of carbon in the atmosphere and slow global warming.
While no carbon-capture technology has been proven to work at scale, many governments see it as a potential game changer in the fight against climate change, especially since it is often treated as an alternative to reducing fossil fuel reliance.
Qatar’s diversification efforts
“This move is part of Qatar’s larger strategy aimed at diversifying its macroeconomic landscape,” Justin Dargin, Middle East energy expert at the Middle East Council on Global Affairs, told Middle East Eye.
“Qatar recognises that the future of natural gas, while often considered a transition fuel in the global energy shift, is facing more scrutiny alongside oil and coal as being responsible for climate change.”
Cop29: Saudi Arabia fights to derail pledge to transition away from fossil fuels
Read More »
Qatar has long presented liquified natural gas (LNG) as a cleaner fossil fuel than alternatives and has supplied it to the UK for decades, peaking in 2011 when it provided 98 percent of British imports of LNG.
The UK then decided to diversify its suppliers of natural gas, with its over-reliance on Qatar summed up by Lord Howell in a secret recording in 2012: “If it was to go into chaos we would be up shit creek, we really would.”
In 2019, Qatari LNG imports started to rise again, from 15 percent to 39 percent. By 2020, Qatari gas accounted for 48 percent of UK gas imports.
Dargin told MEE that Qatar is “anticipating a potential excess supply of LNG by the end of the 2020s, as new competitors enter the market and current producers ramp up output to capture greater market share”.
“Diversification in all aspects is part and parcel of Qatar’s foreign policy framework. Qatar is intent on minimising reliance on any particular sector or partner,” he added.
PR stunt or substantial policy?
This development comes after Qatar’s Ministry of Environment and Climate Change announced on 17 November a new 2024-2030 strategy entitled “Together Towards a Sustainable Environment for a Better Future”.
It promised a limited 25 percent reduction in greenhouse gas emissions by 2030, as well as extensive restoration and conservation work.
‘All the Gulf economies [want] the benefits of continued oil and gas production… Carbon capture is attractive as a result of that’
– Christian Henderson, Leiden University
Christian Henderson, assistant professor of Middle East studies and international relations at Leiden University in the Netherlands, said the new Qatar-UK movement is a reputational move for the emirate.
“All the Gulf economies are interested in addressing concerns over climate change,” he told MEE.
“They want to be seen to be doing things because they understand this is a vulnerability from a reputational perspective. These investments allow them to claim they are taking action.”
But this approach isn’t unique to Qatar, he added.
“Everyone wants the benefits of continued oil and gas production, and the money generated as the result of the sale of that oil and gas. Carbon capture is attractive as a result of that,” he said.
“They want to have their cake and eat it.”
Strengthening the UK-Qatar relationship
There is an added significance to the fact that Qatar’s deal is with Britain.
One of the Labour government’s key foreign policy objectives has been to attract fresh investment from oil-rich Gulf states, with Starmer expected to travel to the region this month in a bid to bolster Britain’s diplomatic relations and seek fresh investment from sovereign wealth funds.
Forging a stronger trade relationship with Gulf states was considered a central plank of Foreign Secretary David Lammy’s approach even before he entered government in July.
The UK’s trade relationship with the Gulf Cooperation Council (GCC) is worth £57bn, and Britain is looking to secure further investment for energy and infrastructure projects.
Tonight, The King and Queen hosted a State Banquet for The Amir and Sheikha Jawaher of the State of Qatar, and approximately 150 guests in the Ballroom at Buckingham Palace.
Guests are usually invited based on their cultural, diplomatic or economic links to the country being… pic.twitter.com/uBCUAZoKcy
— The Royal Family (@RoyalFamily) December 3, 2024
Qatar already has extensive investments in Britain, and this latest agreement will deepen the relationship.
“$1.3bn is a large amount but probably something the Qataris are comfortable with, given it will ensure they maintain strategic relations with the British state – a longtime ally of Qatar,” Henderson said.
“For the UK, this is much-needed investment. For Qatar, it cements the strong diplomatic relationship they have with the UK,” he added.
Dargin said: “Qatar desires to tap into the UK’s expertise in green technology. By doing this, it hopes to establish itself as a producer of renewable energy technologies, furthering its goal of becoming an advanced technology exporter.”
Sheikh Tamim’s state visit, which ends on Wednesday, involved a banquet at Buckingham Palace at which King Charles praised Qatar for its role in mediating between Israel and Hamas.
“In the most desperate of circumstances, Qatar’s continued toil, perseverance and diplomatic efforts are quite simply invaluable,” said the king.
