Green hydrogen key to EU-UAE free trade pact

Green hydrogen, renewable energy and critical raw materials are set to be key topics in EU-UAE free trade talks which are now underway.

European Commission President Ursula von der Leyen and UAE President Sheikh Mohamed bin Zayed Al Nahyan have agreed to launch negotiations following a phone call on Thursday (10 April).

“This marks a positive step forward in EU–UAE relations and, alongside the negotiation of broader Strategic Partnership Agreements, can serve as a catalyst for stronger ties between the EU and the Gulf Cooperation Council (GCC),” she said.

Commissioner Maroš Šefčovič will soon return to the UAE to take the talks forward.

The UAE, as a member of the GCC, applies a common external tariff of 5% on most imports. However, certain goods, such as alcohol and tobacco, attract higher rates, while goods for imported for industrial or manufacturing purposes may also be granted exemptions.​

Since the EU does not currently have a trade agreement with the UAE, standard tariffs apply to goods traded between the two entities.

UAE government company Masdar, which has developed projects in more than 40 countries with a combined capacity of more than 51GW, aims to be a leading producer of green hydrogen by 2030. It is already active in the green hydrogen space.

Leading UAE energy companies Mubadala, ADNOC and TAQA are using their combined expertise to fulfil government mandates on delivering renewable energy and green hydrogen.

The National Hydrogen Strategy 2050 aims to strengthen the UAE’s position as a producer and supplier of low-emission hydrogen by 2031.

With the US is pursuing an aggressive fossil fuel development agenda, Europe is stepping ahead with clean technologies in line with decarbonisation policies such as RePower EU, the Clean Industrial Deal and the Renewable Energy Directive.

US Energy Secretary Chris Wright yesterday met with UAE energy, technology and investment leaders at ADNOC’s headquarters, his first official overseas trip since assuming office, to reinforce growing ties between both nations and explore new partnership opportunities.

He was briefed on XRG, ADNOC’s new international investment company, which is exploring investments across the energy value chain – from gas and infrastructure to chemicals and low-carbon solutions.