ﺗﻘﺮﻳﺮ ﺣﺎﻟﺔ اﻻﻗﺘﺼﺎد اﻷﺧﻀﺮ ﻟـﺪوﻟـﺔ اﻹﻣﺎرات اﻟﻌﺮﺑﻴـﺔ اﻟـﻤـﺘـﺤﺪة UNITED ARAB EMIRATES STATE OF GREEN ECONOMY REPORT اﻹﺻـــــﺪار اﻟﺜــــﺎﻧــــﻲ SECOND EDITION 2016 www.moccae.gov.ae “The UAE is working towards establishing a solid future for the coming generations away from the fluctuation of the energy prices and markets.” “Creating sustainable wealth for the coming generation will depend on science, knowledge, technology and innovation.” “The UAE has set its course for a post-oil world through investing in the development of our people.” His Highness Sheikh Khalifa bin Zayed Al Nahyan President of the United Arab Emirates At the announcement of the Emirates Science, Technology and Innovation Higher Policy during the UAE Innovation Week, 21 November 2015 “Today, 70% of our GDP is independent from oil. Our goal is to have a new equation for our economy where we neither depend on oil nor market fluctuations. We will add new economic sectors, and leverage efficiency and productivity in current sectors. We want to prepare generations capable to lead a sustainable and balanced national economy.” His Highness Sheikh Mohammed bin Rashid Al Maktoum Vice President and Prime Minister of the United Arab Emirates and Ruler of Dubai At the announcement of a ministerial retreat to discuss the UAE’s economy beyond oil, 16 January 2016 Foreword His Excellency Dr. Thani Ahmed Al Zeyoudi Minister of Climate Change and Environment United Arab Emirates The year 2015 arkedm the firstsignificant milestone authorities as well as stakeholders. By September, five United Nations Environment Programme Finance in the UAE’s long-term journey towards a Green committees were established under EGDC in line with Initiative (UNEP FI) in Dubai in October 2016, the Economy since the Green Economy for Sustainable the five strategic objectives of the UAE Green Agenda, country’s state of green finance was reviewed. I Development initiative was launched in 2012 by each of which was mandated to formulate and hope that this report not only provides you with a His Highness Sheikh Mohammed bin Rashid Al implement two or three main programs. In December, comprehensive overview of the government’s plan Maktoum, Vice President and Prime Minister of the these committees presented and agreed on a total of and diverse public and private-sector efforts, but UAE and Ruler of Dubai. 96 initiatives for the short-term implementation of the also opens up new opportunities for the readers of In January 2015, the UAE Cabinet issued a decision Green Agenda. To monitor and review the progress, this report to take part in our initiatives. 41 UAE Green Key Performance Indicators (Green to approve and to implement the UAE Green Agenda Following the restructuring of the federal government KPIs) were also determined covering environmental, 2015-2030 as an overarching framework of actions for in February 2016, our ministry was renamed the economic and social sustainability. this initiative. In line with the UAE Vision 2021 and each Ministry of Climate Change and Environment emirate’s long-term development plan, five strategic This second edition of the UAE State of Green (MOCCAE), and mandated to manage all aspects objectives and twelve main programs were set under Economy Report presents the progress made at the related to international and domestic environmental the new agenda. Also in January, the UAE State of Green national and local levels during 2015 in detail and and climate change affairs while continuing to Economy Report was unveiled as the first report in the benchmarks the UAE’s current standing in realizing chair EGDC. This major change indicates a clear world to publicly detail the latest status of a country’s a Green Economy and its advancement against commitment from the country’s leadership transformation towards a Green Economy. global commitments to sustainable development. to address climate change and environmental In June, the Emirates Green Development Council As 2015 was celebrated as “the Year of Innovation” imperatives and accelerate preparation for the post- (EGDC) was established under the chairmanship in the UAE, the report also features the country’s oil future. I look forward to making our best efforts of our ministry to coordinate and oversee the ten innovation initiatives that would support the to realize the Green Economy transformation and to implementation of the Green Agenda and to ensure Green Economy transformation. Furthermore, and continuously reporting to you about our progression effective collaboration between federal and local in advance of hosting the Global Roundtable of the in this journey. Achim Steiner United Nations Under-Secretary-General Executive Director, United Nations Environment Programme (UNEP)* Over the past decade, the concept of the Green 2015-2030. Announced in January 2015, the allow the UAE to show the world advances in its Economy has emerged as a strategic priority Agenda is an overarching framework of action for knowledge, innovation and creativity towards a for many governments and intergovernmental the Green Economy for Sustainable Development promising, sustainable future. organizations. All told, 65 countries have initiative across all sectors. As the Green Economy concept takes root around embarked on a path towards an Inclusive Green At the international level, the UAE has been the world, the UAE is diversifying its economy Economy and related strategies. By transforming playing an important role in promoting the Green through innovative solutions. In so doing, it is their economies into drivers of sustainability, they Economy concept and practices, particularly attracting foreign investment and forging public- will be primed to take on the major challenges of through the launch in 2010 of the UAE Vision 2021, private partnerships to deploy renewable energy the twenty-first century – from urbanization and which strives for a sustainable future; the first projects in developing nations, all of which resource scarcity to climate change and economic Global Conference of the Partnership for Action contribute to the reduction of carbon emissions. volatility. on Green Economy (PAGE) which was hosted by I applaud the leadership, vision and creativity For its part, the United Arab Emirates seeks to the UAE in March 2014; and the World Green that is evident at every turn in the UAE, and become a global hub and a successful model for Economy Summit being organized annually invite the reader to examine closely the country’s the Green Economy through innovative solutions in Dubai since 2014. The country also took an experiences presented in this report. These that protect and sustain the environment for active role in the negotiations that resulted experiences demonstrate that a greener economy future generations. This report shows the country’s in the Paris Agreement on climate change. is both a viable and highly intelligent approach solid advance towards a Green Economy through Furthermore, the fourth PAGE conference, to be to creating and stewarding natural wealth and the implementation of the UAE Green Agenda held simultaneously with Dubai Expo 2020, will enhancing social well-being. * June 2006 - June 2016 About This Report The UAE State of Green Economy Report aims to help the country make a solid CHAPTER 4 advancement towards a Green Economy, which is defined by the United Nations Environment Programme (UNEP) as “one that results in improved human Activities Defined by Green Agenda Committees introduces a total of well-being and social equity, while significantly reducing environmental risks 96 activities that the five committees of the Emirates Green Development Council (EGDC) identified and committed to implement in the next few and ecological scarcities”. This report will do this by providing the public with a years, with a highlight of major ongoing activities. clear overview of the government’s plan and diverse public and private efforts, as well as a benchmarking of the country’s current standing. The reporting period of this second edition is from 1 January 2015 until 31 December 2015. CHAPTER 5 Green Economy Initiatives from the Seven Emirates lists the initiatives CHAPTER 1 of the country’s seven emirates in the process of being or soon to be Global Perspectives on an Inclusive Green Economy is kindly contributed implemented as part of the Green Agenda, and highlights the most by the United Nations Environment Programme (UNEP). It introduces prominent projects conducted mainly during 2015. the global context for the need for the Green Economy transition based on the work of the UN Partnership for Action on Green Economy (PAGE). CHAPTER 6 CHAPTER 2 State of Green Finance in the UAE provides an overview of the UAE financial sector’s readiness, current practices and challenges in green The UAE Green Agenda and 2015 Progress outlines the rationale, structure finance, based on the analysis and extracts of a questionnaire survey and programs of the UAE Green Agenda 2015-2030, introduces the governance conducted during the summer of 2015. for guiding and overseeing its implementation, and reviews the development of tools and activities supporting and monitoring the implementation. CHAPTER 7 CHAPTER 3 UAE’s Performance towards a Green Economy compiles the country’s latest results of the 41 Green Key Performance Indicators (Green KPIs) UAE’s Ten Innovations for Enabling a Green Economy showcases the leading that are being monitored by the EGDC to review the country’s overall innovation initiatives being conducted in the country that would support the progress towards a Green Economy as well as the advancement of Green realization of a Green Economy, while celebrating the Year of Innovation. Agenda programs. Table of Contents 14 44 24 66 2015 Highlights – At A Glance 14 Planning for the Green Agenda Implementation 57 Development of Green KPIs 58 1. Global Perspectives on an Inclusive Green Economy 24 Capacity Building for the Green Agenda Implementation 62 Towards an Inclusive Green Economy 24 Global Development Agenda Update 28 3.