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. UAE’s Ten Innovations for Enabling a Green Economy 66 Partnership for Action on Green Economy (PAGE) 33 1. Public Buildings Powered by Sunshine 67 Inquiry into the Design of a Sustainable Financial System 37 2. Turning Air into Water 69 Green Economy in the UAE 38 3. Desalination Without Fossil Fuels 71 The View Forward 41 4. Flying by Fuels from Salt-tolerant Plants 72 5. New Business Models for Clean Energy 73 2. TheUAE Green Agenda and 2015 Progress 44 6. Tagging Tires for Safety 74 UAE Vision 2021 and Greening the Economy 44 7. Sustainable Fishing by Remote Monitoring 75 Structure of the UAE Green Agenda 45 8. Price Reforms for Rational Consumption 76 Green Agenda Programs 46 9. Building the Infrastructure for Electric Vehicles 77 Governance for the Green Agenda Implementation 55 10. Spatial Planning by Satellite Images 78 Organic 45% 116Other 82 23%
Paper Plastics 14% 18%
102 Composition of municipal solid waste in the UAE, 2012 Source: Concerned departments of local authorities130 in the UAE
4. Activities Defined by Green Agenda Committees 82 6. State of Green Finance in the UAE 116 Committee on Knowledge-Based Economic Diversification 82 Outline of the Survey 116 Committee on Development and Quality of Life 86 Current Practices of Green Finance 119 Committee on Sustainable Environment 89 Driving Force behind Greening the Financial Sector 121 Committee on Clean Energy and Climate Change Adaptation 92 Challenges and Enabling Policies for Green Finance 124 Committee on Green Life and Sustainable Use of Resources 96 Way Forward to Mainstream Green Finance in the UAE 126 First Step in Engaging Local Financial Institutions 128 5. Green Economy Initiatives from the Seven Emirates 102 Abu Dhabi 102 7. UAE’s Performance towards a Green Economy 130 Dubai 105 Environmental Performance 130 Sharjah 107 Economic Performance 147 Ajman 109 Social Performance 162 Umm Al Quwain 110 Ras Al Khaimah 111 Annex: Latest Results of UAE Green KPIs 173 Fujairah 112 Jamal Al Alawi 2015 HIGHLIGHTS – AT A GLANCE 2015 Highlights – At A Glance
Green Economy around the world
In 2015, To end poverty and the world agreed on pursue a sustainable 17 future, 48 Sustainable Development over 65 countries are Goals for 2030 and limiting nations have already developing global warming embarked on Green Economy plans below 2oC Green Economy
To help mobilize financing for attaining SDGs, the UAE hosts the UNEP FI Global Roundtable in October 2016
14 UAE State of Green Economy Report - Second Edition 2016 2015 Highlights – At A Glance
TheUAE Green Agenda
In January 2015, the UAE Cabinet Strategic Directions Strategic Objectives Programs Sub-Programs approved the UAE Green Agenda 2015-2030 1 1.1 National Green Innovation Program as an overarching framework of Competitive Green Economy actions Knowledge Economy 1.2 Green Diversification Program Green Energy
2 2.1 Intergrated Green Infrastructure Program The Green Agenda consists of Green Social Development Investment & Quality of life 2.2 Green Workforce & Talent Program strategic main objectives programs 3 sub-programs Green City Sustainable 3.1 Natural Capital & Resilience Program Environmnet & Valued 3.2 Environmental Goods & Services Program Natural Resources
Climate Change 4 In June 2015, the Emirates Green 4.1 Intergrated Power & Water Management Program Development Council was formed Clean Energy & 4.2 National Renewable Energy Program with representatives from Climate Action Green Life 4.3 National Green Economy Data Program federal emirates ministries and
5 Green 5.1 National Energy & Water Efficiency Program Technologies Green Life & Sustainable Use of 5.2 National Waste-to-Resource Program EGDC coordinates and monitors Resources 5.3 National Sustainable Transport Program the implementation of the Green Agenda. Structure of the UAE Green Agenda 2015-2030
UAE State of Green Economy Report - Second Edition 2016 15 UAE’s 10 green innovations Desalination without fossil fuels
Public buildings powered by sunshine
Turning air into water
1 3
4 2
Flight fueled by salt-tolerant plants
New business models for clean energy
5
16 UAE State of Green Economy Report - Second Edition 2016 2015 Highlights – At A Glance
6 8 Price reforms for rational consumption
7 Tagging tires for safety
Sustainable fishing by remote monitoring 9
Preparing infrastructure for electric vehicles
Spatial planning by satellite images 10
UAE State of Green Economy Report - Second Edition 2016 17 Activities of Green Agenda committees
Committee on Knowledge-based Economic Diversification (Coordinator: Ministry of Economy) EGDC established
UNITED ARAB EMIRATES committees according to the UAE MINISTRY OF ECONOMY Green Agenda’s strategic objectives.
Student scholarships for environmental studies Financing schemes for green industries
Committee on Development and Quality of Life (Coordinator: Ministry of Infrastructure Development) The committees identified a total of UNITED ARAB EMIRATES MINISTRY OF INFRASTRUCTURE initiatives to implement in the DEVELOPMENT next few years. Program on sustainable buildings and construction Vocational training for green jobs
18 UAE State of Green Economy Report - Second Edition 2016 2015 Highlights – At A Glance
Committee on Sustainable Environment (Coordinator: Ministry of Climate Change and Environment) Integrated energy and water management strategy Energy data management and UNITED ARAB EMIRATES automation project MINISTRY OF CLIMATE CHANGE & ENVIRONMENT UNITED ARAB EMIRATES MINISTRY OF ENERGY National and Abu Dhabi Blue Carbon projects
National eco-labels for products and services Committee on Clean Energy and Climate Change Adaptation (Coordinator: Ministry of Energy)
Supporting establishment of waste-to- energy plants Vehicle fuel efficiency standards
UNITED ARAB EMIRATES MINISTRY OF ENERGY
Committee on Green Life & Sustainable Use of Resources (Coordinator: Ministry of Energy)
UAE State of Green Economy Report - Second Edition 2016 19 Green Economy initiatives in the 7 emirates
Abu Dhabi Sustainable street lighting project Ajman New parks for a healthy life
Sharjah Zero-waste-to-landfill goal
Dubai Mandatory use of sustainable concrete Fujairah Initiative for environmental sustainability
Umm Al Quwain Fish hatchery for marine resources Ras Al Khaimah The most efficient desalination plant
20 UAE State of Green Economy Report - Second Edition 2016 2015 Highlights – At A Glance
State of Green Finance in the UAE
The institutions that implement green finance According to a survey At least of 79 UAE financial practices are institutions, motivated 0.27% by 48% of the GDP has been CSR, cost savings, invested in domestic reputation and already provide a green investment. competitive green finance advantage. product or service.
Conservation 1% Other sectors 2% In preparation for the UNEP FI Global Construction 4% Roundtable, the Ministry 50% Water & Electricity 50% of Climate Change and of domestic investment Oil & Gas went to the 14% Environment (MOCCAE) water and electricity organized 2 high-level national sector; Transport meetings and is convening a 29% steering group 29% together with to the transport and logistics sector. Central Bank of the Respondent institutions’ green investment by sector UAE.
UAE State of Green Economy Report - Second Edition 2016 21 UAE’s performance towards a Green Economy Sustainable Environment & Valued Natural Resources
41 Green KPIs were selected to monitor and review the UAE’s Ecological Footprint: 7.75 global ha overall progress towards per capita a Green Economy. Environmental Performance th Highlights of key performance Index: 25 in the world according to the Green Agenda’s 5 strategic objectives are: Clean Energy & Climate Action Competitive Knowledge Economy Carbon intensity of electricity production: 600gCO /kWh Global Competitiveness Index: 17th in the world 2 (including water desalination)
Share of non-oil GDP: GHG emissions per GDP: 68.6% 340 gCO2e/$
Social Development & Quality of Life Green Life & Sustainable Use of Resources
Domestic material Municipal water consumption consumption per GDP: per GDP: 2.98 l/$
Human Development Index: in the world Electricity consumption per GDP: 0.18 kWh/$
22 UAE State of Green Economy Report - Second Edition 2016 CHAPTER 1 GLOBAL PERSPECTIVES ON AN INCLUSIVE GREEN ECONOMY Global Perspectives on an Inclusive Green Economy
In what may well become a landmark year in our ability to forge collective agreements on a scale commensurate with collective challenges, 2015 brought a wide array of successes at the state, regional and global events stemming from El Niño to hurricanes level. From the adoption of the 2030 Agenda and tropical storms, reminding us that the for Sustainable Development and the time remaining for transformational change is Sustainable Development Goals (SDGs) to limited. the Paris Agreement that brought countries As we embark on a new year full of challenges to a common goal of maintaining a 2 degree and promise, there is much to survey and Celsius (°C) ceiling on climate change, the year learn from 2015. This chapter takes a quick saw a wave of advances in both technological look around the globe and touches on the innovation and institutional capacity to main landmarks and milestones on the channel and harness innovation for enhanced sustainability landscape, starting with a sustainability. Steven Stone closer look at how our understanding of an Chief, Economics and Trade Branch Yet, it was also by far the warmest year in inclusive Green Economy itself evolved over United Nations Environment Programme (UNEP) modern history, dotted with extreme weather this time.
Towards an Inclusive Green Economy
Approaches to sustainable development and by a large and growing number of countries. The UNEP, along with its partners and programs well-being have evolved dramatically over Today, over 65 nations have embarked on – such as the Partnership for Action on Green the last quarter century, reflecting different Green Economy and related strategies, with 48 Economy (PAGE), the Poverty-Environment national contexts and priorities, sectoral of them developing Green Economy plans as Initiative (PEI), the Green Growth Knowledge concerns, and transitional strategies pursued the centerpiece of these strategies. Platform (GGKP), the UNEP Finance Initiative
24 UAE State of Green Economy Report - Second Edition 2016 Global Perspectives on an Inclusive Green Economy
(UNEP FI), and the Global Green Growth Institute solidarity, resilience, opportunity, and policies and targeted investments that enable (GGGI) – is guided by the mission of providing interdependence. The design principles for an IGE low and middle-income countries and the top-notch advisory services to countries wishing speak to these elements of a socio-ecological and poor to contribute to, and benefit from, the to address one of the most pressing challenges of economy-wide transition and call for economic transition. Of particular importance is the need the 21st century: transforming their economies and fiscal policy reforms, legislative changes, for governance and policy reforms that extend into drivers of sustainability. new technologies, changes in financing, and to poor people to assist them in securing their strong institutions that are specifically geared to rights to the environmental assets that underpin In this, UNEP has expanded and deepened its safeguarding social and ecological bases. their livelihoods and well-being, and which view of an Inclusive Green Economy (IGE), going ensure a louder voice in decisions affecting how beyond traditional concerns with efficiency To build an economy that is truly equitable these assets are managed. Put simply, policies to include sharing, circularity, collaboration, and sustainable will require carefully designed and measures to support sustainability must contemplate and safeguard the quality of life and access to resources and public goods of all people, including those living in poverty. An IGE must provide not only for jobs and income, but for our health, our environment and our future. This is our common challenge: creating the conditions for enhanced prosperity and growing social equity, within the contours of a finite and fragile planet. Of course, experience has shown that there are multiple approaches to reaching environmental sustainability, ranging from concepts such as Ecological Civilization, Circular Economy, and Harmony with Nature. This diversity of experience and approaches form the backdrop for expanding and widening the concept of an IGE to include institutions, governance and the norms and rules that guide societal decisions Susan Beccio / IFAD and market behavior.
UAE State of Green Economy Report - Second Edition 2016 25 Uncovering Pathways Towards an Inclusive Green Economy: A Summary for Leaders UNEP published this report in 2015 to bring together an overview that global leaders can use to better understand an IGE:
Multiple benefits can stem from an integrated approach such as economic, health, security, social and environmental by maximizing, prioritizing and sequencing them to produce a healthy environment.
Design principles for an IGE are based on sharing, circularity, collaboration, solidarity, resilience, opportunity and interdependence. To create an IGE, these elements must relate to socio-ecological and economy-wide transitions.
Embrace a circular and sharing economy that leads to the recovery, reuse, remanufacture and recycling of materials to promote sustainable production and consumption patterns.
Collaboration and championship are essential drivers of change in order to replicate successes and scale up an IGE. It is necessary to unite citizens, communities, businesses, finance and government organizations to work together in these efforts.
Challenges to be addressed for IGE if they entail disruption of prevailing patterns ministers and leaders of businesses and civil transformations and transitions are numerous: of employment. In carbon-based economies, society in a world increasingly challenged by the pressure of time to make these transitions, issues will arise around stranded assets, lost environmental sustainability. And a cursory the required knowledge, skills and technology, revenues and even stranded skillsets, as the look at developments from around the world and the availability of information, finance and economy reduces its dependency on fossil indicates that countries are not sitting still – capacity to set the necessary changes in place. fuels. they are actively engaging on these issues, as The social implications of transitions can be However, these very challenges define the they affect the health and well-being of every considerable and difficult to manage, especially work that lies ahead for heads of state, individual.
26 UAE State of Green Economy Report - Second Edition 2016 Global Perspectives on an Inclusive Green Economy
Advancing a Green Economy – The European Union (EU28) introduced solar power (CSP) plant was connected to Progress from around the World its new policy on the circular economy, the grid. The plant is going to be the world’s stressing the key role of resource efficiency largest once it is finished. In 2015, China’s 13th Five-Year in making the economy greener and more In the Pacific region,Samoa hosted the Development Plan (2016-2020) announced competitive. It also lowered its greenhouse 3rd International Conference on Small the development of a Green Economy that gas emissions by 21% since 1990, despite a Island Developing States (SIDS) in 2014, has become a major strategic policy theme 45% increase in gross domestic product. highlighting it as a “pillar industry” in the which developed the SIDS action platform previous plan. It focused more on greener Morocco is strongly developing its and highlighted the need to support and growth and new steps to be taken to reduce renewable energy capacity to achieve its invest in the region so its members can the pollution that is affecting large amounts objective of 42% renewables in 2020. Africa’s achieve sustainable development. Tonga of the population. As part of its presidency largest windfarm in Southwestern Morocco, is developing its solar power capacity to of G20, China also included green finance which has a capacity of 300 megawatts reduce its dependency on oil with its Outer as a stream of work, which will advance the (MW), became operational in 2014. In 2015, Island Renewable Energy Project, which will topic among 20 largest world economies. the first 160 MW of its Noor concentrated have a total installed capacity of 1.3 MW. In the Central and Latin Americas, Peru World Bank exercised leadership on the international stage by hosting the International Monetary Fund (IMF)/World Bank Annual Meetings and domestically by leading on in its green growth strategy. Uruguay launched its own Green Economy Scoping Study in 2015, and Colombia defined green growth as an integral part of its new sustainable development strategy. Saint Lucia published a report on Social Protection Policy (SLSPP) to enhance human capital, real income, capabilities and assets, while avoiding damage to the existing natural capital in order to facilitate the transition towards a Green Economy. Noor CSP plant, Morocco
UAE State of Green Economy Report - Second Edition 2016 27 Global Development Agenda Update
As mentioned, 2015 has been a pivotal year for solar photovoltaics (PV) commissioned during scale projects such as wind farms, solar parks, sustainable development. the year, an increase of nearly 30% over 2014. biomass and waste-to-energy plants and small According to Bloomberg New Energy Finance, Looking at the figures in detail, the biggest hydro-electric schemes. This totaled USD 199 2015 saw the highest renewable power capacity piece of the USD 328.9 billion invested in clean billion in 2015, up 6% on the previous year. installation, with 64 GW of wind and 57 GW of energy in 2015 was asset finance of utility- The biggest projects financed in 2015 included a string of large offshore wind arrays in the North Sea and off the coast of China – the UK’s 580 MW Race Bank and 336 MW Galloper, at estimated costs of USD 2.9 billion and USD 2.3 billion respectively, Germany’s 402 MW Veja Mate at USD 2.1 billion, and China’s Longyuan Haian Jiangjiasha and Datang & Jiangsu Binhai, each with a 300 MW capacity and USD 850 million cost. The past twelve months have defined a new global framework that succeeds the Millennium Development Goals. With three critical conferences – Addis Ababa Financing for Development Summit, the UN Summit on Sustainable Development, and the Paris Climate Conference – 2015 has created a platform to support and shape the global development agenda and aspirations for the next 15 years. Himadri Palikhe Taken in turn, these are:
28 UAE State of Green Economy Report - Second Edition 2016 Global Perspectives on an Inclusive Green Economy
3rd International Conference on 1. The mobilization of domestic resources; “With an estimated annual financing gap of Financing for Development (FfD3) 2. Private business and finance; up to USD 7 trillion a year in infrastructure investments alone, our financial systems The 3rd International Conference on Financing 3. International development cooperation; could transform the international economic for Development (FfD3) in Addis Ababa in July 4. International trade; landscape to better serve the needs of humanity was a milestone in the global effort to shift 5. Debt and debt sustainability; and the sustainable development future we financing for sustainable development and 6. Systemic issues in the international want,” said Achim Steiner, UN Under-Secretary- provided an opportunity to re-examine the financial system; and General and Executive Director of UNEP. policies needed to undergird the 2030 Agenda 7. Science, technology, innovation and for Sustainable Development. capacity building for sustainable UN Sustainable Development Summit Heads of state and government and ministers development. In September, the 193 member states of the of finance, foreign affairs and development United Nations unanimously adopted a bold cooperation, as well as all relevant institutional new global agenda to end poverty by 2030 stakeholders, non-governmental organizations and to pursue a sustainable future at the UN and business sector entities, reached a Special Summit for Sustainable Development groundbreaking agreement – the Addis Ababa in New York. Action Agenda (AAAA). This included a Titled “Transforming Our World: The 2030 series of measures to overhaul global finance Agenda for Sustainable Development”, the practices and generate investments to address agreement on a set of 17 goals and 169 targets The AAAA also signaled the need to utilize and a range of economic, social, and environmental came into effect on 1 January 2016, replacing unlock significant resources for development, challenges. the Millennium Development Goals (MDGs), i.e. global financial system, worth over USD 300 which were adopted in 2000 and have since The AAAA reaffirms existing commitments on trillion, can support sustainable development helped to improve the lives of millions of the provision of official development assistance. investment. But to achieve this, trillions of people around the world. The new 17 SDGs It also emphasizes the critical importance of dollars from multiple sources, including private aim to transform the world over the next 15 aligning private investment and financial flows finance, needs to be channeled annually years, building on the success of the MDGs. with the objectives of sustainable development, into more sustainable and equity-oriented and highlights seven major areas for priority investment and away from resource-depleting The SDGs address poverty, hunger, attention. These priority areas are: and carbon-intensive investment. gender inequality, preventable deaths and
UAE State of Green Economy Report - Second Edition 2016 29 and increase investment in least developed countries (LDCs) to USD 12 billion by 2030. The Russian Federation said the country had written off USD 20 billion in debt and is instituting debt- for-aid swaps for the poorest countries. SDGs provide a historical opportunity to shift from development in silos to a more integrated approach. The three dimensions of sustainable development are clearly interdependent. Environmental, social, and economic opportunities, when combined, can have mutually reinforcing outcomes for sustainable development. Poverty eradication can be achieved if sustainable economic growth, social protection, and environmental health and stewardship are considered together. Giving a proper value to natural capital and environmental degradation. But these new goals in place or announced significant funding ecosystem services, protecting, restoring and are much broader in scope, comprising 169 commitments, further demonstrating their enhancing natural assets, ensuring equitable targets, which together intend to usher in an era commitment to implementation. Panama’s access to natural resources and sustainably- of development for all people, everywhere. president gave a commitment to restore 50% of derived basic services, promoting green and The historic adoption of the new Sustainable his country’s deforested areas over the next 20 innovative fiscal policies and investments, and Development Agenda was met with a standing years. The King of Spain noted that his country tracking progress through new indicators all ovation from delegations, including many of the established the first SDG fund, with UNDP, which should be part of the drive towards eradicating more than 150 world leaders who addressed is financing projects in over 17 countries. China’s poverty irreversibly through smart, sustainable the summit. From the speeches at the summit, president laid out an impressive list of financial and inclusive growth. it was clear that implementation of the SDGs commitments, including the establishment In an SDG-achieving economy, economic policies has already begun. Some speakers highlighted of a USD 2 billion assistance fund for South- and practices are framed around sustainability, sustainable development initiatives already South cooperation to implement the SDGs, which is inseparable from issues of equity and
30 UAE State of Green Economy Report - Second Edition 2016 Global Perspectives on an Inclusive Green Economy social justice. In such economies, outdated The event included a panel discussion that climate change is a threat to the security subsidies and fiscal policies, including for energy, titled “Powered by Inclusive Sustainable and prosperity of all societies, and can only be fisheries and agriculture, and public sector Growth: Why and How We Decided to Alter addressed through unity of common purpose. allocation, are rationalized and resources are Course”, which was organized by UNEP, the The first universal climate agreement was refocused on achieving sustainable development Government of Germany and UNDP, with unanimously approved by the 196 delegations for all, while rules of financial systems and the support of the secretariat of PAGE and (195 member states plus the European Union). associated markets are aligned with SDGs. PEI. The event saw an interactive discussion on the key policies and investment decisions Never before had an issue brought together SDG-achieving economies invest in building needed for countries to move towards more so many heads of state and government or new green skills, diversifying themselves sustainable economic growth that respects away from polluting sources of energy and planetary boundaries and ensures equitable providing sustainable energy to all, resulting outcomes. Ministers noted that achieving the in creation of new green jobs, especially as an SDGs will require strengthening bilateral and alternative sources of livelihoods for forestry multilateral advisory mechanisms, networks, and agriculture dependent populations, and partnerships to support countries, such which will increase their income and reduce as PAGE and PEI. Countries need support to pressure on natural resources. According to transform institutions and economies through the International Renewable Energy Agency innovative integrated approaches to policy (IRENA), the renewable energy sector alone making that promote macroeconomic reform employed 7.7 million people in 2014. Imagine and comprehensive inter-sectoral collaboration. the impact of scaling up that kind of job involved so many national contributions. The growth in other sectors of the economy. Paris COP21 Climate Conference Paris Agreement is historic and should help limit On 25 September 2015, over 150 participants, On 12 December 2015 in Paris, the 21st the increase in temperatures to 2°C overall and including environment ministers and Conference of the Parties (COP21) to the 1.5°C by the end of the century, with a clause representatives from governments, country United Nations Framework Convention on introduced to review these commitments. assistance agencies, finance and investment, civil Climate Change (UNFCCC) adopted the first- The new agreement: society and international organizations, took part ever universal global climate deal. • Recognizes the concept of climate justice. in a high-level event in New York focusing on the The Paris Agreement is one of the most central theme of sustainable and inclusive growth important international agreements in history, as • Takes into account the differentiated and its role in helping to achieve the SDGs. through it, the nations of the world underlined responsibilities of the countries
UAE State of Green Economy Report - Second Edition 2016 31 UNFCCC therefore provides the most vulnerable of countries and developing countries with the resources they have been promised. The agreement is a testament to the ability of our societies to set aside differences and confront collective challenges for the global good. Importantly, the agreement has provisions to protect the most vulnerable. Fairness and equity are at the heart of this accord. “Governments have sent a signal to the private sector that the momentum toward sustainability cannot be stopped. This is what the world needed to see. Above all, we have given future generations hope instead of doom and gloom. Now that negotiations Paris Climate Agreement at COP21 (December 2015) have concluded, our work continues. We must focus on implementing the solutions that concerned in every respect, along with their contributions; these may be revised every drive an inclusive green economy, including respective capacities in the light of national five years, but can only be made more renewable energy, green finance initiatives, and circumstances. ambitious. sustainability in transport, construction and • Confirms the core aim of limiting the • In the context of greater transparency, a other sectors. However, in the days after Paris, increase in the average temperature to collective statement of the latest progress we can reflect on the incredible progress we’ve well below 2°C and endeavoring to limit will be produced every five years to made in only 23 short years. This is progress the increase to 1.5°C, which would help encourage a collective reaction if insufficient through compromise that the entire world can significantly reduce the risks and impacts effort is made to achieve the set objectives. celebrate. Climate change creates enormous associated with climate change. problems for our planet but by bringing the • Plans for the USD 100 billion a year set world together it has driven cooperation and • Holds all parties responsible for aside by 2020 to serve as a lower limit for collective action on a scale few would have reducing greenhouse gas emissions, and the years to follow and for a new quantified imagined possible a year ago,” said UNEP requires them to submit their national objective to be set by 2025 at the latest. It Executive Director Achim Steiner.
32 UAE State of Green Economy Report - Second Edition 2016 Global Perspectives on an Inclusive Green Economy
Partnership for Action on Green Economy (PAGE)
To support countries in their transformative There is growing realization among public- The PAGE seeks to put sustainability at the agendas and bring the SDGs and related and private-sector decision makers that we heart of economic policy-making. It supports agreements within reach, UNEP and its partners need to transition towards a new economic nations and regions in reframing economic continue to innovate and deliver on policy model, capable of progressing and achieving policies and practices around sustainability analysis, capacity development, and knowledge the goals of sustainable development. This new to foster economic growth, create income and experience sharing on the economics of economic model should be one that matches and jobs, reduce poverty and inequality, and sustainability. PAGE remains central to that the ambition of countries as they embark on strengthen the ecological foundations of their effort. This section looks at the contributions implementing the 2030 Agenda for Sustainable economies. and advances that PAGE has made in 2015. Development.
The first PAGE Conference, Dubai (March 2014)
UAE State of Green Economy Report - Second Edition 2016 33 Bringing together the expertise and broad Catalyzing Change: PAGE Progress So Far convening power of five UN agencies — UNEP, International Labour Organization Mongolia (ILO), United Nations Industrial Development The Government of Mongolia adopted its national Green Development Organization (UNIDO), UNDP, and United Policy soon after joining PAGE. To support implementation of the Nations Institute for Training and Research Policy and to contribute to achieving its targets, PAGE is assisting (UNITAR) — and working closely with national in developing green development indicators, sustainable public governments, private sector and civil society, procurement policy, green building codes, national waste management PAGE offers a comprehensive, coordinated and strategy, scenarios through system dynamics modelling, IGE learning cost-effective package of analytical support, strategy, and mobilizing domestic private finance. technical assistance and capacity-building services to countries and regions to transform their economies into drivers of sustainability Peru and social equity. After assisting the development of the Roadmap to a Green Growth Currently, eight countries are officially Strategy, PAGE is supporting Peru in developing its national green growth included in the partnership as PAGE countries strategy, options for green policy reforms in three key economic sectors, and receive direct support from PAGE to green industrial policy instruments, and operationalization of green advance their green economy policies and jobs policy as well as its biotrade strategy, which refers to the sustainable projects. These are Burkina Faso, China, Ghana, collection, production, transformation and commercialization of goods Mauritius, Mongolia, Peru, Senegal and South and services derived from native biodiversity. Africa. In March 2014, the UAE hosted the inaugural China conference on PAGE in Dubai. More than 450 China (Jiangsu province) joined PAGE in 2015. Work is underway participants from 66 countries — including to support the provincial government in the identification 27 ministers, representing governments, and of priority areas and sectors to further its progress toward an members of the private sector, civil society inclusive Green Economy. and development agencies — attended the meeting. The conference was an opportunity
34 UAE State of Green Economy Report - Second Edition 2016 Global Perspectives on an Inclusive Green Economy
to review international experience and progress related to the Green Economy in Ghana the context of sustainable development and To support the operationalization of Ghana’s Shared Growth poverty eradication. It also considered how and Development Agenda (2014-2017), PAGE is assisting in greener economies can contribute to the the development of an IGE action plan and learning strategy, emerging post-2015 development agenda. identification of opportunities for green industrial development and sustainable trade, and IGE training for media and policy-makers. It was agreed to hold the fourth biennial PAGE conference again in Dubai, simultaneously with Expo 2020. This will provide a great Mauritius opportunity to bring innovative ideas and The new government is developing a mid-term strategy promising solutions together to truly realize a Achieving Meaningful Change (2016-2020). PAGE informs the global collaboration for sustainable living. strategy based on IGE assessment of six economic sectors, The 2016-2020 period will be a phase in which and assists in developing solid waste and industrial waste PAGE scales up to the challenge of delivering strategies, preparing the Marshall Plan against poverty and IGEs and the 2030 Agenda for Sustainable social exclusion, advancing green skills and entrepreneurial Development in an increasing number of development, and catalyzing domestic finance. countries. Based on current planning, PAGE expects to assist an additional twelve countries, bringing the total to 20 by 2020. Building on Senegal initial achievements, lessons learned and early PAGE assists in achieving SDG-aligned targets of Plan Senegal experiences, an increasing number of partner Emergent, the national development framework. It does this by countries will begin to shape and form the helping the Senegalese parliamentarians in drafting a strategic future they want. They will do this by focusing orientation document on IGE, mainstreaming IGE goals and targets on the macro, fiscal, industrial and trade in three key national strategies and policies, creating integrated policies they need to stimulate growth and industrial platforms, and formulating the Senegalese National employment into the coming decades, while Green Jobs Strategy and National Program for Green Jobs. reducing environmental risks and ecological scarcities.
UAE State of Green Economy Report - Second Edition 2016 35 Economic and transformative change is urgently needed and possible. The IGE South Africa community can uproot the multiple causes of An in-depth stocktaking exercise on IGE for development unsustainable development if we are all on the of a robust results-based framework for the PAGE program same PAGE: it is about making sustainability document for 2016-2018 is underway. PAGE support will focus happen. on implementing the existing national green economy policies The ideas of a partnership for achieving the IGE through capacity building of learning institutions, national and transformation and a set of global sustainable local government staff, the development of Green Economy development goals were conceived at Rio+20. indicators, and mobilizing domestic private finance. PAGE has become even more relevant after the approval of the 2030 Agenda for Sustainable Development, including the Burkina Faso SDGs, which are ambitious, complex and cut PAGE is providing support to integrate IGE goals and targets into across sectors as well as divides of low- and the country’s next development plan, provisionally titled Stratégie high-income countries. The 2030 Agenda for de croissance accélérée et de développement durable (SCADD 2) Sustainable Development offers an historic (2016-2020), by contributing recommendations for green fiscal opportunity to overcome disconnection policy reforms, green industrial policies, and revision of the and misalignment and develop integrated National Investment Plan on the Environment and Sustainable approaches to sustainable development. Development, and establishment of a green economy platform. PAGE aspires to be the most fit for the purpose by bringing five UN agencies together whose mandates, expertise and networks, SDGs related to economy, jobs, environment resource efficiency, and eventpr the loss of and climate change, and partnerships in biodiversity and ecosystem services. when put together, can offer integrated and many ways. First, the IGE transformation is a holistic support to countries in their efforts Within the SDGs these objectives are tool for achieving sustainable development to become an IGE, ensuring coherence and distributed across the goals. Second, and poverty reduction. In a Green Economy, avoiding duplication. achieving most, if not all, of the SDGs requires growth in income and employment are driven investment in social capital, natural capital, PAGE is aligned with the 2030 Agenda for by policies and investments that reduce carbon and sustainably produced financial capital. Sustainable Development, particularly with the emissions and pollution, enhance energy and PAGE helps deliver the SDGs by catalyzing
36 UAE State of Green Economy Report - Second Edition 2016 Global Perspectives on an Inclusive Green Economy additional investment as well as shifting sustainable growth, employment, income and mobilize and share knowledge, expertise, existing investment towards these forms of wealth in an inclusive manner while reducing technology and financial resources, to capital through the reform of macroeconomic environmental risks. PAGE has evolved support the achievement of the sustainable policies. as one of the means of implementing the development goals in all countries, in 2030 Agenda for Sustainable Development, particular developing countries”, is particularly An initial review of the SDGs and their targets which is called upon in SDG 17: Strengthen relevant for PAGE. By responding to the need shows that most of them include the concept the means of implementation and revitalize for finance, technology, capacity building, and message of IGE. PAGE is particularly the global partnership for sustainable trade promotion, and addressing systemic well placed to deliver on SDG 8 (which is to development. Target 17.16 of the SDGs, issues, including promotion of policy and ‘Promote inclusive and sustainable economic which is to: “Enhance the global partnership institutional coherence under SDG 17, PAGE is growth, employment and decent work for sustainable development, complemented already serving as a means of implementation for all’) given its clear focus on generating by multi-stakeholder partnerships that in several countries.
Inquiry into the Design of a Sustainable Financial System
In the wake of the global financial crisis, it The key findings of the report are that: has become more widely recognized that • A ‘quiet revolution’ is underway as financial the financial system must be not only sound policy-makers and regulators take steps and stable, but also sustainable in the way it to integrate sustainable development • Amplifying these experiences through enables the transition to a low-carbon, green considerations into financial systems to national and international action could economy. With this in mind, UNEP established make them fit for the 21st century. channel private capital to finance the the Inquiry into the Design of a Sustainable transition to an inclusive, green economy Financial System in early 2014 to explore how • Momentum is building and is largely and support the realization of the SDGs. to align the financial system with sustainable driven by developing and emerging development, with a focus on environmental nations including Bangladesh, Brazil, UNEP’s Inquiry into the Design of a Sustainable aspects. In 2015, the Inquiry launched its global China, Kenya, and Peru, with developed Financial System has, for the first time, compiled report titled The Financial System We Need, at country champions including France and and analyzed inspiring initiatives from across the IMF/World Bank Annual Meetings. the UK. the world that seek to better align the financial
UAE State of Green Economy Report - Second Edition 2016 37 system with sustainable development, organizations and platforms. The Inquiry has level advisory council has guided the Inquiry, showing that there is much to be learned explored innovative experiences in advancing which has also drawn on UNEP’s Green from the developing world. Additionally, a sustainable development through the actions Economy activities and UNEP FI. The Inquiry body of global research has been undertaken, of the financial system’s governing institutions, has contributed to a growing number of real- including country-specific papers where notably central banks and financial regulators, time initiatives seeking to integrate sustainable national consultations have taken place.* government bodies and standard setters. Such development with the evolution of financial experiences have been examined in some depth The Inquiry has considered aspects of and capital markets, from convening China’s in Bangladesh, Brazil, China, Colombia, the financial and monetary policies and financial Green Finance Task Force with the People’s European Union, France, Kenya, India, Indonesia, regulations, and standards, including disclosure Bank of China, to catalyzing and supporting the Netherlands, South Africa, Switzerland, the requirements, credit ratings, listing requirements the Swiss Government in launching a national United Kingdom and the United States. and indices. It has focused on the roles of consultation with the Swiss Sustainable financial system rule-makers including central Furthermore, the Inquiry has also drawn Finance Initiative. Other activities include banks, financial regulators, finance ministries, on extensive international engagement and supporting a national inquiry into the green other government departments, standards research on topics as diverse as green bonds, economy and the financial system by Brazil’s institutions, and market-based standard setters value-based banking, fiduciary responsibilities, banking association, Federação Brasileira das such as stock exchanges, and key international human rights and electronic trading. A high- Associações de Bancos.
Green Economy in the UAE
The UAE has been a front runner in the transition to a Green Economy by making highly significant commitments in its own national strategy and taking leadership in the international arena. The country’s efforts to become a global hub and a successful model for a low-carbon Green Economy Enerwhere demonstrate that pursuing a diversified
* Over 54 pieces of research can be found at www.unepinquiry.org
38 UAE State of Green Economy Report - Second Edition 2016 Global Perspectives on an Inclusive Green Economy and environmentally friendly economy can enhance competitiveness and sustainability at the core of its development pathway. In 2009, the UAE made a bold move to embrace renewable energy by hosting the International Renewable Energy Agency (IRENA). This captured the attention of countries throughout the Middle East and the world. IRENA moved to its new permanent headquarters, located in Masdar City, in March 2015. Renewable energy began to make economic sense for the region decades earlier than expected because of rapidly declining renewable energy technology prices, and now the UAE stands ready to benefit from its early prioritization and adoption.
In 2012, the UAE launched the Green Achim Steiner, UNEP Executive Director and UN Under-Secretary-General, and His Highness Sheikh Economy for Sustainable Development Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai initiative as a pathway to jointly enhance the country’s economic growth ambitions, social an initiative, making it a pioneer both globally Economy, the Ministry of Climate Change and development priorities and vital environmental and regionally. Environment (MOCCAE) will host the 14th goals. Earlier in 2015, the initiative’s action plan UNEP Finance Initiative Global Roundtable in Financing is a major contributor to fulfilling was unveiled as the UAE Green Agenda 2015- Dubai in October 2016. This event will be the the UAE Green Agenda, and is referred to as a 2030. By transforming the UAE into a Green key global agenda-setting event in sustainable key means to support and facilitate sustainable finance. Economy, it is expected to create 160,000 development; whether it is of financing of new jobs and to bring a total boost to the projects, businesses, industry, organizations In May 2015, in preparation for hosting the country’s GDP of up to 5.5% by 2030. The UAE and/or general events and campaigns. As UNEP FI Global Roundtable, the first national was the first Arab country to introduce such part of the UAE’s commitment to the Green event on green financing was organized in
UAE State of Green Economy Report - Second Edition 2016 39 on fossil fuels while increasing the use and development of renewable energy. In this vision, growth is stimulated by innovation, which is in turn stimulated by investments in research. Solar power has been the primary focus of the UAE’s efforts to date. Abu Dhabi saw the completion of the 100 MW Shams 1 CSP plant, the largest-ever renewable energy project in the Middle East, and Dubai inaugurated Dubai by the then Ministry of Environment practices and challenges in green finance. The 13 MW of solar PV as the first phase of and Water under the auspices of the 6th Green survey was circulated among 455 financial what will eventually become the 5,000 MW Economy Annual Conference, in cooperation institutions operating in the country during Mohammed bin Rashid Al Maktoum Solar with UNEP FI. Financial institutions, financial the summer of 2015, in cooperation with the Park. The 200 MW Phase II of the Mohammed regulators and policy makers were invited Central Bank, the Insurance Authority, the bin Rashid Solar Park is touted to become the to participate in a dialogue on “Financing Securities and Commodities Authority (SCA) biggest solar power plant in the Middle East and Investing in Green Economy” to discuss and the Dubai Financial Services Authority (see Chapter 4). the role of the financial sector in the UAE’s (DFSA). The results of the survey were Green Economy. International and national reflected in a report State of Green Finance in In order to hit international climate experiences and knowledge were shared on the UAE, launched during the second high- change targets, the UAE has developed financing low-carbon opportunities and driving level national roundtable in November 2015 several initiatives aimed at diversifying and green industries from the finance sector. in Dubai. According to the results of the strengthening its low-carbon economy. survey, there is clear evidence not only that As a direct outcome of the meeting, an online Furthermore, the fourth PAGE conference, many of the UAE’s financial institutions are questionnaire survey was developed jointly to be held simultaneously with Dubai Expo already investing in green products, but that by UNEP FI, the Ministry of Environment 2020, will enable the country to show the investment is on the rise (see Chapter 6). and Water and the Central Bank of the UAE world the advancement of its knowledge, with the aim of providing an overview of The UAE Vision 2021 clearly sets out its innovation and creativity towards a promising the UAE financial sector’s readiness, current goal to reduce the nation’s dependence and sustainable future.
40 UAE State of Green Economy Report - Second Edition 2016 Global Perspectives on an Inclusive Green Economy
The View Forward
2016 will be dominated by a challenging environment and human health; and will help macroeconomic environment and growing define policy responses and pragmatics steps environmental pressures, which will form to advance the SDGs. a backdrop for beginning the process of Investment has an essential role in the delivering on the ambitious agreements transition to an IGE, in part because the reached during 2015. systems that meet basic social needs such as The 2030 Agenda for Sustainable Development water, energy and mobility, rely on costly and will provide the official international long-lasting infrastructure. Investment choices framework for national and international can therefore have long-term implications efforts to achieve sustainable development for the functioning of these systems and and reduce poverty. Its delivery will depend their impacts, as well as for the viability of heavily on cross-government mechanisms alternative technologies. Transitions depend and dynamic country-wide partnerships in part on avoiding investments that lock-in for sustainable development. It will involve existing technologies, limit options, or hinder strengthening public policies, regulatory the development of substitutes. frameworks and finance at all levels, unlocking Enormous amounts of capital are needed to the transformative potential of people and finance infrastructure projects such as smart the private sector, and promoting changes electrical grids, renewable energy, electrification in financing as well as consumption and of transport, and resource-efficient buildings. In production patterns to support sustainable addition to fiscal reforms, innovative financing development. mechanisms, such as the project bond In this regard, the upcoming bi-annual UNEP FI The second session of the United Nations initiative of the European Commission and the Global Roundtable will be hosted by MOCCAE Environment Assembly (UNEA-2) in May European Investment Bank, socially responsible on 25-26 October 2016. The Global Roundtable 2016 aimed to create the strategic framework investments (SRI), green bonds and sovereign on Sustainable Finance will bring together high- for decisions and policy guidance on issues wealth funds (SWF), are potential tools for level representatives from financial institutions, central to our common well-being, such as the supplying the needed funds. governments, regulators, civil society, inter-
UAE State of Green Economy Report - Second Edition 2016 41 Ray Witlin / World Bank governmental and multilateral agencies, flows and markets with sustainability goals at academia, and the scientific community to a systemic level. address some of the most pressing questions Until now, significant effort has been focused facing the finance sector, including how to on what not to do. What we are starting to unlock the needed capital flows to underwrite see, from the law-making community and the emerging green economy. the financial community, is a much-needed In parallel, the UNEP Inquiry into the Design of movement towards more conscious and a Sustainable Financial System will support a proactive decisions that will drive technology, G20 Green Finance Study Group led by China funding and cooperation to deliver for the and the United Kingdom that is looking at real economy – one in which growth is both options for green finance and align capital sustained, inclusive and sustainable.
42 UAE State of Green Economy Report - Second Edition 2016 CHAPTER 2 THE UAE GREEN AGENDA AND 2015 PROGRESS TheUAE Green Agenda and 2015 Progress
UAE Vision 2021 and Greening the Economy
To chart the nation’s new development and high-quality lifestyles will not be met path and present its united ambition and by simply replicating the conventional determination, the UAE Vision 2021 was development model. An alternative launched by His Highness Sheikh Khalifa pathway to manage both its economic bin Zayed Al Nahyan, President of the aspirations and natural heritage needed to UAE, in February 2010. The primary and be sought where sustainable development ambitious objective of this comprehensive would be placed at the heart of the UAE’s national strategy is to become among the development. The UAE is highly resourceful President and Prime Minister of the UAE and best countries in the world by the time of and capable of shifting capital investment Ruler of Dubai, launched the Green Economy the nation’s golden jubilee celebration in towards the perpetual assets such as for Sustainable Development initiative in 2021. The UAE Vision 2021 addresses six human capital, innovative capacity and January 2012. Through this resolution, the major challenges for the UAE that require technological leadership that would enable UAE stated its determination to enhance a compass to enable the nation to steer a it to realize such a radical transformation in the competitiveness and sustainability of its course. This includes challenges to the family the coming decades. An accelerated effort development and preserve its environment ties that hold together the strong fabric of to decouple environmental impact from for future generations, with an ambition a cohesive society; challenges to economic economic growth was also expected to bring to become a global hub and a successful competitiveness; challenges to national significant new competitive advantages and model of sustainable development. Under identity; and challenges to health, education, job opportunities to the country. the initiative, six strategic directions were the environment and well-being. Building upon the Vision 2021, and influenced outlined as focus areas along with a list Given the prospective growth in population by international initiatives for the Green of general actions to begin with, namely and demand for energy and resources in Economy proceeding the Rio+20 Summit Green Energy; Green Investment; Green the country, it is evident that the UAE’s of the United Nations, His Highness Sheikh City; Climate Change; Green Life; and Green ambition for further economic growth Mohammed bin Rashid Al Maktoum, Vice Technologies.
44 UAE State of Green Economy Report - Second Edition 2016 TheUAE Green Agenda and 2015 Progress
Structure of the UAE Green Agenda
To strengthen the actions of the above six Strategic Directions Strategic Objectives Programs Sub-Programs focus areas and ensure mainstreaming the Green Economy into the strategic plans 1 of federal and local governments as well 1.1 National Green Innovation Program Competitive as the industry and the civil society, the Knowledge Economy 1.2 Green Diversification Program Green then Ministry of Environment and Water, Energy the Prime Minister’s Office (PMO) and 2 the then Ministry of Foreign Affairs, (now 2.1 Intergrated Green Infrastructure Program Green Social Development known as the Ministry of Foreign Affairs Investment & Quality of life 2.2 Green Workforce & Talent Program and International Cooperation) jointly led a stakeholder engagement and consultation 3 process that extended for over a year from Green City Sustainable 3.1 Natural Capital & Resilience Program January 2013. This process was supported Environmnet & Valued 3.2 Environmental Goods & Services Program by the Abu Dhabi office of the Global Natural Resources Green Growth Initiative (GGGI), an inter- Climate Change 4 governmental organization headquartered 4.1 Intergrated Power & Water Management Program in Seoul, Republic of Korea. Clean Energy & 4.2 National Renewable Energy Program Climate Action The consultation with key stakeholders was Green Life 4.3 National Green Economy Data Program conducted on a sectoral basis through seven task forces in which over 160 representatives 5 participated from federal and local Green 5.1 National Energy & Water Efficiency Program Technologies Green Life & government agencies, the private sector Sustainable Use of 5.2 National Waste-to-Resource Program and civil society. This process identified the Resources 5.3 National Sustainable Transport Program gaps in efforts to realize a Green Economy by comparing the current sectoral initiatives Structure of the UAE Green Agenda 2015-2030 to the recommendations of the multi-
UAE State of Green Economy Report - Second Edition 2016 45 stakeholder participants for achieving In January 2015, the UAE Cabinet issued a with the Vision 2021 and each emirate’s long- a sustainable society. Those gaps were decision to approve and implement the UAE term development plan, five strategic objectives compiled into a proposal for nationwide Green Agenda 2015-2030 as an overarching and twelve main programs were set under actions for a unified Green Economy framework of actions for the Green Economy the Agenda. The twelve programs are further transformation effort. for Sustainable Development initiative. In line broken down into 31 specified sub-programs.*
Green Agenda Programs
The five strategic objectives and twelve programs of the UAE Green Agenda 2015-2030 1.1 National Green Innovation Program are designed to cover all key aspects of a Green Technologies & Solutions Sub-Programs Expected Outcomes Economy transition – from technology, human Renewable energy Research capacity in local universities capital, regulatory environment, green finance, CCS 1.1.1 international trade, local content, intellectual New products from local industry property, consumer awareness, and integrated Green District cooling Innovation Fund national planning and cooperation across the New businesses emerging locally emirates. The 31 sub-programs intend to further Waste-to-energy concretize the actions that were proposed 1.1.2 More knowledge-based jobs Water recycling and generally agreed upon by stakeholders Center for Cleantech Research & Incubation Strengthened IPR during the consultation process. Explained Electric vehicles below are the background and objectives of each Green Agenda program, along with brief Hydroponics Improved competitiveness introductions of sub-programs:
1. Competitive Knowledge Economy term strategic investment in the advancement (UNESCO), the UAE’s total expenditures for 1.1 National Green Innovation Program of promising technologies and solutions. research and development (R&D) during 2011 An advanced industrial structure and According to the United Nations Educational, were estimated as 0.49% of the nation’s total diversified economic activities require long- Scientific and Cultural Organization GDP, which is far behind the average spending
* In the last edition of this report, the Green Agenda was presented in a different categorization (3 pillars and 8 programs) but the overall contents and proposed actions are intact.
46 UAE State of Green Economy Report - Second Edition 2016 TheUAE Green Agenda and 2015 Progress of OECD countries (2.47%). The UAE set a the National Green Innovation Program (1.1), promising clean technologies and the nascent target of raising this rate to 1.5% by 2021 under the Green Diversification Program instead EGS sector; the UAE Vision 2021 (see Chapter 7). focuses on market creation for the emerging 1.2.2 Greening the Industry Support environmental goods and services (EGS) The goal of this program is to strategically Scheme: sector and increasing the green credentials nurture R&D in clean technologies attractive to Provide practical support to enable businesses of existing sectors by enhancing resource and the UAE, while simultaneously strengthening and entrepreneurs to take greening actions; energy efficiency. the behavioral and institutional foundation for effective adoption and absorption of green technologies and business models. 1.2 Green Diversification Program
This program consists of two sub-programs: Green Industry Sub-Programs Expected Outcomes 1.2.1 1.1.1 Green Innovation Fund Renewable energy Green existing industry Strategy for Green Nationally coordinate green R&D with tailored Energy efficiency Industry New products and businesses support for technologies identified as future Development Green products Increased export growth engines; 1.2.2
1.1.2 Center for Cleantech Research and Green services Greening the Industry Growth in EGS sector Incubation Support Scheme Create a knowledge and innovation platform to Green buildings More green projects 1.2.3 foster closer collaborations between academic Cleantech Green Finance and More green jobs research and industry and close the gaps in the Investment innovation value chain. Waste management Support Scheme Improved competitiveness 1.2 Green Diversification Program This program aims to provide a comprehensive solution for promoting the economic activities The program consists of three sub-programs: 1.2.3 Green Finance and Investment Support Scheme: of green industries to help advance the UAE 1.2.1 Strategy for Green Industry Stimulate the financial sector to invest in green economy beyond dependence on hydrocarbon Development: projects and businesses. resources. Whereas technological content and Draw a strategic roadmap and set targets for new business models will be advanced under greening the existing industries and nurturing
UAE State of Green Economy Report - Second Edition 2016 47 2.1.2 Guidelines for Strategic Impact 2.1 Integrated Green Infrastructure Program Assessment: Establish coherent and harmonious codes and Infrastructure Sub-Programs Expected Outcomes Water 2.1.1 Efficiency in resource use standards for integrated spatial development; Roadmap for 2.1.3 Reinforcement of Sustainable Buildings Energy Integrated Spatial Development Merit of scale and Construction: Transport Pursue inter-emirate collaboration opportunities 2.1.2 Convenience & quality of life in green infrastructural development. Waste treatment Guidelines for Strategic Impact Assessment Reducing inefficient duplications 2.2 Green Workforce and Talent Program Residential zones The successful transition to a Green Economy 2.1.3 Strengthened national unity rests on the skills and expertise of the country’s Commercial areas Reinforcement of Sustainable workforce and its ability to leverage local Industrial zones Buildings & Construction Improved competitiveness talent. Maximizing local workforce and talent is also a key federal priority for a competitive knowledge-based economy and quality social 2. Social Development and Quality of Life such as power, water, transport, residential development targeted under the UAE Vision 2021. This program is designed to explicitly 2.1 Integrated Green Infrastructure Program and commercial areas, industrial zones, and address the skill gaps between the current Addressing economic and infrastructure waste and sewage treatment facilities would disparities across the country is an important radically improve efficiency while providing labor market and the requirements for a Green pre-requisite for enabling a Green Economy. convenience and higher quality of life to Economy and to ensure provision of education The comparative advantages of each emirate residents. and workforce training to contribute to the overall efforts for moving towards sustainable need to be leveraged while identifying and This program consists of three sub-programs: filling important gaps in support of a balanced, development. 2.1.1 Roadmap for Integrated Spatial prosperous and sustainable UAE economy. This program consists of three sub-programs: Development of public infrastructure Development: supporting greener development needs to Ensure emirate-level development policies to 2.2.1 Outlook for Green Jobs and Workforce: be clearly prioritized and accelerated. Smart be aligned with the UAE Vision 2021 and the Identify education and skill gaps to fill to integration of infrastructure development UAE Green Agenda; enable a Green Economy;
48 UAE State of Green Economy Report - Second Edition 2016 TheUAE Green Agenda and 2015 Progress
rapid spatial and infrastructural development 2.2 Green Workforce and Talent Program on the environment and ensuring that development is resilient to future risks such as Job Opportunities Sub-Programs Expected Outcomes climate change. The potential environmental Green buildings 2.2.1 Improved awareness Outlook for and social externalities need to be factored into Waste management Green Jobs and the investment decision-making processes to Readiness to take green jobs Workforce prevent long-term consequences of damaging Renewable energy 2.2.2 the natural capital of the country. Attract local investment Energy efficiency Reinforcement of The program consists of two sub-programs: Education for SustainableDevelopment Green jobs created Smart grid 3.1.1 Natural Capital Valuation and 2.2.3 Biodiversity Protection Plan: Higher employment rate & pay Eco-products Support in Estimate the country’s natural capital and Vocational Training for Green Jobs ecological services and plan the appropriate Green vehicles Improved competitiveness protection and use of biodiversity and natural resources; 2.2.2 Reinforcement of Education for Sustainable Development: 3.1 Natural Capital and Resilience Program Reinforce federally coordinated and guided education for sustainable development; Natural Resources Sub-Programs Expected Outcomes Minerals Identify natural capital 2.2.3 Support in Vocational Training for 3.1.1 Green Jobs: Land Natural CapitalValuation Recognize economic values and Biodiversity Develop and provide vocational training initiatives Marine species Protection Plan Understand risks to equip the workforce for prospective green jobs. Wildlife Strategic adaptation to risks 3.1.2 3. Sustainable Development and Valued Freshwater Climate Risk Higher resilience Natural Resources Mapping and Forests Adaptation Strategy Better biodiversity protection 3.1 Natural Capital and Resilience Program Sea Long-term value creation This program aims to respond to the twin challenges of minimizing the impact of UAE’s
UAE State of Green Economy Report - Second Edition 2016 49 3.1.2 Climate Risk Mapping and Adaptation Strategy: 3.2 Environmental Goods and Services Program Assess the potential financial and economic Natural Resources Sub-Programs Expected Outcomes risks from climate change and develop and 3.2.1 implement a strategy for adaptation through Minerals More sustainable and local choices Environmental improved resilience. Goods and Services Land Assurance Program Reduce biodiversity loss 3.2 Environmental Goods and Services Program
This program aims to support the Marine species 3.2.2 development and market penetration of Sustainable Agriculture Reduce groundwater loss eco-friendly, sustainable goods and services Wildlife and Fisheries Program produced or provided based on the principles 3.2.3 Growth in EGS sector of sustainable use of natural resources and Freshwater Sustainable Tourism and respect for local heritage and workers. Such Hospitality Program More green jobs products and services would have significant Forests potential to directly benefit the economy and 3.2.4 Sustainable Public generate growth and jobs from the existing Sea Procurement Scheme Improve quality of life and enhanced ecosystems. The program consists of four sub-programs: 3.2.1 Environmental Goods and Services 3.2.3 Sustainable Tourism and Hospitality 4. Clean Energy and Climate Action Assurance Program: Program: 4.1 Integrated Power and Water Management Support the market and consumer uptake Improve the environmental management of Program of environmental goods and services (EGS) existing tourist attractions and ensure the new Diversification of water and power supply by providing quality assurance and easy-to- development to prevent potential damage, technologies, including solar, wind, nuclear, understand information; where a significant sectoral growth is expected clean coal, waste-to-energy and district towards Expo 2020; 3.2.2 Sustainable Agriculture and Fisheries cooling, would provide one of the most Program: 3.2.4 Sustainable Public Procurement powerful foundations for a Green Economy Support the development of the primary sector Scheme: with the significant potential to reduce by disseminating sustainable, resource-efficient Leverage the public sector’s purchasing power carbon emissions and generate economic practices among farmers and fishermen; for nurturing the EGS market. growth. A holistic, integrated energy and water
50 UAE State of Green Economy Report - Second Edition 2016 TheUAE Green Agenda and 2015 Progress
building on best practices and encouraging 4.1 Integrated Power and Water Management Program private-sector investment in the sector.
Technology Options Sub-Programs Expected Outcomes 4.2 National Renewable Energy Program Renewable energy Diversified energy sources The presence of solar power as a free, 4.1.1 abundant and unlimited resource is a clear Nuclear Integrated National Reduced gas import Power and Water driver of renewable energy for the UAE. With CCS Outlook Reserve for export the recent rapid price decline in photovoltaic (PV) technologies, its commercial viability Clean coal Reduced CO2 emissions 4.1.2 is rapidly being established. This program Reverse osmosis Power and Water Attract local investment aims to provide policy and institutional Efficiency support to accelerate the uptake of diverse Waste-to-energy Targets and Standards Green jobs created renewable energy technologies with proven District cooling Improved energy security & resilience applicability. The program consists of two sub-programs: desalination plan would help ensure the long- term sustainable supply across the country. 4.2 National Renewable Energy Program
This program consists of two sub-programs: Technology Options Sub-Programs Expected Outcomes Solar PV farms Reduced GHG emissions 4.1.1 Integrated National Power and Water 4.2.1 Outlook: Solar CSP Reduced gas import Coordinate the planning of future plants among National Renewable PV rooftops Energy Targets emirates based on a strategic consideration of Reserve for export clean technology options; Solar heating 4.2.2 Attract local investment 4.1.2 Power and Water Efficiency Targets Solar cooling National Renewable and Standards: Wind Energy Green jobs created Provide policy and institutional support to Support Scheme introduce clean energy technologies and increase Solar desalination New local industry energy and water efficiency in each emirate,
UAE State of Green Economy Report - Second Edition 2016 51 4.2.1 National Renewable Energy Targets: Establish an internationally recognized 4.3 National Green Economy Data Program nationwide commitment to renewable energy Data Types Sub-Programs Expected Outcomes deployment as well as a strategy and roadmaps Socio-economic 4.3.1 Time-series comparison to achieve the targets; Establishment of Geographical A National Green 4.2.2 National Renewable Energy Support Economy Data System International benchmarking Scheme: Biodiversity Develop and deploy a range of public support 4.3.2 Improved policy-making schemes that enable renewable energy to Reinforcement of associate with a positive impact on the Emissions National GHG Inventory and Reporting economy, including job creation and the Appropriate target-setting emergence of competitive technologies and Energy services sectors. 4.3.3 Sharing knowledge & resources Policies Improvement of 4.3 National Green Economy Data Program Basic Socio-Economic To quickly improve the coverage and Data and Accounts Initiatives Improved basic statistics reliability of the Green KPIs (see below) for enabling evidence-based policy-making, a consistent nationwide data collection and management system based on globally 4.3.1 Establishment of a National Green local and private-sector levels, and allow recognized, standardized methods will Economy Data System: them to consolidate for improved, consistent be required. Since the UAE has only a Establish and manage a central repository of disclosure. Green Economy data and ensure collection short history of statistical work, general 4.3.3 Improvement of Basic Socio-Economic and reporting of relevant data from federal improvement in collecting basic socio- Data and Accounts: and local authorities; economic data and its consistency with Support improving the availability of basic authoritative international data sources is 4.3.2 Reinforcement of National Greenhouse socio-economic data necessary for Green yet to be the first priority. Gas (GHG) Inventory and Reporting: Economy analyses and in coordination This program consists of three sub-programs: Systematically upgrade the GHG inventories, between national and local statistical bureaus which are currently developed at the federal, to improve data quality and consistency.
52 UAE State of Green Economy Report - Second Edition 2016 TheUAE Green Agenda and 2015 Progress
5. Green Life and Sustainable Use of residential, commercial and industrial uses of 5.1.2 Energy and Water Demand-Side Resources energy and water. The emerging trend towards Management: Promote a holistic, comprehensive approach 5.1 National Energy and Water Efficiency green buildings plays a key role in maximizing to reducing energy and water demand to help Program this efficiency gain. complement the actions to advance sustainable More efficient use of energy and water and This program consists of two sub-programs: supply technologies. avoiding wastefulness is the most rational 5.1.1 Reinforcement of Efficiency Standards approach in a Green Economy, as saving energy 5.2 National Waste-to-Resource Program and water is generally far cheaper than even and Labeling: Along with energy and water efficiency, the most efficient methods of production. Encourage sustainable consumption of energy- improvement in material use efficiency is an Resource conservation and efficiency and water-using products by inducing better urgent priority in the UAE, as the resource- improvement can be encouraged in all purchasing decision-making; intensive construction sector is a major economic driver and most non-oil resources need to be imported. The country also needs 5.1 National Energy and Water Efficiency Program to tackle waste generation and landfilling, which keeps increasing as the population and Demand Areas Sub-Programs Expected Outcomes the economy continue to rapidly expand. The Houses More greener options initial target of this program would be overall waste reduction (through reduction, reuse, Offices 5.1.1 Clearer consumer information and recycling) but would also seek the lifecycle Reinforcement of Efficiency approach to take advantage of material- Factories Standards and Labeling More consumer awareness efficient technologies and practices across the value chain. Appliances Better purchasing decisions The program consists of three sub-programs: Materials 5.1.2 5.2.1 Integrated Waste Management Strategy Energy and Water Effective demand control and Standards: Equipment Demand-Side Management Harmonize waste management strategies and standards across the emirates to reduce Buildings Growth in EGS sector disparities and enable more efficient and better treatment for resource recovery;
UAE State of Green Economy Report - Second Edition 2016 53 and more efficient use of vehicles through better 5.2 National Waste-to-Resource Program land use, awareness raising and incentives.
Resource Efficiency Options Sub-Programs Expected Outcomes The program consists of two sub-programs: Reduce 5.2.1 Less landfill 5.3.1 Integrated Public Transport Plan and Integrated Waste Promotion: Reuse Management Reduced GHG emissions Strategy and Standards Improve the availability and convenience of Recycle Alternative energy supply public transport options across the country 5.2.2 by enhancing cross-emirate coordination in Waste-to-energy Less resource use 3Rs Promotion planning and operations; Scheme Efficient processes Cost reduction in production 5.3.2 Green Vehicles Support Scheme: Greener materials 5.2.3 Growth in EGS sector Help reduce the fuel consumption and Waste-to-Energy Support Scheme emissions of private and commercial vehicles Greener products Growth in green jobs through the promotion of greener models and technologies among consumers and operators.
5.2.2 3Rs Promotion Scheme: Promote the principle of “reduce, reuse, 5.3 National Sustainable Transport Program recycle” (also known as the 3Rs) and lifecycle considerations among households and Transport Options Sub-Programs Expected Outcomes businesses and provide support for sorting Railway More greener options 5.3.1 facilities and the recycling industry. Bus Integrated Public Better purchasing decisions 5.2.3 Waste-to-Energy Support Scheme: Transport Metro & tram Shift to public transport Disseminate diverse waste-to-energy technologies Plan and Promotion as a resource-efficient option. Hybrid & EV Reduced emissions
5.3 National Sustainable Transport Program CNG 5.3.2 Improved safety This program would aim to help build initiatives, Green Vehicles policies and plans for sustainable transport, in a Hydrogen fuel cell Support Scheme Economic efficiency more coordinated, pan-emirate way, by providing PRT Growth in EGS sector a federal framework. It would also support the increased coverage and use of public transport
54 UAE State of Green Economy Report - Second Edition 2016 TheUAE Green Agenda and 2015 Progress
Governance for the Green Agenda Implementation
In June 2015, the Emirates Green Development ministry and engages relevant ministries, progress and performance according to the Council (EGDC) was formed to coordinate local authorities and stakeholders. The EGDC pre-defined parameters and indicators (see and oversee the implementation of the members meet every quarter of the year below). UAE Green Agenda 2015-2030 and to ensure to update and discuss each committee’s effective collaboration between federal and local authorities as well as stakeholders. As Committee on Knowledge-Based Economic Diversification per the Cabinet decision on the Agenda Coordinator: in January 2015, the Council is chaired Ministry of Economy by the Minister of Climate Change and Environment, and its members consist Committee on Development & Quality of Life of high-level representatives from five federal ministries (energy, infrastructure Coordinator: Ministry of Infrastructure Development development, economy, finance, and foreign affairs and international cooperation) and Council Committee on Sustainable Environment all seven emirates of the UAE (Abu Dhabi, Chair: Coordinator: Dubai, Sharjah, Ajman, Umm Al Quwain, Minister of Climate Change & Environment Ministry of Climate Change & Environment Ras Al Khaimah and Fujairah). MOCCAE’s Members: 5 ministries & 7 emirates Green Development Department serves as Committee on Clean Energy & Climate Change Adaptation secretariat of EGDC. Coordinator: By September 2015 five committees were Secretariat Ministry of Energy established in line with the strategic MOCCAE objectives of the UAE Green Agenda. Each Green Development Department Committee on Green Life & Sustainable Use of Resources of them is mandated to formulate and implement 2-3 programs, of which each is Coordinator: Ministry of Energy broken down into 2-4 sub-programs (see above) designed under the Agenda. Each Governance of the Emirates Green Development Council committee is coordinated by a federal
UAE State of Green Economy Report - Second Edition 2016 55 Membership of the Emirates Green Development Council (updated April 2016)
Chair
H.E. Dr. ani Ahmed Al Zeyoudi Minister of Climate Change and Environment
Members - Representatives from the federal government Members - Representatives from the emirates
H.E. Dr. Matar Al Neyadi H.E. Razan Khalifa Al Mubarak Undersecretary, Ministry of Energy Secretary-General, Environment Agency - Abu Dhabi
H.E. Eng. Zahra Salman Al Aboodi H.E. Ahmad Buti Al Muhairbi Undersecretary, Ministry of Infrastructure Development Secretary General, Dubai Supreme Council of Energy
H.E. Abdullah Sultan Al Fan Al Shamsi H.E. Hana Saif Al Suwaidi Assistant Undersecretary for Industrial Affairs, Ministry of Economy Director General, Sharjah Environment and Protected Areas Authority
H.E. Saeed Rashid Al Yateem H.E. Saeed Saif Al Matrooshi Assistant Undersecretary of Resources and Budget Sector, Ministry of Finance Secretary General, Ajman Executive Council
Hamad Obaid Ibrahem bin Yaaqob Al Zaabi H.E. Humaid Rashid bin Humaid Al Shamsi Deputy Director, International Organizations, Secretary-General, Umm Al Quwain Executive Council Ministry of Foreign Affairs and International Cooperation H.E. Dr. Saif Mohammed Al Ghais Executive Director, Ras Al Khaimah Environment Protection and Development Authority
H.E. Eng. Mohammed Saif Al Afkham Director General, Fujairah Municipality
56 UAE State of Green Economy Report - Second Edition 2016 TheUAE Green Agenda and 2015 Progress
Planning for the Green Agenda Implementation
The general meetings of the EGDC were held three times during 2015. The first meeting in June marked the official formation of the council, as its members were nominated from the ministries designated by the Cabinet and the executive council of each emirate, all of which were confirmed unanimously. The newly-appointed members reviewed and adopted the implementation mechanism of the UAE Green Agenda, including the appointment of coordinating authorities for the five committees (see above), and the set of Green Key Performance Indictors (Green KPIs) to monitor the progress of the Agenda implementation (see below). Following the Second meeting of the Emirates Green Development Council (Dubai, September 2015) first meeting, the secretariat conducted bilateral meetings with each committee and based on identification nda harmonization of programs in the next budget cycle of 2017- supported the recruitment and nomination of existing initiatives and analysis of gaps in those 2021 based on the developed action plan. initial committee members from federal and initiatives. It was shared that in the short-term, Furthermore, the secretariat presented each local authorities. during the current budget cycle of the federal committee with a list of potential strategic In the second meeting of the council, held government lasting until the end of 2016, the partnerships that were aimed at helping in September, the development of each Green Agenda implementation would proceed implement specific Green Agenda programs committee’s work plan was discussed. The only within the framework of the available and building the capacity and knowledge of secretariat proposed that each committee budgets and existing projects. However, policy-makers, while encouraging reactivation would formalize the designated Green Agenda the council will guide each committee to of existing memorandums of understanding programs and sub-programs in a few months systematically integrate Green Agenda between authorities and knowledge
UAE State of Green Economy Report - Second Edition 2016 57 management system operated by the Prime Minister’s Office, were advised. In the third meeting, held in December, each committee presented and agreed on their list of initiatives that would support the actual implementation of Green Agenda programs and sub-programs. A total of 96 initiatives have been identified (see Chapter 4), and the council directed the committees to develop detailed action plans for implementation and integration of initiatives into the next budget cycle. As A meeting of the Committee on Knowledge-Based Economic Diversification (Ministry of Economy, September 2015) one of the concrete steps in this direction, the introduction of a green public procurement policy in federal entities has been confirmed. institutions. A draft “smart dashboard” Green KPIs via tablet computers (see below). The need to promote the Green Agenda and was also presented, which would allow the Alignment of Green KPIs with the National the council work among stakeholders through council members to monitor the progress KPIs defined under the UAE Vision 2021 awareness raising, education and media of the Green Agenda implementation and and their integration into the performance communications was also highlighted.
Development of Green KPIs
In order to guide the formulation of policies risks. The refined indicators should be able Agenda programs and sub-programs in its as well as voluntary activities of the private to serve to provide solid evidence based quarterly meetings, 41 UAE Green KPIs have sector and the civil society towards the on which policy makers can set clear goals, been selected according to the three dimensions Green Economy transformation, it is critical formulate policies, review progress and (environment, economic and social) of to establish a set of indicators as an effective evaluate impacts. sustainable development. As measuring the compass to allow for monitoring and complex and multi-dimensional nature of assessment of the underlying developments, Aimed at primarily helping the EGDC to the Green Economy is a challenging task, this progress and potential opportunities and monitor and review the progress of Green framework and selection of indicators was
58 UAE State of Green Economy Report - Second Edition 2016 TheUAE Green Agenda and 2015 Progress built upon the ongoing international efforts by Bank, GGGI, etc. At the same time, several local context and ensure alignment with the the Organisation for Economic Development relevant National KPIs were also adopted in country’s overall development strategy (see and Co-operation (OECD), UNEP, the World the Green KPIs framework, so as to reflect the table below).*
List of UAE Green Key Performance Indicators Environmental Economic Social ENV1: Rate of groundwater abstraction ECO1: Real GDP growth (per emirate) SOC1: Labor participation rate ENV2: Water consumption per capita ECO2: Share of non-oil GDP SOC2: Employment rate ENV3: Waste generation per capita ECO3: Share of non-oil export SOC3: Emiratization rate ENV4: Rate of waste recovery ECO4: GDP from environmental goods and services SOC4: Number of green jobs ENV5: Energy consumption per capita ECO5: R&D expenditure in GDP SOC5: Number of UAE patents ENV6: Rate of non-fossil energy ECO6: Foreign direct investment net inflows SOC6: Global Innovation Index ENV7: Carbon intensity of energy ECO7: Doing Business Index SOC7: Global Entrepreneurship Index ENV8: Total GHG emissions ECO8: Global Competitiveness Index SOC8: Environmental awareness rate ENV9: Ecological Footprint ECO9: Water consumption per GDP SOC9: Environmental behavior rate ENV10: Number of environmental regulations ECO10: Waste generation per GDP SOC10: Human Development Index ENV11: Number of environmental standards ECO11: Energy consumption per GDP SOC11: World Happiness Index ENV12: Ratio of protected areas ECO12: Material consumption per GDP ENV13: Environmental expenditure ECO13: GHG emissions per GDP ENV14: Environmental Performance Index ECO14: Efficiency of water and electricity production ENV15: Ratio of green vehicles ECO15: Average fuel efficiency of vehicles Note : Indicators in Italic : Corresponding to National KPIs Indicators in bold : Headline Indicators for the 5 strategic objectives (see explanation below)
* In the last edition of this report, a framework of the “UAE Green Economy Indicators” was introduced and the UAE performance was reported according to it. The set of Green KPIs is a revision of this framework, which was redesigned in a way to allow the EGDC to assign each committee clear ownership and responsibilities by allocating accountable indicators, as well as to monitor the country’s overall progress towards a Green Economy.
UAE State of Green Economy Report - Second Edition 2016 59 To help monitor and improve the outcomes Furthermore, two headline indicators are by the activities of different Green Agenda of the Green KPIs by placing clear ownership selected for each strategic objective so that each programs and other factors that may not and accountability, each indicator is allocated committee’s progress can be easily monitored and be controlled by government and national under one of the five strategic objectives of understood by the EGDC members. A total of ten stakeholders, and that the performances the Green Agenda, and each committee is headline indicators make up a “smart dashboard”, cannot be attributed only to a single designated as a “custodian” of 5-10 Green KPIs which will highlight the overall achievement of committee. Chapter 7 presents and analyzes (see table below). The committees are expected the UAE Green Agenda and the contributions to the latest data of Green KPIs. to have the methodology, data gathering and and consistency with the UAE Vision 2021. processing procedures of the assigned Green KPIs in place and regularly monitor and report It should also be noted that the outcome the outcomes to the secretariat. of each Green KPI is inevitably influenced Allocation of Green KPIs to EGDC Committees
Strategic Objective Headline Indicators Other designated Green KPIs Other relevant Green KPIs (Committee) ECO1: Real GDP growth (per emirates) ECO2: Share of non-oil GDP ECO3: Share of non-oil export ENV8, 13 1. Competitive ECO8: Global Competitiveness Index ECO5: R&D expenditure in GDP ECO4, 9, 10, 11, 12, 13 Knowledge Economy SOC6: Global Innovation Index ECO6: Foreign direct investment net inflows SOC1, 2, 3, 4, 8, 10, 11 ECO7: Ease of Doing Business Index SOC5: Number of UAE patents SOC7: Global Entrepreneurship & Development Index SOC1: Labor participation rate ENV2, 3, 4, 5, 8, 9, 10, 11, 12, 13, ECO12: Material consumption per SOC2: Employment rate 14, 15 2. Social Development & GDP SOC3: Emiratization rate Quality of Life ECO1, 2, 3, 4, 9, 10, 11, 12, 13, 15 SOC10: Human Development Index SOC4: Number of green jobs SOC7 SOC11: World Happiness Index
60 UAE State of Green Economy Report - Second Edition 2016 TheUAE Green Agenda and 2015 Progress
Strategic Objective Headline Indicators Other designated Green KPIs Other relevant Green KPIs (Committee) ENV1: Rate of groundwater abstraction ENV10: Number of environmental regulations ENV11: Number of environmental standards ENV9: Ecological Footprint ENV2, 3, 4, 5, 8 3. Sustainable ENV12: Ratio of protected areas Environment & Valued ENV14: Environmental ECO2, 3, 9, 10, 11, 13 Natural Resources ENV13: Environmental expenditure Performance Index SOC4, 7, 11 ECO4: GDP from environmental goods and services SOC8: Environmental awareness rate SOC9: Environmental behavior rate ENV7: Carbon intensity of ENV6: Rate of non-fossil energy ENV2, 4, 9, 13, 14 4. Clean Energy & Climate electricity ENV8: Total GHG emissions ECO2, 4, 9, 11 Change Adaptation ECO14: Efficiency of water and electricity production ECO13: GHG emissions per GDP SOC4 ENV2: Water consumption per capita ENV3: Waste generation per capita ECO9: Water consumption per ENV4: Rate of waste recovery ENV8, 9, 10, 11, 13, 14 5. Green Life & GDP Sustainable Use of ENV5: Energy consumption per capita ECO4, 12, 13, 15 ECO11: Energy consumption per Resources ENV15: Ratio of green vehicles GDP SOC4, 8, 9, 11 ECO10: Waste generation per GDP ECO15: Average fuel efficiency of vehicles Note : Indicators in Italic: Corresponding to National KPIs
UAE State of Green Economy Report - Second Edition 2016 61 Capacity Building for the Green Agenda Implementation
sustainable public procurement (related to Program 3.2); and sustainable finance and investment (Program 1.2). The Capacity Workshop on Eco-labeling and Green Public Procurement was organized in September by the EGDC secretariat and the then Ministry of Foreign Affairs in association with GGGI. Key policy-makers from authorities relevant to these policies were invited and the session was led by experts from the European Office of ICLEI – Local Governments for Sustainability, the Center on Sustainable Consumption and Production (Germany) and Agrofuturo (Italy). Based on the learning of global best practices, participants discussed how Capacity Building Workshop on Eco-Labeling and Green Public Procurement best those policies can be applied and the (Abu Dhabi, September 2015) existing practices can be advanced in the UAE context, and identified each authority’s It is one of the most critical factors decisions and actions. The EGDC secretariat role and collaboration opportunities. determining the success in Green Economy therefore regularly organizes opportunities transformation (as well as in fulfilling many for relevant policy officers and stakeholders In addition, MOCCAE joined two other policy objectives) whether the policy- to learn international best practices from international networks – the Sustainable makers, industry and citizens in a country prominent experts and share knowledge and Public Procurement Programme and the are well equipped with knowledge and experiences among practitioners. During Consumer Information Programme – set up capability to elaborate effective measures, 2015, such capacity-building activities were under the United Nation’s 10-Year Framework deliver programs and projects and take better focused on two themes: eco-labeling and Programme on Sustainable Consumption and
62 UAE State of Green Economy Report - Second Edition 2016 TheUAE Green Agenda and 2015 Progress
Capacity Building Workshop on Eco-Labeling and Green Public Procurement (Abu Dhabi, September 2015)
Production (10YFP), which was adopted at the co-organized by MOCCAE, EGDC and Rio+20 summit on sustainable development UNEP FI, banking managers were given in 2012. This move aims to gather and share an opportunity to experience interactive vital knowledge for introducing sustainable learning with two international experts on public procurement and eco-labeling policies environmental and social risk assessment as well as to share with the international for integrated decision-making. Chapter 6 community the UAE’s own experiences. details the practices of green finance in the UAE. In November, during the High-level National Meeting on Sustainable Finance
UAE State of Green Economy Report - Second Edition 2016 63 From EGDC Members
His Excellency Dr. Matar Al Neyadi Undersecretary, Ministry of Energy
According to the United Nations, 65 countries development across the energy sector, as energy with 5.84 US cents per kilowatt-hour for the third around the world have embraced the development is a plays a fundamental role in the transformation phase of the Mohamed bin Rashid Solar Park. Last of Green Economy strategies. Out of these 65 of the UAE into a Green Economy. Long-term year also witnessed the introduction of sustainable countries, 45 countries have taken proactive steps sustainability stands at the core of the vision of the energy policy when the Ministry of Energy launched to transform their economies and to develop Ministry of Energy. Over the years, the Ministry has the end of fuel subsidies in the form of new pricing national Green Economy plans. enacted key policies to increase the production of structures for diesel and gasoline. clean energy, as well as the promotion of efficient The UAE is at the forefront of this transformation. The Emirates Green Development Council use of energy, water and mineral resources. The Our nation has applied a series of fundamental (EGDC) is a key government platform to bring Ministry of Energy has also worked with key energy policies and guiding principles to instill sustainable together the economic sectors of the UAE and stakeholders across the UAE to understand the development at the core of its vision for growth, as to measure the transformation towards a Green synergies and opportunities that lie ahead for captured in the UAE Vision 2021. Economy. Since its inception, the Council has energy entities to contribute to the vision of a green taken decisive steps towards engaging public Transitioning into a green economy requires economy. visionary and determined leadership. To achieve and private entities in the coordination of this, the leadership of the UAE has formed 2015 has been a particularly fruitful year for the policies and proactive measures to accelerate the a government that emphasizes flexibility, UAE energy sector: we witnessed key milestones transformation. on the road towards a sustainable energy sector. responsiveness and dynamism; a government that This work has only begun and I share the The UAE continued to develop its significant empowers its ministries to embrace sustainable enthusiasm of my distinguished peers who sit with investments in clean energy production to preserve development and put forward ambitious policies, me as members of the EGDC. We are determined to natural resources and make a better use of oil and as well as tools and initiatives, to transform each continue to work together and, under the guidance natural gas. sector and become enablers of the green economy. of the leadership of the UAE, to deliver a sustainable The UAE Ministry of Energy has been working The nation also set the record last year for the development and a prosperous green economy for with great determination to deliver sustainable world’s cheapest and unsubsidized solar energy, our future generations. His Excellency Dr. Matar Al Neyadi Undersecretary, Ministry of Energy
CHAPTER 3 UAE’S TEN INNOVATIONS FOR ENABLING A GREEN ECONOMY UAE’s Ten Innovations for Enabling a Green Economy
and make a prosperous future for us similar to our present.” The National Innovation Strategy focuses on fostering innovation mainly in seven sectors – renewable energy, transport, education, health, technology, water, and space – with the aim of enabling innovation to play an essential and integral role in achieving each sector’s key strategic objectives. As part of the Year of Innovation, UAE Innovation Week was held on 22-28 November 2015, where the education, health, energy, environment, space, economy and service sectors showcased their innovations through more than 850 events across the country. At this occasion, the President announced the His Highness Sheikh Mohammed bin Rashid greets ASIMO, a Japanese humanoid robot adoption of the Emirates Science, Technology and Innovation Higher Policy, which plans new The UAE launched its National Innovation and to revise their policies to develop a national policies in legislation, investment, Strategy and designated 2015 as “the nurturing environment for innovation. technology, education and finance to build Year of Innovation” while laying out a His Highness Sheikh Khalifa bin Zayed Al a vibrant knowledge economy in the UAE, comprehensive strategy to position the UAE Nahyan, President of the UAE, said: “We must supported by future investment of over AED among the world’s most innovative nations prepare and equip our generations in such a 300 billion (USD 82 billion). At the same time, by 2021. The Cabinet directed all federal manner that they fit in the world in which a new AED 2 billion (USD 545 million) Sheikh government bodies to boost cooperation we live, ensure their position among nations, Mohammed bin Rashid Al Maktoum Fund to
66 UAE State of Green Economy Report - Second Edition 2016 UAE’s Ten Innovations for Enabling a Green Economy
Finance Innovation was launched to support of commercial banks, investment funds, family the ten original innovation initiatives being the transformation of innovative ideas into businesses and other funding entities. conducted in the country that aim to support projects. This fund will guarantee commercial the realization of a Green Economy, many of loans required to finance projects through the Reflecting this latest development during the which were showcased during UAE Innovation Ministry of Finance, also drawing in the support Year of Innovation, this chapter highlights Week.
of 554 kilowatts (kW), can now provide 16% 1. Public Buildings Powered by Sunshine of the hospital’s total energy demand, yielding estimated annual savings of AED 267,000 (USD 72,700) from reduced energy bills and a carbon emissions reduction of 600 tons annually. The project was initiated at the 2012 World Future Energy Summit by eight Young Future Energy Leaders (YFEL) members. YFEL, an outreach program of the Masdar Institute of Science and Technology, offers selected students and young professionals a year-long training and mentorship experience, working closely with government, industry and other organizations active in the area of alternative energy and sustainability. The eight YFEL 2012
PV modules installed on the rooftop of Rashid Abdullah bin Omran Hospital members took on the project’s planning and execution, and received support from the In November 2015, the Rashid Abdullah bin installed across the rooftop of the 82-bed Institute and the Special Projects Unit of Masdar Omran Hospital in Ras Al Khaimah became maternity and children’s hospital and the car (Abu Dhabi Future Energy Compamy). They the first hospital in the UAE to be powered park shading while smart solar streetlights were involved in identifying potentially suitable by renewable energy. As part of this project, were installed to provide light for the hospital sites, conducting viability studies, obtaining solar photovoltaic (PV) modules were grounds. This installation, with a total capacity approvals, assisting in timely completion and
UAE State of Green Economy Report - Second Edition 2016 67 SZHP is planning to provide this public housing with an option to install solar PV panels on rooftops and feed back the excess electricity collected by them, into to the grid. This idea was proposed by a local firm, New Step Solar Energy. According to a feasibility study made by SZHP, if a 10 kW PV system is installed on the rooftop of a typical public house, AED 9,500 (USD 2,600) would be saved in electricity bills annually. As the initial instalment of the system cost AED 120,000 (USD 32,700), the investment could be recovered within 13 years. SZHP is looking into the best financing model for enabling PV installation in collaboration with The YFEL members and VIPs celebrating the completion of Abdullah bin Omran Hospital solar energy project the International Renewable Energy Agency (IRENA). tendering for a contractor, before testing and The Sheikh Zayed Housing Programme handing over the completed project. The (SZHP) was established to provide suitable Rashid Abdullah bin Omran Hospital solar housing for UAE national families in order energy installation was commissioned by the to contribute to achieving the aspirations then Ministry of Public Works. of the UAE government in the provision of a high standard of living for UAE nationals. An additional innovative aspect of this project UAE nationals who do not own a suitable is that the polycrystalline PV modules used house for their families and have not received to provide the solar energy for the hospital housing aid from any government authority were manufactured in Fujairah, supporting the for 15 years are eligible for housing assistance UAE’s efforts to develop its renewable energy provided by the program in the form of a new sector while creating economic opportunities A villa built by Sheikh Zayed Housing Programme in house, loan or grant. and jobs in high-tech industries. Dibba, Fujairah
68 UAE State of Green Economy Report - Second Edition 2016 UAE’s Ten Innovations for Enabling a Green Economy
atmospheric water generation system is 2. Turning Air into Water planned in the UAE to integrate the following components: • Solar panels used to power the system – both for cooling of greenhouses and operation of the water generation machine. • The generated water is used for aqua farming. The water is enriched with nutrition from this process. • The enriched water can be used for agricultural purposes. At the demonstration, the prototype systems, which utilize nanotechnology,
Drinking water produced from humid air
The hot climate of the UAE, which is both farming, potable water generation and district warm and highly humid throughout the cooling. In February 2015, the ministry signed year, provides the opportunity to produce a joint agreements with Taipei-based technology reliable source of water through the use of an firms for the implementation of the Drop of atmospheric water generation mechanism. Life Project, which aims to demonstrate and The Ministry of Climate Change and Water promote the extraction of freshwater from air (MOCCAE) has thus identified an idea and a humidity. suitable partner for piloting and deploying The ministry team visited Taipei in August atmospheric water generation technologies. 2015 to see the first display of this technology. There are multiple uses for the generated Prototypes were displayed during UAE water, such as agricultural purposes, aqua- Innovation Week in November 2015. This Machine converting humidity into drinking water
UAE State of Green Economy Report - Second Edition 2016 69 It works by drawing ambient air onto a heat exchanger aimed at cooling down the air to its dew point, causing condensation. The liquid water is led to the ground through the main stem of the turbine, and then filtered, eventually becoming drinking water. The full-scale installation of the wind turbine was dropped for logistical reasons but the French design office has resumed its investigations of solar-driven machines, which are easier to install and incorporate into the UAE environment. The company says that the upcoming model will be able to produce several hundred liters of drinking water each day, just from the air
From the Drop of Life Project and the sun. successfully produced around 200 liters In 2012, French company Eole Water of freshwater per day by collecting the conducted trials of its unique patented moisture in the air and condensing wind turbine in Abu Dhabi. This it into water efficiently. One of the turbine can convert humidity in the air systems was fully powered by solar PV into water and at the same time is able panels set on the site, together with to generate electricity. The tests were battery storage. The ministry’s aim is successful and showed that the device to build a solar-powered system for can withstand harsh desert conditions producing 1,500 liters of water per and sandstorms, and the quality day that fits into a single container, to of extracted water was within the make it mobile for placing in remote areas. regional standards for drinking water. Wind turbines that convert air humidity into drinking water
70 UAE State of Green Economy Report - Second Edition 2016 UAE’s Ten Innovations for Enabling a Green Economy
four plants will demonstrate innovations in 3. Desalination Without Fossil Fuels different advanced membrane technologies, which are more energy-efficient than the thermal processes currently in use at most desalination plants. The test plants will also provide 1,500 cubic meters (m3) of potable water daily, enough to meet the requirements of around 500 homes. The target of this project is to dramatically reduce the energy intensity of desalination by up to 40%, achieving less than 3.6 kilowatt- hours (kWh) per m3 of produced water at a salinity of 42,000 milligrams per liter (mg/l). In the subsequent implementation and development phase of the project, the technologies that meet predefined criteria will Sampling water produced from the pilot desalination plants in Ghantoot, Abu Dhabi (left to right: H.E. Dr. Sultan Al Jaber, Minister of State, Director General of Abu Dhabi National Oil Company and Chairman of Masdar; be scaled up and will be entirely powered by H.E. Dr. Ahmad Belhoul, Minister of State for Higher Education and former CEO of Masdar, and H.E. Suhail Al Mazroui, Minister of Energy) renewable energy. The ultimate goal is to have a commercial-scale facility operating by 2020. It is critical for the UAE to identify a sustainable Masdar thus launched its Advanced Energy- desalination solution to meet long-term Efficient Desalination Pilot Project in 2013 This project goes beyond traditional research and water needs as most potable water relies aimed at developing and demonstrating development (R&D), and is considered research on desalination due to the lack of natural seawater desalination technologies that are and development transformation (RDT), allowing freshwater sources. In the UAE, seawater efficient enough to be powered by renewable new technologies to be developed faster, leading desalination requires ten times more energy energy. In 2014, four companies – Abengoa, to accelerated adoption and implementation than surface freshwater production, and Suez, Sidem (Veolia) and Trevi Systems – were by utility service providers. The partnership demand for freshwater is projected to grow awarded contracts to build and operate their between Masdar and the project participants is by 30% by 2030. Connecting desalination own test plants in Ghantoot, Abu Dhabi. During also expected to stimulate knowledge transfer technologies to renewable energy is one UAE Innovation Week in November 2015, as the Masdar Institute coordinates hands-on solution to drastically reduce the reliance on the operational stage of the pilot project was engagement of its students with the international fossil fuels and carbon emissions. officially launched. Over the nextfifteen months partners for research and studies in membrane
UAE State of Green Economy Report - Second Edition 2016 71 Desolenator, the invented free-standing solar produced, and Mr. Janssen’s long-term focus desalination unit, can produce around 15 is to provide water to the one billion people liters of clean water a day from seawater or around the world who do not have access other dirty water, requiring no power other to clean water through non-governmental than the sun and has no moving parts or organizations or microfinance. He launched filters, which ensures easy maintenance. The a crowdfunding campaign and raised over user feeds water in a pipe and the solar panel USD 150,000 (AED 551,000). The next step provides enough heat and electric energy to is to produce about 1,000 units for testing in boil and cleanse the water. Each unit would a village in Tamil Nadu, India based on this cost only about USD 590 (AED 2,170) if mass funding. Desolenator solar desalination unit 4. Flying by Fuels from Salt-tolerant Plants distillation, capacitive deionization and cutting- edge forward osmosis. When an Abu Dhabi-based Dutch entrepreneur William Janssen first saw solar water heaters on rooftops in Thailand, he came up with the idea of adding a PV solar panel that could be used to boil water for desalination. He also realized that he could use a heat exchanger to make the desalination process more efficient as while the hot water vapor is condensing, it can be channeled within the unit to help warm up the Etihad aircraft making a test flight with locally produced biofuel next batch of cold water. Mr. Janssen started working on a prototype of solar power-based In June 2015, Etihad Airways, together with culmination of a year-long dialogue between desalination device from his Abu Dhabi home Boeing, Total, Takreer (the refinery subsidiary the five partners of the BIOjet Abu Dhabi in his spare time and eventually set up a UK- of Abu Dhabi National Oil Company) and the initiative, and local and global stakeholders. registered company in 2013, which is now Masdar Institute, launched the BIOjet Abu The roadmap details Abu Dhabi’s potential part of Imperial College London’s incubator Dhabi Roadmap for the sustainable production to produce aviation biofuel locally and program. of aviation biofuels in the UAE. This was the sustainably, taking into account all elements of
72 UAE State of Green Economy Report - Second Edition 2016 UAE’s Ten Innovations for Enabling a Green Economy the supply chain, from feedstock supplies to integrated Seawater Energy and Agriculture concludes that Abu Dhabi holds significant bio-refining and distribution. System (SEAS). SEAS is an initiative to develop a potential to supply domestic feedstocks from halophyte plants, as well as inland planted forest James Hogan, President and CEO of Etihad unique form of agriculture, producing food and areas and municipal and agricultural waste. Airways, explains the idea behind this initiative: energy products from salt-tolerant halophyte “The industry’s license to grow can only be plants grown on traditionally non-arable desert The pilot SEAS facility is currently under granted if we find and implement ways to lower land irrigated with seawater. The roadmap construction in Masdar City, Abu Dhabi. the carbon footprint of commercial aviation.” The roadmap explores how a supply chain 5. New Business Models for Clean Energy can be established in the UAE through the exploration of sustainable feedstocks, new infrastructure requirements and necessary policy frameworks. This is built on local research undertaken by the Sustainable Bioenergy Research Consortium, led by the Masdar Institute, whose flagship project is the
Enerwhere’s solar-diesel hybrid plant at the Saadiyat Accommodation Village, Abu Dhabi
#1 #2 SUPPORTING FISH WASTE Daniel Zywietz arrived in the UAE in 2008, cost up to ten times higher than the subsidized AQUACULTURE AS FERTILIZER where he worked as a consultant at Masdar and grid electricity prices. While many of these sites other renewable energy projects in the region. were small, the total installed diesel generator #3 He quickly found that implementation of the capacity in the UAE reaches around 1,000 #4 DESERT-LOVING MANGROVES SALT WATER - megawatts (MW), a potential market size PROVIDE CARBON TOLERANT ambitious plans for renewable energy was SEQUESTRATION PLANTS going slowly, hampered by the low electricity nearly as large as the renewable energy target prices at the time. Looking for economically announced by the Abu Dhabi government for viable applications for renewables, he found 2020. that many remote facilities like workers’ Seeing the opportunity, he co-founded Enerwhere The concept of the integrated Seawater Energy and villages, construction sites and islands in the in Dubai in 2012 to bring solar commercial- Agriculture System (SEAS) UAE were running on diesel generators, at a scale solutions to clients without a stable grid
UAE State of Green Economy Report - Second Edition 2016 73 connection. The first problem to solve was that of for further expansion. Apart from the original expenditure and arranges the construction, transportability, as most clients did not own the off-grid service offering for workers’ villages permitting, operation and maintenance of land around their site or were not likely to stay in and construction sites, the company now the solar PV systems, the building owners the same location for 15-20 years. The company also builds solar power plants for factories only need to take care of monthly bills for the therefore developed a new ballasted mounting and warehouses under the Shams Dubai solar energy generated by the systems. The systems structure design, allowing it to offer solar power initiative (see Chapter 5). can be part of the Shams Dubai initiative as the unused surplus electricity can be on a rental basis. This unique rental model allows Yellow Door Energy was established in 2015 as exported to the grid. clients to benefit from cheaper solar power for a subsidiary of Dubai-based Adenium Energy short-term projects without incurring heavy Capital, an investment firm specializing in For example, if a solar PV system with capacity upfront capital investments themselves. solar energy financing and operations with ranging from 100 kW to 10 MW is installed After an initial demonstration plant performed utility-scale projects in the Middle East, under a 20-25 year lease term, Yellow Door Europe and Japan. Yellow Door focuses on well on the World Islands in Dubai, the company can provide the building owner with an initial investing in solar net metering projects in the savings of 5-15% on their electricity bill from soon took over the complete power supply for UAE and Jordan, through a customized leasing the first day of the system operation, subject the Saadiyat Accommodation Village (SAV), business model that is designed according to roof assessment and climate data review. So the home of the 8,000-man workforce building to the needs of businesses and institutions. far, eight leasing contracts (two in Dubai and the Louvre Abu Dhabi and other attractions While the company invests in the capital six in Jordan) have been concluded. on Saadiyat Island. The 5 mega-volt ampere (MVA) solar-diesel hybrid plant utilizes solar PV for daytime power, while the diesel generators 6. Tagging Tires for Safety guarantee power availability at night and during periods of bad weather. As much of the electricity demand is during daytime, this enables the share of solar energy to take 30-80% of peak demand, depending on the season and the shape of the load curve. The innovative design won the company the Middle East Solar Industry Association’s “Project of the Year” award in 2014. ESMA’s tire tagging system utilizing smart RFID technology Today the company has expanded its footprint Tires in the UAE must be able to withstand liable to wear out faster or burst, endangering beyond the UAE to several African countries, high temperatures due to the country’s harsh lives. Sub-standard or inappropriate tire use including Nigeria and Zimbabwe, with plans climate. Tires meant for colder regions are has caused a number of fatal road crashes in
74 UAE State of Green Economy Report - Second Edition 2016 UAE’s Ten Innovations for Enabling a Green Economy the country, despite repeated warnings from of the regional standards and is appropriate to phones and confirm if the tire is compliant authorities, the reason being that consumers may use in the UAE climate. A mandatory tagging with the UAE specifications and registered not be aware of the appropriate specifications system thus has been rolled out in 2015, which with ESMA, besides carrying basic information or understand the coded inscriptions on tires. is considered to be the first of its kind in the such as its manufacturer, vehicle type, country Some motorists even willingly buy unregulated world. of origin, date of production, weight, pressure varieties to save money. The system aims to solve two issues together: and speed range. Using QR code readers on The Emirates Authority for Standardization protection of the consumer from parallel mobile phones, consumers can instantly know and Metrology (ESMA) came up with the idea imports not designed for the region and if the tire meets the standards and the vehicle that an ID number be given to tires to monitor protection of traders from damage to their type for which it is meant. There is also an them from manufacturing to installation, to reputation caused by incorrect use of their RFID chip that can be read by inspectors using make sure the tire matches the requirements products. The tags are readable by smart handheld devices.
7. Sustainable Fishing by Remote Monitoring between 2002 and 2011), highlighting the need for improved management plans and regulations. The gargoor, a dome-shaped wire trap, is by far the most important type of traditional fishing gear in the UAE. Conventional gargoors are normally connected to floating buoys to determine their location but do not provide any information on what is inside the traps. The fishermen can only find out what the gargoor Concept of “smart gargoors” has trapped when they draw them out from the bottom of the sea. This not only requires Commercial fishing in the UAE has been fleet has led to excess pressure on a variety of much time and effort of fishermen but also carried out using a variety of traditional commercial species. The numbers of boats and the loss gargoors can lead to “ghost fishing”, fishing equipment and technologies. Multi- traps have multiplied over the years and the whereby forgotten or abandoned gargoors gear artisanal fisheries catch over 100 species estimated fish stocks have radically dropped continue to trap fish, resulting in destroying of fish. The recent development of the fishing in the UAE’s territorial waters (53-70% decline valuable habitats and lowering the fish stock.
UAE State of Green Economy Report - Second Edition 2016 75 As part of innovation efforts, MOCCAE came up with an idea of “smart gargoor”, which adds a wireless sensor that sends real- time information to the user, such as the GPS coordinates of the trap, biomass details (amount and number of fish) in the trap, and images of fish inside the trap to identify species. Every smart gargoor consists of four modules: communication, power supply and device management, floating and suspension, and image and motion sensing. The information and images within a particular zone are transmitted to a relay station, How “smart gargoors” capture and send images which then forwards the information to the operation center, which processes the images The concept was successfully presented during pilot testing to design and test the system’s and create reports compiling the status of all UAE Innovation Week in November 2015. The software and sensors. traps. next steps are to conduct cost analysis and
Fuel prices in the UAE have been kept low for 8. Price Reforms for Rational Consumption many years through price controls on gasoline and diesel. The International Energy Agency (IEA) estimates that the UAE’s total energy subsidies in 2013 amounted to USD 22.2 billion, which is equivalent to 5.6% of GDP; 65% of the total cost of energy supply was subsidized. Energy subsidies have been considered a drag on financial resources that could be used more productively elsewhere, such as education Abu Dhabi’s water bill indicating the amount of subsidies given to the consumer and infrastructure. Furthermore, low prices
76 UAE State of Green Economy Report - Second Edition 2016 UAE’s Ten Innovations for Enabling a Green Economy facilitate higher consumption, and as a result Additionally, a slab tariff system has been subsidies. Abu Dhabi, which had high subsidies, they are not environmentally sustainable. applied in some parts of the UAE by federal was the latest of the emirates to introduce this and local authorities for water and electricity progressive tariff system in 2015. The reformed In August 2015, fuel prices were deregulated by consumption of residential, industrial, tariff rates increased by up to 170% for water and the Ministry of Energy, with a new pricing policy commercial and governmental users. This up to 40% for electricity for expatriates, whereas linked to global prices. The reforms are widely system assures that as consumers use more tariff rates for UAE nationals also increased. A seen as a progressive step in fiscal reforms in water or power, the cost per unit becomes higher, further increase in tariff rates was announced in the context of falling oil prices and resultant so that it encourages more rational, efficient 2016 for consumers exceeding a certain level of decline in government revenues. His Excellency use of resources while reducing government consumption. Suhail Al Mazroui, Minister of Energy, said: “The resolution is in line with the strategic vision of the UAE government in diversifying sources 9. Building the Infrastructure for Electric Vehicles of income, strengthening the economy and increasing its competitiveness in addition to building a strong economy that is not dependent on government subsidies.” With regard to other benefits of the decision, the minister added that deregulating fuel prices would help decrease fuel consumption and preserve natural resources for future generations. It will also encourage individuals to adopt fuel-efficient vehicles and the use of public transport. This will have a positive impact in lowering carbon emissions from the transport sector, where is currently DEWA / Emirates 24|7 responsible for 22% of the total greenhouse DEWA’s electric vehicles and charging stations gas emissions in the country. The Petrol and Diesel Prices Committee was set up to review In 2015, the Dubai Electricity and Water launched by His Highness Sheikh Mohammed fuel prices against average international levels. Authority (DEWA) started introducing electric bin Rashid Al Maktoum, Vice President and On the 28th of each month, the committee vehicle (EV) charging stations in the emirate. Prime Minister of the UAE and the Ruler of announces the prices for the following month. The move is part of the Smart Dubai Initiative Dubai, to transform Dubai into the happiest
UAE State of Green Economy Report - Second Edition 2016 77 place on Earth with the lowest carbon footprint and to help the city provide efficient 10. Spatial Planning by Satellite Images and quick services to its residents and visitors. As part of the first phase of the project, DEWA installed 100 charging stations in various locations of Dubai, such as malls, airports, commercial buildings, residential complexes, and petrol stations. Three types of technologies have been introduced: fast-charging stations which take 20-40 minutes installed at petrol stations, while regular charging stations for 2-4 hours were installed in shopping malls, parks and office areas. The charging stations located at DEWA headquarters and its Sustainable Building in Al Quoz are powered by solar panels. A satellite photograph captured by DubaiSat-2. Vegetation is marked in red Motorists can obtain DEWA EV cards to use the public charging stations, and the cost can be In July 2014, His Highness Sheikh Mohammed The Dubai Government also established added to their monthly DEWA bills. Customers bin Rashid Al Maktoum, the Vice President and the Mohammed bin Rashid Space Center without a DEWA account can obtain an EV-ID Prime Minister of the UAE and Ruler of Dubai, (MBRSC) in April 2015, to which the card and pay per consumption. announced the Emirates Mars Mission to send Emirates Institution for Advanced Science This initiative is built around the idea that an unmanned probe to the red planet in 2020, and Technology (EIAST) will be affiliated, to the introduction of a charging infrastructure making the UAE the first in the Arab world develop research, projects and studies on throughout a city encourages the public and to do so. The probe is planned to reach Mars space in a way that will support the UAE’s the commercial sector to start using hybrid and several months later, in time to celebrate the drive to advance this sector and build national electric vehicles. DEWA also added the first eight UAE’s 50th anniversary in December 2021. The capabilities. MBRSC has already accomplished electric vehicles to its fleet in October 2015, UAE Space Agency has since been established a number of significant achievements, most becoming the first government organization to direct national space programs that will notably the launches of Earth observation in Dubai to use these new silent, pollution-free have direct benefits to the country’s economy satellites DubaiSat-1 and DubaiSat-2, both of vehicles. and human capital. which continue to orbit the planet, capturing
78 UAE State of Green Economy Report - Second Edition 2016 UAE’s Ten Innovations for Enabling a Green Economy
tool lies in its parameters that are designed to the vegetative and aquatic areas. It constitutes a be compatible with DubaiSat-2 images. This qualitative leap in terms of the development of increases its accuracy and makes it easier to technical software used in the image processing use, providing precise figures on the categories sector and space analysis in the country, as it entered by users. will serve a large segment of public and private This tool is aimed at giving decision- service institutions, such as municipalities, the makers accurate analytical results of urban Dubai Roads and Transport Authority (RTA) developments in the country, whether and MOCCAE, and will also be useful in studies buildings on land or removed facilities, as well and research carried out by universities and as highlighting the changes taking place in both educational institutions in the UAE.
Earth observation satellite, DubaiSat-2 high-resolution imagery beamed back to its headquarters. During UAE Innovation Week, MBRSC announced ten new innovative space technologies and satellite applications. Among them, Saeed Al Mansouri, Acting Head of MBRSC’s Applications Development and Analysis Centre, has developed an image processing application for space images captured by DubaiSat-2 entitled “Semi- Supervised Classification Tool for DubaiSat-2 Multi-Spectral Images”. Although there are several commercial applications with similar features, the innovative technique of this Emirati scientists and engineers working for the Mars Mission at MBRSC
UAE State of Green Economy Report - Second Edition 2016 79 From EGDC Members
Her Excellency Eng. Zahra Salman Al Aboodi Undersecretary, Ministry of Infrastructure Development
The Green Economy comes in line with the UAE The UAE’sGreen Building Guidebook came out in Road Quality sector in the Global Competitiveness Vision 2021, a part of the national agenda to 2009 as a partnership between our ministry and Report. ensure sustainable development, environmental the Executive Office in Dubai to set standards On the federal level, the ministry completed a study protection and harmonizing economic and social for designing and executing green buildings. on the sustainability rating system The Palm, where growth under the visionary guidance of the UAE’s Our ministry launched its Sustainable Urban projects will be measured to meet the required wise leadership. Development Strategy in 2015, highlighting our role in maintaining sustainability in economy, standards. The implementation phase is yet to His Highness Sheikh Mohammed bin Rashid Al society and environment through a set of initiatives take place. The Palm rating system will act as a Maktoum, Vice President and Prime Minister of catering to urban, transport and building projects benchmark for sustainable living in the region to the UAE and Ruler of Dubai, launched the UAE along with internal activities within the ministry, in enable the development of public infrastructure to Green Growth Strategy in 2012 where six tracks order to establish a benchmark. be greener and more sustainable. were introduced to enhance the Green Economy in the UAE, including sustainable transportation and The challenges faced today stem from climatic The promulgation of such a benchmark will need clean air initiatives. Our GDP has grown 27 times change. The opportunities, on the other hand, skilled workforce to enhance the productivity since 1975 and in parallel with this rapid growth, are rather promising, with new strategies and and sufficiency of infrastructure projects. We will our demand on infrastructure has increased. It initiatives being developed to enhance green continue working to raise the bar and achieve our is important to understand the UAE’s national lifestyles and reduce carbon emissions and goals to promote innovation for a greener economy, context and to be encouraged to take part in the footprint. We know that our efforts have been where our knowledge and creativity will act as a ongoing and forthcoming initiatives. achieved as the UAE has earned first place in the guide for a promising sustainable future. Her Excellency Eng. Zahra Salman Al Aboodi Undersecretary, Ministry of Infrastructure Development
CHAPTER 4 ACTIVITIES DEFINED BY GREEN AGENDA COMMITTEES Activities Defined by Green Agenda Committees
As outlined in Chapter 2, the UAE Green Agenda 2015-2030 defines Identify synergies & overlaps Identify existing & potential resources twelve programs and 31 sub-programs as concrete action itineraries, which are structured under its five strategic Consider a consolidation, objectives. The five inter-ministerial Determine additional activities harmonization or national coordination committees were established according to the strategic objectives, each of Process by which the action plan of each Green Agenda Program was developed which developed a list of forthcoming activities to be conducted in the short term, based on identification and Committee on Knowledge-Based Economic Diversification harmonization of existing initiatives and analysis of gaps in those initiatives Members (see figure right). Coordinator Ministry of Economy This chapter introduces a total of 96 Ministry of Climate Change and Environment activities that the five committees Federal entities Ministry of Education identified and committed to implement Emirates Development Bank in the next few years, with a highlight of Abu Dhabi Department of Economic Development key ongoing activities. Also presented Dubai Department of Economic Development are the current membership of each Sharjah Department of Economic Development committee and the gaps to be filled by Ajman Department of Economic Development further actions through the systematic Local entities Umm Al Quwain Department of Economic Development integration of Green Agenda programs Ras Al Khaimah Department of Economic Development into the next budget cycle of 2017- Fujairah Department of Economic Development Abu Dhabi Education Council 2021. Dubai Knowledge and Human Development Authority
82 UAE State of Green Economy Report - Second Edition 2016 Activities Defined by Green Agenda Committees
Identified Green Agenda activities
Program Identified Activities • Licensing and accrediting professional training programs in green fields 1.1 National Identified gaps Green • Student scholarship for environmental courses in higher education Innovation • Financing studies and research on green specialties • Development of policies and more Program • Research initiatives that support the emergence of a knowledge-based green economy initiatives for stimulating green • Study incentive packages for supporting green manufacturing innovation and industries • National program on awareness raising and education of green manufacturing • Define and roll out support 1.2 Green • Include focus on green industries in the Emirates Industrial Development Strategy Diversification mechanisms for green diversification Program • Develop rules and national indicators on green manufacturing • Financing program for green industries • Policy on integrated management of industrial waste
To advance green innovation, one of the Increasing provision of environmental studies in higher education fundamental actions to be taken is to foster educational programs for sustainable development, particularly in higher education, so as to equip future generations to accelerate research and development of enabling technologies and systems. The establishment of more undergraduate and graduate degree programs in related fields, and upgrading existing university courses, is believed will strengthen the country’s reputation as a knowledge hub in the region. It will also help the UAE’s universities achieve global status. For the last few years, the Ministry of Education has been actively working to accredit academic Masdar Institute students conducting research at one of its laboratories programs on environmental and energy
UAE State of Green Economy Report - Second Edition 2016 83 studies in public and private higher education Degree courses in environmental fields offered by UAE higher education institutions institutions. To date, twelve UAE institutions Institution Degree program provide nearly twenty environment-related courses (see table right), with most relating to BSc in Environmental Health and Safety scientific fields. Abu Dhabi University BSc in Environmental Science Among them, the Masdar Institute of Science MSc in Sustainable Architecture Abu Dhabi Vocational Education and and Technology acts as a research-driven, Diploma of Environment, Health and Safety graduate-level university exclusively focused on Training Institute advanced energy and sustainable technologies. American University of Sharjah BSc in Environmental Sciences With the ongoing support and cooperation PhD in Architecture and Sustainable Built Environment of the Massachusetts Institute of Technology MSc in Sustainable Design of the Built Environment (MIT), the Masdar Institute offers Master’s British University in Dubai Postgraduate Certificate in Sustainable Design of the Built and PhD degree programs based on the US Environment graduate education system to students from Postgraduate Diploma in Sustainable Design of the Built more than 40 countries, aiming to integrate Environment theory and practice to incubate a culture of Canadian University of Dubai BSc in Environmental Health Management innovation and entrepreneurship. The Institute Dubai Police Academy Master of Law and Environment was ranked first for research citation impact Hamdan bin Mohammed Smart University MSc in Excellence in Environmental Management in the 2015 US News and World Report’s inaugural Best Arab Region Universities Jumeira University BSc in Environmental Health ranking, which listed more than 90 institutions Masdar Institute of Science and MSc in Sustainable Critical Infrastructure across 16 countries. Three UAE universities also Technology MSc in Water and Environmental Engineering made it into the first Times Higher Education Paris-Sorbonne University Abu Dhabi MA in Geography, Planning and Environment rankings for the MENA region announced in February 2015 – the UAE University being Petroleum Institute MEng in Health, Safety and Environment Engineering ranked 11th, American University of Sharjah BSc in Sustainable and Renewable Energy Engineering University of Sharjah 17th, and the Petroleum Institute in Abu Dhabi Diploma in Environmental Health and Safety in 20th position. Source: Ministry of Education, Commission for Academic Accreditation
84 UAE State of Green Economy Report - Second Edition 2016 Activities Defined by Green Agenda Committees
including dust impact analysis on generation R&D centers for advancing energy and water technologies technologies, drone and 3D printing outlook for utility applications, solar-powered desalination, big data analytics, etc. As part of DEWA’s focus on innovation, its plan also includes supporting the development of new technology companies through special incubation programs. In 2014, the Masdar Institute of Science and Technology launched five Institute Research Centers (iCenters) to consolidate its research activities in support of the UAE’s knowledge economy transformation goals. Its Center for Innovation and Entrepreneurship An image of the R&D Centre to be built in the Mohammed bin Rashid Solar Park (iInnovation), Center for Energy (iEnergy), Center for Water and Environment (iWater), In 2014, the Dubai Electricity and Water training programs. It conducts research in Center for Microsystems (iMicro), and Center Authority (DEWA) announced the four key areas: water; energy efficiency; smart for Smart and Sustainable Systems (iSmart) development of a Research and Development grid integration; and solar generation, with a work to produce the intellectual and human (R&D) Centre in the Mohammed bin Rashid planned budget of AED 150 million (USD 41 capital required to fuel the innovative high- Al Maktoum Solar Park to diversify the energy million) for its implementation phase. tech sectors that will be at the heart of the mix, promote energy efficiency, and enable The R&D Centre facilities, research laboratories UAE’s future diversified economy. The five an environment for innovation to contribute and offices will be completed by the end of centers focus on early-stage research and serve to creating a knowledge-based economy in 2017. The Centre currently has an outdoor test as a bridge between industry and academia, Dubai. The Centre is focusing its work on facility running, where solar technologies are and continue to attract new research technologies and research to support future being tested and a reliability program is being collaborations and funding. The Masdar innovative solutions aimed at improving implemented. It is collaborating with national Institute has also taken the additional step of DEWA services and operations by developing a and international academic and research mapping its iCenters and research objectives network of partners and local stakeholders, and institutions to implement the programs. Some to the seven sectors identified in the UAE guiding and sponsoring Emiratis by providing innovative projects are already underway, National Innovation Strategy.
UAE State of Green Economy Report - Second Edition 2016 85 Committee on Development and Quality of Life
Members Coordinator Ministry of Infrastructure Development Ministry of Energy Identified gaps Federal entities Emirates Authority for Standardization and Metrology Sheikh Zayed Housing Programme • Engage more authorities in the Abu Dhabi Urban Planning Council Committee and identify appropriate Sharjah Environment and Protected Areas Authority actions related to green infrastructure Local entities Umm Al Quwain government and workforce Ras Al Khaimah Environmental Protection and Development Authority Fujairah Municipality
Identified Green Agenda activities Program Identified Activities • Development of an action plan on urban development • Legislation on use of sustainable materials in infrastructure • Continued development of the Integrated Urban Development projects Plan • Application of international standards and sustainable energy for • Study on environmentally sensitive areas and heat island effect public housing projects 2.1 Integrated • National program on sustainable buildings and construction • Policy support for procuring and developing green building Green • Guidelines and specifications on green buildings for federal estate materials Infrastructure • Implementation of sustainable infrastructure projects according • Guidance on sustainable design of buildings Program to international best practices • Legislation for rationalization of energy and water consumption • Legislation on sustainability and environmental considerations in in existing buildings road infrastructure • Projects on autonomous houses • Guidelines on environmental strategic impact assessment for • Application of sustainability standards in residential complexes major projects • Global partnerships for energy conservation
86 UAE State of Green Economy Report - Second Edition 2016 Activities Defined by Green Agenda Committees
Program Identified Activities • Integration of green economy and sustainable development in • Integration of training for green jobs in federal and local school curriculum vocational institutions 2.2 Green • Establish a structure that supports higher education in • Incentives and promotion of green jobs for new graduates Workforce sustainability fields • Promote continued education to help the shift the careers of & Talent • Classification of green jobs under the existing job categorization workers to green professions Program • Introduction of new vocational training courses at the national • Promote partnerships between academia and industry and local levels
The growth in the buildings sector generates Guidelines for sustainable buildings and construction potential for increasing environmental impacts from material and land use at the construction stage as well as energy and water consumption by occupants. The federal and local authorities have therefore emphasized policy measures to increase sustainability in the sector. In 2010, the then Ministry of Public Works (now Ministry of Infrastructure Development), together with the Dubai Government’s Executive Council, developed the UAE Green Building Guidelines for new projects to be carried out by the ministry, addressing six focal areas: envelope efficiency; cooling systems; energy efficiency; water use and efficiency; indoor environmental quality; and site heat island. In 2001, the Dubai Municipality introduced energy efficiency standards for new buildings, including the provision of insulation standards IRENA headquarters building in Masdar City, which was the first building to obtain a four-pearl rating for building envelopes. Subsequently, green under the Estidama scheme building regulations and specifications were
UAE State of Green Economy Report - Second Edition 2016 87 introduced in 2010 as one of eight initiatives The Leadership in Energy and Environmental its total amount of LEED-certified space by 72% launched by the municipality towards the Design (LEED) rating system administered by over the last year to 3.13 million of gross square goal of Dubai becoming one of the top the US Green Building Council has also been meters, and climbed from the ninth place in ten sustainable cities in the world by 2020. widely adopted in the UAE. The UAE increased 2014 to eighth in 2015 (outside the US). While they were initially mandated to all government buildings, since March 2014 they Certifying the personnel for environmental services have also become mandatory for all private developments, which are now required to meet 79 specifications. Estidama (the Arabic word for sustainability) is a sustainable building framework introduced in April 2010 by the Abu Dhabi Urban Planning Council (UPC) as a key component of the Abu Dhabi Vision 2030. At the heart of this framework is the Estidama Pearl Rating System for the design, construction and operation of buildings, villas and communities. The five- level pearl rating provides guidelines covering the use of natural systems, an integrated development process, conservation of water, Training for HVAC mechanic qualifications energy and materials, the incorporation of innovative practices and the creation of The Abu Dhabi Quality and Conformity of personnel in specific professions where livable communities. The assessment criteria Council (QCC), a local government entity their quality, safety and skills are highly comprehensively cover the building’s lifecycle established in 2009 to raise the quality of required. By the end of 2015, 54 standards in (design, construction and operation). In the infrastructure and products traded locally 24 occupations have been developed in the emirate, all new buildings are required to or exported, has set conformity schemes construction and agriculture sectors. Also, obtain at least a one-pearl rating, whereas all for products and systems. Since 2012, QCC other conformity schemes were launched government buildings and villas must obtain has extended the scheme to include the including school bus drivers and supervisors, at least a two-pearl rating. conformity assessment and certification and pool and beach lifeguards.
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Applicants for those professions undertake to minimize the environmental impacts. Over professions such as hazardous and non- courses provided by public and private training 600 certificates have been issued to date for hazardous waste management personnel, centers with the curriculum in accordance with different professions. QCC aims to extend and solar water heater and photovoltaic (PV) the occupational standards. Subsequently, the the scheme further into environmental panel installers, among others. applicant goes through an examination that is approved by the QCC’s technical evaluation committee, and QCC issues the Certificate of Committee on Sustainable Environment Conformity with an AD Trustmark based on the test report provided by the assessment Members center (training is not compulsory for some Coordinator Ministry of Climate Change and Environment professions in which the applicant’s capabilities can be already demonstrated through an Ministry of Economy Ministry of Energy Federal entities exam). Where these personnel conformity Ministry of Infrastructure Development schemes exist, regulatory authorities can issue Emirates Authority for Standardization and Metrology trade licenses on the basis of certification, Local entities Environment Agency – Abu Dhabi allowing them for effective judgment of personal skills and future legislation. Identified Green Agenda activities A study of the Abu Dhabi Executive Council on Program Identified Activities demand-side management found that energy efficiency of air conditioning units would be • Monitoring and controlling groundwater level and quality improved by no less than 27% simply through • Regulate groundwater exploitation through drilling permits the proper maintenance of chillers. Given this • Environmental impact assessment of development projects • Implementation of the Climate Change Adaptation Strategy finding, QCC embarked on the development 3.1 Natural • Monitoring and management of terrestrial and marine habitats Capital & of personnel conformity schemes for • National Blue Carbon Project Resilience electricians and heating, ventilation and air • Abu Dhabi Blue Carbon Project Program conditioning (HVAC) mechanics. It has also • Fisheries sector’s change management extended the scheme to the agricultural • Management and monitoring of coastal and marine environment sector for farmers applying pesticides in the • Regulation and monitoring of sewage discharge way to keep their health and safety as well as • Air quality monitoring and controlling
UAE State of Green Economy Report - Second Edition 2016 89 Program Identified Activities • National guidelines on green manufacturing • Development of national eco-labels for products and services (Emirates Identified gaps Environmental Label) • Emirates Environmental Excellence Program • Identify and integrate relevant 3.2 Environmental • Program improving added value in the global value chain of environmental goods local-level initiatives into the and services (EGS) Goods & programs • Safeguard policies for the emerging EGS sector Services • Promotion of EGS exports and capacity development • Develop a national-level initiative Program • Development of environmental standards that support the growth of the EGS sector on sustainable tourism and • Program for career matchmaking between graduates and demands in green hospitality industries • Green public procurement policy for the federal government
Conserving and nurturing ecosystems is Identifying the potential of Blue Carbon for mitigating climate change increasingly being considered as one of the most promising ways to reduce atmospheric carbon dioxide and limit global climate change. Recent studies have shown that coastal vegetation can sequester carbon far more effectively than terrestrial forests. These “blue carbon” ecosystems in the UAE are made up of mangrove forests, seagrass meadows, saltwater marshlands, algal mats, etc. The blue carbon ecosystems hold the largest carbon stocks found across the Arabian Peninsula. In addition to storing carbon, coastal wetlands provide a source of carbon and other Jamal Al Alawi nutrients that support avian and near-shore Preserving and improving mangrove swamps in the UAE would help mitigate global climate change food chains.
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The Abu Dhabi Global Environmental Data demonstrated significant differences in level During the governmental innovation lab Initiative (AGEDI) started in 2011 with a of sequestration and storage between areas. organized by the ministry in October 2014, the demonstration project to illustrate the potential The mean ecosystem carbon stock of the UAE Smart Map of Natural Capital initiative was of coastal ecosystems for carbon storage and mangroves are 389 tons carbon per hectare identified and adopted to further bridge the other benefits in the emirate. The second (tC/ha) in the Sea of Oman, 229 tC/ha in the gaps in knowledge and data on environmental phase of the project involved quantification of Northern and Eastern Emirates, and 140 tC/ and economic services of the country’s natural carbon stocks of 18 mangrove swamps across ha. Globally, mangrove carbon stocks have resources. During 2015, a national analysis the country – four in the Sea of Oman, six in been reported to be around 1,000 tC/ha. workshop was conducted with a range of the Arabian Gulf of the Northern and Eastern The carbon stocks of hyper-arid, hyper-saline stakeholders to identify the next steps to Emirates, and eight in the Emirate of Abu Dhabi mangroves of the UAE are thus at the lower implement this initiative. It was agreed that the end of carbon stocks. Nevertheless, given initiative should aim to incorporate the value – with support from an international team of that around 3,000 ha of mangrove swamps of natural capital into national accounting and coastal carbon experts. exist in the UAE, the effect of preserving and to support the implementation and long-term The National Blue Carbon Project outcome improving the precious coastal environment integration of the natural capital approach report launched by the then Ministry of to help mitigate climate change is highly into the decision-making of all governmental Environment and Water in October 2015 significant. departments.
Standards and labeling is one of the most Labeling schemes to support sustainable choices effective demand-side policy tools for improving quality and efficiency of products and services by driving consumers towards better, more responsible choices. The Emirates Authority for Standardization and Metrology (ESMA) has set authoritative national product standards adapted to local conditions. A mandatory water and energy efficiency rating and labeling system has been introduced on domestic appliances such as air conditioning units, washing machines and Sustainability labels developed in the UAE dryers, refrigerators, storage water heaters, and
UAE State of Green Economy Report - Second Edition 2016 91 water fixtures. At point of sale those products services in a similar manner as the European Responsibility (CSR) Label, which is a voluntary have a label showing how much water and/ Union (EU) Flower Label and German Blue standard that supports CSR implementation or electricity they consume in a year, together Angel. among UAE companies by providing a valuable with a star rating to show how efficient they At the local level, Abu Dhabi’s QCC developed framework to help participating entities review are. ESMA estimates this initiative is expected a Trustmark for Environmental Performance and benchmark their CSR policy and practices to save the government’s electricity subsidies which certifies products for compliance with themselves. In 2015, 63 companied, including of AED 400 million (USD 109 million) a year the UPC’s Estidama requirements in energy and four small and medium-sized enterprises from energy savings on air conditioners alone. water efficiency, toxicity, recycled contents, (SMEs), were awarded with the label. A total of 201 labels have been awarded since its launch ESMA also introduced an organic food etc. The Dubai Chamber of Commerce in 2010. certification scheme in 2012 that is applied and Industry developed a Corporate Social to both domestic and imported foodstuff. The certification comes with a logo by Committee on Clean Energy and Climate Change Adaptation which consumers can easily distinguish organic products from conventional ones. Members The Emirates Wildlife Society (EWS), a local conservation group in association with Coordinator Ministry of Energy WWF International, launched a fish labeling Ministry of Economy scheme under its Choose Wisely awareness Ministry of Foreign Affairs campaign in 2009. The labels carry red, orange Ministry of Climate Change and Environment or green tags depending on whether they Federal entities Federal Electricity and Water Authority are over-fished, rare or sustainably available Emirates Nuclear Energy Corporation in the country. Several supermarket chains Emirates Authority for Standardization and Metrology participate in this scheme, and some local Federal Competitiveness and Statistics Authority restaurants indicate the sustainability of fish on their menu. Furthermore, ESMA is Abu Dhabi Water and Electricity Authority Dubai Electricity and Water Authority currently planning to introduce the Emirates Local entities Sharjah Electricity and Water Authority Environmental Label scheme, which would Masdar be applied for a wide variety of products and
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Identified Green Agenda activities
Program Identified Activities 4.1 Integrated Power & • Integrated energy management strategy • Upgrading gas turbines in water desalination units Water Management • Integrated water management strategy • Reducing transmission loss in electricity networks Program • Promoting optimal design in power stations • Shams 1 project (Abu Dhabi) • Building energy efficiency standards 4.2 National Renewable • Mohammed bin Rashid Al Maktoum Solar Park (Dubai) • Programs promoting rooftop solar energy Energy Program • Water and electricity tariff review • Further dissemination of district cooling systems • Energy Data Management and Automation project • Identification and collection of economic and social data • Monitoring, reporting and verification (MRV) system on • Development of integrated electronic database on economic, 4.3 National Green GHG emissions social and environmental data Economy Data • National Communications on GHG emissions to UNFCCC • Further refinement and regular monitoring of Green KPIs Program • Periodic public reports on GHG emissions and other data • Green KPIs Dashboard • Identification and collection of environmental data • Regular compilation of UAE State of Green Economy Report
Identified gaps Mega solar projects lead the world • A nationally agreed target and roadmap for renewable energy deployment is needed • Strengthen coordination and institutional capacity to collect and provide information for building a national green economy database Mohammed bin Rashid Solar Park, Dubai (first phase: 13 MW)
Aiming to position itself as a global hub for nation’s carbon footprint, the UAE has been rapidly renewable energy and as part of its commitment expanding through its high-profile solar power to diversifying the energy mix and reducing the projects which are among the largest in the world.
UAE State of Green Economy Report - Second Edition 2016 93 In 2013, Masdar commenced operation of Shams 1, a 100 MW concentrated solar power (CSP) plant in the Western Region of Abu Dhabi. CSP generates electricity from the heat of the sun rather than sunlight as in PV technology. Working together with Total and Abengoa Solar for a total project cost of USD 600 million, this is one of the largest CSP plants in the world. Spread over an area of 2.5 square kilometers (km²), 768 parabolic troughs featuring 258,000 mirrors concentrate the heat from the sun into oil-filled central tubes. The collected heat in turn is used to produce steam, which powers a turbine and generates electricity. Shams 1 concentrated solar power plant, Abu Dhabi (100 MW) In December 2015, the Abu Dhabi Water and Electricity Authority (ADWEA) announced DEWA began developing the Mohammed bin produce enough electricity to power 30,000 a tender for a 350 MW PV project to be Rashid Al Maktoum Solar Park in 2012 in Seih homes. Over 20 consortia are running for the built in Sweihan, about 120 km east of the Al Dahal, around 50 km south of the city, with third phase of the 800 MW installation and the capital. The project will be structured as the first phase of a 13 megawatt (MW) PV plant. winner is expected to be announced in mid- an independent power project with a PPA, In January 2015, the second phase project was 2016. and the successful developer will own up won by Riyadh-based ACWA Power and TSK The Mohammed bin Rashid Solar Park was to 40% of a special-purpose vehicle (SPV), of Spain. Since their bid recorded the world’s originally planned for 1,000 MW solar energy in with ADWEA taking the remaining equity. lowest price at 5.6 US cents per kilowatt- 2030, but in November 2015 Dubai expanded This will be the authority’s first foray into hour (kWh), DEWA awarded the consortium its target to 5,000 MW for 2030 (making it the renewable energy beyond its eleven gas- the 200 MW project as part of the 25-year largest solar park on a single plot in the world), fired, independent water and power projects. power purchase agreement (PPA). This phase which will require about AED 50 billion (USD ADWEA is aiming to select a developer in is expected to be completed by 2017 and will 13.6 billion) in investment. 2016.
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the UAE’s INDC states that the future depends on Setting ambitious energy targets for tackling climate change investing in clean energy, and the transformation of the country’s energy mix is already well underway (see examples above). Under the Paris Agreement, the contributions from countries are to be registered by the UNFCCC Secretariat and should be reported every five years. In November 2015, prior to COP21, His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, launched the Dubai Clean Energy Strategy 2050, which consists of five main pillars: infrastructure; legislation; funding; building Presentation of the UAE’s INDC at COP21 in Paris capacities and skills; and having an environment- friendly energy mix. The strategy ultimately aims At the 21st session of the Conference of In October 2015, the UAE government formally to provide 75% of the emirate’s power through the Parties (COP21) to the United Nations submitted its INDC to UNFCCC, which consists clean energy sources by 2050, and set a medium- Framework Convention on Climate Change of a range of action plans. In this document, the term goal of energy mix at 25% from solar, 7% (UNFCCC) held in Paris in December 2015, government set its national target for significantly from nuclear, 7% from clean coal and 61% from 195 countries adopted the first-ever universal, increasing the proportion of electricity generation natural gas by 2030. Sheikh Mohammed declared: legally-binding global climate deal. The from clean energy sources to 24% by 2021 in line “Our goal is to become the city with the smallest agreement sets out a global action plan to put with the UAE Vision 2021 (see Chapter 7). The carbon footprint in the world by 2050.” the world on track to avoid climate change proposed action plans reflected the country’s Abu Dhabi also set a target of energy mix where by limiting global warming to well below 2°C. economic diversification strategy, as well as its at least 7% of power generation capacity should In preparation for COP21, countries have commitment to the transformation towards a be from renewable energy by 2020. Reflecting agreed to submit their Intended Nationally Green Economy under the UAE Green Agenda, these developments, a further refinement of Determined Contribution (INDC), which reinforcing its contributions to mitigating and the national-level strategy and targets for clean publicly outlines what post-2020 climate adapting to climate change. Although the country energy deployment is required, where this actions they intend to take under a new has depended heavily on hydrocarbons to drive committee is tasked to coordinate with federal international agreement. economic development over the past 40 years, and local stakeholders.
UAE State of Green Economy Report - Second Edition 2016 95 Committee on Green Life and Sustainable Use of Resources
Members
Coordinator Ministry of Energy Ministry of Climate Change and Environment Emirates Authority for Standardization and Metrology Identified gaps Federal Ministry of Infrastructure Development Federal Transport Authority – Land and Maritime No specific gap has entities • Federal Electricity and Water Authority been identified as Abu Dhabi Water and Electricity Authority Dubai Electricity and Water Authority ongoing initiatives Department of Transport – Abu Dhabi Sharjah Environment and Protected Areas Authority can address most Local entities Center of Waste Management (Tadweer) – Abu Dhabi Sharjah Electricity and Water Authority of the concerns in Dubai Municipality Sharjah Roads and Transport Authority these subject areas. Dubai Roads and Transport Authority
Identified Green Agenda activities
Program Identified Activities 5.1 National Energy & • National program on efficiency of water and electricity consumption • Demand-side water and energy management strategies and Water Efficiency • Monitoring system of water control equipment policies Program • Efficiency standards and labeling on dishwashers, water pumps, etc. • Smart metering and smart grid projects 5.2 National Waste- • Development of federal law on integrated waste management • Legislation on safe disposal of used batteries to-Resource • Special legislation on environmental requirements in landfills • Legislation on proper disposal of obsolete pesticides Program • Setting environmental requirements in waste-to-energy plants • Integrated waste management projects in the Northern Emirates • Integrated land transport plan for Abu Dhabi • Development of technical standards that support the • Low-emission zones in Abu Dhabi introduction of green vehicles 5.3 National • Consideration of alternative modes of transport in Dubai’s urban • Development of performance standards of vehicles Sustainable development • Promote responsible behavior and sustainability in road Transport • Introducing Intelligent Traffic Management Systems transport Program • Specification of fuel efficiency of cars and phasing out inefficient • Incentive schemes for the use of alternative fuels vehicles • Awareness campaigns on sustainable transport
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project of the Ministry of Presidential Affairs. There is no such thing as waste, only new resources The first phase addressed study and research on recommended criteria and standards of suitable technologies for this initiative, and looked into seven different waste-to-energy methods. Subsequently, the team considered the selection of suitable sites for the plants, taking into account spaces and logistics between the four emirates, as well as financing models. Al Qusais Landfill Gas Flaring and Power Project was commissioned by Green Energy Solutions & Sustainability LLC in cooperation with the Dubai Municipality in 2012. The Landfill gas capture and power generation facility in the Al Qusais landfill site, Dubai company designed and built a 22 km network of underground pipes through twelve Waste is increasingly being seen as an 160,000 tons of waste into energy annually collection stations for a flaring capacity of important environmental and health issue and help the emirate’s ambitious target for 6,000 normal meter cubed (Nm3) per hour for the UAE, as the majority currently ends diverting all waste from landfill (see Chapter 5). landfill gas (60% methane). The project is up in landfill. Extracting energy from waste is The facility uses a combination of gasification registered with UNFCCC as a large-scale now being viewed as one of the best ways to and pyrolysis systems, which produce gas as Clean Development Mechanism (CDM) tackle this problem while diversifying energy fuel, as well as steam to generate electricity project. The facility is using a portion of the sources. through 35 MW capacity turbines. gas to generate 1 MW electricity per hour The Sharjah Environment Company (Bee’ah) In February 2015, a national team led by to meet the landfill site’s energy needs. The is scheduled to soon start building a waste- the then Ministry of Environment and amount of gas currently captured by the to-energy facility, in its Waste Management Water was formed and tasked to study and project is enough to power a generator of 12 Centre in Al Saj’ah industrial area in Sharjah. implement a waste-to-energy initiative in MW capacity, and future expansion plans will The facility will have the capacity to convert the Northern Emirates. This is a leading boost that to 20 MW by 2020.
UAE State of Green Economy Report - Second Edition 2016 97 Neutral Fuels LLC, a Dubai-based venture, Dubai has run all of its school buses on 100% works with Dubai’s restaurants and hotels, biodiesel from waste cooking oil since 2013, including the world’s largest fast-food chain saving carbon emissions of 1,380 tons per year. McDonald’s, to convert the waste cooking In early 2015, the Dubai Municipality made a oil used in these outlets into European commitment to running its fleet on Neutral quality standard biodiesel. The factory in Fuels’ biodiesel. The company has recently Dubai produces fuel that now powers many taken steps to produce a liquid biofuel for generators, school buses, tourist buses, trucks furnaces and boilers while aiming to increase A demonstration of the system producing biodiesel and all the McDonald’s UAE fleet without biodiesel production for mass market vehicle from used cooking oil extra cost. The Gulf Indian High School of adoption in the country.
Having celebrated its tenth anniversary in Better access to public transport as green mobility alternatives November 2015, Dubai’s Roads and Transport Authority (RTA) is now leading the drive to serve a growing population with efficient, state- of-the-art public transport. Expecting over 25 million people visiting Expo 2020 Dubai, a 14.5 km extension of the Dubai Metro Red Line, a fully automated rail network that came into operation in 2009, will start in early 2016 to connect Nakheel Harbour & Tower station and the Expo site near Al Maktoum International Airport. Two more extensions have been approved on both Red and Green Lines, which are to be completed by 2020. The Green Line extension is planned to connect International City and Ras Al Khor. Following the successful introduction of the Dubai Metro, the Dubai Tram started operating Etihad Rail, which started transporting sulfur in Abu Dhabi’s Western Region in Dubai Marina and Jumeirah Beach areas
98 UAE State of Green Economy Report - Second Edition 2016 Activities Defined by Green Agenda Committees in late 2014, and the world’s first hydrogen- fuel cost of 30% and environmental benefits. form part of the GCC Railway Network, linking powered Dubai Trolley was introduced to spread Furthermore, RTA launched in July 2015 a smart the UAE with the other Gulf countries. the culture of sustainable transport for all. In application for its Sharekni carpooling scheme, Abu Dhabi city also has plans for a metro and its first phase, Dubai Trolley runs 1 km along while examining the implementation of a Smart light rail network to connect areas such as the Mohammed bin Rashid Boulevard, offering Rental (car sharing) initiative whereby cars Central Business District and Saadiyat Island. tourists and residents easy access to Dubai Mall, will be offered to ease the mobility of public Souq Al Bahar and several iconic hotels. The transport users to their final destinations. carriages are elegantly designed to complement During 2015, 539.5 million journeys – a daily the surrounding Emirati architectural features. average of nearly 1.5 million journeys – were The Dubai Trolley will eventually span 7 km made in Dubai through mass transit (including across the entire area of Downtown Dubai. taxis), a rise of more than 8 million from 2014. As part of Dubai Canal construction, RTA The use of the Dubai Metro has increased by started the development of twelve marine 8.7% to 178.6 million journeys. Overall, the share transport stations at the Business Bay Canal of public transport in the mobility of people and the Dubai Water Canal to improve mobility reached 15%, rising dramatically from less than options between the shores of the Dubai Creek 6% in 2006. RTA is now aiming to increase this and the two canals. share to 20% by 2020 and 30% by 2030. A green modernization of existing transport The first stage of a 1,200 km national railway modes is also ongoing. In May 2015, RTA network was completed in late 2014 in the tentatively started the operation of electric 264 km section linking the Shah and Habshan buses. Their batteries can be charged up to sour gas fields with the oil port of Ruwais in the 80% in less than 30 minutes, and a fully charged Western Region of Abu Dhabi. More than two battery enables the bus to run 200 km at a million tons of sulfur has been transported over speed of 100 km per hour. The bus network the past year during trial operations, equivalent will eventually expand with 700 state-of-the-art to more than 66,000 truck trips. The second stage electric buses, with zero emissions targeted at is a 628 km section, which connects Mussafah, the Expo site. A total of 200 hybrid taxies have Khalifa and Jebel Ali ports and extends along the been introduced in Dubai till date, as several coast to the Saudi border at Ghweifat. When Dubai Trolley, which links tourist attractions, operators recognize the value of their reduced fully completed, the Etihad Rail network will shopping malls and hotels in Downtown Dubai
UAE State of Green Economy Report - Second Edition 2016 99 From EGDC Members
Her Excellency Razan Khalifa Al Mubarak Secretary-General, Environment Agency – Abu Dhabi (EAD)
There is a growing realization that we need to In the UAE, we have started the decoupling process being supplied with more efficient vehicles. The decouple economic growth from resource by diversifying our energy mix into low-carbon, low- proposed legislation and standards would result in consumption, emissions of pollutants and generation emissions sources such as nuclear and renewables, around 400 million tons of carbon dioxide savings of waste, and that low-carbon development is a with the aim of generating 24% from these sources between 2017 and 2050. necessity. by 2021. In order to maximize the potential use of To accelerate the shift to a water-efficient economy This realization is being acted on globally and renewable energy, they should be accompanied EAD has developed a water budget approach. locally. During 2015, we saw the ratification of by demand-side measures to significantly increase Working with others we will define a volume of water the Sustainable Development Goals (SDGs) and efficiency. that can be supplied sustainably – economically a substantive climate change agreement resulting The UAE Lighting Standard approved in December and environmentally – into the economy, in effect from the Paris Conference. As part of the United 2013 is a great and pragmatic example of how this turning water into a limited resource. By doing so Nations-led climate negotiations, the UAE, through can be done. The standard for indoor lighting was we create the enabling conditions to accelerate its Intended Nationally Determined Contribution initiatives to drive efficiency, freeing up our existing developed as a result of effective collaboration (INDC), committed to expand its ambitious actions resources to make space for “smart growth”. to limit emissions and improve resilience through between government, regional regulators, civil economic diversification. Domestically we saw the society and the private sector. We are now looking We have made a good start towards green growth endorsement of the UAE Green Agenda 2015-2030 to build on this success by implementing a vehicle but it is now important that all sectors of the by the Cabinet and growing impetus to prepare the fuel economy policy targeting consumers and economy work in partnership to accelerate this country for a post-oil and gas economy. manufacturers, which will result in the UAE market change. Her Excellency Razan Khalifa Al Mubarak Secretary-General, Environment Agency – Abu Dhabi (EAD)
CHAPTER 5 GREEN ECONOMY INITIATIVES FROM THE SEVEN EMIRATES Green Economy Initiatives from the Seven Emirates
The UAE was formed as a constitutional foreign affairs, security and defense, education, the Emirates Green Development Council federation of seven emirates: Abu Dhabi, public health, communications services, etc. (EGDC) includes high-level representatives Dubai, Sharjah, Ajman, Umm Al Quwain, Ras Al Meanwhile, each emirate has kept a large from the seven emirates to harmonize strategic Khaimah, and Fujairah, which came together as degree of control over its internal affairs, having directions, encourage collaboration, and share one state on 2 December 1971 under the late its own separate institutions of government. knowledge and resources wherever appropriate. former president, His Highness Sheikh Zayed This chapter lists the initiatives of each emirate’s bin Sultan Al Nahyan.* Since the Federation Therefore, the engagement of and government that are or will be implemented as was established, the seven emirates have contributions from each emirate towards the part of the UAE Green Agenda, and highlights forged a single identity, as the Constitution implementation of the UAE Green Agenda the most prominent projects conducted mainly grants federal authorities explicit powers over 2015-2030 is highly critical to its success, and during 2015.
Abu Dhabi
List of relevant initiatives
Ongoing initiatives Planned initiatives • Pavement recycling, and use of • Rehabilitate and create reservoirs and • Research on carbon emissions • Design and install 6 wastewater gravel recycled from demolition pumping stations in Western Region from road projects treatment plants for and plastic nets (Geogrid) for road • Irrigation lines projects for the use • Build a system to measure slaughterhouses in Al Ain maintenance and rehabilitation of treated wastewater in Liwa and sustainability of road projects • Paperless Day in Al Ain • Western No Waste campaign Madinat Zayed • Green building for community • Sustainable procurement policy in • Afforestation Week • Installing irrigation systems, planting centers in Madinat Zayed Al Ain Municipality • Estidama green building projects windbreaks and walkways in Al Ain • Study and implement solutions • Promote tourism in the Ai Ain and eco-efficiency standards for • Energy efficiency project to high water table affecting the oases building materials • External air quality monitoring construction sector in Al Ain • Use of LED lighting in infrastructure project projects
* Ras Al Khaimah joined the Federation in February 1972.
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salinity native groundwater reserves in the Strategic water reserve using aquifer storage and recovery emirate and has a capacity of 22.7 million cubic meters (m3), which can be stored up to 100 years. The aquifer will be recharged with desalinated water and could supply 180 liters of water per capita for a period of 90 days in case of any emergency. Non-renewable groundwater makes up 64% of water use in the emirate, which has shown a rapid decline in groundwater levels and increase in salinity. EAD is therefore aiming to conserve the emirate’s groundwater resources through better planning, regulations and the promotion of responsible consumption. Strategic water reserve in Liwa, Abu Dhabi The most common cause of waterlogging, Despite the production of huge volumes of require plenty of land and be easily polluted as which occurs in more than 30 sites across the drinking water by desalination plants, secure water gets stagnant. emirate, is the seepage of excess irrigation water from farms or forests on highly elevated water supply is not guaranteed in the UAE, In 2016, the emirate’s first aquifer storage and areas. The agency is conducting temporary particularly if an emergency were to arise. A recovery facility will be completed at Liwa in works for draining the accumulated water and lack of storage facilities means that demand the Western Region of Abu Dhabi after more can only be met for short periods. Whereas than a decade since the project started at a establishing a permanent subsurface drainage Abu Dhabi relies on the continuous operation pilot scale. Commissioned by the Abu Dhabi system, which allows collecting and reusing of desalination plants for its potable water, the Water and Electricity Authority (ADWEA) this water for irrigation again. EAD is also city’s freshwater storage has been sufficient to and the Environment Agency – Abu Dhabi working on the improvement of groundwater last only for three days. There was an urgent (EAD), with the support from the German monitoring by establishing an expert team need to develop a very large and reliable Organization for International Cooperation and integrating monitoring networks and storage and reserve, but there was a concern (GIZ), the Liwa aquifer storage and recovery databases with those of the National Drilling that building ground storage reservoirs would was built on one of the few remaining low- Company.
UAE State of Green Economy Report - Second Edition 2016 103 encompasses all the revised and improved Sustainable street lighting project standards defined and approved under the Sustainable Public Lighting Project. Previously, the Municipality carried out the installation of LEDs in the Sheikh Zayed Tunnel, East Sector 48 and West Zone 33. Electricity consumption in the tunnel was reduced by 86% from the original proposal and Zone W33 reduced energy use by 62%. It also completed the replacement of all conventional decorative features and street lighting with LED fixtures on the Sheikh Zayed Bridge, where the overall consumption then dropped by 81%. Other installations replaced with LED include pedestrian tunnels and bridges. Application of LED lighting in Sheikh Zayed Tunnel, Abu Dhabi The Municipality indicates that the total economic gains by energy saving from those With an objective of reducing the cost of that a combination of modern LED lighting installations would reach as much as AED public lighting by 60-75% and reducing light systems and a further improvement in 3.28 million (USD 893,000) for the whole pollution rates by 60% over the next 20 street lighting design would now achieve emirate over 20 years. years, the Abu Dhabi Municipality launched annual saving of 88% in energy costs and a new Sustainable Public Lighting Project cut down the number of lighting devices in Furthermore, the Municipality prepared in 2015. A benchmark study was firstly the same street by a third, as compared to a 500-page Public Realm and Street commissioned to evaluate and compare the previous system. It is also estimated that Lighting Reference Handbook to support current marketplace light-emitting diode LED lights would decrease carbon emissions energy-efficient lighting design in the city, (LED) lighting solutions with traditional by about 75% and reduce the need for comprising detailed information about the lighting systems and to update the work maintenance by 70-90%. The new Abu Dhabi principles of lighting and technology and started under the Abu Dhabi Sustainable Lighting Manual – Issue 1 was compiled by technical aspects for the application in Lighting Strategy in 2010. The result showed the Department of Municipal Affairs and streets, buildings, parks and public squares.
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Dubai
List of relevant initiatives Ongoing initiatives Planned initiatives • Expansion of the Ambient Air • Environmental awareness summer • Integrated Ambient Air Strategy 2015- • Green industry manual and Quality and Noise Monitoring campaigns 2021 awards Network • Campaign for light bulb recycling and • Integrated management program for • Introduction of waste tipping • Development of the Environmental use of LEDs noise control fees Health Strategy • Promotion of solar panels and water • Integrated management plan for • Treated sewage water policy • Expansion of the Dubai Coastal heaters wildlife and sanctuaries • Sewage treatment methane Zone and Marine Water Quality • Certification of green materials and • Dubai Fisheries Research and gas to energy project Monitoring Network products Development Centre • Landfill gas to energy project • Development of the Dubai Wetland • Green buildings with green concrete • Groundwater metering and quality • Municipal solid waste to Centre at Ras Al Khor Sanctuary • Landfill gas recovery (methane gas monitoring network energy project • Groundwater permitting system capturing) • Groundwater injection projects • Municipal organic waste to • Dubai Car Free Day • Segregation at source and recycling • Environmental awareness programs on energy project center groundwater conservation
In March 2015, the Dubai Electricity and Water Shams Dubai initiative aiming for solar panels on all rooftops Authority (DEWA) started implementing the Shams Dubai initiative as one of its three Smart Dubai Initiatives. This initiative aims to encourage home and building owners to install solar photovoltaic (PV) panels to generate electricity by allowing them to connect with DEWA’s electricity grid. The PV owners are allowed to feed excess power generated from solar panels into the grid and this will be offset against the amount of energy purchased from DEWA. In the same month, a 30 kW solar array One of the largest single-rooftop PV arrays in the region at the Jebel Ali Power Station, Dubai at Al Maktoum International Airport became
UAE State of Green Economy Report - Second Edition 2016 105 the first installation to be connected to the grid In the Dubai Clean Energy Strategy 2050 connected it to the DEWA’s grid. A total of 5,240 under this scheme. The 100 PV panel system announced in November 2015, Dubai set an PV panels were installed on the 23,000 square is expected to generate about 50 megawatt- ambitious target of having solar panels on the meter roof of the water reservoir at M-Station, hours (MWh) of electricity every year. roofs of every building in the emirate by 2030. By which is the newest and largest power production the end of 2015, DEWA received more than 27 and desalination plant in the UAE. To ensure safety and quality of the installed applications to install PV systems in commercial PV systems, DEWA developed standards The modules will generate 2,666 megawatt- and residential buildings. and regulations that set the requirements hours (MWh) annually, which will meet the for equipment and tools, which include PV DEWA also recently inaugurated one of the station’s energy needs. The project aims to modules, inverters, and interface protection largest single rooftop arrays in the Middle East increase dependence on renewable energy and systems. DEWA also trains and approves and North Africa (MENA) region, a 1.5 megawatt reduce the carbon emissions from different consultants and contractors who can work direct current (MWdc) PV generation project operations at the station, with an annual carbon under this scheme. Based on this legislation, at Jebel Ali Power Station, and successfully dioxide emission reduction of about 1,600 tons. DEWA provides interested owners with the necessary steps to install PV systems and Mandatory use of sustainable concrete materials connect them to the grid. They firstly contact one of the consultants or contractors accredited by DEWA to study the feasibility of installing the solar system and suggest the best solution. The consultant or contractor then obtains the necessary approvals from DEWA. These include a non-objection certificate (NOC) for installing a solar system and connecting it to the grid, and approvals for the system design that meets all the requirements. After obtaining the necessary approvals, the consultant or contractor undertakes on-site work. After completing installation, they will submit a notification A demonstration of mixing green concrete held at the Dubai Municipality headquarters to DEWA so that it conducts the technical inspection of the site and installs the meter to In April 2015, the Dubai Municipality issued stakeholders in the emirate, including complete the connection process. a circular to require all construction sector consultancy offices, contracting companies,
106 UAE State of Green Economy Report - Second Edition 2016 Green Economy Initiatives from the Seven Emirates concrete factories and suppliers, to apply change as well as several diseases including by new OPC production. Furthermore, the eco-friendly, sustainable concrete materials in cancer. In the UAE, twelve cement companies are concrete to which GGBS or fly ash is added building construction. This circular is in line producing a total of 19 million tons of cement gives better properties than the OPC alone, with the UAE Green Agenda and also in support annually. This decision also mandates concrete and at the same time is less costly to make. of the strategic objectives of the Government manufacturers to use eco-friendly cementitious The other benefits include the extension of of Dubai to transform the emirate into a green, materials in manufacturing concrete, which building lifespan by up to 40%, higher strength low-carbon emirate, and the municipality’s are defined as Portland Cement containing a and workability, and more resistance to the plan to improve the quality of buildings. minimum of 36% of ground granulated blast deterioration effects of water, salt and sulfate. Overall, the municipality estimates that “green slag (GGBS) or fly ash. The production of each ton of Ordinary Portland concrete” can reduce the carbon footprint by Cement (OPC), one of the most common Since GGBS and fly ash are by-products of other up to 45% and save AED 192 billion (USD 52 construction materials, is estimated to emit 1.1 industrial processes, such as iron and steel billion) due to its extra durability, thus helping tons of carbon dioxide and 164 kilograms of making and coal combustion, their use reduces to create a more environmentally friendly dust into the air, contributing to global climate carbon and dust emissions normally generated urban environment.
Sharjah
List of relevant initiatives
Ongoing initiatives Planned initiatives
• Processing, treatment and recycling of medical • Construction and operation of a new tanker • Installation of Integrated Air Monitoring waste, construction and demolition waste, used discharge sewage treatment facility at Al Saja’a with a Stations at various strategic locations tires, etc. at the Waste Management Center in Al daily intake capacity of 30,000 m³ • Expansion of the Organic Waste Recycling Saja’a • Green building code implementation at government Facility to 300,000 tons annual intake • Around 100,000 tons of sewage sludge, grass construction projects capacity clippings, tree trimmings, branches and leaves, • Public-private partnership initiatives and incentives to • Expansion of Al Saja’a Tanker Discharge horse stable waste and camel manure, and encourage green investment Sewage Treatment Facility to 45,000 m3 daily expired foods composted annually at the Organic intake capacity Recycling Facility
UAE State of Green Economy Report - Second Edition 2016 107 Ongoing initiatives Planned initiatives
• Plantation of around 25,000 palm trees and a variety of indigenous and non-native trees, shrubs and herbs • Construction of a state-of-the-art waste-to- • Around 15 million m² of grass-carpeted area energy plant • Afforestation at the entrance of Khorfakkan (31.5 km²) • Increasing the number of public and • Establishment of Al Wasit Wetland Nature Reserve (4.5 km²), Sharjah Islamic Botanical Garden, Al Batayeh community parks, green belts and nature Nature Reserve (9.5 km²) and Al Dhaid Nature Reserve reserves • Use of 14,700 m3 of treated wastewater for landscaping in and around Sharjah City
Since 2012, the company has been introducing Approaching the zero-waste-to-landfill goal recyclable waste collection systems, along with a new tipping fee structure set in cooperation with the Sharjah City Municipality to incentivize waste reduction and to closely regulate landfill contents. It has established more than 1,700 three-stream recycling bins for residents to encourage the community to separate between paper, plastics and cans, and general waste. Tandeef, a waste collection division of Bee’ah, has distributed blue recycling bins and totes among over 4,500 offices, and introduced a range of unique services. The Bee’ah’s Material Recovery Facility, Sharjah “You Call, We Haul” free service comes to pick up bulky waste such as furniture and appliances. Sharjah set up a municipal waste management Ruler of Sharjah, to be the leading environmental Bee’ah also provides services for safely destroying company Bee’ah (the Arabic word for city in the Middle East. To attain this goal, and recycling confidential data and documents. environment) in 2007 in the form of a public- Bee’ah developed a state-of-the-art Waste The recovery rate or the diversion rate of waste private partnership. In 2011, the emirate Management Centre, one of the world’s largest in Sharjah has steadily risen from around 53% in announced an ambitious plan for “Zero Waste waste management plants to process and recycle 2012 to 70% in 2015, as waste has been recycled to Landfill” in line with the vision of His Highness different materials including construction waste, or recovered. The emirate is set to become the Dr. Sheikh Sultan bin Mohammed Al Qasimi, medical waste, used vehicles, used tires, metal first Arab city to divert 100% of its waste from Member of the Federal Supreme Council and waste, e-waste and organic waste. landfill within the next few years.
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Ajman
List of relevant initiatives
Ongoing initiatives Planned initiatives
• Using treated wastewater for landscaping, construction and cooling in industrial plants • Modern medical waste incinerator project • Solar restaurant and workers’ camp projects • Development of a waste sorting facility with a capacity of 700 • Air quality self-monitoring system for industries with emissions detection stations (five tons per day stations were placed) • Placed six seawater quality monitoring stations • Establish Al Zawraa Protected Area
As the number of residents suffering from Opening new parks for a healthy life health problems such as diabetes is increasing, the Ajman Government places priority on providing environmental and recreational space and clean air as a strategy to achieve a healthy and sustainable environment. Four new parks were opened during 2015 or will be opened soon, adding much-needed green space to the UAE’s smallest emirate and encouraging residents to lead a healthier life. In the Al Jurf area of the emirate, the 2,100 m2 Flag Park was opened in 2015, featuring a 122 m UAE national flag. The Al Safia Park in Mushairif overlooks the creek and is spread over 129,000 m2, with a play zone for children, Al Safia Park opened in 2015, Ajman barbecue area, a 1,800 m running track, 500
UAE State of Green Economy Report - Second Edition 2016 109 palm trees and bicycles for hire. Local palm designed to resemble the rugged landscape of outdoor gym. With a development budget of trees were selected by His Highness Sheikh this inland area. AED 5 million (USD 1.4 million), the Ajman Humaid bin Rashid Al Nuaimi, Member of A 40,000 m2 sports park will also open in early Municipality aims to get residents fit and the Federal Supreme Council and Ruler of 2016, which will have stadiums for football, encourage more visitors to the city while Ajman, to provide shade for visitors. A third volleyball and basketball, a play area for making the emirate greener, as the park will park is being developed in the tiny enclave of children, a dedicated area for adults, cycling also be dedicated to a number of trees and Masfout. This is the area’s first park and was track, a rubber track for jogging, and an green spaces.
Umm Al Quwain
Aquaculture has long been considered in the A fish hatchery opened to enhance marine resources country as a viable option to complement the decline in fish stocks, but lack of investment and lack of locally available raw materials such as fingerlings and feed, which had to be imported, have been significant barriers. The Sheikh Khalifa Marine Research Centre Hatchery is being built in Umm Al Quwain as part of President Sheikh Khalifa’s initiatives with a grant of AED 75 million (USD 20 million). It aims to enhance fish stock, conduct aquaculture research to develop the flagship Sheikh Khalifa Marine Research Centre Hatchery, Umm Al Quwain species of the UAE, and provide the essentials required to develop a sustainable aquaculture Over-exploitation of marine resources and and Agriculture Organization (FAO) in 1978 industry in the country. The Centre will be deterioration of marine ecosystems are among and a GCC survey from 2008 to 2011 showed composed of a number of state-of-the-art the challenges the UAE is facing to ensure food that the demersal fish stocks in UAE territorial components including marine fish hatchery, 14 and environmental security. A comparison waters overlooking the Arabian Gulf and the Sea complex labs and a multi-purpose center. Early between a study by the United Nations Food of Oman dropped by 88% and 94% respectively. in 2015, the first phase of the hatchery was
110 UAE State of Green Economy Report - Second Edition 2016 Green Economy Initiatives from the Seven Emirates completed and toured by His Highness Sheikh The hatchery was built with the latest indoor to produce 10 million fingerings. It focuses on Mansour bin Zayed Al Nahyan, Deputy Prime recirculating aquaculture systems (RAS), the raising local commercial fish species such as Minister and Minister of Presidential Affairs. first of its kind in the region with a capacity hammour (grouper), subaiti, sheim and gabbit.
Ras Al Khaimah
List of relevant initiatives Ongoing initiatives Planned initiatives • Food waste separation in hotels and large food establishments • A landfill gas to electricity project • Upgrade the material recovery facility • A construction and demolition waste recycling plant • Waste separation program at schools • Study anaerobic digesters for food waste and sludge • Al Hamra Village Full Source Separation Program • Source separation of wastes throughout Ras Al Khaimah city • Bulky waste collection program for donating to charities • Dump site rehabilitation
In August 2015, Utico Middle East, the GCC’s Building the most efficient desalination plant largest private utility provider and a subsidiary of Abu Dhabi-based Ghantoot Group, and Spanish energy firm Grupo Cobra, announced their joint venture partnership to construct an AED 719 million (USD 196 million) water desalination plant in Ras Al Khaimah. The joint venture, named Al Hamra Water Company, will oversee the development of the world’s largest privately financed independent desalination plant. The facility will be located in the Al Hamra Jazeerah area of Ras Al Khaimah. This will be a state-of-the-art facility that is Signing the deal to establish a joint venture for an efficient desalination plant in Ras Al Khaimah technologically advanced and having one of the
UAE State of Green Economy Report - Second Edition 2016 111 lowest power consumption levels in the region. 100,000 m3 of water per day, most of which will It is the first desalination plant in the region Water re-use through the facility will save at be directly supplied to the Federal Electricity and to be independently financed, which will be least 33,280 tons of carbon dioxide emissions Water Authority (FEWA) that supplies electricity 80% debt financed and 20% liquidity. The per year. Furthermore, a tender has been issued and water to Ras Al Khaimah, Ajman, Umm Al project is expected to create 300 jobs during to supply solar panels to the facility. Quwain, Fujairah and some east coast cities. the construction phase and 80 permanent The plant is to start supplying water by June This is also one of the largest foreign direct positions once operational. About 20-25% of 2017 and to become fully operational in 2018. investments in the UAE in recent times and the these jobs will be offered to Emirati nationals The Al Hamra Water Company will generate largest in an infrastructure project of its kind. after training them for a year.
Fujairah
List of relevant initiatives
Ongoing initiatives Planned initiatives
• Construction and operation of a material • Thermal treatment and co-processing of industrial • Waste-to-energy plant to convert recovery facility (MRF) for municipal solid and hazardous wastes in cement factories municipal solid waste into energy under waste with a capacity of 500 tons per day to • Intensive awareness program on e-waste the supervision of MOCCAE cover Fujairah City and its suburbs management and safe disposal • Rehabilitation of old landfills under the • A similar MRF is being constructed in Dibba • Operation of Al Hayel Sewage Treatment Plant to supervision of MOCCAE • Seven unregulated dumpsites have been cover the areas not connected to the main sewage • Construction and demolition waste closed. treatment plant treatment project • Launching the Segregation at Source • Building 35 eco-friendly residential units • Construction and operation of sewage Initiative applied for local and federal entities, • LED street lighting treatment plants for remote areas educational institutions and business centers • Promoting solar water heaters • Waste transfer stations for transporting • Supporting recycling of used oil, plastics, from remote landfills to the main landfill in • Rehabilitation of Wadi Al Wuraiah rubber, etc. Al Hayel • Al Hilal Real State City Project • Medical waste incinerator • Development of Mohammed bin Zayed • Sheikh Zayed Mosque City as per sustainability standards
112 UAE State of Green Economy Report - Second Edition 2016 Green Economy Initiatives from the Seven Emirates
Targeting government agencies, factories Fujairah initiative for environmental sustainability and companies, schools, and hotels and resorts in the emirate, a comprehensive field assessment of environmental practices of the participating entities is conducted by the assigned team of the municipality. Those nominated for the best environmental practices are awarded with trophies and certificates. The initiative is expected to help raise awareness of good environmental practices and their applicability to business of companies and entities. It would also help develop green partnerships between all sectors of society and promote the role of social responsibility in protecting the environment and improving sustainability. Launch of the Fujairah Environmental Sustainability Initiative and its logo Seeking a better quality of life for residents, Fujairah is currently developing the Fujairah Rooted in its rich natural and cultural heritage, principles of Green Economy and sustainable Strategic Master Plan 2040 based on the Fujairah is aiming to develop a highly livable, development through the application of good principles of Green Economy and sustainable sustainable community of skilled and engaged environmental work practices. It is a program development. Given its strategic location citizens working hand in hand to build a to assess the participating entities on eight responsible and thriving economy in a changing sustainability aspects including environmental facing the Indian Ocean, the emirate is also climate. The Fujairah Municipality launched management system, water, energy, waste, working to consolidate its position in key the Fujairah Environmental Sustainability social responsibility, work environment, sectors such as trade, oil bunkering, and eco- Initiative in 2014 to encourage all enterprises optimal utilization of resources, and use of tourism. and institutions in the emirate to adopt the smart information technology.
UAE State of Green Economy Report - Second Edition 2016 113 From EGDC Members
His Excellency Ahmad Buti Al Muhairbi Secretary General, Dubai Supreme Council of Energy (DSCE)
Within a very short time span, the Emirate of Dubai has our terms are attractive and fair. This marked a turning We also see considerable potential for growth in the leapfrogged towards a greener economy by pioneering point in the journey to diversify Dubai’s energy mix and alternative transportation sector. Dubai has already several sustainability and clean energy initiatives in the demonstrated the value proposition of strategic public- taken bold steps towards introducing hybrid and electric region and the world. Based on the current achievements private partnerships for risk management, knowledge vehicles in the emirate. DEWA has completed the first on the ground, coupled with the national and local plans transfer and job creation. Last year, Dubai’s name made phase of installing 100 electric charging stations across such as the UAE Vision 2021, Dubai Plan 2021 and Dubai global headlines when it achieved the cheapest solar PV Dubai. Meanwhile, DSCE has engaged with relevant Integrated Energy Strategy 2030, we envisage significant generated electricity and added 200 MW of solar PV to members to roll out the first phase of theGreen Mobility opportunities for greater investment across the UAE and its installed capacity mix. Initiative targeting government entities, thus leading by Dubai, spanning the economic, environment and social Another aspect of our approach to Green Economy is to example. This first-of-its-kind initiative in the region will aspects of the Green Economy spectrum. engage our citizens and residents to participate in this contribute to lower carbon emissions in Dubai from road A critical underpinning of our ability to achieve our journey. In Dubai, people can now install solar panels transportation, and help achieve the objective of the targets and implement our long-term plans successfully on their buildings and generate electricity while being Dubai Carbon Abatement Strategy 2021. has always been the solid support and commitment of connected to the power grid of the Dubai Electricity and When considering the Green Economy, waste our leadership. His Highness Sheikh Mohammed bin Water Authority (DEWA). We consider this a significant management becomes an integral part. In Dubai, we are Rashid Al Maktoum, Vice President and Prime Minister development that has transformed consumers into working with the Dubai Municipality and other players of the UAE and Ruler of Dubai, has recently announced active producers and created a wealth of opportunities to facilitate waste-to-energy projects that alleviate the the Dubai Clean Energy Strategy 2050, which pledged for SMEs and industry players. amount of waste dumped in landfills. significant investments in renewable and clean energy While we focus on energy supply, we also have brought The time is right: declining technology costs, the need to diversity fuel sources and support the fast economic innovation to the demand-side area. Dubai’s Demand to de-carbonize energy to address climate change, new growth of Dubai. Side Management (DSM) Strategy 2030 has achieved benchmarks and examples of success on the ground, Attracting the private sector is also a major component considerable savings exceeding the target in both and available investment have created a momentum of of our roadmap towards a Green Economy. We worked electricity and water consumption (1.9 TWh and 3.5 opportunity that has been seized in our country. side-by-side with relevant stakeholders to develop and billion imperial gallons or 15.9 million m3 in 2014). The In partnership with the Emirates Green Development implement the enabling policy frameworks, as well as DSM Strategy spurred innovation on many levels, such as Council and other stakeholders, we are actively accountability and good governance to incentivize the introducing new business models for energy contracting demonstrating the “many partners, one goal” approach. private sector to invest in renewable energy solutions. We services to retrofit buildings through the creation of a We look forward to continuing this fruitful partnership designed a robust regulatory framework and made sure Super ESCO, Etihad Energy Services. for generations to come ! His Excellency Ahmad Buti Al Muhairbi Secretary General, Dubai Supreme Council of Energy (DSCE)
CHAPTER 6 STATE OF GREEN FINANCE IN THE UAE State of Green Finance in the UAE
The macroeconomic scenarios examined in In October 2016, the Ministry of Climate the development of the UAE Green Agenda Change and Environment (MOCCAE) will 2015-2030 require the investment of 1-2% of host the Global Roundtable of the United gross domestic product (GDP) in greening Nations Environment Programme Finance the economy for the next 15 years.* Attracting Initiative (UNEP FI), under the patronage private sector finance and investment is of His Highness Sheikh Hamdan bin ultimately a decisive factor for the success in Mohammed bin Rashid Al Maktoum, Crown the UAE’s Green Economy transformation, as Prince of Dubai and Chairman of the Dubai it allows the country to raise a massive level Executive Council, as part of the country’s of investment. Despite the wide availability of contributions to global efforts to realize a country was strongly recognized as the first Green Economy. At this high-profile global green technology solutions and the willingness step to global engagement. Such an overview gathering, the UAE aims to showcase best of both government and citizens for taking was also deemed necessary as a baseline practices in green finance while stimulating green action, most of the pioneering green for attracting the attention of the financial the country’s financial sector towards projects in the UAE have been led and funded sector to the UAE Green Agenda. This investment in green projects and innovating by the public sector. Limited private-sector chapter hence outlines the UAE financial green finance products and services. participation in green finance and investment sector’s readiness, current practices and has been considered as the major challenge Working with UNEP FI for the preparation challenges in green finance, based on the to materialize economic and employment of this event, the need for a comprehensive analysis and extracts of a questionnaire opportunities from greening the UAE economy. overview of green finance practices in the survey conducted by MOCCAE during 2015.
Outline of the Survey
Against this backdrop, an online survey was below). It was circulated among 455 financial Securities and Commodities Authority (SCA) jointly developed by MOCCAE, the Central institutions operating in the country during and the Dubai Financial Services Authority Bank of the UAE and UNEP FI, consisting the summer of 2015, in cooperation with the (DFSA). of four sections and 17 questions (see box Central Bank, the Insurance Authority, the
* For details, see the UAE State of Green Economy Report 2014.
116 UAE State of Green Economy Report - Second Edition 2016 State of Green Finance in the UAE
Survey questions (abridged)
Section 1: Details of you and your institution Q8: Which type(s) of green finance products/services is your institution planning to introduce in the UAE in the near future? Country of headquarters • Q9: How many projects and how much has your institution invested in green projects Type of institution • through the above products/services offered in the UAE? [Total; Sectoral] • Geographical coverage of operations Q10: What are the criteria of defining green projects and making decisions to invest in • Total assets/portfolio assets/gross premiums written [Global; UAE] those projects? • Is the institution regulated by the UAE authorities? • Does your institution offer any Islamic financial products and services? Section 4: Challenges & expectations of green finance Section 2: General engagement in green finance Q11: What are the reasons for adopting (or planning to adopt) green finance practices? Q1: To what extent are environmental issues affecting your institution’s business risks? Q12: Roughly, what is the success rate of the green projects/companies that your institution has already invested in? Q2: Which environmental issues and policies are largely (positively or negatively) affecting or going to affect your business? Q13: How much has your institution benefitted from the implementation of green finance practices through cost savings, additional revenues, increased share values, Q3: Does your institution incorporate environmental and social sustainability elements in its vision and strategy? etc.? Please provide by a rough estimate of monetized values or a share in total profits benefits. What types of benefits? Q4: Are environmental, social and governance (ESG) factors integrated into your institution’s business decision-making processes? Q14: What are the main barriers/challenges for implementing green finance practices in your institution? Q5: Does your institution regularly publish any non-financial reports? Q15: Do you think that in five years there will be more emphasis on ESG issue in the UAE Q6: Is your institution a signatory or member of the global initiatives related to sustainable development and green finance? financial sector than today? Q16: Do you think that the rise of Islamic finance provides more opportunities to Section 3: Current status on green finance develop green finance products and services and to invest in green projects? Q17: What type of support or facilitation from the government is most required to grow Q7: Which type(s) of green finance products/services does your institution currently offer in the UAE and outside the UAE? green finance practices in the UAE?
A total of 79 institutions replied back within Oman, Qatar and Saudi Arabia. Of the total, were established in 2000 or later) among the the deadline (response rate: 17.4%). Among 45 institutions (57.0%) operate only within respondents, older institutions established them, 60 (75.9%) locate their headquarters in the country, while most of the rest also cover earlier than 1980 also constitute nearly one- the UAE and seven (8.9%) in other countries the GCC (35.4%) as well as diverse regions third (31.6%). in the Cooperation Council for the Arab around the world. Whereas relatively new Over one-third (35.4%) of the respondents are States of the Gulf (GCC) – i.e. Bahrain, Kuwait, establishments are more prominent (40.5% categorized as commercial banks, followed by
UAE State of Green Economy Report - Second Edition 2016 117 financial and monetary intermediary (mostly “portfolio assets” in investment firms and “any of the financial institution’s practices money exchange and transfer agencies), “gross premiums written” in insurance supporting and facilitating sustainable financial investment company, and property companies) amounting to AED 2,915 billion development – whether it is for projects, and liability insurance (see figure below). (USD 787 billion), which exceeds the total businesses, industry, organizations, or Notably, 28 out of the 48 banks operating gross assets of UAE banks (AED 2,474 billion general events and campaigns”. The actual in the UAE (58.3%) responded. Three- or USD 674 billion as of December 2015). identification of such practices was left to quarters (74.7%) of the respondents are Thus, this survey can represent a reasonably the respondents so as to understand and under regulation of the Central Bank, 31.6% good sample of the entire UAE financial bridge gaps between government and the under SCA, and 19.0% under the Insurance sector’s activities. private sector in the efforts towards a Green Authority. Since no universal definition of green or Economy. The aggregated domestic assets of the 79 sustainable finance exists to date, the The respondents did not come up with any respondent institutions (technically called questionnaire generally referred it to as common definition or standards but provided diverse criteria from general environmental No. of respondents 0 5 10 15 20 25 30 benefits to specific technologies or impact reduction measures, while others emphasized 28 Commercial bank taking into account the balance between Financial and monetary intermediary 13 economic and environmental benefits. Financial investment company 12 Interestingly, a few passively replied that green projects are defined by government or clients, Property and liability insurance 10 reflecting the fact that most of such projects Finance company 8 are currently arranged by the public sector and Life assurance and operations of fund formation 7 that the role of financial institutions tends to be Investment bank 6 limited to arranging loans for the contractors Sovereign wealth fund/ (see figure below). Government-owned 4 Takaful insurance 3
ESCO/Yield Co 3 ESCO = energy service company
Types of respondent institutions (multiple answers)
118 UAE State of Green Economy Report - Second Edition 2016 State of Green Finance in the UAE
Among the 28 types of products and services Projects having positive that the questionnaire listed to help the impact on the environment Paperless transactions and use of respondents answer, “green transactions” eco-friendly materials – a way to save material and energy use, e.g. Projects focusing on renewable Projects having potential for reducing paperless statements, online and mobile electricity and water consumption energy and clean technologies Technologies permitting significant banking, and debit and credit cards made GHG reduction, efficiency in from plant-based or recycled plastics material transportation and buildings, waste management, and carbon – are overwhelmingly the most popular form “We are a triple bottom line offset by reforestation of green finance. Overall, 16 types of products company. We think about the impact or avoided deforestation we have on our staff and the wider and services have been adopted by at least one community in everything we do as Projects at least institution to date. Meanwhile, the products we consider everyone’s not harming the environment that are supposed to have a substantive impact wellbeing.” and profitable to investors Projects that save natural resources, with for enabling a Green Economy such as green positive to zero net present value (NPV) project finance, green loans and green bonds, Projects are defined Select ventures that offer reasonable seem to be still at an early stage of adoption by public authorities, certainty in a stable regulatory environ- while we only sanction their loan ment for 3-5 years (see figure below). Projects are determined by clients though we give them advice Only 32 institutions (40.5%) answered that Projects of environmental they are planning to introduce additional benefits supported products and services in green finance in the by government near future, which were fewer than those Respondent insitutions’ criteria of defining green finance and who already have at least one product or making decisions to invest in green project (excerpts) service. To date, the total amount of green investment Current Practices of Green Finance is estimated to exceed AED 80 billion (USD 22 billion) including the nuclear energy projects The survey also asked whether and which UAE. Nearly half (38 institutions) already ongoing in the Western Region of Abu Dhabi. green finance products and services the provide a green finance product or service Nearly a quarter of the respondents (18 respondent institutions provide in the to date. institutions) from the banking and investment
UAE State of Green Economy Report - Second Edition 2016 119 sectors have invested in green projects GDP in 2014. The rest were invested in 27 Counting only the investment in which from their assets. Two-thirds of this green overseas projects. More green investment sector breakdowns were provided, half of the investment went to 75 domestic projects, would also have been made that this survey domestic green investment went to the water which amounted to 0.27% of the country’s could not capture. and electricity sector, such as efficiency and
No. of respondents renewable energy projects. The transport and 0 10 20 30 logistics sector received 29%, followed by oil and gas (14%) and buildings and construction Green transactions 38% (4%) (see figure below). Green project finance 8% The survey included an open-ended question Energy performance contracts 5% about the rough estimate of the benefits that Green accounts 4% the respondent institutions have gained from Green auto loan 3% the implementation of green finance practices, Green personal loans for example through cost savings, additional revenues and increased share values. The Green bonds/sukuk answers were diverse – starting from negligible Private equity to as much as USD 20 million and 2% of total Green building loans 1% profits, while others answered by the amount of paper and energy saved by green measures Green micro-finance (see figure below). If the entire UAE banking Green credit lines sector gained 2% of total profits from green SRI funds finance, the total benefits would amount to Impact investment AED 780 million (USD 210 million) a year.
Energy savings insurance The survey also asked the success rate of green projects in which the respondent institutions DBFO/BOOT contracts DBFO = design - build - finance - operate have invested, although the definition and degree Risk-sharing facilities BOOT = build - own - operate - transfer of success is inevitably subjective. The rates were Types of green finance products/services provided in the UAE equally spread from very highly successful to low, by respondent institutions (multiple answers) their median being a little over 50%.
120 UAE State of Green Economy Report - Second Edition 2016 State of Green Finance in the UAE
Conservation 1% $20 million Respondent insitutions’ estimated benefits Other sectors 2% $150,000 from green finance practices (excerpts) Construction 4% $2 million per annum Significant cost savings Water & Electricity AED 15,000 per month of paper and storage 50% Oil & Gas Saved over AED 3 million per year 14% 6,186 million sheets of paper saved in 2014 Gained more customers and Transport transactions 29% Cannot be quantified Currently very low as market is not prepared for green 2% of profit finance 1.5% of profit Respondent institutions’ green investment by sector
Driving Force Behind Greening the Financial Sector
What is the driving force behind the increasing Such attitudes are clearly demonstrated by social responsibility (CSR) reports as stand- number of UAE financial institutions the systematic integration of sustainability alone or integrated into annual financial introducing green finance products and into their regular operations and procedures. reports. services and investing in green projects? The 24 institutions (30.4%) replied that they Albeit still a minority, twelve institutions survey generally showed that respondents’ systematically integrate environmental, positive attitudes to sustainability have already social and governance (ESG) factors into (15.2%) take part in one or more of the leading been well nurtured. Among the respondents, their business decision-making processes, global initiatives that promote green finance 25 institutions (31.6%) replied that they such as due diligence, investment analysis, and accountability, such as CDP (formerly the already incorporate environmental and social risk assessment and management (see figure Carbon Disclosure Project), Global Reporting sustainability elements into their overall visions below). 25 institutions (31.6%) regularly Initiative (GRI), UNEP FI and the UN Global or strategies, and additional 33 institutions publish their non-financial performance – Compact. Also among the respondents were a (41.8%) are planning to do so in the near future. environmental, sustainability, or corporate few signatories to the Equator Principles, UN
UAE State of Green Economy Report - Second Edition 2016 121 Yes, above a weather events would be affecting or going CSR came to the top of the reasons for adopting threshold 1% to affect their business. The second most or planning to adopt green finance practices Yes, systematically affecting issue is energy security (38.0%), among the respondent institutions (45.6%), 30% No, no plan followed by government policies such as while concerns about reputation and brand 18% environmental standards and certificates (38.0%) was also among the most significant Yes, for specific sectors 17% (31.6%) and charges and subsidies (22.8%). factors. At the same time, many institutions No, but planning Those institutions seem to be less concerned seem to believe that green finance makes 34% with domestic environmental issues such business sense, as cost savings and efficiency as pollution, water scarcity and biodiversity was chosen as the second most popular reason loss, and potential liabilities for causing (44.3%), and competitive advantage (29.1%) Integration of ESG in respondent negative impact to the environment (see and profitability (25.3%) were also considered institutions’ decision-making process figure below). highly important (see figure below). As a
Principles for Responsible Investment, UNEP No. of respondents FI Principles for Sustainable Insurance, and UN 0 5 10 15 20 25 30 35 Sustainable Stock Exchange Initiative. Climage change & extreme 41% weather events Despite the fact that many institutions Energy security 38% showed positive attitudes towards Environmental standards & 32% sustainability, environmental factors have certificates Environmental charges & 23% not been felt as a material risk to their own subsidies business yet. Only 19.0% answered that the Food safety & security 20% impact of environmental issues is “very high” Pollution - air, soil and water or “high”, whereas 36.7% answered “low” Water scarcity & management and 21.5% even said “little” impact on their Natural resource depletion & business. biodiversity loss 18% On the other hand, when respondents were Environmental liabilities 14% asked to share what they felt the impacts of Environmental disclosure requirements 13% specific issues and policies would be, 40.5% replied that climate change and extreme Environmental issues/policies affecting or going to affect respondent institutions (multiple answers)
122 UAE State of Green Economy Report - Second Edition 2016 State of Green Finance in the UAE future prospect of green finance, the majority No. of respondents of institutions (70.9%) agree that ESG issues 0 5 10 15 20 25 30 35 40 will be even more emphasized in the country’s CSR 46% financial sector in the next five years. Cost savings and efficiency 44% Reputation and brand 38% As interest in Islamic finance is rapidly growing Competitive advantage 29% not only in the Arab region but across the Profitability 25% world, Islamic banks have been thriving in the Diversification of products 19% UAE in the last few years. The Central Bank of Stakeholder relations the UAE has issued an Islamic banking license Risk management 16% to eight banks to date. By the end of 2015, their Policy incentives and pressures share in total banking assets reached 19.0%, and Industry trend 13% their financing reached AED 307 billion (USD Access to capital 11% 83.6 billion), 22.2% of the domestic credit. The Employee motivation 10% survey identifies far more institutions than the Reasons of respondent institutions for adopting or planning to adopt green finance (multiple answers) licensed Islamic banks – 37 institutions (46.8%)
– provide a range of Islamic finance products. No. of respondents 24.1% have Islamic banking, 19.0% arrange 0 5 10 15 20 25 30 35 40 45 sukuks (Islamic bonds), 17.7% offer Shariah Islamic banking 24% investment funds, and 8.9% have takaful (Islamic insurance) and/or re-takaful (Islamic Sukuk 19% re-insurance) (see figure right). Shariah investment funds 18% In relation to green finance, 46.8% consider that Takaful/re-takaful 9% the rise of Islamic finance will provide more Shariah-based commodity trade 5% opportunities to develop green finance products platform Shariah indices 4% and services or to invest in green projects. On the other hand, a substantial number of institutions Islamic micro-finance 3% (43.0%) also answered that they were not sure No offer 53% about such a prospect, and the view over Islamic finance seems to be divided. Islamic finance products offered by respondent institutions (multiple answers)
UAE State of Green Economy Report - Second Edition 2016 123 Challenges and Enabling Policies for Green Finance
The practices of green finance are still at an No. of respondents embryonic stage among UAE institutions, 0 5 10 15 20 25 as they face diverse barriers and challenges Enforcement is not adequate 29% to starting it up and integrating it into their Sector risk is high 24% regular operations. The survey questioned the most significant barriers and challenges, Payback period is too long 22% which included macroeconomic situations, Profitable projects are lacking 20% generic conditions surrounding green finance, Case is unclear 18% transactional issues and public support. Data is not available The highest number of institutions (29.1%) MRV is not standardized 16% had reported that the lack of adequate enforcement of policies and regulations had Technology risk is high 14% caused difficulty in introducing green finance Counterparty risk is high 13% in the UAE. Their proper implementation is Client confidence in low 11% critical to give clear incentives for industry to take greener actions and invest in greener Transaction cost is too high solutions by penalizing non-compliers and Economic outlook is unfavourable 10% continuously raising the bar on standards. Price outlook is not favourable 10% This was followed by the factors more directly Policies are not favourable 8% impacting their bottom line, including high risk of green sectors (24.1%), long payback Knowledge is lacking 5% period and lack of long-term finance (21.5%), Policies are unstable 4% lack of profitability (20.3%) and lack of clarity Leadership is lacking 1% in benefits (17.7%). Lack of data (17.7%) and standard methodology for measurement, Barriers and challenges to implementing green finance among respondent institutions (multiple answers) reporting and verification (MRV) (16.5%)
124 UAE State of Green Economy Report - Second Edition 2016 State of Green Finance in the UAE were also considered as important barriers, No. of respondents 0 5 10 15 20 25 30 35 since they affect decision-making such as due diligence and risk assessment (see figure Guidelines/standards 43% above). Policy coherence/coodination 41%
To conclude the survey, its final question asked Subsidies, loans, etc. what type of support or facilitation from National targets/roadmaps 37% the government is most required to scale up and accelerate green finance practices in the Awareness raising 33% country. Practical and direct support was the Green funds/bonds 32% top answer, including guidelines and on green finance (43.0%) and grants, subsidies, loans and Database 18% interest discounts (40.5%). Many respondents R&D and innovation also requested improved policy coherence Quality assurance on projects 16% and government coordination (40.5%) as well as the establishment of national targets PPP promotion and roadmaps to disseminate green finance Knowledge transfer 15% (36.7%). Risk guarantee 14% These were followed by awareness raising and Research on green finance 13% information dissemination (32.9%) and the establishment of governmental green funds Fiscal policy 11% and bonds (31.6%). In contrast, only a small Capacity building number of institutions showed interest in government intervention through market Disclosure requirement 10% mechanisms, or “getting prices right” policies, Purchasing agreements/FITs 9% such as fiscal policy, purchasing agreements Tradable permits 6% and feed-in-tariffs (FITs), and tradable permits (e.g. carbon credits) (see figure right). Types of support or facilitation from the government required by respondent institutions to practice green finance (multiple answers)
UAE State of Green Economy Report - Second Edition 2016 125 Way Forward to Mainstream Green Finance in the UAE
UNEP FI advises that in a world where the global Why is sustainability relevant to the CEO and the Board of your institution ? population is approaching 9 billion, all of whom with basic needs to be met, where natural Risks of inaction Opportunities resources are rarefied, and where climate • Loss of business opportunities through a failure to adapt to • New business opportunities arise disruptions are mounting, “business as usual” changing market realities from a new understanding of the is no longer sufficient. The world has changed, • Higher overall risk exposure through a failure to market and changing world context. markets are changing fast and a new approach understand the materiality of environmental and social • Stronger, more resilient institution to finance is needed to adapt and keep up with risks thanks to proper understanding and the pace of change. Banks, for example, are at a • Potential pressure or disengagement of investors management of sustainability issues historic tipping point where continuing to grow prioritizing sustainable investment choices • Better rated and valued company as a business has become closely interconnected • Lack of preparedness for regulatory and policy adjustments • Improved reputation, credibility and with the fulfilment of broader goals such as • Risks to reputation, credibility and image of the company recognition of the brand social and environmental sustainability (see through a failure to respond to stakeholder expectations tables). Source : UNEP FI
What can financial institutions do? Green sustainable finance practices need to be accelerated and promulgated in the UAE Demonstrate vision Ensure that environmental and social sustainability issues are directly to realize the level of investment and scale of embedded into your organization’s vision. projects required for economic diversification Establish adequate governance through fostering green industry and jobs. A Accountability on sustainability issues needs to be established at the highest levels of the organization, nationally coordinated, strategic implementation within the executive committee and/or the board. plan will therefore be developed and put into Foster a new corporate culture force under the framework of the UAE Green Actively communicate and advocate within the organization to show top-level buy-in, and invest indeveloping staff awareness and expertise. Agenda (Sub-Program 1.2.3: Green Finance and Investment Support Scheme). Be transparent Promote clear and transparent communication on your organization’s approach and progress in Based on the feedback from the survey, such a adapting to and incorporating to sustainability issues. strategy may be developed and implemented Source : UNEP FI
126 UAE State of Green Economy Report - Second Edition 2016 State of Green Finance in the UAE around the following multiple steps (also see Step 4: Elaborate enabling policies finance market and benefits and monitor figure below): financial sector initiatives by setting up • Identify practical policy measures that database, scaling up the questionnaire Step 1: Form a national group on green enable scaling up of green finance practices survey, etc. finance based on multi-stakeholder consultation, and introduce and implement such Report the progress through the Emirates • A multi-stakeholder group consisting of • practices in a way the government can Green Development Council (EGDC) and financial institutions, green businesses afford. the State of Green Economy Report, and and project developers, and government revise plans and targets regularly. authorities, with a primary objective to Step 5: Monitor progress learn from best practices through UNEP • Set a mechanism to estimate the green FI, knowledge exchange, and identifying innovative ways to overcome barriers. Step 2: Shift attention to impactful projects 1 Join an international platform and products Form a group Learn global best practices • Conduct a baseline study on the country’s market potential of green projects and Focus on impactful investment 2 investment opportunities according to Identify projects and market size Shift attention industries or technologies in order to help advocate more impactful green 3 Guidelines Workshops investment and engage more institutions. Capacity building Toolkits Communications Step 3: Capacity building and awareness raising Identify enabling instruments 4 • Guidelines, technical toolkits and Implement from where possible Elaborate policies communication materials may be developed to help disseminate the notion Database 5 Scale up a questionnaire and practices of green finance, while Monitoring workshops and events may be organized Quantify benefits for different target audiences. A proposed roadmap for mainstreaming green finance in the UAE
UAE State of Green Economy Report - Second Edition 2016 127 First Step in Engaging Local Financial Institutions
In preparation for hosting the UNEP FI Global Roundtable, MOCCAE organized the National Roundtable on Financing and Investing in Green Economy Projects in May 2015 in Dubai in cooperation with UNEP FI. The leading national and international practitioners and analysts provided global trends of sustainable finance and presented opportunities for UAE financial institutions to invest in low-carbon technologies and projects. In November, the ministry, EGDC and UNEP FI further co- organized the High-level National Meeting on Sustanable Finance where senior executives from banks, insurers, investment and finance companies were engaged directly with the two international experts. Following those events, MOCCAE and the Central Bank decided to convene the Multi- High-level National Meeting on Sustainable Finance (Dubai, November 2015) Stakeholder Steering Group on Sustainable Finance with support from UNEP FI to raise awareness and catalyze a process to address UN Sustainable Development Goals (SDGs), Banks Federation as liaison with the financial environmental and social issues among and with the international sustainable finance industry, with an expectation that they will UAE financial institutions. The group will community for the forthcoming UNEP FI lead a joint effort to promote green, sustainable finance in the UAE and the region. aim, among other objectives, to generate a Global Roundtable. Several local financial momentum on green financing in the country institutions that are active in this field have to align with the UAE Green Agenda and the been invited to the group, along with the UAE
128 UAE State of Green Economy Report - Second Edition 2016 CHAPTER 7 UAE’S PERFORMANCE TOWARDS A GREEN ECONOMY UAE’s Performance towards a Green Economy
As outlined in Chapter 2, 41 UAE Green Key and evaluating impacts, and to inform the as the World Bank’s World Development Performance Indicators (Green KPIs) have wider public. The set of indicators is well Indicators. The figures on the UAE’s been determined during 2015 according to aligned with the national KPIs defined under population and gross domestic product three dimensions (environment, economic the UAE Vision 2021, and is largely in line (GDP) are also taken from international and social) of sustainable development, with the UN Sustainable Development Goals sources to allow the UAE’s standings to building on international efforts. These are (SDGs) agreed as new universal targets for be benchmarked against other countries intended to primarily help the Emirates 2030 by 193 countries in September 2015. in the Cooperation Council for the Arab Green Development Council (EGDC) States of the Gulf (GCC) and around monitor and review the overall progress of This final chapter compiles the UAE’s latest the world. The required improvement in the nation’s development towards a Green results of the 41 Green KPIs, along with brief collecting domestic socio-economic and Economy as well as the advancement of the contextual explanations to help the reader’s environmental data and its consistency UAE Green Agenda 2015-2030 in its quarterly understanding. It should be noted that with international data sources will be meetings. These refined indicators should where quality domestic data is not available addressed by the National Green Economy also be able to provide a solid evidence base a substantial portion of data is taken from Data Program (4.3) under the UAE Green for improved policy-making, target-setting authoritative international sources such Agenda.*
Environmental Performance
ENV1: Rate of Groundwater Abstraction and Environment (MOCCAE), the total volume Rate of groundwater abstraction (2013): 13.9 times the recharge from rainfall of groundwater was 740 billion cubic meters (m3) in 2005. Only 3% of this source, or around 20 Traditionally, groundwater was the main natural used for irrigating farmland and forests. billion m3, is considered to be “fresh” with salinity water source in the UAE, and is now primarily According to the Ministry of Climate Change of less than 1,500 parts per million (ppm).
* With regard to the performance data listed in this chapter, where the year the data was sourced is not clear or consistent, the year of publication is adopted. For example, since the World Bank’s Doing Business 2016 was published in October 2015, the data from this publication is indicated as that of 2015. It is indicated individually where this principle is not applied.
130 UAE State of Green Economy Report - Second Edition 2016 UAE’s Performance towards a Green Economy
• MOCCAE estimates that 1.85 billion m3 m3/capita of groundwater was abstracted in 2013, 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 accounting for 44% of the total water Oman 358.3 consumption (4.2 billion m3). The UAE cannot meet its water demand without Saudi Arabia 79.5 resorting to non-conventional sources such as Qatar 26.7 desalination (42%) and wastewater recycling (14%). UAE 16.6 • MOCCAE’s Hydro Atlas of the United Bahrain 3.0 Arab Emirates 2014, which compiled the Kuwait 0.0 result of research conducted with the UAE University, indicates that the total estimated World 6,013.2 recharge from rainfall in the UAE territory is 133 million m3 per annum, which accounts Annual renewable internal freshwater resources per capita in GCC countries, 2013 only 7% of the abstraction volume. Over- Source: FAO AQUASTAT; World Bank, World Development Indicators extraction of groundwater for agriculture 1,400 has resulted in a sharp drop in water levels and a deterioration of water quality. 1,200
• The UN Food and Agriculture Organization 1,000 (FAO) has been compiling the estimated availability of internal freshwater around 800 /capita the world over the past several decades. 3 m 600 The data reveals that the GCC is the region where freshwater is least available. The per- 400
capita freshwater availability in the UAE has 200 been steadily declining and recorded 16.6 m3 per year in 2013 (1% down from 2012; 0 1962 1967 1972 1977 1982 1987 1992 1997 2002 2007 2012 2013 3rd lowest in the GCC), which accounts Trend in annual renewable internal freshwater resources per capita for merely 8.8% of municipal water in the UAE, 1962-2013 consumption per capita (ENV2). Source: FAO AQUASTAT; World Development Indicators
UAE State of Green Economy Report - Second Edition 2016 131 ENV2: Water Consumption per Capita Daily municipal water consumption per capita (2013): 514.6 liters (unchanged from 2012)
Due to the lack of freshwater resources, the 600
UAE relies on energy-intensive desalination 580 technologies for the provision of most of its municipal water, which is distributed by federal 560 and local water and electricity authorities 540 for industry, commercial, household and 520 landscaping use. Improving efficiency in I/day water use is, therefore, the top priority not 500 only to ensure the sustainable management 480 of water resources but to also lower energy consumption, mainly natural gas, which is 460 used to power most desalination plants. 440 2008 2009 2010 2011 2012 2013 Improvement in the per-capita intensity • Municipal water consumption per capita per day in the UAE, 2008-2013 of water use has been observed since 2008, Source: Ministry of Energy, Statistical Annual Report Electricity and Water; World Development Indicators but it has been kept steady at around 500 liters per day over the past four years. ENV3: Waste Generation per Capita • When comparing per-capita domestic water Municipal solid waste per capita (2014): 1.82 kg per day consumption (commercial and household only) with other advanced economies, the The amount of waste generated by economic in terms of land use, sanitation, water and air UAE’s consumption level (353 liters per day activity tends to rise in line with growing pollution, as well as greenhouse gas (GHG) in 2013) is ranked among the highest in the demand for materials and products. At the emissions. world. There is no comparable international data on municipal water use. end of their use, many valuable materials may • The per-capita generation of municipal solid be disposed of and are potentially lost if they • It should be noted that water usage patterns waste (MSW) is recorded at 1.82 kilograms in the UAE differ significantly between are not reused or recycled. Waste generation (kg) per day in 2014, which is comparable populations, emirates and residential types. and treatment affects environmental quality to major economies such as United States
132 UAE State of Green Economy Report - Second Edition 2016 UAE’s Performance towards a Green Economy
(1.99 kg in 2011), Switzerland (1.90 kg in to waste collected by or on behalf of industrial waste (both hazardous and non- 2012) and Germany (1.67 kg in 2012). municipal authorities and disposed of hazardous), medical waste (hazardous), • MSW is mainly produced by households through their waste management system. agricultural waste, and sludge from but also includes waste from offices, Apart from MSW, there are other types of wastewater treatment, which also need to public institutions, etc. It generally refers solid waste such as construction waste, be quantified and monitored.
ENV4: Rate of Waste Recovery Rate of municipal solid waste treated (2014): 14.08%
Recycling is still a relatively new notion in the • 45% of MSW in the UAE consist of organic • The UAE Vision 2021 and the UAE Green UAE, but over the past few years each emirate has waste, followed by paper (18%) and plastics Agenda set an ambitious target of 75% introduced integrated waste management and a (14%), much of which can be recovered if recovery from MSW by 2021. Sharjah set a number of supportive initiatives to effectively properly segregated and treated. zero-landfill target (see Chapter 5). manage waste collection and encourage the recycling of various types of waste. This includes the establishment of the required recycling infrastructure, such as material recovery facilities, compost facilities, waste-to-energy facilities, and waste collection centers in residential Organic areas, as well as public communication and 45% Other education campaigns. Tariff systems have also 23% been introduced for commercial, industrial, construction and agricultural sectors to reduce Paper waste and encourage recycling. Plastics 14% 18% • The country’s overall recovery rate of MSW reached 14.08% in 2014, preventing that portion of waste from ending up in landfill by various methods including Composition of municipal solid waste in the UAE, 2012 recycling and composting. Source: Concerned departments of local authorities in the UAE
UAE State of Green Economy Report - Second Edition 2016 133 ENV5: Energy Consumption per Capita Annual electricity consumption per capita (2013): 11,655 kWh (3% up from 2012)
Energy, particularly electricity, is a major • The International Energy Agency (IEA) which is the second lowest in the GCC component of the economy as a fundamental estimates the total energy consumption after Oman but the eighth highest among input to all economic activities, as well as a that includes the use of fossil fuels in 137 countries benchmarked. This figure is sector itself. A transformation in the structure industrial processes, heating and cooling, as much as 80% higher than the average of a country’s energy supply and the intensity transport, etc., as well as electricity. The energy consumption of the countries in the of its energy use is one of the key factors in UAE’s energy consumption was estimated Organisation for Economic Co-operation realizing a Green Economy. The main challenge 7,536 kg oil equivalent (kgoe) per capita, and Development (OECD) (4,182 kgoe). is to decouple energy use and related emissions from population and economic growth, 12,000 through improvements in efficiency of both production and consumption and the wider use of cleaner energy sources. 11,500 • According to the Ministry of Energy (MoENR), the total consumption of
electricity in the UAE in 2013 was 105,363 kWh gigawatt-hours (GWh), a 3.9% increase 11,000 from 2012. The rate of increase has been steadily slowing down since 2007. • On the other hand, per-capita electricity 10,500 consumption has increased since 2010 and has reached the pre-financial crisis
level. This hints at the urgent need to 10,000 improve energy efficiency and promote 2007 2008 2009 2010 2011 2012 2013 energy saving at households and Trend in annual electricity consumption per capita in the UAE, 2007-2013 industries. Source: Statistical Annual Report Electricity and Water; World Development Indicators
134 UAE State of Green Economy Report - Second Edition 2016 UAE’s Performance towards a Green Economy
kgoe/capita 2015, even more ambitious targets and project 0 5,000 10,000 15,000 20,000 development were announced, while the United Kingdom further establishment of a nationally unified Japan strategy for energy mix is to take place as per Germany the UAE Green Agenda. Singapore • The current level of electricity generation Korea, Rep. from renewable sources is still very low, Saudi Arabia while the collection of accurate data on and estimation of renewable energy United States generation is very important. The Oman amount of electricity generated from UAE renewable sources in Dubai during 2014 Bahrain was estimated at 28.4 GWh, against Kuwait 39,599 GWh of the Dubai Electricity Qatar and Water Authority’s (DEWA) total OECD average electricity generation. According to IEA, the global average in the rate of non- World average fossil energy use was 8.45% in 2012. Annual energy consumption (kg oil equivalent) per capita in GCC and major countries, 2012 Source: IEA; World Development Indicators • Currently, the UAE set a national target of 24% for sourcing electricity from non-fossil fuels (including nuclear) ENV6: Rate of Non-Fossil Energy by 2021, which was submitted to the Rate of electricity generation from renewable sources (2014; Dubai only): 0.072% United Nations Framework Convention on Climate Change (UNFCCC) as The use of renewable energy sources and of conventional energy sources, the UAE the country’s Intended Nationally low-carbon and clean fuel technologies plays has shown its ambition and leadership in Determined Contribution (INDC) (see a central role in addressing climate change as advancing the development and deployment Chapter 4). well as energy security. Despite the abundance of renewable energy technologies. During
UAE State of Green Economy Report - Second Edition 2016 135 • To date, Shams 1, a 100 megawatt (MW) Emirate Name of plant Capacity Technology Status concentrated solar power (CSP) plant Abu Dhabi Shams 1 100 MW Solar CSP In operation in the Western Region of Abu Dhabi, is Ground-mounted: 10 the largest renewable energy installation Solar PV In operation MW in the UAE. This is followed by the first Masdar City Solar PV Plant Rooftop: 1 MW In operation phase of Dubai’s Mohammed bin Rashid Solar Park (13 MW) with advanced thin- Sir Bani Yas Island Wind Farm 0.85 MW Onshore wind In operation film photovoltaic (PV) modules, and the Sweihan Solar Park 350 MW Solar PV To be constructed 10 MW Masdar City solar PV plant. The To be completed Reactor 1: 1,400 MW region’s first wind turbine was installed Nuclear by 2017 (Pressurized on Sir Bani Yas Island of Abu Dhabi, with To be completed Reactor 2: 1,400 MW Water Reactor) a capacity of 850 kilowatts (kW). Barakah Nuclear Power Plant by 2020 • As Dubai announced an ambitious Reactor 3: 1,400 MW target of an energy mix where 25% of Reactor 4: 1,400 MW the emirates’ energy comes from clean Dubai Phase 1: 13 MW Solar PV In operation sources by 2030 and 75% by 2050, the To be completed planned capacity of the Mohammed bin Phase 2: 200 MW by 2017 Rashid Solar Park was expanded from Mohammed bin Rashid To be completed 1,000 MW to 5,000 MW by 2030. Abu Solar Park Phase 3: 800 MW by 2020 Dhabi also announced a tender for a 350 To be completed Total: 5,000 MW MW PV project, as it sets a target that by 2030 at least 7% of power generation capacity Rooftop solar projects Total: 2.2 MW Solar PV In operation should be from renewable energy by (miscellaneous) 2020 (see Chapter 4). List of major clean energy projects in the UAE, in operation and planned Source: MoENR
136 UAE State of Green Economy Report - Second Edition 2016 UAE’s Performance towards a Green Economy
ENV7: Carbon Intensity of Energy
CO2 emissions from electricity generation (2013, including water desalination): 600 gCO2/kWh (unchanged since 2011)
The carbon intensity measured by the average emissions resulted from both electricity recorded 57.6 tons of carbon dioxide amount of carbon dioxide emitted from and desalinated water production. (tCO2) per telajoule (TJ), which is a 9% electricity generation and/or overall energy Around 30% of the emissions can be decrease since the peak in 1980 and now production is a key benchmark to understand attributed to desalination. close to the world average of 56.8 tCO2/TJ. countries’ advancement in de-carbonization • IEA also provides the carbon intensity per • As the deployment of renewable and and energy sector efficiency efforts. total primary energy supply (TPES). This nuclear energy advances in the UAE, as per • According to the IEA’s estimates, the clearly shows the UAE’s improvement in its energy mix targets, its carbon intensity carbon intensity of the UAE’s electricity energy decarbonization, as the country is expected to improve even faster. production has been steadily improving 900 due to the active deployment of the latest
efficient technologies in power plants. 800
CO2 emissions per kilowatt-hour (kWh) of electricity generation is 600 grams (g), 700 representing a 34% decrease since the /kWh peak recorded at 913 grams in 2004, which 2 600
is closing the gap with the global average gCO 500 of 528 gCO2/kWh. The UAE’s intensity record has not been changed since 2011. 400 • The UAE’s power producers extensively apply combined-cycle power and 300 desalination technologies to make an 1990 1995 2000 2005 2007 2008 2009 2010 2011 2012 2013 efficient use of waste heat for steam UAE World average OECD average generation and water desalination. The Trend in CO2 emissions from electricity generation in the UAE, 1990-2013 above carbon intensity figures include the Source: IEA, CO2 Emissions from Fuel Combustion 2015
UAE State of Green Economy Report - Second Edition 2016 137 68 • The UAE’s total GHG emissions have 66 increased by 174% in two decades between 1994 and 2014 from 74 million tCO e to over 64 2 200 million tCO2e mainly due to a strong 62 economic growth and an increase in the /TJ 2 60 population. tCO 58 • Since the UAE is a young, rapidly growing 56 nation, it is important to understand
54 its performance in terms of intensity per population and economic size. The 52 emissions per capita have dramatically 50 decreased by 38% between 2005 and 2014 1971 1975 1980 1985 1990 1995 2000 2005 2010 2012 2013 (see also ENV7 and ECO13). UAE OECD average World average The 2012 GHG Inventory was compiled Trend in CO2 emissions per total primary energy supply in the UAE, 1971-2013 • Source: CO Emissions from Fuel Combustion 2015 2 based on the Intergovernmental Panel on Climate Change (IPCC) 2006 Guidelines for National Greenhouse Gas Inventories, while ENV8: Total GHG Emissions other years were based on the Revised IPCC Total greenhouse gas emissions (2014): 203.67 million tCO2e (2% up from 2013) 1996 Guidelines, which are required for non-Annex I countries including the UAE.
Climate change is a major issue that could economic output. CO2 from the combustion Since the emissions values are likely to be have significant effects on the global economy, of fossil fuels is a major contributor to this estimated lower under the 2006 Guidelines let alone on the realization of sustainable phenomenon, along with other GHGs than the 1996 Guidelines, the 2012 Inventory development. The effects of the increasing generated from industrial products and data may not be appropriate for comparison atmospheric GHG concentrations on global processes, land use, waste, etc. Progress in with other years. The emissions of hydro- temperatures and the earth’s climate will lead stabilizing the concentration of GHGs in the fluorocarbons (HFCs), non-methane volatile to significant changes in ecosystems, human atmosphere is dependent on whether and how organic compounds (NMVOCs) and sulfur settlements, agriculture and other socio- fast GHG emissions can be decoupled from hexafluoride (SF6) have not been covered by economic activities that could ultimately affect economic and population growth. the UAE inventories.
138 UAE State of Green Economy Report - Second Edition 2016 UAE’s Performance towards a Green Economy
250,000 • In terms of sectoral distribution of emissions, energy generation represents 80% of the total emissions followed by industrial 200,000 processes and product use (IPPU) (13%) and waste (6%) in 2014.
150,000 45
e 40 2 100,000
tCO 35
50,000 30 25 e/capita 0 2 20 1994 2000 2005 2012 2013 2014 tCO 15 Waste Industrial Processes and Product Use (IPPU) Energy 10 Land use, Land-use Change and Forestry (LULUCF) Agriculture Agriculture, Forestry and Other Land Use (AFOLU) Total 5
Trend in the UAE’s GHG emissions (total and per source), 1994-2014 0 Source: MoENR; MOCCAE 1994 2000 2005 2012 2013 2014 Note: e 2012 inventory was made according to the IPCC 2006 Guidelines. Trend in the UAE’s GHG emissions per capita, 1994-2014 e other years followed the IPCC (Revised) 1996 Guidelines. Source: MoENR; MOCCAE; World Development Indicators
ENV9: Ecological Footprint that cannot be absorbed by the ocean. Both Ecological Footprint per capita (2014): 7.75 global hectares (8% down from 2012); biocapacity and Ecological Footprint are 3rd highest in the GCC expressed in a common unit, global hectare (gha). This indicator was developed in the early 1990s and has been compiled and promoted by Ecological Footprint is a measure of human population demands, including the amount of demand for natural capital in contrast with biologically productive area needed for crops, WWF International and the Global Footprint the planet’s ecological capacity to regenerate, grazing land, built-up areas, fishing grounds Network as one of the most instructive which is called biocapacity. Ecological Footprint and forest products. It also includes the area composite indices that comprehensively adds up all the ecological services a human of forest needed to absorb carbon emissions captures the diverse environmental impacts
UAE State of Green Economy Report - Second Edition 2016 139 World average biocapacity gha compiled based on the performance data 0 1.7 2 4 6 8 10 of 2010. Kuwait • Compared to the last version issued in Qatar 2012 (compiled based on the 2009 data), UAE the UAE’s 2014 Ecological Footprint went Belgium down from 8.4 gha to 7.75 gha per capita, putting the nation in third place again Denmark behind Kuwait and Qatar, and ahead of Singapore Denmark and Belgium. United States • Despite the notable improvement in Sweden the results, the UAE’s consumption Canada level remains high and unsustainable in contrast to the low amount of productive Australia land and sea areas (The UAE’s biocapacity Oman in 2014 was 0.63 gha per capita). Carbon Saudi Arabia emissions have been the dominant component of the UAE’s Ecological World Footprint, comprising 74% against the Cropland Grazing land Forest land global average of 53%. Fishing ground Built up land Carbon Once ranked as the country with the Ecological Footprint of the largest 10 and GCC countries, 2014 • Source: Global Footprint Network world’s largest footprint, the UAE Note: 2014 results were compiled based on the data of 2010. Countries with less than 1 million population are excluded. launched the Ecological Footprint Initiative in 2007 to make proactive efforts to of a nation or region. To date, humanity uses • Since the Ecological Footprint is compiled improve energy efficiency and consumer the equivalent of 1.6 planets to provide the every two years, the latest available data is behavior. resources we use and to absorb our waste, only from 2014, the same as that presented resulting in the state of “global ecological in the last version of this report. The 2014 overshoot”. Ecological Footprint results were globally
140 UAE State of Green Economy Report - Second Edition 2016 UAE’s Performance towards a Green Economy
12 degree of assurance that the set objectives will be achieved when properly enforced. In 10 the meantime, the use of market-based, non- prescriptive or voluntary instruments is increasingly 8 becoming popular as alternative environmental policies. 6 gha • The UAE’s environmental regulations at 4 the national level have been underpinned by the Federal Law No. 24 of 1999 for 2 the protection and development of the environment. Since then, more 0 specific regulations have been gradually 2006 2008 2010 2012 2014 adopted as federal laws, executive Cropland Grazing land Forest land orders or ministerial decrees. For the Fishing grounds Built-up-land Carbon footprint last three years between 2013 and 2015, Trend in the UAE’s Ecological Footprint per category, 2006-2014 more than ten new regulations have Source: Global Footprint Network Note: 2006 results were compiled based on 2003 data; 2008 results were based on 2005 data; 2010 results were based on 2008 data; been introduced annually, including 2012 results were based on 2009 data; and 2014 results were based on 2010 data. those developed by MOCCAE and the Emirates Authority for Standardization ENV10: Number of Environmental Regulations and Metrology (ESMA). Federal environmental regulations (laws, executive orders and ministerial decrees) (2015): 87 • Due to the MOCCAE’s history and scope of work, the majority of regulations Environmental regulations have been a environmental regulation prescribes the issued by the ministry are targeted to most fundamental tool for policy makers maximum amount of pollution that a source the agricultural, veterinary and fisheries around the world to tackle pollution and the can emit or the use of a particular technology, sectors, which are not necessarily degradation of natural resources and wildlife, or bans particular environmentally harmful the typical scope of environmental as environmental regulatory agencies have actions, as well as defines penalties for non- regulators. However, in the last few years been established in many national and local compliance and administrative procedures. an increasing number of new regulations governments over the last few decades. An Environmental regulations can offer a high have been developed in the areas of waste
UAE State of Green Economy Report - Second Edition 2016 141 management, chemicals management, 90 air quality, biodiversity and industry 80
practices. 70 • Each emirate also has its own 60 environmental regulatory body, which 50 issues detailed local rules and guidelines 40 and monitors violations, following the federal regulations and the ministry’s 30 guidance. 20 10 • To compile this indicator, regulations related to internal affairs and temporary 0
food import restrictions were omitted. Its 1975 1979 1981 1989 1992 1993 1998 1999 2000 2001 2002 2003 2004 2006 2007 2009 2012 2013 2014 2015 definition and methodology need to be Total number of federal environmental regulations in the UAE, 1975-2015 further elaborated to ensure consistency. Source: MOCCAE, ESMA
and the GCC Standardization Organization ENV11: Number of Environmental Standards (GSO). ESMA environmental standards (2015): 25 • In recent years, ESMA has embarked on innovative forms of standard setting such as Environmental standards have increasingly sets of criteria. Standards that are set based eco-labeling and certification. Performance- been recognized as one of the most on performance can encourage innovation based standards have been established for important policy instruments that enable a and adoption of efficient technologies by electrical appliances in combination with creating a “level playing field” and stimulating Green Economy. An environmental standard labeling, whereas new specifications have demand. provides a set of quality conditions in a way been set for packaging and cleaner energy to specify either a desired state or a limit to • The development of national environmental sources such as natural gas and clean alterations so as to control the effect of human standards in the UAE has been led by diesel. In 2015, a green labeling scheme for activity upon the environment. Standards ESMA in the last decade, partly adopting dishwashing machines was added to the may be legally binding but may also be non- multilateral standards of the International family of performance-based standards and statutory protocols, guidelines, targets and Organization for Standardization (ISO) labeling (see Chapter 4).
142 UAE State of Green Economy Report - Second Edition 2016 UAE’s Performance towards a Green Economy
30 and managed, through legal or other effective means, to achieve the long-term conservation 25 of nature with associated ecosystem services and cultural values”. 20 • In the UAE, the registration of protected areas (including both terrestrial and 15 marine areas) was initiated in 1995 and their number has grown to 35 designations 10 by the end of 2015. In total, 15,855 square kilometers (km2), 12.5% of the country’s 5 land and sea areas, have been designated as protected areas; 12.8% of the land areas 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 and 12.2% of the marine territories. No new Trend in the total number of federal environmental standards in the UAE, 2007-2015 designation was established during 2015 Source: ESMA so that the performance is unchanged since the last version of this report. ENV12: Ratio of Protected Areas • The UAE’s level of designating protected Ratio of protected areas against total territory (2015): 12.6% areas is almost equivalent to the global (terrestrial 12.8%; marine 12.2%) (unchanged from 2014) average’s 14.0% and the OECD average of 13.6% (2012). The main challenge for conservation of nature as raise public awareness. Protected areas • The 2014 Environmental Performance is to maintain or restore the diversity and are at the core of those policy efforts for Index (EPI) ranked the UAE among the integrity of ecosystems, species and genetic protecting ecosystem services that provide top countries in the sub-index of marine resources while ensuring a sustainable use of food, clean water and medicines as well protected areas (see ENV14). Among biodiversity. This implies the need for policies as serving as a carbon sink and protection those protected areas, five wetland that strengthen the protection of habitats from natural disasters. The International reserves are recognized in the List of and species, eliminate illegal exploitation and Union for Conservation of Nature (IUCN) Wetlands of International Importance trade, and integrate biodiversity concerns defines a protected area as “a clearly defined under the inter-governmental Ramsar into economic and sectoral policies, as well geographical space, recognized, dedicated Convention (Ramsar Sites).
UAE State of Green Economy Report - Second Edition 2016 143 km2 three-year term, and the total budget for 0 50,000 100,000 150,000 2011-2013 amounted to AED 122 billion Terrestrial 12.8% (USD 33.2 billion) and that for 2014-2016 increased by nearly 15% to AED 140 billion (USD 38.2 billion). The budget of the then Marine 12.2% Ministry of Environment and Water for 2011-2013 was AED 882 million (USD 240 million) and that for 2014-2016 was set 12.6% Total at AED 919 million (USD 250 million), a 4.2% increase from the previous term. The Protected Areas (km2) Total Areas (km2) proportion of the Ministry of Environment Protected areas designated by the UAE authorities, 2015 and Water budget in the total federal Source: MOCCAE budget is 0.66% for 2014-2016. ENV13: Environmental Expenditure • Since the then Ministry of Environment Ministry of Environment and Water (then) budget (2015): and Water was originally established AED 308.6 million (USD 84 million) in 2006 by replacing the Ministry of Agriculture and Fisheries and absorbing Environmental expenditure is the primary public sector, industry and environmental the Federal Environment Agency, these indication of what extent the country service providers. The total EPE in the 28 figures include the budget that would considers environmental sustainability as a Member States of the European Union (EU) usually be allocated for the agriculture priority for running its economy and society. in 2012 amounted to 2.2% of the bloc’s total ministry in many other countries. On Environmental protection expenditure (EPE), GDP. The public sector spending was 0.67% the other hand, it should be noted that which was recognized by the United Nations of GDP, of which waste management and other ministries in charge of energy, Statistical Commission in 2012 as part of the wastewater treatment were the two main economy, health, labor, public works, UN System of Integrated Environmental and components. education, etc. also spend a part of their Economic Accounting, compiles all goods and • To date, the only available national data budget for environmental protection. services aimed at protecting the environment related to environmental expenditure in Local authorities also have an agency or a and encouraging the sustainable use of natural the UAE is the annual budget of MOCCAE. department for environmental protection, resources, including those provided by the The UAE’s federal budget is set for every dedicating a substantial budget.
144 UAE State of Green Economy Report - Second Edition 2016 UAE’s Performance towards a Green Economy
• To have better understanding and tracking under the UAE Green Agenda. EU’s University in partnership with the World of how much is invested in greening the Eurostat collects this data from its Member Economic Forum (WEF). The 2014 EPI is economy, the UAE needs to establish the States through a joint Eurostat/OECD constructed through the calculation and accounting for EPE or a similar measure questionnaire. aggregation of 20 indicators from nine issue
350 categories, including air quality, forests, fisheries, and climate and energy. Scores are 300 converted to a scale of 0 to 100, with 0 being the furthest from the target and 100 being 250 the closest. 200 • Since a pilot version was issued in 2006, the
AED millionAED 150 index has been published every two years. As there was no new EPI report published 100 during 2015, the results presented in this
50 report are the same as the last version. • The UAE’s EPI results have shown a 0 2008 2009 2010 2011 2012 2013 2014 2015 dramatic upturn from being ranked 152th out of 163 countries benchmarked in 2010 Trend in annual budget of the UAE Ministry of Environment and Water (then), 2008-2015 Source: MOCCAE (Score: 40.7) to the 77th in 2012 (50.91) and 25th out of 178 countries in 2014 (72.91). ENV14: Environmental Performance Index • It should be noted that the EPI results Environmental Performance Index (2014): may not be directly comparable between 25th in the world (52 places up from 2013);1st in the GCC different years since the composition and weighing of indicators have been The Environmental Performance Index (EPI) the Yale Center for Environmental Law substantially revised each time. is a method of quantifying the environmental and Policy (YCELP) at Yale University and performance of countries in the most the Center for International Earth Science comprehensive way. It was developed by Information Network (CIESIN) at Columbia
UAE State of Green Economy Report - Second Edition 2016 145 2006* 2008 2010 2012 2014 vehicles, which would have a positive effect on 1 the country’s overall environmental and socio- Switzerland economic conditions. Even though there is 20 Australia no universal definition of “green vehicles”, the Singapore United States Environment Protection Agency 40 Czech Republic (EPA) lists them as including fuel-efficient cars, alternative fuel vehicles (e.g. compressed Germany 60 natural gas), flexible fuel vehicles (FFVs), UAE electric vehicles (EVs), hybrid-electric vehicles, Japan 80 and hydrogen fuel-cell vehicles (FCVs). EPI ranking EPI United States Saudi Arabia • There is no available data to distinguish 100 conventional and green vehicles on the Kuwait UAE roads. Firstly, a clear definition and Republic of Korea 120 a data collection method needs to be Qatar established. Bahrain 140 Oman • The public and private sectors in the UAE already promote greener vehicles such 160 as hybrid cars and EVs as well as better Trends in the Environmental Performance Index in major countries, 2006-14 fuels for conventional vehicles. DEWA Source: YCELP et al., Environmental Performance Index Note: 2006 survey was a pilot. has opened 100 EV charging stations in the emirate (see Chapter 3), while hybrid cars and the use of biodiesel and CNG ENV15: Ratio of Green Vehicles have been introduced in public bus and Relevant data is not available taxi fleets in Abu Dhabi and Dubai. In 2014, the UAE became the first country The combustion of transport fuels such as sector in 2014 (see ENV9). The deregulation in the region to mandate all commercial gasoline and diesel is one of the largest sources of fuel prices that started in August 2015 (see diesel vehicles to use “green diesel”, which of GHG emissions in the UAE, as 15% of the total Chapter 3) is expected to encourage people contains less than 10 parts per million emissions originated from the road transport to opt for public transport or fuel-efficient (ppm) of sulfur.
146 UAE State of Green Economy Report - Second Edition 2016 UAE’s Performance towards a Green Economy
Economic Performance
industrial structure is very different from ECO1: Real GDP Growth the two major emirates. GDP growth (constant price based) (2014): National 4.6% (0.3 point down from 2013); Abu Dhabi 4.7% (0.5 point down); Dubai 3.8% (0.8 point down) • It is predicted that despite the rapid decline in international oil prices since The GDP has been the most common, pace of growth is slightly reduced. The the summer of 2014, the UAE economy conventional measure of economic activity other emirates need to compile basic is resilient enough and will keep growing of a nation or region. It should be noted at economic statistics to allow the analysis due to the long-term investment made the same time that GDP does not address of local economies, particularly where the for economic diversification. all aspects of welfare, and GDP growth is 20 limited as an output indicator. It is important to understand the outcomes of economic activities, as well as the progress in greening 15 the economy, in combination with other relevant indicators. 10
• After the dramatic drop caused by % the financial crisis in the late 2000s, 5 the overall UAE economy has kept healthy growth rates around 5%. The 0 Ministry of Economy’s prediction for GDP growth in 2015 was 4.5% at the beginning of the year but has been -5 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 lowered to 3% in January 2016 due to UAE Abu Dhabi Dubai low oil prices. Real GDP growth rates (constant price based) in the UAE, 2002-2014 Source: FCSA; Statistics Centre - Abu Dhabi; Dubai Statistics Center • The economy of Abu Dhabi and Dubai Note: UAE’s 2014 rate is preliminary. UAE and Abu Dhabi’s data are based on 2007 constant prices; have still been strong even though the Dubai data are based on 2006 constant prices.
UAE State of Green Economy Report - Second Edition 2016 147 ECO2: Share of Non-Oil GDP Share of GDP from non-oil sectors (2014): 68.6% (0.2 point up from 2013)
The revenues from the non-oil sectors have 1,200 increased significantly over the years at an 1,000 annual growth rate of 10%, whilst the GDP from fossil fuels has shown a relatively modest growth. 800 The increasing economic contribution from the 600 non-oil sector has greatly helped mitigate the billionAED 400 impact of the fluctuation of oil revenues. It is important for the UAE to keep diversifying its 200 economy as guided by the UAE Vision 2021. 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 • Non-oil revenues represented approximately Oil & gas Non-oil Total 57% of the UAE’s total GDP in 2001 and had Trends in the UAE’s GDP (2007 constant prices), 2001-2014 steadily increased to nearly 70% by 2014. Source: Federal Competitiveness and Statistics Authority (FCSA) Note: 2013 and 2014 data are preliminary
• The non-oil real growth rate was 4.8% 70 in 2014 as the country recovered from a contraction caused by the financial 60 crisis, whereas the growth rate of the oil 50 and gas sector recorded 4.0% in the same % year. 40
• The UAE aims to maintain 5% of annual 30 real GDP growth from the non-oil sector under the UAE Vision 2021. 20 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Non-oil GDP (%) Oil GDP (%) Trends in the shares of oil and non-oil GDP in the UAE, 2001-2014 Source: FCSA Note: 2013 and 2014 data are preliminary.
148 UAE State of Green Economy Report - Second Edition 2016 UAE’s Performance towards a Green Economy
ECO3: Share of Non-Oil Export Share of the exports from non-hydrocarbon sectors (2014): 30.3% (2.5 points up from 2013)
The balance of trade for the UAE is driven by 600 significant imports of products produced locally as 500 well as significant oil and gas export revenues. As the 400 import of natural gas has been increasing in recent 300
years due to the rise in domestic energy demand, the billion AED 200 further stimulation of export of non-oil goods and 100 services and the promotion of import substitution is 0 key to maintaining a healthy level of trade balance. 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Exports of hydrocarbon Exports of non-hydrocarbon Re-export Trade balance (FOB) Non-hydrocarbon exports have been rapidly • Trends in the UAE’s exports and trade balance, 2000-2014 rising over the last decade, as its proportion of Source: Central Bank of the UAE total exports has increased from 22.6% in 2000 Note: 2014 data is preliminary. Trade balance is calculated on a free-on-board (FOB) basis. to 30.3% in 2014. It has exceeded, for the first time, hydrocarbon exports (including oil, gas and 60 petroleum products), which have been steadily 50 declining from 51.0% in 2000 to 30.1% in 2014. 40 • Re-export has been supporting a significant part of the UAE economy, as Dubai and Abu % 30 Dhabi act as major trade hubs. It has occupied 20 around 40% of the total exports since 2007. 10 • The most common non-oil export items from the non-freezones (AED 132 billion or USD 36 billion 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 in 2014) include: precious metals, base metals, % of hydrocarbon export % of non-hydrocarbon export % of re-export plastics, machinery, minerals and foodstuffs. Non- Trends in the shares of the UAE’s exports by type, 2000-2014 oil exports from the freezones account more than Source: Central Bank of the UAE twice those from the non-freezones. Note: 2014 data is preliminary. Trade balance is calculated on a free-on-board (FOB) basis.
UAE State of Green Economy Report - Second Edition 2016 149 Pearls, Stones, Precious Metals & Its Articles 7% 3% Base Metals & Articles of Base Metal 3% 34% 3% Plastics, Rubber & Articles ereof
6% Machinery, Sound Recorders, Reproducers & Parts
Mineral Products 6% Foodstuffs, Beverages, Spirits & Tobacco
6% Products of the Chemical or Allied Industries
9% Pulp of Wood, Waste, Scrap & Articles of Paper 23% Vehicles of Transport
Others Breakdown of the UAE’s non-oil exports (value based), 2014 Source: FCSA
ECO4: GDP from Environmental Goods and Services Relevant data is not available
Environmental products and services could health-conscious consumers in the UAE. OECD and Eurostat to do so, while have significant potential to directly benefit One study estimates that the country’s the World Trade Organization (WTO) the economy and generate growth and jobs organic market is valued at AED 367-550 develops the list of such goods and from the existing and enhanced ecosystems. million (USD 100-150 million) per year. services to reduce or eliminate tariff The UAE Green Agenda aims to support the • There is no universal definition on and non-tariff barriers to their import. domestic development of this emerging sector what constitutes environmental goods As a first step, the UAE needs to start by ensuring the high quality and performance and services and how to distinguish working on the definition and the of goods and services. them from conventional ones. There collection of relevant statistics. • For example, in the last few years, demand have been some earlier efforts by for organic food has rapidly risen among international organizations such as
150 UAE State of Green Economy Report - Second Edition 2016 UAE’s Performance towards a Green Economy
ECO5: R&D Expenditure in GDP Expenditure in research and development (2011): 0.49% of total GDP (48th in the world)
Technology developments and innovation are % important drivers for growth and productivity 0 1 2 3 4 5 in an economy. They are important for Republic of Korea managing energy and material flows in a more Finland sustainable manner and also have a bearing on policies intended to preserve natural resources Japan and minimize emissions. Spending on research Sweden and development (R&D) has been considered Denmark one of the key factors to spur innovation and Germany technology advances. Austria • According to the statistics of the United Nations Educational, Scientific and United States Cultural Organization (UNESCO), the France current and capital expenditures (both Singapore public and private) on R&D activities in the UAE during 2011 were 0.49% of the China nation’s total GDP, which is far behind Canada the average spending of OECD countries United Kingdom (2.36% in 2013). The UAE Vision 2021 sets Brazil a target of raising this rate to 1.5% by 2021. Russian Federation • It should be noted that technology and innovation may have adverse effects on India the environment and resource use. It is UAE therefore important to focus national OECD average efforts on promoting green R&D and innovation to enhance potential and R&D expenditure of major economies as a proportion of GDP, 2011 capability for greening the economy. Source: UNESCO; World Development Indicators
UAE State of Green Economy Report - Second Edition 2016 151 ECO6: FDI Net Inflows Foreign direct investment net inflows (2014): 2.52% of total GDP (0.19 point down from 2013)
The UAE has excellent conditions for foreign 7 direct investment (FDI) and many investors, 6 both regional and international, have been 5 seeking opportunities to place capital in the 4 country. The UAE’s attractiveness as an FDI
% 3 destination stems from many factors including 2 world-class infrastructure, political stability 1 and an expatriate-friendly culture. 0 • FDI net inflows – the value of inward -1 direct investment made by non-resident 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 investors – are rapidly recovering from UAE OECD World the financial crisis and reached 2.52% Trends in the UAE’s FDI net inflows, 2000-2014 of the total GDP in 2014. This is a slight Source: World Development Indicators decline from 2.71% in 2013. The level of Real Estate, Renting & Business Activities FDI inflows became higher than the global 5% 3% 3% average (2.0% in 2014) and OECD countries 4% Wholesale & Retail Trade; Repair of Motor 27% (1.35%) again in the last few years. 5% Vehicles & Motorcycles • The real estate sector received the largest Financial Intermediation amount of FDI in 2012 (27%), followed by 10% Manufacturing wholesale and retail (22%), finance (21%), Mining & Quarrying manufacturing (10%), mining (5%), and Construction construction (4%). The UK was the leading investor country for the UAE in 2012, followed 21% 22% Professional, Scientific & Technical activities by India, France, Japan and United States. Electricity, Gas, Steam & Air Conditioning Supply • The UAE Vision 2021 targets doubling the Others proportion of FDI inflows against GDP to Breakdown of the UAE’s foreign direct investment by activities, 2012 5% by 2021. Source: FCSA
152 UAE State of Green Economy Report - Second Edition 2016 UAE’s Performance towards a Green Economy
Country FDI value (AED million) Country FDI value (AED million) • The UAE improved its global ranking from United Kingdom 35,555 Kuwait 11,189 the 68th in the world and the bottom in the GCC in the Doing Business 2006 result India 15,628 Australia 10,534 published in 2005 to the world’s 31st and France 14,989 Saudi Arabia 10,356 top in the GCC in Doing Business 2016, Japan 14,648 Switzerland 8,131 published in October 2015. Please note that United States 11,414 Netherlands 7,196 the World Bank adjusted the UAE’s 2014 Top 10 countries for the UAE’s foreign direct investment by value, 2012 ranking from 22nd to 32nd and a caution is Source: FCSA required in the time-series analysis. ECO7: Ease of Doing Business Index • TheDistance to Frontier measure evaluates Ease of Doing Business Index (2015): 31st in the world the absolute distance of economies to the (1 place up from 2014);1st in the GCC (unchanged) best performance on regulatory practices
Launched in 2002, the World Bank’s Ease of 1 Singapore 18 Malaysia Doing Business Index promotes business- 2 New Zealand 26 Switzerland friendly regulatory environments by measuring 3 Denmark aspects of business regulation affecting 27 France domestic small- and medium-sized firms in 4 Republic of Korea 31 UAE 5 Hong Kong, China eleven areas across 189 economies. Ten of 34 Japan 6 United Kingdom these areas — starting a business, dealing 65 Bahrain with construction permits, getting electricity, 7 United States 68 Qatar registering property, getting credit, protecting 8 Sweden 70 Oman minority investors, paying taxes, trading across 9 Norway borders, enforcing contracts, and resolving 82 Saudi Arabia 10 Finland insolvency — are included in the Distance 13 Australia 84 China to Frontier score and Ease of Doing Business 101 Kuwait ranking. The index also measures features of 14 Canada labor market regulation, which is not included 15 Germany 130 India in these two measures. Country ranking of Ease of Doing Business Index, 2015 Source: World Bank, Doing Business 2016
UAE State of Green Economy Report - Second Edition 2016 153 on a scale from 0 to 100. The UAE has Category 2014 2015 2015. The World Economic Forum (WEF) has been ranking the competitiveness of countries shown a substantial improvement in Overall 32 31 regulatory efficiency, moving up from on a yearly basis since 2004 through the Starting a business 57 60 71.6 in 2009 to 75.1 in 2015. The country Global Competitiveness Index (GCI), which Dealing with construction permits 3 2 provides business-friendly conditions integrates macroeconomic and micro and Getting electricity 4 4 in taxes, electricity connection and business aspects of competitiveness into a construction permits, while it needs Registering property 10 10 single index. improvement particularly in cross-border Getting credit 90 97 • The UAE’s GCI ranking is steadily moving trading, credit issuance and insolvency. Protecting minority investors 64 49 up and has reached the 12th position in • The UAE has an ambition to attain the Paying taxes 1 1 the last results in the 2014-2015 version, world’s top position in this index by 2021 Trading across borders 100 101 showing a remarkable improvement in under the UAE Vision 2021. Enforcing contracts 27 18 the general business environment. In Resolving insolvency 90 91 this latest 2015-2016 version, the ranking dropped to 17th out of 140 economies. UAE’s ranking in 10 categories of Ease of Doing WEF explains that this is mainly due to the Business Index, 2014-2015 Source: Doing Business 2016 new availability of an indicator on tertiary education. ECO8: Global Competitiveness Index • The UAE’s macroeconomic environment, Global Competitiveness Index (2015): 17th in the world highly developed infrastructure and nd (5 places down from 2014); 2 in the GCC (1 place down from 2014) strong institutions were highly valued in the breakdown of the index, as they National competitiveness is considered to national competitiveness, the UAE established provide a solid base for competitiveness. be particularly important for small open the Emirates Competitiveness Council (ECC), Its business environment was also economies like the UAE to attract foreign which serves as a conduit between the public considered as welcoming to investment investment, talented workforce, and new and private sectors, actively informing policy and characterized by regulations that are technologies and knowledge. These in turn will creation and process development of federal easy to comply with, a fairly efficient labor provide the scale necessary for productivity and local government bodies. ECC was further market, and the presence of sophisticated increases, including those in green sectors. elevated to the Federal Competitiveness and businesses. On the other hand, WEF Given the strategic importance of raising Statistics Authority (FCSA) in September concluded that the country needs to
154 UAE State of Green Economy Report - Second Edition 2016 UAE’s Performance towards a Green Economy
1 Switzerland strengthen its capacity for innovation, was returned to the 2nd position after including by upgrading scientific research. 2 Singapore Qatar (Bahrain, Kuwait and Oman were surveyed in the latest edition for the 3 United States • In the 2014-2015 version, the UAE first time). The UAE Vision 2021 targets 4 Germany became the most competitive nation among GCC members for the first time, becoming one of the top ten countries 5 Netherlands but in the latest 2015-2016 result it in the GCI by 2021. 6 Japan 7 Hong Kong, China Institutions 7 8 Finland Innovation Infrastructure 9 Sweden 6
10 United Kingdom 5 11 Norway Business Macroeconomic sophistication 4 environment 12 Denmark 3 13 Canada 14 Qatar 2
15 Taiwan, China Market size 1 Health & primary education 17 UAE 21 Australia 22 France 25 Saudi Arabia Technological Higher education readiness & training 26 Republic of Korea 28 China
34 Kuwait Financial market Goods market 39 Bahrain development efficiency Labor market efficiency 62 Oman UAE MENA and Pakistan Ranking of Global Competitiveness Index, 2015 Breakdown of the UAE performance in the Global Competitiveness Index, 2015 Source: WEF, Global Competitiveness Report 2015-2016 Source: Global Competitiveness Report 2015-2016
UAE State of Green Economy Report - Second Edition 2016 155 ECO9: Water Consumption per GDP Municipal water consumption per GDP (2013): 2.98 liter/$ (5.4% down from 2012)
The efficiency of water use is critical for 3.5 the UAE to ensure continuous growth, as 3.4 the country relies on modern desalination technologies for most of its municipal water. 3.3
In relation to the economy’s health, the 3.2 efficiency should be understood in terms I/$ of how much water is is used for making 3.1 added value in the economy. The economic 3 efficiency in the use of water for agriculture, 2.9 most of which comes from underground 2008 2009 2010 2011 2012 2013 sources, needs to be understood separately. Trend in municipal water consumption per GDP (PPP) in the UAE, 2008-2013 Source: Statistical Annual Report Electricity and Water; World Development Indicators • Progress in the intensity of municipal water use has been observed in recent years in terms of both per capita and per ECO10: Waste Generation per GDP GDP. The relative decoupling of municipal Relevant data is not available water use from economic growth has been realized after the peak recorded at The per-GDP waste generation measure is a as the level of reuse and recycling, which would the time of the financial crisis. useful barometer to understand the efficiency of affect environmental quality in terms of land use, • A radical decline in per-GDP water material use in generating economic value as well water and air pollution, and GHG emissions. intensity has been observed between 2012 and 2013, and it was recorded at below 3 liters per US dollar added value for the ECO11: Energy Consumption per GDP first time. The continuous improvement Electricity consumption per GDP (2013): 0.18 kWh/$ (3% down from 2012) would support the country’s healthy The main energy challenge for the UAE emissions from economic growth through growth while limiting resource use. is to decouple energy use and related improvements in energy efficiency and the
156 UAE State of Green Economy Report - Second Edition 2016 UAE’s Performance towards a Green Economy development and use of cleaner energy 0.21 sources. Progress towards a Green Economy 0.2 in this area can be assessed by the energy productivity or intensity of the economy. 0.19
• While the per-capita intensity of 0.18
electricity use has been slightly kWh/$ increasing in the last few years, the 0.17 intensity per GDP has been slowly 0.16 but steadily declining since the peak recorded in 2010. 0.15 IEA estimates the intensity in terms • 0.14 of total energy use (including the use 2007 2008 2009 2010 2011 2012 2013 of fossil fuels in industrial processes, Trend in electricity consumption per GDP (PPP) in the UAE, 2007-2013 heating and cooling, transport, etc. as Source: Statistical Annual Report Electricity and Water; World Development Indicators
well as electricity) around the world. 0.135 The trend is similar to that of electricity alone as the UAE’s per-GDP energy use 0.13 started decreasing since the peak in 0.125 2010 after the rapid rise from 2006. 0.12 • The 2012 energy intensity was recorded 0.115
at 0.125 kgoe per US dollar added value, kgoe/$ which was the lowest and the most 0.11 efficient among GCC countries, and 0.105 was placed between the OECD average (0.114 kgoe/$) and the world average 0.1
(0.134 kgoe/$). 0.095 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Trend in energy use per GDP (PPP) in the UAE, 2000-2012 Source: IEA; World Development Indicators
UAE State of Green Economy Report - Second Edition 2016 157 DMC, as it has gradually declined after the ECO12: Material Consumption per GDP financial crisis. Domestic material consumption per GDP (2010): 478 g/$ (5% down from 2009) • It should be noted that DMC looks at only Economic growth is generally accompanied by also shown a rapid decline between 2008 the materials directly consumed within the growing demand for raw materials for production and 2010, reaching the level below that in country. However, since a large amount of and consumption. The main challenge is to 1980. materials originated from other countries ensure that materials are managed well and • Since the recent DMC data is not yet are used for the goods and services used efficiently at all stages of their lifecycle compiled, domestic steel consumption produced and consumed in the country, the (extraction, transposition, transportation, was also reviewed as a proxy, since steel is total material consumption (TMC) needs consumption and disposal) so as to avoid waste one of the most essential materials used to be compiled for better understanding. of resources and reduce the associated negative in the majority of economic activities. The Furthermore, it should be noted that DMC environmental impacts. Progress towards a UAE’s per-GDP steel use (finished steel data is compiled only on a weight basis and greener economy in this area can be assessed products) was recorded at 11.9 g per US aggregates all materials, without weighing through changes in the extraction of resources dollar, showing a similar trend as that of their scarcity or environmental impacts. and domestic consumption of materials, and in the associated material intensity per capita and 600 economic output. 550 • The estimation of domestic material
consumption (DMC) has been compiled 500 by the Vienna-based Sustainable Europe
Research Institute (SERI) together with 450
the Vienna University of Economics and g/$ Business (WU), which has been adopted 400 by OECD and Eurostat. DMC around the world has been estimated between 1980 350 and 2010. The UAE’s total DMC has grown 7.8 times in three decades while the per- 300 GDP DMC has started a decline after the 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Trend in domestic material consumption per GDP (PPP) in the UAE, 2000-2010 financial crisis. The per-capita DMC has Source: SERI and WU, materialflows.net; World Development Indicators
158 UAE State of Green Economy Report - Second Edition 2016 UAE’s Performance towards a Green Economy
28 by 3% from the previous year. 26 • As explained earlier (ENV9), the straight 24 comparison between the 2012 data and 22 the other years is not appropriate as 20 different IPCC guidelines were applied for 18 estimation. g/$ 16 • According to the World Bank’s 2011 14 data, the UAE is the second least carbon- 12 intensive economy in the GCC, almost 10 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 equivalent to the United States and India, Trend in the UAE’s apparent steel use (in finished products) per GDP (PPP), 2005-2014 in the per-GDP terms. Source: World Steel Association, Steel Statistical Yearbooks; World Development Indicators
ECO13: GHG Emissions per GDP
Greenhouse gas emissions per GDP (2014): 340 gCO2e/$ (3% down from 2014)
As the UAE is a rapidly growing country, the 480 GHG emissions need to be understood in the 460 context of economic size – how much GHGs 440 are emitted per production. The improvement 420 in per-GDP emissions would determine the 400 e/$ country’s continuous growth potential as an 2 380 overall radical reduction in GHG emissions has gCO 360 been required globally. 340 • The GHG emissions per GDP have 320 decreased by 27% from the peak recorded 300 1994 2000 2005 2012 2013 2014 in 2000 till 2014, showing a clear improvement Trend in the UAE’s GHG emissions per GDP (PPP), 1994-2014 in efficiency. The 2014 efficiency increased Source: MoENR and MOCCAE; World Development Indicators
UAE State of Green Economy Report - Second Edition 2016 159 gCO /$ 2 water desalination and power production 0 100 200 300 400 500 600 700 throughout the country. This requires setting Singapore clear targets for medium- to long-term Switzerland retrofitting and efficiency improvement as France well as encouraging knowledge sharing and United Kingdom demonstration to help align efforts and attract Japan investment. Qatar • One measure of the efficiency of a United States generator or power plant that converts UAE a fuel into heat and into electricity is the India heat rate. The heat rate is the amount of Kuwait energy used by an electrical generator Korea, Rep. or power plant to generate one unit of Saudi Arabia electricity, most commonly expressed by Australia gigajoule (GJ) per gigawatt-hour (GWh). Bahrain It is the inverse of the efficiency: a lower heat rate is more efficient. Oman China • There is no available data on heat rate OECD average or relevant efficiency measures in the World average country.
CO2 emissions per GDP (PPP) in major countries, 2011 Source: World Development Indicators
ECO14: Efficiency of Water and Electricity Production Relevant data is not available
In addition to looking into alternative needs to encourage the adoption of best energy sources, the UAE government available technologies in fossil fuel-based
160 UAE State of Green Economy Report - Second Edition 2016 UAE’s Performance towards a Green Economy
• According to the measurement based on ECO15: Average Fuel Efficiency of Vehicles the US Corporate Average Fuel Economy Average fuel consumption of new light-duty vehicles (2013): 12.1 km/l (CAFE) standards, the average fuel efficiency (CAFE-based); 10.7 km/l (NECD-based) of vehicles sold in the UAE in 2013 was 12.1 km per liter (cars: 14.8 km/l; light trucks: 10 The UAE Green Agenda aims to elaborate the • Although no official estimation of km/l), which is close to the US average of 13.0 best way to make cleaner and more efficient average fuel efficiency is available, the km/l (cars: 15.0 km/l; light trucks: 10.5 km/l). vehicles attractive to consumers in a country US-based International Council on Clean However, compared with the portfolio of where fuel prices are low. This could include the Transportation (ICCT) estimated the • vehicles running in European countries development of national fuel efficiency and/or average efficiency of light duty vehicles emissions standard and labeling of passenger according to the methodology defined (LDVs) on the UAE roads based on market and commercial vehicles. While the diffusion of under the EU National Emissions Ceilings data on the portfolio of vehicle types sold in greener and new types of vehicles is measured by Directive (NECD), the UAE’s average fuel ENV15, this indicator focuses on fuel efficiency, the country. This study was commissioned efficiency (10.7 km/l) is substantially lower which would help reduce the loss in potential by the UAE Ecological Footprint Initiative than the EU’s (18.8 km/l) as the portfolio export revenues and save government subsidies, in consideration of national vehicle fuel of vehicle types is significantly different, as well as limit environmental impacts. efficiency standards. consisting of more larger fleets.
CAFE-based NECD-based All LDVs All LDVs
LTs LTs US EU
Cars Cars
All LDVs All LDVs
UAE LTs UAE LTs
Cars/PVs Cars/PVs
0 5 10 15 20 0 5 10 15 20 km/I km/I Average fuel efficiency of light-duty vehicles sold in the UAE, 2013 Source: ICCT Note: LDV = light duty vehicle; LCV = light commercial vehicle; LT = light truck; PV = private vehicle
UAE State of Green Economy Report - Second Edition 2016 161 Social Performance
The UAE government recognizes that SOC1: Labor Participation Rate women will be a key factor in the state’s Labor participation rate (15-64 years old) (2014): Total 80.8% (1.3 points up from 2012); Male 93.3% (2.1 points up); Female 46.7% (0.1 point down) future prosperity and is pursuing a strategy to empower women. One study shows that if female employment rates were to match Needless to say, labor is one of the most remain a relatively untapped resource in the those of men, it could boost the country’s essential inputs for the production of goods UAE and the pace of improvement is slow GDP by some 12%. and services. Labor market dynamics in compared to the rate of male workforce. countries are generally measured by labor force participation rates and unemployment 10,000 rates. 9,000
• According to the International Labour 8,000 Organization (ILO) statistics, the UAE’s 7,000 working population in 2014 reached around 6.3 million, growing at a 6,000
historic pace along with the country’s 5,000 population growth. The proportion of 4,000 the population aged between 15 and 64 thousand population that is economically active was 80.8% in 3,000
2014, indicating the high level of labor 2,000 supply and even improving from the 1,000 2012 rate reported in the last version of this report. 0 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2011 2012 2014 • The rapid increase of female participation Labor force Total population in labor market is notable, with 46.7% Trends in total population and labor force in the UAE, 1990-2014 recorded in 2014. Nevertheless, women Source: ILO; World Development Indicators
162 UAE State of Green Economy Report - Second Edition 2016 UAE’s Performance towards a Green Economy
100 since the last reporting. The total rate has 90 reached 96.4%. 80 70 • However, the gap between male and 60 female rates has not been lowered and
% 50 40 continuous efforts to improve female 30 employment are required. 20 10 0 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2011 2012 2014 Labour participation rate, total Labour participation rate, male Labour participation rate, female Trends in the UAE’s labor participation rate, 1990-2014 Source: ILO; World Development Indicators
SO2: Employment Rate Employment rate as a proportion of labor force (2014): Total 96.4% (0.4 point up from 2012); Male 97.3% (0.3 point up); Female 91.4% (0.5 point up)
Foreigners comprise over 95% of the UAE 100 workforce, with the largest communities 98 96 coming from South Asia and a substantial 94 presence from the Middle East and North 92
Africa (MENA) region. Since most foreigners % 90 88 gain their residence permit based on 86 employment, the employment rate (one 84 minus unemployment rate) of foreigners is 82 80 considered nearly 100%. 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 Employment rate, male Employment rate, female Employment rate, total The employment rate of both the male • Trends in the UAE’s employment rate as a proportion of labor force, 1991-2014 and female labor force has even improved Source: ILO; World Development Indicators
UAE State of Green Economy Report - Second Edition 2016 163 SOC3: Emiratization Rate Share of UAE nationals in total labor force (2014): 5.0% Share of UAE nationals in total private-sector employees (2014): 1.0%
The government is working to ensure that the to develop the skills and competitiveness of • The lack of UAE nationals in the private imbalance in the workforce is addressed with Emirati citizens. sector has been a significant concern and the government is making efforts to active “Emiratization” efforts. Public bodies • The latest figures on the share of UAE encourage UAE nationals to shift their such as the UAE National Human Resource nationals in total labor force is 5.0% choice of employment away from the Development and Employment Authority in 2014. The UAE Vision 2021 aims to public sector. The latest rate of nationals (Tanmia, now part of the Ministry of Human achieve 8% of the total workforce coming in the private sector workforce is 1.0%. Resources and Emiratization) are working from UAE nationals by 2021.
SOC4: Number of Green Jobs Relevant data is not available
The successful transition to a Green Economy and workforce training to contribute to the green jobs in collaboration with those rests on the skills and expertise of the overall efforts for moving towards sustainable organizations to outline the expected skill and country’s workforce and its ability to leverage development. workforce requirement for a Green Economy transformation. local talent. To encourage and support the • There is no universal definition or shift towards greener jobs, the government categorization of green jobs, even though • This would further help estimate the policy needs to be designed to explicitly some international organizations such potential for new employment opportunities address the skill gaps between the current as ILO and EU are currently working on and shift in workers from conventional to labor market and the requirements for a developing such a definition. The UAE new and fast-growing green sectors. Green Economy and to ensure education firstly needs to establish a frame work of
164 UAE State of Green Economy Report - Second Edition 2016 UAE’s Performance towards a Green Economy
SOC5: Number of UAE Patents Number of patents granted by GCC Patent Office (2015): 3,913 (659 added in 2015)
The government can nurture and activate new • The number of local patents is still have a global impact and economic technologies and businesses by incentivizing relatively small, reflecting the current level benefits. the research community and industry to of R&D activities. The GCC Patent Office • In relation to the Green Economy, “green capture emerging opportunities. In addition to was established to facilitate inventors to patents” may well be distinguished investment in R&D, the active use of intellectual register their IPRs throughout the region, from other types of patents to gauge property rights (IPRs) such as patents and and the application for and approval of the R&D efforts in this direction. trademarks, are considered to be one of the GCC patents is rapidly increasing. It is International organizations such as the key factors to secure economic benefits from also important to understand how many World Intellectual Property Organization innovation and technology advancement, as UAE-originated patents are registered (WIPO), OECD and EU are working on well as a convenient measure to understand the in major economies such as the US, EU extracting green patents from their patent level of innovation in a country. and Japan so that local innovation would registries.
SOC6: Global Innovation Index Global Innovation Index (2015): 47th in the world (11 places down from 2014); 2nd in the GCC (1 place down)
The Global Innovation Index (GII) is an 141 economies based on a composite of 79 UAE, Qatar and Saudi Arabia dropped their annual publication that was launched in 2007 indicators. positions from the last result, while Bahrain, Kuwait and Oman were benchmarked for and has been valued globally as one of the • The 2015 GII report revealed the UAE’s the first time in the 2015 report. most comprehensive measures to understand overall score was 40.1 and ranked the different countries’ enabling environment for country 47th, showing a significant drop • This change can be explained by innovation and their innovation outputs. from the last result in 2014 (43.2; 36th) after the modification made in the GII The 2015 version of the GII was co-published keeping a stable position since 2011. The methodology and composition of by Cornell University, INSEAD, and WIPO. UAE has become the 2nd position among indicators, as the UAE’s latest performance It ranks the innovation performance of the GCC countries after Saudi Arabia. The in the 79 indicators is not largely different
UAE State of Green Economy Report - Second Edition 2016 165 from that of the 2014 report. In the 1 Switzerland 12 Germany 2015 GII, a total of six indicators were 2 United Kingdom 14 Republic of Korea modified from the previous year: three 3 Sweden indicators were deleted or replaced, two 19 Japan 4 Netherlands underwent methodological changes, and 29 China 5 United States one changed its indicator number as a 43 Saudi Arabia result of the framework adjustments. The 6 Finland 47 UAE authors state a caution that the scores 7 Singapore 50 Qatar and rankings from one year to the next 8 Ireland are not directly comparable. 9 Luxembourg 59 Bahrain • As one of the national KPIs under the UAE 10 Denmark 69 Oman Vision 2021, the UAE aims to become 11 Hong Kong, China 77 Kuwait among top 20 economies in the GII by Ranking of major economies and GCC countries in the Global Innovation Index, 2015 2021. Source: INSEAD et al., Global Innovation Index 2015
SOC7: Global Entrepreneurship Index Global Entrepreneurship Index (2015): 19th in the world (1 place up from 2014); 1st in the GCC (unchanged)
The entrepreneur who looks for new ideas of “entrepreneurship ecosystems” in 15 pillars – moving up one position from the last version and puts them into effect provides a spark to a mix of attitudes, abilities and socio-economic and keeping the top position in the GCC. economic activities by his or her bold decisions infrastructure – in over 100 economies through • Looking into the breakdown of the scores and could eventually contribute to growth and the Global Entrepreneurship Index (formerly in the 15 pillars, the UAE is one of the top employment creation. Entrepreneurial solutions the Global Entrepreneurship and Development performers globally in human capital, risk would also be required for intricate global Index) since 2011. capital and high growth. challenges such as poverty and climate change • On the other hand, bottlenecks were also The UAE was ranked 19th out of 132 and to enable a Green Economy. The US-based • observed in the areas of start-up skills, risk Global Entrepreneurship and Development economies in its 2016 version announced acceptance, technology absorption and Institute (GEDI) has been measuring the health in November 2015 with its score of 61.4, process innovation.
166 UAE State of Green Economy Report - Second Edition 2016 UAE’s Performance towards a Green Economy
Opportunity Perception 1 United States 1.00 Risk Capital Start-up Skills 2 Canada 0.80 3 Australia Intemationalization 4 Denmark 0.60 Risk Acceptance 5 Sweden 0.40 6 Taiwan, China High Growth Networking 7 Iceland 0.20
8 Switzerland 0.00 9 United Kingdom Process Innovation 10 France Cultural Support 11 Singapore 14 Germany Product Innovation Opportunity Startup 19 UAE 24 Qatar Competition Technology Absorption 27 Republic of Korea Human Capital 29 Bahrain UAE MENA World average 30 Japan UAE’s scores broken down in 14 pillars of the Global Entrepreneurship Index, 2015 Source: 2016 Global Entrepreneurship Index 36 Saudi Arabia 38 Oman SOC8: Environmental Awareness Rate (2014): 39 Kuwait Average rate of environmental awareness 63% Raising environmental awareness is the first and is important for producers and consumers Ranking of major economies and GCC countries in the Global Entrepreneurship Index, 2015 and fundamental step of any actions that aim alike. In 2014, the then Ministry of Environment Source: GEDI, 2016 Global Entrepreneurship Index to facilitate a Green Economy transformation and Water conducted a nation-wide survey of
UAE State of Green Economy Report - Second Edition 2016 167 residents’ environmental awareness and eco- 100 friendly behavior for the first time, involving 4,000 people representing various segments 90 of population (The Environment Agency – 80 Abu Dhabi is conducting a similar survey in Abu Dhabi since 2008). The ministry aims to 70 regularly monitor and analyze the trends in environmental awareness and behavior to 60 % support better, more targeted policy-making. 50 • The results show that the overall level of awareness on environmental issues was 40 63%. Breaking into different stakeholders, 30 awareness among government employees (75%) and industry (construction and 20 industry being 80% and business being 78%) is significantly higher than that among 10 general community (60%) and youth (53%). 0 • When looking into awareness of different Waste Air quality Climate change Groundwater Water Biodiversity Overall environmental subjects, awareness on General community Youth air quality was the highest, followed by Government employees Construction & industry Business Rates of environmental awareness among UAE stakeholders according to subjects, 2014 climate change and waste. Less attention Source: MOCCAE is paid to biodiversity and water issues. Note: Business = hospitality, hospitals, corporate and retails
SOC9: Environmental Behavior Rate outcomes. In reality, there is a substantial gap Average rate of taking pro-environment actions by general community (2014): 55% between good intentions of people (attitude) and their actual behavior, and extra efforts are Personal behavior and choices in daily life – such factors to determine the success in greening needed to change people’s actual behavior. The as what to eat, what to wear and how to get to the economy as they have a significant effect MOCCAE’s survey investigated both awareness work or school – are one of the most critical on the environment as well as on economic and behavior to better understand this gap.
168 UAE State of Green Economy Report - Second Edition 2016 UAE’s Performance towards a Green Economy
• The overall difference between environmental 100 awareness and pro-environment behavior 90 among the general community was 5%, 80 which seems relatively small. 70 60
Looking into different areas, people take % • 50 more pro-environment actions in energy 40 saving and waste segregation. Residents 30 tend to be more reluctant to take action 20 on transportation areas. 10 • More people in the industry take pro- 0 Waste Waste segregation Power Transportation Overall environment actions in all areas (average: General community Youth construction and industry 76%; business Government employees Construction & industry Business 67%), whilst government employees (58%), Rates of taking pro-environment behavior among UAE stakeholders according to subjects, 2014 general community (55%) and youth (51%) Source: MOCCAE are less active on environmental initiatives. Note: Business = hospitality, hospitals, corporate and retails
development” group. The fundamental SOC10: Human Development Index st drivers of the UAE’s strong performance in Human Development Index (2014): 41 in the world (1 place down from 2013); the HDI are health, education and social rd 3 in the GCC (unchanged) improvements, which have delivered consistently better life chances and life Measuring “human development” is an Programme (UNDP) since 1990. The UNDP’s expectancy for people. alternative approach to measuring welfare 2015 Human Development Report presented comprehensively instead of by focusing only the HDI values for 2014 for 188 countries and • Between 1990 and 2014, the UAE’s HDI value increased by 15.1%, or an average on economic growth. Human development is UN-recognized territories. defined as “the process of enlarging people’s annual increase of about 0.59%. During choices”, which allows them to “lead a long and • The UAE’s HDI value for 2014 is 0.835, the same period, the UAE’s life expectancy healthy life, to be educated, to enjoy a decent positioning the country at the 41st. The at birth increased by 9.4 years, mean years standard of living”. The Human Development ranking has gone down from 2013 by of schooling increased by 5.9 years, and Index (HDI) was developed and has been one position, but the country maintains expected years of schooling increased by measured by the United Nations Development membership to the “very high human 4.7 years.
UAE State of Green Economy Report - Second Edition 2016 169 • The UAE Vision 2021 aims for further 0.9 advancement in human development, targeting its HDI ranking to be among the 0.85
top ten by 2021. UAE 0.8 1 Norway Qatar 2 Australia 0.75 Saudi Arabia 3 Switzerland 4 Denmark Bahrain 0.7 5 Netherlands HDI value Kuwait 6 Germany 0.65 Oman 6 Ireland 8 United States OECD 0.6 9 Canada Arab World 9 New Zealand 0.55 World 11 Singapore
12 Hong Kong, China 0.5 14 United Kingdom 1990 2000 2010 2011 2012 2013 2014 17 Republic of Korea Trends of GCC countries in the Human Development Index, 1990-2014 Source: Human Development Report 2015 20 Japan 32 Qatar 39 Saudi Arabia SOC11: World Happiness Index 41 UAE World Happiness Index (2015): 20th in the world (6 places down from 2013); 45 Bahrain 1st in the GCC (unchanged) 48 Kuwait 52 Oman In July 2011, the United Nations General policies. At the first UN High-level Meeting Assembly passed a resolution inviting member on Happiness and Well-Being in 2012, the Ranking of major economies and GCC countries countries to measure the happiness of their World Happiness Report was launched by the in the Human Development Index, 2014 Source: UNDP, Human Development Report 2015 people and to use it to help guide their public Sustainable Development Solutions Network
170 UAE State of Green Economy Report - Second Edition 2016 UAE’s Performance towards a Green Economy
(SDSN) as a global measure of happiness. This 1 Switzerland 20 UAE report uses data from the Gallup World Poll 2 Iceland 21 United Kingdom (the first edition used data set from 2005-07; 3 Denmark 22 Oman the second from 2010-12; the third from 2012- 4 Norway 24 Singapore 14) to assess the extent to which individuals feel 5 Canada 26 Germany happy and satisfied with their lives. On a scale 6 Finland 28 Qatar from 0 to 10, six key variables explain three- 7 Netherlands 29 France quarters of the variation in annual national 8 Sweden 35 Saudi Arabia average scores of happiness, including real 9 New Zealand 39 Kuwait GDP per capita, healthy life expectancy, having 10 Australia 46 Japan someone to count on, perceived freedom to 12 Costa Rica 47 Republic of Korea make life choices, freedom from corruption, 15 United States 49 Bahrain and generosity. Ranking of major economies and GCC countries in the World Happiness Index, 2015 Source: SDSN, World Happiness Report 2015 • In the first edition in 2012, the UAE was Note: 2015 results are based on 2012-14 data. ranked the highest in the Arab world, 8 Switzerland with a global rank of 17th out of over 150 United States countries. This improved to 14th in 2013, 7.5 indicating the positive trend in perceived UAE happiness and quality of life. The latest 7 Oman edition launched in 2015 ranked the UAE Qatar 6.5 six positions lower than its 2013 ranking, WHI score Saudi Arabia but the country kept the top position 6 Kuwait in the region. Overall, the UAE’s score of Bahrain 5.5 happiness improved by 0.167 between the World average first edition and the latest report. 5 MENA average • The UAE Vision 2021 has a goal of seeing 2012 2013 2015 Trends of major and GCC countries in the World Happiness Index, 2012-2015 the UAE reach among the top five in this Source: World Happiness Report 2015 index by 2021. Note: e 2012 report was based on 2005-07 data; the 2013 report based on 2010-12 data; and the 2015 report based on 2012-14 data.
UAE State of Green Economy Report - Second Edition 2016 171 Jamal Al Alawi Latest Results of UAE Green KPIs
Annex: Latest Results of UAE Green KPIs (listed according to the UAE Green Agenda’s Strategic Objectives)
Strategic World GCC Latest Objective Designated Green KPIs Performance Year 2021 target (Committee) ranking ranking trend ECO8: Global Competitiveness Index [H] [N] 17th in the world 2015 17th /140 2nd Top 10 in the world SOC6: Global Innovation Index [H] [N] 47th in the world 2015 47th /141 2nd Top 20 in the world 4.6% (Abu Dhabi: 4.7%; ECO1: Real GDP growth Dubai: 3.8%) 2014 ECO2: Share of non-oil GDP 68.6% 2014 1. Competitive Knowledge ECO3: Share of non-oil export 30.3% (non-hydrocarbon) 2014 Economy ECO5: R&D expenditure in GDP [N] 0.49% 2011 48th /77 1st 1.5% ECO6: Foreign direct investment net inflows [N] 2.52% 2014 101st /181 2nd 5% ECO7: Ease of Doing Business Index [N] 31st in the world 2015 31st /189 1st 1st in the world SOC5: Number of UAE patents 3,913 (GCC) 2015 SOC7: Global Entrepreneurship Index [N] 19th in the world 2015 19th /132 1st Top 10 in the world 478 g/$ (domestic material consumption) 2010 ECO12: Material consumption per GDP [H] 11.9 g/$ (finished steel 2014 2. Social products) Development SOC10: Human Development Index [H] [N] 41st in the world 2014 41st /188 3rd Top 10 in the world & Quality of Life 80.8% (Male: 93.3%; Female: SOC1: Labor participation rate 2014 23rd /187 2nd 46.7%) 96.4% (Male: 97.3%; Female: SOC2: Employment rate 2014 28th /173 3rd 91.4%)
Latest trend: Improving Stable Deteriorating [H]: Headline indicator of Green KPls; [N]: National KPI defined by the UAE Vision 2021
UAE State of Green Economy Report - Second Edition 2016 173 Strategic World GCC Latest Objective Designated Green KPIs Performance Year 2021 target (Committee) ranking ranking trend 5.0% (total) 2014 8% SOC3: Emiratization rate 2. Social 1.0% (private sector) 2014 5% Development & Quality of SOC4: Number of green jobs Not available Life SOC11: World Happiness Index [N] 20th in the world 2015 20th /158 1st Top 5 in the world
ENV9: Ecological Footprint [H] 7.75 global ha/capita 2014 146th /148 4th
ENV14: Environmental Performance Index [H] 25th in the world 2014 25th /178 1st 13 times the recharge from rainfall 2013 ENV1: Rate of groundwater abstraction 16.6 m3/capita (Annual renewable internal 2013 175th /177 4th freshwater resources) 3. Sustainable ENV10: Number of environmental regulations 87 (federal) 2015 Environment & Valued ENV11: Number of environmental standards 25 (federal) 2015 Natural Resources 12.6% (terrestrial: 12.8%; ENV12: Ratio of protected areas marine: 12.2%) 2015 AED 308.6 million ($ 84 million) (Ministry of ENV13: Environmental expenditure Environment and Water 2015 budget) ECO4: GDP from environmental goods and services Not available SOC8: Environmental awareness rate 63% (overall) 2014 SOC9: Environmental behavior rate 55% (general community) 2014
174 UAE State of Green Economy Report - Second Edition 2016 Latest Results of UAE Green KPIs
Strategic World GCC Latest Objective Designated Green KPIs Performance Year 2021 target (Committee) ranking ranking trend 600 gCO /kWh (electricity, including2 desalination) 2013 ENV7: Carbon intensity of energy [H] 57.6 tCO /TJ (total primary energy supply)2 2013 4. Clean Energy & Climate ECO14: Efficiency of water and electricity Not available production [H] Change Adaptation ENV6: Rate of non-fossil energy [N] 0.072% (electricity, Dubai) 2014 24% (incl. nuclear)
ENV8: Total GHG emissions 203.67 million tCO2e 2014 th /187 2nd ECO13: GHG emissions per GDP 340 gCO e/$ 2014 148 2 (2011) (2011) ECO9: Water consumption per GDP [H] 2.98 l/$ (municipal water) 2013 0.125 kgoe/$ 2012 78th /133 1st ECO11: Energy consumption per GDP [H] 0.18 kWh/$ (electricity) 2013 ENV2: Water consumption per capita 514.6 l/day (municipal water) 2013 1.82 kg/day (municipal ENV3: Waste generation per capita solid waste) 2014 5. Green Life & 14.08 % (municipal solid 75% (municipal Sustainable ENV4: Rate of waste recovery [N] waste) 2014 solid waste) Use of 7,536 kgoe 2012 130th /137 2nd Resources ENV5: Energy consumption per capita 11,655 kWh/year (electricity) 2013 ENV15: Ratio of green vehicles Not available ECO10: Waste generation per GDP Not available 12.1 km/l (new vehicles, CAFE-based) ECO15: Average fuel efficiency of vehicles 10.7 km/l (new vehicles, 2013 NECD-based)
Latest trend: Improving Stable Deteriorating [H]: Headline indicator of Green KPls; [N]: National KPI defined by the UAE Vision 2021
UAE State of Green Economy Report - Second Edition 2016 175 UAE STATE OF GREEN ECONOMY REPORT Second Edition 2016 Copyright © United Arab Emirates Ministry of Climate Change and Environment 2016 Citation: MOCCAE (UAE Ministry of Climate Change and Environment) (2016) United Arab Emirates State of Green Economy Report: Second Edition 2016, MOCCAE, Dubai.
Acknowledgements Editor: UAE Ministry of Climate Change and Environment, Green Development Department Special contribution: United Nations Environment Programme (Achim Steiner, Steven Stone) Design & Print: E-design, Dubai www.edesignuae.com Proofreading: Zarina Khan Special thanks to: Abu Dhabi Quality and Conformity Council Environment Agency – Abu Dhabi Ministry of Infrastructure Development Ajman Executive Council Eole Water Mubadala Development Company APCO Worldwide Federal Competitiveness and Statistics Authority Municipalities and Agriculture Affairs Department, Sharjah Bee’ah Fujairah Municipality Municipality and Planning Department, Ajman Center of Waste Management – Abu Dhabi Global Footprint Network Neutral Fuels LLC Central Bank of the UAE Global Green Growth Institute Prime Minister’s Office Clean Energy Business Council General Executive Council, Umm Al Quwain Public Works and Services Department, Ras Al Khaimah Department of Municipal Affairs, Abu Dhabi Green Energy Solutions & Sustainability LLC Regulatory and Supervisory Bureau, Dubai Desolenator INSEAD Innovation and Policy Initiative Roads and Transport Authority, Dubai Dubai Chamber of Commerce and Industry Insurance Authority Securities and Commodities Authority Dubai Electricity and Water Authority International Council on Clean Transportation Sheikh Zayed Housing Programme Dubai Financial Services Authority International Renewable Energy Agency Sustainable Europe Research Institute Dubai Municipality Masdar Takeleap Dubai Supreme Council of Energy Masdar Institute of Science and Technology Tatung Emirates Authority for Standardization and Metrology Ministry of Economy UNEP Finance Initiative Emirates Transport Ministry of Education Wuppertal Institute for Climate, Energy and Environment Emirates Wildlife Society in association with WWF Ministry of Energy Yellow Door Energy Enerwhere Ministry of Foreign Affairs and International Cooperation All financial institutions responded to the UAE green finance survey Unless specified, the data and information on the activities of UAE and overseas entities presented in this publication are taken from publicly available sources.
For further information or for provision of feedback, please write to: UAE Ministry of Climate Change and Environment Green Development Department PO Box 1509, Dubai, United Arab Emirates E-mail: [email protected] This publication is available for download from www.moccae.gov.ae.