Business | Opinion
Irena bid is well founded
Though the UAE has lot to prove over carbon footprint it has several strategic pluses in effort to host the headquarters of the world body.
- By Trevor McFarlane, Special to Gulf News
- Published: 22:37 May 25, 2009
- Image Credit: Illustration: Nino Jose Heredia/Gulf News
Every saint has a past and every sinner has a future. That could be the UAE's message to policy makers deciding on where to house the headquarters of the International Renewable Energy Agency (Irena), the first intergovernmental agency focused on the promotion of environmentally friendly initiatives. The UAE is hoping to morph from environmental pariah to paragon with its bid to host the new entity in Abu Dhabi.
But while it may have a strong argument, it also has a lot to prove. Firstly, given fledgling Irena's mandate one would think it only right that countries with low carbon consumption should have the honour of hosting the new headquarters. By that measure, the Emirate's application seems untenable.
The country's massive air-conditioned shopping malls, addiction to gas-guzzling SUVs and large-scale industrialisation leave it with one of highest per-capita ecological footprints in the world. In an arid nation where water is a scarcity, the UAE's consumption is 550 litres per person per day, making it among the highest on the planet.
Another issue that doesn't help its bid is Abu Dhabi's status as a major oil producer. Pumping 2.6 million barrels per day of the fossil fuel, the UAE capital relies heavily on hydrocarbon as a GDP contributor - not exactly a strategic fit with an organisation that is being created to make the world less polluted.
Taking all this into account it would seem unimaginable that Abu Dhabi's bid could be successful. However, there are valid reasons why the emirate could and should become the new headquarters.
Firstly, federal and emirate level agencies are working hard on changing consumer energy patterns via education and increased awareness campaigns within this relatively young country. And although they won't alter over night they are sure to improve. By the same token, the contribution of GDP from a finite natural resource, such as oil, into state coffers actually acts as an added impetus to lead the way in clean technologies. Indeed, the strategy to reduce the reliance on hydrocarbons is already well underway, so when the age of oil draws to a close Abu Dhabi's switch to renewable clean energy should be smooth.
Meanwhile, this transformation to alternative energies is not going to come cheap. Most countries may espouse to having the political will to go the extra yard regarding green initiatives, but not many will have the deep pockets that are necessary. By this measure Abu Dhabi sits in a very comfortable financial position.
While this attribute may be important, however, it is not going to give the UAE's bid an edge. The nub of Abu Dhabi's argument will be based around its plans for the future. The capital city, more than most, has taken it upon itself to make renewable energies and clean technologies an important part of its future economy. And in doing so it has proved admirably nimble in moving from the conceptual stage to concrete plans
Established in 2006, the Masdar Initiative is the loadstone of this strategy. It being a multi-billion dollar, multi-faceted investment in alternative energy, it gives the emirate a competitive edge. The development, which is more than an environmentally friendly city, will also deepen and support the entire future energy value chain - which will be a world first. The first phase of the project, the Masdar Institute of Science and Technology, which will open its doors in September this year, illustrates how serious the emirate is about green technology. It is the region's first graduate-level, research-driven scientific institution focused entirely on education and research in energy and sustainability.
It is this type of idea that could lend weight to the UAE's application to host Irena. However, there is one other factor that could work in favour or against Abu Dhabi. No country in the developing world has ever had the honour of hosting the headquarters of an international organisation. In fact, the UN consistently names countries in North America or Europe as homes for its entities. There is no doubt that political oratory will do much to decide the eventual home of Irena when policy makers meet in Egypt at the end of June.
However, if the vote sides with a developing country, such as the UAE, it will give confidence to emerging nations that they can play an important role in intergovernmental affairs too.
Trevor McFarlane is editorial manager of Oxford Business Group, Abu Dhabi.
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