Sustainability is not just for buildings

The recent World Energy Forum held in Dubai focussed the world’s attention on the issue of sustainable development.

It also highlighted the role of the Middle East in respect of issues ranging from the green economy, the ongoing role of fossil fuels, developing alternative energy sources, the financing of sustainable development and the integration of urban planning and green technologies.

In September, Jones Lang LaSalle participated in a somewhat lower key, but equally significant, workshop held in Dubai by the World Future Council. The focus of this event was not only how to reduce carbon emissions, but how to guard the newly created Gulf cities against broader ecological and economic challenges.

The face of the region has changed dramatically over the past 50 years, with the creation of gleaming modern cities in a landscape devoid of water characterised until recently by small desert settlements. The new cities were built with little regard to their environmental sustainability, with tall glass buildings and multi-lane highways replacing the traditional urban form of low-rise buildings and narrow streets and shaded laneways.

There is increasing recognition among decision-makers that something needs to be done to address the vulnerability of their cities and improve long-term sustainability. The discussion has moved on from the sustainability of individual buildings to one of how cities themselves can be made more sustainable.

The World Future Council workshop was attended by leading government and private sector stakeholders from across the region. There was a general recognition of the need for a more integrated approach to planning, urban development, transportation, commerce, food and water supply that can more effectively ‘future proof’ the Gulf’s newly created cities.

Masdar in Abu Dhabi provides a role model for how these various elements can come together to create a sustainable, low carbon city, powered by solar energy yet inspired by traditional Arab architecture and urban design.

While the awareness of addressing these challenges has increased over the past five years, the actual implementation of the required solutions has hardly begun.

The lead for many of the policy initiatives needs to be taken by governments and municipal authorities. There is, however an important role for the private sector.

It is therefore encouraging to see some of our developer and investor clients taking a more proactive role.

A leading example in this regard is Majid Al Futtaim Properties (MAF). The company attained a 9 per cent decline in energy usage across their retail portfolio and an 18 per cent reduction in water consumption in their hotels.

The carbon footprint of MAF’s retail portfolio has also declined by 7 per cent from 2011 levels. These efficiencies have resulted in real cost savings to the group, as well as enhancing their green credentials.

But the real estate industry in the Middle East as a whole has not yet embraced the sustainability agenda to the same level as in more mature overseas markets. This is likely to continue until such a time that either the government introduces stricter environmental codes or the market generates significant financial benefits in terms of reduced costs or higher values from more sustainable buildings.

The writer is the CEO of Jones Lang LaSalle, Middle East & North Africa.