20– 21 october 2019 ٢٠١٩ ﺮﺑﻮﺘﻛأ ٢١-٢٠ dubai, united arab ... › wp-content ›...

# W G E S 2 0 1 9

20– 21 October 2019Dubai, United Arab Emirates

٢٠-٢١ أكتوبر ٢٠١٩المتحدة العربية ا�مارات دبي،

ORGANIZED BY

A PROSPEROUSFUTURE2 0 – 2 1 s t O c t o b e r 2 0 1 9D u b a i I n t e r n a t i o n a lC o n v e n t i o n & E x h i b i t i o n C e n t r e

U N I T E D A R A B E M I R A T E S

Dubai Sustainable Finance WorkingGroup Launch

02 03

TABLE OF CONTENTS

DAY ONE

05 Forward 07 Top Line Figures

10 Plenary Session 1Aligning Energy Policy with the SDGs

14 Keynote AddressHis Excellency Thani Ahmed Al-Zeyoudi

16 Keynote AddressHis Excellency Eng. Awaidha Murshed Ali Al Marar

Keynote AddressH.E. Dr. Aisha Bin Bishr

20 Keynote AddressOvais Sarmad

22 Opening Ceremony

26

28 Plenary Session 2Women in the green economy

32 Keynote AddressBan Ki Moon

36 One on One ConversationFelipe Calderón, Former President of Mexico

Youth CircleYouth contribution to localising the SDGsand harnessing technologies to achieve them

40 Breakout Session 1Dubai as a sustainable financing hub

Breakout Session 2Impact of technology on the green economy 44

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DAY TWO54

56

60

64

68

Plenary Session 3Sustainability in the private sector

Plenary Session 4Green banking and investments

Plenary Session 5WGEO Going Global

One on One ConversationJuan Manuel Santos, Former President of Colombia

One on One ConversationJulia Gillard, Former Prime Minister of Australia

72

76 Keynote AddressH.E. Ahmad Al Muhairbi

78

80 Breakout Session 3Challenges and solutions for green energy

Breakout Session 4Sustainable agriculture84

Sponsors & Partners90

Gallery94

Dubai Declaration

FOREWORDUnder the patronage of HH Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai; HH Sheikh Hamdan bin Rashid Al Maktoum, Deputy Ruler of Dubai, Minister of Finance and President of Dubai Electricity and Water Authority (DEWA) inaugurated the 6th World Green Economy Summit (WGES 2019). WGES was organised by DEWA and World Green Economy Organisation (WGEO). It has made considerable progress since its beginnings in 2014, especially given the close progress and partnerships between the public and private sectors to focus on sustainable development.

The opening ceremony was attended by HE Azali Assoumani, President of the Comoros, Ban Ki-moon, Former Secretary-General of the United Nations; François Hollande, Former President of France; Felipe Calderón, Former President of Mexico; Julia Gillard, Former Prime Minister of Australia, HE Ovais Sarmad, Deputy Executive Secretary of the United Nations Framework Convention on Climate Change (UNFCCC), among other dignitaries.

In line with the vision of the UAE’s wise leadership, and with EXPO 2020, the summit has focused on three main pillars: Sustainable Development Mechanisms; International Cooperation to support the Green Economy System; and Adoption of Green Innovative Solutions.

The first pillar was “Towards Sustainable Development” in which WGES has looked at the steps taken towards achieving the UN Sustainable Development Goals 2030 (SDGs) , especially across the private sector, which is a main partner in sustainable development. Policymakers and sustainability experts have identified the biggest barriers to this transition and looked at ways to increase clean energy, waste management and water access in developing countries.

The second pillar was “International Cooperation Towards a Green Economy System”. The dialogue that took place in the summit highlighted the importance of global cooperation in creating a global green ecosystem, and the policies that could facilitate such collaborative work. They explored the ideal international climate that is needed, with a focus on promoting sustainable development through trade liberalization, providing financial resources to developing countries, and dealing with international debt.

The final pillar was “Adoption of Green Innovative Solutions” where we looked at ways in which businesses can use innovation as a tool to enable sustainable development. Environmental experts, technologists and business leaders have shared their thoughts on how to spur innovation in the commercial sphere and how to scale existing innovations across industries and markets.

The Summit outcomes reflect the e�orts in realizing the SDGs , leveraging technology and innovation, and maintaining a more sustainable stream of work from both a governmental and private sector standpoint. The environmental preservation should be in the focus of the e�orts aimed at linking finance, technology, international cooperation, capacity building and other elements of the enabling environment for a green economy, so as to ensure sustaining economic growth, enhancing social inclusion, improving human welfare and creating employment opportunities, while maintaining a balanced functioning of the planet’s ecosystems, and preventing the serious negative implications of environmental degradation on human health and welfare.

In the spirit of the Summit’s outcomes, we rea�rm our engagement and continue to make progress in developing the green economy.

05ForwardForward

TOP LINE FIGURES

SPEAKERS REGIONAL REPRESENTATION

VOLUNTEERS

+50SESSIONS

13

MEDIAPARTNERS

MEDIA

SPEAKERS

49

ORGANISERS

+150SPONSORS

DELEGATES

+3,500DIPLOMATS

+60VIP

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OTHERSEUROPEASIAMENA

63% 13% 14% 10%

06 07Top Line Figures

DAYONE

2 0 t h O c t o b e r 2 0 1 9

W G E S 2 0 1 9

Renewable energy systems are vital for small islands to thrive and become resilient.

Denmark has become a role model in renewable energy generation thanks to strong parliamentary support and consistency in energy policy over the long term.

A carbon tax could serve as an incentive, encouraging the private sector to invest in green economy projects. For both consumers and industries, when the cost of energy increases, they start to use it more responsibly.

Agenda

Across the globe, countries small and large have started to mobilize e�orts to achieve the 17 Sustainable Development Goals (SDGs) by 2030. While significant progress has been made in realising some of these goals, including those in clean energy and health it has stalled or worsened in others. Now is the time for political and business leaders to come together and reflect on where they are advancing in terms of the SDGs and where they are falling short. What opportunities lie in addressing these shortcomings? Where are further e�orts needed, and where should investments be prioritized? How can we accelerate progress towards sustainable development? In this session, leading sustainability experts exchanged views on successful strategies, regulations and policies, and explored the possibility of replicating and scaling these examples.

Summary Points

Governments should consider introducing a carbon tax and applying it to all industrial and commercial activities in order to increase state income as well as putting a price on pollution.

While regulations can influence people’s behaviour, incentives can promote new concepts and applications of new technologies.

If countries seriously want to transition towards a green economy, they should create national indicators to measure their progress.

Governments should issue an environmental accounting law that would quantify environmental losses.

Recommendations

Aligning Energy Policy with the SDGs

Roy SheppardFormer BBC News anchor, specialist conference moderator, interviewer and author, UK

MODERATORH.E. Thoriq IbrahimFormer minister of environment and energy of The Maldives

Mohamed G. KafafyPresident, World Green Economy Council, Egypt

Finn Mortensen Executive Director, State of Green, Denmark

Dr. Waddah S. Ghanem Al Hashmi Senior Director – Sustainability, Operational & Business Excellence – Emirates National Oil Company, UAE

SPEAKERS

WGES 2019 - DAY ONE

PLENARYSESSION 1

Plenary Session 1 Plenary Session 110 11

With just over a decade left to combat climate change and achieve the 17 Sustainable Development Goals by the 2030 deadline, an enormous amount of work lies ahead. Even for a small island nation such as the Maldives, there is a lot of work to do. The country’s low ground elevation level of just 1.5 metres means any impact on climate change, especially a rise in sea level, would have severe consequences. Moreover, the islands are quite dispersed – each has its own power generation system, water production system, and sewage treatment system.

However, the Maldives currently imports fuel to generate electricity and to run these various systems e�ciently, spending almost 20 percent of its GDP on fossil fuel imports, according to H.E. Thoriq Ibrahim, former minister of environment and energy of Maldives. “If we’re going to make our cities sustainable, we need to have renewable energy systems on all the islands. So, we need to have access to green finance to get these systems in place, not only on the Maldives but throughout the world. Renewable energy systems are key for small islands to thrive and become resilient.”

Although it emits only 0.03 percent of global emissions, the Maldives has already set targets to increase the share of renewable energy in the country's power generation mix. “It’s the bigger countries that need to reduce their (contribution to) climate change. Nevertheless, we’re working on a lot of climate change mitigation. The Maldives aims to increase the share of renewable energy by around 20 percent. We already have 16.5 megawatts installed in the country,” said Ibrahim.

PARLIAMENTARY SUPPORT

On the other side of the world, Denmark and other Scandinavian countries have been visionaries of sustainable development. For example, Denmark started investing in wind power development as early as the 1970s. The rationale back then was to reduce the country’s huge dependence on oil imports, which caused great harm to the economy when oil prices surged that decade.

“We needed to diversify our energy supply and ensure we had broad parliamentary support for our energy policy. That has been consistent over the last 45 years. We have gradually moved to a situation where 40 percent of our energy consumption comes from renewables. It will be 50 percent in a few years and all parties in the Danish parliament have accepted that by 2050, we should be totally independent of fossil fuels,” explained Finn Mortensen, Executive Director of State of Green, a not-for-profit, public-private partnership founded in Denmark in 2008. He said that in Denmark’s general election in June 2019, climate change issues were on top of the agenda, with 70 percent of voters highlighting it as a priority focus area for the country.

Mohamed G. Kafafy, President of the World Green Economy Council (WGECO) said that if countries seriously want to transform themselves towards a green economy, they have to create national indicators similar or equivalent to GDP so that they can measure their progress. He said that each country needs to issue an environmental accounting law, which would quantify the value of environmental losses.

Today, environmental losses cost at least $300 billion per annum globally. In the Arab world, it’s about $130 billion. These values reveal that we have to move towards a green economy and renewable energies, according to Kafafy. Moreover, many nations believe that moving toward a green economy is a luxury and not mandatory. However, it has now become a matter of survival.

CARBON TAXATION

In terms of energy policy, Kafafy suggested that governments introduce a carbon tax and apply it to all industrial and commercial activities, not only to increase state income but to also put a price on pollution. A carbon tax would act like an incentive to enhance green economy projects. “We have to put regulations and incentives – not only in the input process but also in the output. For example, governments should purchase renewable energy from waste or solar, (for) higher (prices) than (energy produced through) another activity. Regulations can control and change the culture and behaviour of people, and

Panel Discussion

incentives can promote the concepts and applications of new technologies.”

Dr. Waddah S. Ghanem Al Hashmi, Senior Director of Sustainability, Operational and Business Excellence at Emirates National Oil Company, said that taxation works because it enables governments to generate funds to correct behaviour. “We have found that even for a normal consumer, if you increase the cost of energy, people start to use the energy more responsibly. The same with industry, if you introduce a certain type of taxation, they will be pushed towards better operational excellence to produce less waste. We’ve seen this in many countries. For example, in Germany, landfill taxes drove very di�erent behaviour from cradle to grave.”

Al Hashmi noted that when countries use carbon taxation, the money raised needs to be injected into directly improving education about sustainability and energy management, which will ultimately help in reducing pollution. In other words, taxation needs to be used in a clever way to raise funds and positively change behaviour. Furthermore, governments must make sure that organisations are not just going to pay the tax and then pass on this extra cost to the consumer.

SDG 17, which aims to “strengthen the means of is there a way to remove all these spacing between the words. It doesnt look clean. according to the United Nations, is probably the most critical goal, said Al Hashmi.

“We need to create partnerships. We live in an ecosystem and everyone needs to play their part, be it in the public or private sector. They need to work together, leverage on their expertise and where they have the most impact within their operations. At the same time, one of the areas we need to work on together is developing education, knowledge and awareness, especially with the younger generation. Young people are not going to accept living in a world that is more polluted,” explained Al Hashmi.

Kafafy concluded that in the future, countries will need to provide a strong pipeline of talented people who are ready to take on green jobs. The newly established Mohamed bin Zayed

University of Artificial Intelligence, a post-graduate university that will develop research into AI, is a fantastic example of how the UAE is at the forefront of driving talent development and preparing its large young population for the future, he added.

If we’re going to make our cities sustainable, we need to have renewable energy.

We live in an ecosystem and everyone needs to play their part, be it in the public or private sector and revitalize the global partnership for sustainable development

H.E. Thoriq IbrahimFormer minister of environmentand energy of Maldives.

Dr. Waddah S. Ghanem Al HashmiSenior Director of Sustainability, Operational and Business Excellence at Emirates National Oil Company


Minister of Climate Change and Environment, UAE

In his keynote address, His Excellency Thani Ahmed Al-Zeyoudi, UAE Minister of Climate Change and Environment, called on public and private sector players to collaborate together to address the era's sustainability challenges as he highlighted the significant strides made by the UAE.

“Since its inception in the early seventies, the UAE has paid much attention to the green economy and spared no e�orts to protect the environment and natural resources,” Al-Zeyoudi said. This is why, he explained, the nation's wise leadership has launched several initiatives and projects including the UAE Green Agenda 2030, the National Climate Change Plan of the UAE 2017–2050, the UAE Energy Strategy 2050, UAE Vision 2021, and the UAE Centennial 2071 Plan, in order to make the emirates “one of the best countries in the world” across all sectors.

The minister said the UAE has invested more than 40 billion dirhams in the green economy, with several landmark projects covering the energy, water, agriculture and housing sectors, while Dubai plans to invest nearly 86 billion dirhams in future renewable energy projects.

“Over the past years, a wide range of projects have been implemented in all sectors, all of which have contributed to creating promising economic growth opportunities and supported the transition to a green economy,” said Al-Zeyoudi.

In the energy sector, for example, Umm Al Quwain has laid the foundation stone for a state-of-the-art treatment plant to produce refuse-derived-fuel (RDF). The project was launched within the framework of a series of initiatives announced by UAE President His Highness Sheikh Khalifa bin Zayed Al Nahyan and is being implemented under the supervision of the Ministry of Climate Change and Environment. Scheduled to start operations in Q3 2020, the waste-to-energy plant will span 40 hectares and use approximately 1,500 tonnes of municipal solid waste a day to generate 300,000 tonnes of alternative fuel annually.

The minister said the fourth phase of Dubai's Mohammed bin Rashid Al Maktoum Solar Park, which has a capacity of 950MW, is under

construction and will be completed soon. This phase will provide clean energy for 320,000 homes and will reduce carbon emissions by 1.6 million tonnes annually. Al-Zeyoudi said the UAE's e�orts to promote the use of renewable energy solutions also helped achieve a world record by receiving the lowest bid of USD 1.6953 cents per kilowatt hour (kW/h) for the photovoltaic (PV) part of the 900MW, fifth phase of Mohammed bin Rashid Al Maktoum Solar Park.

Additionally, Dubai Municipality has announced the launch of an advanced plant for power generation from biogas, which will cost around 242 million dirhams to build. The project aims to reduce carbon dioxide emissions by 31,000 tons per year, which will help to save 325 million dirhams through reduced electricity consumption and lower carbon emissions.

Meanwhile, in October 2019, a consortium led by Abu Dhabi-based Masdar launched Cibuk 1, Serbia and the Western Balkans’ largest commercial wind project which will provide emissions-free power to 113,000 homes.

As part of its e�orts to motivate the public to participate in accelerating the transition to a green economy, DEWA has connected 1,354 photovoltaic (PV) solar panel systems on residential, commercial and industrial buildings in Dubai, with a total capacity of 125 MW, Al-Zeyoudi said.

The private sector is also making positive progress, the minister noted, citing PepsiCo in Dubai, which is building a huge solar power plant at its facility which will have a production capacity of 3.7 megawatts, making it one of the UAE’s largest private solar power plants. Also, to promote the deployment and use of renewable energy solutions, Emirates Flight Catering (EKFC), one of the world’s largest catering operations, has successfully commissioned a state-of-the-art solar power system across its premises, which is expected to reduce greenhouse gas emissions by 3,000 tonnes annually.

The UAE has also invested around 146 million dirhams in vertical agriculture in collaboration with construction companies to increase green areas in the emirates, Al-Zeyoudi added.

WGES 2019 - DAY ONE

14 15Keynote Address Keynote Address

KEYNOTEADDRESSHis ExcellencyThani AhmedAl-Zeyoudi

The UAE government has worked tirelessly to maintain the highest sustainability and green economy standards across all sectors, especially in the planning, development and implementation stages of its projects, His Excellency Eng. Awaidha Murshed Ali Al Marar, Chairman of Department of Energy – Abu Dhabi, said in his keynote address at the World Green Economy Summit.

The reason this commitment is so firm, he explained, is because the nation's leadership realised early in its rapid urban development, population growth and economic diversification e�orts, that combatting environmental problems and preserving natural resources are key constituents in the process of achieving sustainable growth and ensuring prosperity for generations to come.

“It was necessary to focus on the energy sector as a key driver in advancing the development journey by reformulating (our) strategies to meet the requirements of the next period, to which the green economy is paramount,” Al Marar said.

For this reason, limiting oil and gas use became a strategic priority for Abu Dhabi. State-owned Abu Dhabi National Oil Company (ADNOC) has succeeded in significantly reducing gas consumption, reaching as low as zero on occasion, like at the Zakum oil field, one of the world’s largest o�shore oilfields.

E�orts in Abu Dhabi, Al Marar continued, have also included the implementation of a carbon capture and storage plan that enables the reuse of captured carbon. This, in turn, slows climate change. The emirate has also taken major strides towards the transition to using clean and renewable energy and supporting environmental sustainability by investing in solar and nuclear energy projects.

“This is exactly what the UAE Energy Strategy 2050 outlines,” Al Marar noted. “It aims to increase the contribution of clean and renewable energy in UAE to 50 percent and reduce the carbon footprint through power generation by 70 percent by 2050. Our e�orts in Abu Dhabi are fully in line with the objectives of the UAE Federal

Strategy.”

Al Marar said the UAE capital began putting its plans in place more than a decade ago with the opening of Masdar City in 2006. “We carried on with this single-minded focus to diversify our energy sources,” he said. “Recently, we announced the operation of Noor Abu Dhabi (solar) plant, which will provide 2.6 percent of the electric power in the UAE in 2020.”

Abu Dhabi has also announced another solar power plant that will have a capacity two gigawatts (GW) in Al Dhafra. The UAE has also made huge investments into nuclear power, which is expected to provide 6 percent of the country’s total electricity consumption by 2050.

“We expect the four reactors in Barakah to reduce carbon emissions by an equivalent of taking 3.2 million cars o� the roads,” Al Marar said. “And we have projects on battery energy storage systems for which we opened early this year the first central control centre in the world to store energy with a capacity of 108 megawatt hours (MWh).”

Such projects “speak volumes” of the UAE's dedication to investing in developing solar and nuclear energy sources, Al Marar said, which will significantly accelerate the realisation of the country’s green economy targets. He said the Abu Dhabi Department of Energy was established in 2018 as part of the process of restructuring the sector and further supporting the emirate’s economic diversification strategy. “Our focus is not only on electrical energy, diversifying its sources and enhancing its e�ciency, but also to enhance the e�ciency of the water sector, especially (because) maintaining water resources and enhancing water security are vital to a sustainable future,” Al Marar said. “Meeting rising water demand is a pillar of economic growth and preserving water resources according to the highest environmental standards is one of the requisites of achieving a sustainable economy.”

In that context, the chairman said, the Abu Dhabi Department of Energy has strived to use technology and innovation to boost e�ciency

WGES 2019 - DAY ONE

Chairman of Abu Dhabi’s Department of Energy


His ExcellencyEng. AwaidhaMurshed AliAl Marar

KEYNOTEADDRESS

across the water sector by expanding its application of reverse osmosis distillation technology instead of conventional methods.“We have launched a new desalination plant in Taweelah Power and Water Complex with a capacity of 200 million imperial gallons per day,” he said. The new project is a qualitative and quantitative addition, Al Marar said, and this technology will increase the desalination capacity in Abu Dhabi from 13 percent at present to 30 percent by the end of 2022.

On the regulatory side, he said his department has worked to set out policies and systems that align with green economy e�orts. “We launched the Recycled Water Policy this year, which will also conserve natural resources and groundwater as well as support Abu Dhabi's e�orts to increase the use of recycled water to 100 percent by 2030,” Al Marar said.

The department has also launched the Abu Dhabi Demand Side Management and Energy Rationalisation Strategy 2030, which consists of nine major programs that aim to reduce electricity consumption by 22 percent and water by 32 percent by 2030. “It also contributes to reducing carbon emissions and increasing the reliance on clean energy sources in Abu Dhabi,” Al Marar said.

“The strategy is mainly built around encouraging rationalization practices among consumers by intensifying awareness campaigns on the importance of water and electricity rationalization for individuals, as well as the environment. Such campaigns aim to strengthen the sense of responsibility among community members to ensure future generations (have) the right to these resources.”

The strategy features a plan to renovate government buildings in Abu Dhabi by boosting the e�ciency of cooling, lighting and water systems to help limit their carbon footprint, yield significant savings and reduce expenses by over 30 percent.

“To complement these e�orts, we launched the energy e�ciency policy regulating government entities, which aims at establishing a framework

to enable Abu Dhabi government entities to take e�ective steps that help reduce water and electricity consumption and achieve water and energy e�ciency,” Al Marar said.

The department has also issued regulations on the district cooling sector, which will lower electricity consumption by up to 40 percent when compared with other air-conditioning techniques, which in turn will reduce carbon dioxide emissions from power plants.

Upping the pace for the future, Al Marar said the department is prioritising sustainable transport as a means to secure a pollution-free environment and achieve green economy targets. “An example of that is our continuous e�orts to plan the future of electric vehicles and achieve a 40 percent rate of electric vehicles in the emirate by 2035,” he said. “Our first ventures include a government program to increase the use of electric vehicles in government-owned fleets, supported by an existing infrastructure of over 100 charging stations across 50 locations as a first phase.”

Finally, the chairman said the Department of Energy believes in the importance of collaborating and cooperating to exchange experiences, coordinate e�orts and use all resources to find e�ective solutions in order to achieve the desired transformation in the energy sector and enhance its contribution to the development of a green economy.

“The energy sector is the lifeblood and the driving force of development,” he concluded.

The energy sector is the lifeblood and the driving force of development

His Excellency Eng. AwaidhaMurshed Ali Al MararChairman of Department of Energy


...especially the youth, are reconsidering theway they live their lives and demanding theirpolitical leaders do better

Ovais Sarmad, Deputy Secretary General of the United Nations Framework Convention on Climate Change (UNFCCC), began his keynote by highlighting the threat of climate change and how it is transforming the way we live and the planet as we know it. Climate change has the power to devastate the building blocks of our lives and civilisations, and will hit the areas where we grow our food and the cities in which we live. The e�ects could destroy ecosystems and negatively a�ect people’s wellbeing.

The world is facing an existential crisis, and we are at a time when we must decide what kind of world we want to pass onto the next generation. This is a question for the present and for the future and it must be answered with action. The government framework is in place – that is the 2015 Paris Agreement. In addition, last year, the rulebook for the Paris Agreement was adopted. Therefore, we have the agreements, policies, governance and tools to take action. What we need now is to enhance that action at all levels – governments, businesses, civil society, youth and academia all have a role to play.

Sarmad said it was heartening to see the broad range of stakeholders present at the WGES 2019. He commended the WGEO on its commitment to climate action and said the UN Climate Change Secretariat was pleased to collaborate with the organisation. He announced that together they would establish a regional collaborative centre in Dubai to serve the Middle East and North Africa with the expertise and knowledge required for all stakeholders to take informed climate action. This will be done in cooperation with five other reginal collaborative UN Climate Change Secretariat centres worldwide.

This is just the start; much more needs to be done, said Sarmad. The transformation towards resilient, sustainable low-emission economies and societies, which is the target of the WGEO, is underway. This is evident in the investments made to achieve climate action and in the enormous economic and entrepreneurial opportunities. It is also clear in the numbers - more than 650 investors with global assets totalling USD 687 trillion have requested data on climate, water, and forest-related issues in regard to their investments. We need to provide that evidence, said Sarmad. Measures are also being

taken in the UAE, which is very promising. The country has expressed its goal of generating at least 50 percent of its energy from renewable sources by 2050, and Dubai will soon become home to the largest concentrated solar power (CSP) project in the world. There is a lot more to come, and the movement to combat climate change is advancing.

In conclusion, Sarmad said people across the world, especially the youth, are reconsidering the way they live their lives and demanding their political leaders do better. They also accept responsibility to combat climate change themselves. What’s more, given the urgency of our response to climate change, the region, the countries, the cities, the businesses and investors that decide to step up and take advantage of this opportunity will be remembered as the pioneers who secured our future.

Ovais SarmadDeputy Secretary General, UNFCCC

WGES 2019 - DAY ONE

Deputy Secretary General, UNFCCC


KEYNOTEADDRESSOvais Sarmad

Azali AssoumaniPresident of the Comoros

Ban Ki-moonFormer secretary-generalof the United Nations

H.E. Saeed Mohammed Al Tayer Managing Director and CEO of Dubai Electricity & Water Authority, Vice Chairman of the Dubai Supreme Council of Energy, and Chairman of WGES, UAE

Francois HollandeFormer president of France

Felipe CalderonFormer president of Mexico

SPEAKERS

OPENINGCEREMONY

SUMMARY

The opening ceremony of the sixth World Green Economy Summit saw world leaders share their thoughts on the state of the green economy and the progress made in achieving the Sustainable Development Goals (SDGs).

H.H. Sheikh Hamdan Bin Rashid Al Maktoum, Deputy Ruler of Dubai, Minister of Finance and President of DEWA, inaugurated the summit. The opening ceremony was attended by Azali Assoumani, President of the Comoros; H.E. Saeed Mohammed Al Tayer, Managing Director and CEO of DEWA, Vice Chairman of the Dubai Supreme Council of Energy and Chairman of WGES; Ban Ki-moon, former secretary-general of the United Nations; François Hollande, former president of France; and Felipe Calderón, former president of Mexico. The ceremony was also attended by Ovais Sarmad, Deputy Executive Secretary of the United Nations Framework Convention on Climate Change; Dr Thani Bin Ahmed Al Zeyoudi, UAE Minister of Climate Change and Environment; H.E. Mariam Saeed Hareb Almheiri, UAE Minister of State for Food Security; and other ministers and senior o�cials.

During his keynote, Al Tayer said the UAE has succeeded in taking e�ective measures to address climate change by launching pioneering clean energy projects. “Recently, the world’s biggest solar photovoltaic plant of 1,177 megawatts, Noor Abu Dhabi at Sweihan in Abu Dhabi, was commissioned on the Independent Power Producer (IPP) model. Dubai continues its work by building the Mohammed Bin Rashid Al Maktoum Solar Park to achieve the Dubai Clean Energy Strategy 2050. This will be the largest single-site solar park in the world, which will have a capacity of 5,000 megawatts by 2030, generated from a range of photovoltaic and concentrated solar power technologies.”

In addition to the projects in Dubai, DEWA is also constructing the region’s first pumped-storage hydroelectric power plant at Hatta Dam, using solar power for pumping and storage, in addition to the Green Hydrogen Project, the first solar-powered green hydrogen electrolysis facility in the Middle East and North Africa.

Former secretary-general of the UN Ban Ki-moon

focused on four topics in his keynote: climate change, green economy, SDGs, and partnerships. On the topic of climate change, he said that even resourceful and wealthy countries such as the United States have been hit by climate change. In some countries, such as Dominica, environmental damage has cost them more than 200 percent of their national GDP. Given these events, world governments must expand their ambitions by taking the necessary steps to mitigate climate change and turn commitments into action.

WGES 2019 - DAY ONE

World governments must expand their ambitions bytaking the necessary steps to mitigate climate change and turn commitments into action.

Ban Ki-Moon,Former Secretary General, United Nations

22 23Opening Ceremony Opening Ceremony

Having participated in the UN Climate Action Summit, which was held on 23 September 2019 in New York City, Ki-moon noted how 16-year-old Swedish climate activist Greta Thunberg spoke to the world’s political leaders and inspired more than 4 million people worldwide to march in the streets. This became the largest mass protest demanding action to limit climate change in history. He advised policymakers and education ministers to listen to the voices of young people and educate them about the importance of climate change from primary and elementary schools so that they can become leaders and champions when they grow up.

On the topic of the green economy, Ki-moon said it was one of the most important ways to combat climate change and push the SDGs. Not only can green economic growth reduce environmental risks and ease ecological scarcities, but it can also create green jobs and provide a pathway for sustainable development including the eradication of poverty and hunger. “The governments and countries prioritising climate change, green economy and sustainable development will gain leadership and share benefits with others in the future. For these reasons, ambitious policy proposals such as the Green New Deal are gaining popularity and political traction in the U.S., Europe and elsewhere.”

In this context, Ki-moon highlighted the work of the Global Green Growth Institute (GGGI), which it supports through technical assistance and the mobilisation of finance to fund climate-resilient projects. Ki-moon expressed his gratitude to the UAE for becoming a strong, committed member state of the GGGI.

Ki-moon added that he was deeply concerned that countries which have benefited most from multilateral guidelines are now withdrawing from the Paris climate change agreement. Referring to the United States, he said that countries which have been respected for mostly democratic principles have stepped out of the UN Human Rights Council. “What kind of message does this leave? And now, they are considering

withdrawing from the World Trade Organisation, which is the backbone of how commerce and trade should be guided. We must increase engagement to ensure the transition to the green economy and to achieve the SDGs. Without engagement among and between the countries, we cannot solve all these issues.”

Azali Assoumani, President of the Comoros, said that his country has committed to increasing its protected areas tenfold from its current base. He added that the systemic crises the world faces today cannot be addressed in isolation because these are related to one another. “If our problems are interconnected, it must be then, that solutions also require us to connect with each other and collaborate.”

Meanwhile, former president of France François Hollande said that since COP 21 in 2015, younger generations have been mobilised dramatically and there is new and growing pressure to act. “Young people are putting pressure on countries, which is pushing them to put (in place) a certain framework between governments and citizens. We need to strengthen this e�ort and accelerate this transition.” He noted there were several priorities to focus on. First, the reduction of fossil fuels in daily power consumption, which requires more renewable energy. Second, establishing a policy on nuclear energy - one that makes greater use of nuclear power given that it has no carbon emissions, but which also addresses the issue of nuclear waste so that it does not become a threat.

Finally, former president of Mexico Felipe Calderon said in recent years, more frequent weather events have taken human lives and caused economic damage. A few years ago, the Paris Agreement provided a ray of hope, but we are still far away from achieving what countries have committed to do as part of that agreement. He said the main obstacle is the prevailing perception that taking action implies huge economic costs. “We, at the Global Commission on the Economy and Climate, were able to show that this is not true; it is a false dilemma. We don’t need to choose between economic growth and

responsibility. We can have economic growth and tackle climate change at the same time. This is the relevance of the WGES in Dubai.”

Calderon said that governments must make brave decisions to change at least three key systems. First, the cities we’re building, to make space for more than 1 billion people who will move to urban areas over the next 12 years. Furthermore, cities must be more compact, more connected, and more integrated. With that, cities will be more productive and less polluted. Secondly, we need to better manage land use to stop deforestation, regenerate lands and stimulate a green agricultural revolution. By doing so, we will be able to provide income, food and a better quality of life for millions of poor families. Thirdly, we must produce energy with cleaner technologies and use that energy in a more e�cient way, taking advantage of the rapidly declining cost of renewable energy production. With that, we can create more business opportunities and jobs.

According to Calderon, if we start today, the investment needed for a low-carbon economy will be about the same of that for a high-carbon, ine�cient economy. Either way, around $90 trillion will be needed to be invested globally in infrastructure in cities, land use and energy. That said, moving to a low-emission, climate-resilient economy o�ers unprecedented opportunities to deliver green jobs, economic growth, investments, and innovations.

Young people are putting pressure on countries, which is pushing them to put (in place) a certain framework between governments and citizens. We need to strengthen this effort and accelerate this transition

Francois HollandeFormer president of France

24 25Opening Ceremony Opening Ceremony

Director General of the Smart Dubai Office

SUMMARY

Cities today are the bedrock of human civilization, the place where most people live and where the vast majority of natural and manmade resources are consumed. Geographically, cities make up just 3 percent of our planet and yet are home to more than half the world’s population. According to Her Excellency Dr. Aisha Bin Bishr, Director General of the Smart Dubai O�ce and Chairperson of the SDG 11 Global Council, urban areas consume 75 percent of natural resources and produce up to 80 percent of greenhouse gas emissions. SDG 11 refers to the 11th of the United Nations’ Sustainable Development Goals, which is to “make cities inclusive, safe, resilient and a sustainable”.

“Our social economic and environmental challenges are mostly manifested from urban environments. That is why SDG 11 is extremely important. It is here where Smart Dubai can play a vital role. Smart Dubai’s vision is to make Dubai not only the smartest city but also the happiest place to live. We are working to provide seamless personal experiences for our residents and visitors.”

SDG 11 goal is very relevant to Smart Dubai. In this context, the UAE federal government launched the SDG 11 Global Council during the WGES 2018 in Dubai. The mission of the council is to formulate pragmatic, multi-stakeholder and widely applicable SDG 11 solutions for cities.

Ahead of WGES 2019, the council published a customizable framework for the implementation of SDG 11 for cities. The framework has four simple steps to assess cities’ current status with regard to the SDG 11 targets, setting out how these can be achieved through a data-driven, evidence-based scheme based on KPIs. The framework also incorporates various enablers, such as case studies of how other cities have successfully implemented SDG 11. The framework is now available on the SDG 11 advisory council website (www.sdg11gc.ae) for cities, researchers and individuals to download and use in meeting their SDG 11 targets.

In the second phase, taking place between the 2019 and 2020 editions of the World Green Economy Summit (WGES), the council will start work on its “to do” list, or what H.E. Dr. Bishr

described as action items.

The first item entails working with cities to assess five SDG 11 indicators, the results of which will be published at the World Urban Forum in Abu Dhabi 2020 next February. Entitled “5 x 10 x 20”, this program will allow the SDG 11 Global Council to obtain a better understanding of cities’ current position with respect to SDG 11 targets.

Next, is the City 20 program, which will match cities who have met the SDG 11 goals and with those that aspire to, in order to encourage participating cities to exchange information and knowledge.

Certain cities tend to exceed particular areas of sustainability and implement successful solutions, and the council will share such solutions with other cities. The third part of the plan, entitled City Solutions, aims to provide a marketplace where the council can showcase successful solutions and stories that cities can access and learn from. The fourth and final part of the council’s program is to create a financial accelerator for cities known as Financelerator.

H.E. Aisha explained: “We know that many cities are unable to finance their sustainable solutions. That’s why we want to bring this platform where many financial firms can come on board and provide funding for cities. All our action items are implemented through strong global partnerships, capitalizing on existing global networks and institutions. We don’t need to re-invent the wheel. Many of our networks and colleagues would love to come and deliver products and solutions that can improve cities. We have concrete steps to complete our 2019-2020 action items by October next year, which coincides with the Expo 2020 in Dubai.”

WGES 2019 - DAY ONE

Our social economic and environmental challengesare mostly manifested from urban environmentsH.E. Dr. Aysha Bin BishrDirector General, Smart Dubai O�ce


KEYNOTEADDRESSH.E. Dr. AishaBin Bishr

Empowering women has benefits for both the community and the environment. When women have financial stability and freedom, they invest in critical areas such as the education and health of their children. When we empower women, we are empowering the whole of society.

Women’s empowerment is a big contributor to achieving the SDGs, because they naturally have empathy for the environment, inclusiveness and tolerance.

There are still countries where women don’t have rights to acquire land or obtain a bank loan. Even in developed countries, there is a lack of women in leadership positions.

Agenda

Across the world, women are increasingly making their mark in the green economy. While this is happening at a slow pace, the footprints of female sustainability pioneers are already visible. Women tend to embrace leadership competencies that are essential to sustainable business, including long-term thinking, innovation, collaboration, transparency, environmental management, and social inclusiveness. In the sustainability sector, such attributes, which are typically considered as “soft” or feminine skills, are crucial. For this reason, many businesses need women to lead on the Sustainable Development Goals. This session explored the challenges and opportunities for women within the field of sustainability, highlighting a diverse of group of women working in sectors such as energy, water, finance and development.

Summary Points

Both the government and private sector should look into setting gender quotas for entry-level positions to encourage more women to join the workforce. However, after receiving training, it’s about the survival of the fittest.

Pushing women toward STEM subjects and careers just because they are under-represented in those fields is not advised. It is better to encourage women to follow their passion.

Trying to get women interested in sectors like ICT and agriculture requires innovative out-of-the-box thinking that can change their perceptions of those disciplines.

Having networks, platforms and circles led by inspiring ambassadors and role models is crucial to advancing women’s empowerment.

Recommendations

Women in the green economy

Susannah StreeterAnchor for the World Business Report on the BBC World Service and BBC World TV, UK

MODERATORH.E. Mariam bint Mohammed Saeed Hareb Al Mehairi Minister of State for Food Security, UAE

H.E. Dr. Aishabin BishrDirector General,Smart Dubai O�ce,UAE

Habiba Al Mar'ashiDirector General, Smart Dubai O�ce, UAE

SPEAKERS

WGES 2019 - DAY ONE

PLENARYSESSION 2


Women are increasingly choosing careers in the green economy as they follow their passion to protect the environment and conserve natural resources. In the UAE, many women are playing prominent roles in the transition toward a low-carbon economy.

Her Excellency Mariam bint Mohammed Saeed Hareb Al Mehairi, Minister of State for Food Security (UAE), said her successful career largely goes back to the encouragement she received from her parents. It started with her interest in airplanes and her decision to study mechanical engineering in Germany, and then it moved to a new hobby - diving - which showed her how humans were destroying the oceans. She then joined a non-profit organisation, teaching children about the marine environment, which then led to her appointment at the UAE Ministry of Climate Change and Environment. “You don’t know where the road will lead you. The main thing is to be passionate about what you do, work hard, and make sure not to forget your values,” said Al Mehairi.

For H.E. Aisha bin Bishr, Director General at Smart Dubai O�ce, growing up in a family that believed in organic food instilled an appreciation for the environment in her at an early age. Starting her career in ICT, where very few women worked, she eventually moved to lead Dubai’s smart city agenda . “I started to deal with di�erent industries, including energy and sustainability, with partners like DEWA and ENOC. It was then I realised that ICT was the best solution to make our lives easier, safer and more sustainable.”

As for Habiba Al Mar'ashi, Co-Founder and Chairperson of the Emirates Environmental Group, her career began when she was a young mother and a government employee, all while also running a couple of small businesses. “We were taught that conservation of resources was part of our religious practices and that we were custodians of the planet because on the day of judgement we would be held accountable. But how do you translate that into a way of life? I wanted to do something to serve my country, and when I got the opportunity to get into the environmental arena, I jumped on that because it was something I could identify with. We should be leading by example and (make) protection of the environment a priority.”

BUILDING CAPACITIES One of the key factors in achieving the SDGs will be

the empowerment of women, because they are the ones who predominantly nurture the family and tend to have more empathy for the environment, inclusiveness and tolerance. All of this will reflect on the SDGs. Nevertheless, while much progress has been made in achieving gender equality, there are still countries where women don’t have rights to acquire land or obtain a bank loan. Even in developed countries, there is a lack of women in leadership positions, be it in food security, sustainability, energy or even in city management.

According to Al Mar'ashi, women can overcome the challenges they face by coming together and forming groups. For example, Solar Sisters, a platform in Africa, has manged to reach out to 2,500 families and train the women to sell solar lights and panels. The initiative is now making deep inroads into Tanzania, Uganda and Nigeria, where women are being empowered to work in renewable energy. Another example is in Latin America, where a company buys recycled paper and takes it to villages where women are trained to turn this paper into biodegradable plates. The plates are then sold in supermarket chains and other places across cities, generating an income for the women. This allows them to work from the comfort of their own homes and get paid for every unit they produce, all while learning about the importance of conservation.

Al Mar'ashi commented: “When you are faced with challenges and you think they’re unsurmountable, you must realise that they’re not. We need to train women. Even those who just have a basic education, we need to train them on vocational things and build their capacities. It serves the environment and the community. Once these women have financial stability, it is invested in areas such as the education and the health of their children. When you empower women, you’re empowering the whole society.”

Some countries also collaborate to further women’s empowerment. For instance, the UAE recently signed a trilateral agreement with the Food and Agriculture Organization and Masdar to empower 1,500 women in Liberia with small solar systems. “International partnerships are extremely important. Our leadership has always seen that. About 30 percent of our cabinet are female ministers and 50 percent of our parliament are women. Women have a say in political decisions and regulations in the UAE, and this has a huge impact on the SDGs,” said H.E. Al Mehairi.

Panel Discussion

When you empower women, you’re empowering the whole society

QUOTAS AT ENTRY LEVEL

On the subject of introducing quotas to make sure women reach the top of their chosen professions, Al Mar'ashi emphasized the importance for women to have their foot in the door. Therefore, both the government and private sector should look into setting quotas for entry-level positions. However, after providing training and building capacities, it’s about the survival of the fittest and the most qualified.

Today, more than 80 percent of employees at Smart Dubai are women. This is no coincidence but a result of intentional e�ort. For example, new mothers at Smart Dubai benefit from flexible timings and nearby nursing facilities. They are also allowed to bring their children to meetings if needed. Moreover, women can suggest and implement smart city ideas through a dedicated platform created by Smart Dubai. “One woman suggested we cut down on plastic use, so now we don’t have single-use plastic and we use refillable bottles,” said H.E. Bin Bishr.

However, pushing women toward STEM subjects and careers just because they are under-represented in those fields will not likely lead to a good outcome. H.E. Al Mehairi explained: “At the end of the day, you have to find your passion. In food security for example, we’re now talking about AgTech, and we’re starting to see facilities in aquaculture and hydroponic farms. But there aren’t many UAE nationals (involved) because we haven’t given those areas much priority, or maybe a few years ago, we thought we weren’t going to be able to grow food in the desert. But now with technology and innovation we can.”

“Trying to get the youth to come into this vital sector is a role I have to play. When I go to our youth circles, I get them interested by saying ‘I’m not looking for the next farmer, I’m looking for the next agri-technologist. I have to give it a cool name to attract them to this sector. I also have to get women interested, by telling them ‘you can actually have your facility in the city and grow food close to your family. Women love to grow food, it’s part of the nurturing they have.”

The speakers agreed that having networks and circles led by inspiring ambassadors is crucial to advancing women’s empowerment. Al Mar'ashi commented: “I was privileged in my work to be exposed to wonderful characters whom I look at as role models. One of them

was the late Professor Wangari Maathai from Kenya, the first African woman to win the Nobel peace prize; she was a legend. When you sit with her and she tells you how she started and the challenges she faced, you become so humbled. She empowered a whole village and ended up planting more than 30 million trees in Kenya.”

“Another character whom I hold high respect for is Mary Robinson, who was the president of Ireland and UN High Commissioner for Human Rights. I was privileged to be a board member at the UN Global Compact, where she was a fellow board member. I learnt a lot from her. All the time she was nudging me and encouraging me. These are the kind of platforms that empower you and inspire you.”

Habiba Al Mar'ashi, Co-Founder and Chairperson of the Emirates Environmental Group


In his keynote address, Ban Ki Moon, former secretary-general of the United Nations (UN), urged political leaders to place much greater emphasis on the implementation of the Sustainable Development Goals (SDGs). Four years since the adoption of the SDGs, Moon said implementation has been “uneven” and that 16 of the world’s top 20 world countries in terms of meeting the SDGs are European.

The assessment came from a report by a Germany's Bertelsmann Stiftung Foundation that reviewed progress on promises made by heads of state and governments after four years of working on Agenda 2030. Only four non-European countries - New Zealand, Canada, Japan and South Korea - were listed in the top 20 according to the report. The United States ranked in the late thirties.

“This is quite worrisome,” Moon said. “There is no need to emphasise, any longer, anymore, about the importance of taking urgent action on climate change. Catastrophic events including record-breaking heatwaves, wildfires, and typhoons, and hurricanes of historic intensity, are no longer anomalies. Even the most resourceful and rich countries like the U.S. have been hit by climate change.”

Moon pointed out that in Dominica, damage from extreme weather events three years ago cost more than 200 percent of the Caribbean island's gross domestic product (GDP). “We must immediately raise our ambition to take necessary steps to both mitigate and adapt to climate change. We must urgently step up our e�orts to implement the Paris climate change agreement.”

The Paris Agreement on climate change has recommended containing global temperature rise below two degrees Celsius, but it is evident, Moon said, that this will not su�ciently limit climate change. Therefore, he noted, the Intergovernmental Panel on Climate Change (IPCC) in 2018 recommended limiting global temperature rises to below 1.5 degrees Celsius and to “faithfully implement” the Paris Agreement as well as “expand ambition and urgency to cut emissions”.

The former UN Secretary-General said increased

climate financing must be secured from higher-income nations and through the capitalising power of multi-stakeholder partnerships. He added that the Global Green Growth Institute (GGGI) currently supports countries with technical assistance and helps mobilise finance for resilient projects that can foster a green economy.

'WE HAVE TO WALK TOGETHER'

Ultimately, partnerships among governments, business communities and civil society is “key” to addressing climate change, Moon stressed. “We have to walk together,” he said, adding that the urgency to participate was irrespective of a nation's prosperity. “Nations must commit themselves to multilateralism, increase engagement and participate in dynamic multi-stakeholder partnerships to the transition to a green economy.”

Going forward, governments must create green jobs, increase access to sustainable services and improve air quality, Moon said. With more than 100 million people moving to cities each year, 68 percent of the world population is slated to live in urban areas by 2050, according to UN statistics.

“Most people will be living in big cities, (so) we must ensure our future cities are resilient, sustainable, creative, innovative, inclusive and equitable,” Moon said. “To do this, we need forward-thinking city planning, adaptation, science and technology, engineering [and] innovation, to make our future cities resilient in the face of increasing levels of hunger, resource depletion, migration and security concerns stemming from the climate change phenomenon.”

Moon said he was deeply concerned, as the former secretary-general of the UN, that “those countries, who have benefitted most from multilateralism guidelines” are now “breaking” multilateralism and withdrawing from the Paris Agreement on climate change and stepping out of the UN Human Rights Council.

Without explicitly naming the United States, the former diplomat, who served two terms as

Former secretary-general of the United Nations

WGES 2019 - DAY ONE


KEYNOTEADDRESSBan Ki-Moon

secretary-general from 2007 to 2016, added: “They are now even considering withdrawing from the World Trade Organization, which is the backbone and basic framework of how commerce and trade should be guided. What kind of message does this send?”

Increased engagement is needed to achieve the SDGs and ensure a transition to a green economy, Moon advised. “Without engagement among and between countries, we cannot solve all these issues. In this age of expanding nationalism, unilateralism and trade wars, I firmly believe we must recommit to multilateralism.”

Moon said he believes “political will and leadership” can help change the situation, referring to Dubai as an example. “In that regard, in many ways, I see Dubai as a model future-oriented and sustainability-minded city,” he said.

NO PLAN B

Policy makers and other key stakeholders must use the SDGs and the Paris Climate Change Agreement to anchor future cities to sustainability, Moon said. “Future cities must be underpinned by inclusivity for all; young and old, men and women, rich and poor, citizens and migrants,” he added, insisting that the recent movement of youth-led climate strikes across the world have shown this process will be incomplete unless young people and women are integrated.

As millions of people joined the climate protests, Moon recalled Swedish teenage environmental activist Greta Thunberg speaking out at the United Nations Climate Action Summit in September where she accused world leaders of taking away the opportunities and dreams of her generation.

“At the grassroots level, we may have hit an inflection point,” Moon said. “The public is demanding stronger political leadership and action. I am of the view that the role of the economy of the future must be to ensure sustainability, a low-carbon economy and social inclusion.”

Moon further recommended incorporating climate change into school curriculums across the globe. He said it was important to address climate change from the early elementary levels and that textbooks should also be changed to support the process. “I propose, from the elementary days, we must educate young people so that they can be the leaders and champions when they grow up,” he said.

The UN SDGs were set in 2015 with 17 targets aimed at addressing global challenges such as climate change, hunger, education and inequality by 2030. Moon said the SDGs were the UN's most ambitious, far reaching and strongest goals ever laid in its history and are designed to provide humanity with a collaborative blueprint to ensure the future we want.

“When I was working to draft the SDGs, we reached out to countries all around the world to ask ”what type of future do you want?” Moon recalled. The outreach resulted in more than 10 million responses from across the globe, with ideas submitted on multiple issues such as poverty, education, gender equality and sustainable cities.

But to achieve global change requires “robust global solidarity,” Moon stressed, calling on world leaders to “think beyond” themselves and their countries. “Some people think we'll move to Mars after we abuse our planet. But we don't have any such kind of planet. He added: “We don't have a plan B because there is no planet B.”

We don't have a plan B because there is no planet BBan Ki Moonformer secretary-general of the United Nations (UN).


One on OneConversation

Felipe Calderón, Former President of Mexico

Felipe CalderónFormer President of Mexico

SPEAKERRoy SheppardFormer BBC News Anchor, Specialist Conference Moderator, Interviewer & Author, UK

Moderator

It is possible to have both low carbon emissions and big profits for businesses. Economic growth and sustainability can go hand in hand.

Although enabling a fair transition for coal workers in the United States is important, we must remember that the country’s solar energy industry has created almost three times as many jobs in the past decade as there are in the coal industry today.

Activists often have good solutions and generate a lot of pressure on authorities to act, which is important to limit climate change, but they also generate resistance. To succeed, activists must find a middle ground because it’s the only way to persuade opposing parties.

Agenda

Former President of Mexico Felipe Calderon has long emphasized that embracing greener economies does not mean giving up on economic development – both sustainability and profitable growth can go hand in hand. At WGES 2019, Calderón shared his experience of positioning Mexico as a global leader in fighting climate change, despite the slower economic growth and the ongoing drug war in the country.

Summary Points

Governments must increase public awareness that a low-carbon economy can lead to bigger profits.

GCC countries should prioritise research on energy storage and carbon capture and storage, because it is the only way to o�set future emissions and preserve economic growth. They should also take advantage of being a first mover in this new discipline.

It’s time to talk about the positive and profitable consequences of good environmental behaviour. If we want to mobilise people to take responsibility for climate change, it’s better not to talk about the negative consequences of climate change, but how beautiful the benefits are of taking responsibility.

Recommendations

WGES 2019 - DAY ONE

36 One on One Conversation 37One on One Conversation

Former president of Mexico Felipe Calderon is credited with having made significant reforms to the country’s environmental policies. During his tenure as president from 2006 to 2012, Mexico hosted the UN climate conference in Cancun in 2010, established the Green Climate Fund, and passed a comprehensive Climate Change Act in 2012. Domestically, Calderon’s administration fostered the creation of 16 new protected natural areas and pushed forward several sustainable development policies —for example, by investing 2.5$ billion in wind farms, attracting green technology companies and curbing deforestation.

Historically, high carbon emissions had been seen as a necessary evil to maintain economic growth. Therefore, governments must increase awareness that a low-carbon economy can actually achieve greater growth. Calderon strongly believes that economic growth and sustainability can go hand in hand.

“We need to make the economic case of tackling climate change. For example, I used to pay an electricity bill of almost 5,000 pesos per month in Mexico, so my wife and I put solar cells on the roof, and currently we’re paying less than 200 pesos per month. It’s a benefit for my pocket and for the environment, and you can see energy savings in any single case, be it in a building or an industry. There is a case for low carbon and high profit for businesses and consumers. We need to provide such kind of information because the old perception that you need to choose between one or the other is still prevailing,” said Calderon.“It’s time to talk about the positive and profitable consequences of good behaviour. In other words, if we want to mobilise the people to take responsibility of climate change, perhaps it’s better not to talk about how horrible the consequences are of climate change, but how beautiful the

benefits are of taking responsibility.”

He urged governments, visitors, and consumers to work together to achieve the United Nations’ Sustainable Development Goals (SDGs). When it comes to activists, they generally have good intentions and solutions and generate a lot of public pressure, which is important. However, they also generate resistance and pushback from the other side. “I respectfully disagree with the idea of nice radicalism, because in my experience radical movements rarely (persuade) people to change. The more aggressive the movement, the more resistance it’s going to generate. In my opinion, it’s crucial to find some kind of meeting ground, because it’s the only way to persuade the other party.”

The former president highlighted the importance of supporting a non-violent strategy. He said that for activists to succeed and be heard, they must be able to get into the conscience of the other side and to mobilize their political will.

Speaking about the Global Commission on the Economy and Climate, which he currently chairs, Calderon said the commission is supported by several countries in which heads of state, prominent businesspeople and academics participate. The commission has already made the economic case for tackling climate change and was able to demonstrate that building a low-carbon economy also provides jobs, economic growth and poverty alleviation.

Using the example of the United States, where President Donald Trump has been attacking renewable energy and defending the coal industry, Calderon acknowledged that it was important to design a fair transition for coal workers, especially when considering the number of jobs associated with coal mining, which is - about 84,000. However, looking at solar energy in the U.S.,

Panel Discussion

about 250,000 jobs have been created in the past 10 years. Therefore, there is a clear economic case to move to renewable energy.

When asked what advice he would give to the Arabian Gulf region, Calderon suggested placing more emphasis on technological advances related to energy storage and to be pragmatic and completely open. He said that the UAE is doing exactly what is needed and is very committed to green growth. For any oil-producing country, it is important to advance in terms of Carbon Capture and Storage (CCS), because this is the only way to o�set future emissions and at the same time preserve economic growth. Therefore, countries in the region should prioritise research on energy storage and CCS and take advantage of being a first mover in this fledgling discipline.

Calderon ended his session with an inspirational statement on what keeps him going every day. “From my experience, you need to find the purpose of your own life. Once you find that motive, you need to embrace it with all your heart and fight for it. It’s going to give you the energy and passion which is required for success. If you can get that, you will find another sense to your own life, which is the secret of happiness I believe.”

I respectfully disagree with the idea of nice radicalism, because in my experience radical movements rarely (persuade) people to change. The more aggressive the movement, the more resistance it’s going to generate

Felipe CalderonFormer president of Mexico


BREAKOUTSESSION 1Dubai as a sustainable financing hub

The global trend of sustainable finance has been late to arrive in the GCC region, but thanks to international treaties and local initiatives it is rapidly gaining traction.

Environmental, Social and Governance (ESG) considerations have come to the forefront of the financial services industry in the past five years. Today, it’s all about integrating ESG values into the investment process.

Malaysia is a great example when it comes to regulatory initiatives. The country’s financial services regulator, Bank Negara Malaysia, amended its sukuk regulations to facilitate Socially Responsible Investment (SRI) sukuk, and Malaysia’s success in this field spurred Indonesia to launch a green bonds programme.

In the same way the industry is moving toward fintech 2.0, going beyond crypto assets and cryptocurrencies and into digital securities, blockchain and Internet of Things (IoT), there could also be an Islamic finance 2.0 which surpasses the negative screen mechanism of what not to invest in, and focuses more on what is investible.

Agenda

In November 2015, His Highness Sheikh Mohammed bin Rashid Al Maktoum, Ruler of Dubai, stated his vision for Dubai to stand at the apex of the world’s green economies of the future. Achieving this ambition will require significant capital and investment from participants and stakeholders in the Dubai economy and will enable the city to become the regional hub for sustainable finance. In the lead up to the World Expo 2020, key stakeholders in the UAE provided their views on the development of sustainable finance, exploring the successes so far and the ongoing challenges that must be addressed in order for Dubai to achieve the ambitious goals set by His Highness.

Summary Points

Regional companies must benchmark themselves globally and look at what their international peers are doing in terms of sustainable finance and investment, because these entities are under more stringent regulations and so will sometimes be more innovative.

When there is a new product or service in the market such as green bonds, companies should educate themselves and make sure they understand the implications well before using them.

Raising financing with a green sukuk has several advantages – it allows businesses to showcase their sustainability-related e�orts and investments, and it enables them to tap into a new liquidity pool of green investors.

GCC countries should use Islamic law when developing sustainable finance regulations, given that sharia is the basis of the region’s legal systems.

Recommendations

Rehan AhmedDirector, Emirates NBD Capital, UAE

MODERATORDiako MakhmalbafSustainable Finance Lead, HSBC Middle East, North Africa and Turkey, UAE

Franck NowakVP MENA Fixed Income and Global Sukuk, Franklin Templeton, UAE

Redwan AhmedHead of Investor Relations, DP World, UAE

Samir Safar-AlySupervising Associate in the Financial Markets team, Simmons & Simmons, UAE

SPEAKERS

WGES 2019 - DAY ONE

40 41Breakout Session 1 Breakout Session 1

This discussion brought together experts from Dubai’s corporate, financial, investment and legal sectors to share their perspectives on sustainable finance and how Dubai can become a global leader in this field. First, it is important to define ‘sustainable finance’. According to Diako Makhmalbaf, Sustainable Finance Lead at HSBC MENAT, the practice involves facilitating, financing or investing into projects and initiatives that are in line with the United Nations’ Sustainable Development Goals (SDGs). These include green financing for renewable energy projects, energy e�ciency, green buildings, green research and development, and social and sustainable projects.

HSBC has pledged to provide USD 100 billion in sustainable financing and investment by 2025 and was among the banks hired to coordinate the Middle East's first green sukuk, issued by the UAE’s retail and real estate conglomerate Majid Al Futtaim in May 2019.

“For us, sustainable finance means something specific – we have to know what the use of proceeds is going for. In a practical sense, lots of funds are SDG aligned, but they may just be integrating Environmental, Social and Governance (ESG) considerations into their decision making. That’s di�erent from a fund that’s focused purely on renewable energy investments, recycling, energy e�ciency or green buildings. We measure sustainable finance by looking at whether it’s going to this exhaustive list of green categories. If it’s not, we don’t count it, although we can say that those assets are ESG aligned,” explained Makhmalbaf.

INVESTOR PRIORITY

Sustainable finance has grown markedly over the last decade. In October 2019, green bond and loan issuance surpassed a new record of $200 billion. The increased focus on sustainable finance from investors is putting pressure on asset managers to become even more diligent when it comes to assessing the risk and opportunities along with various regulatory changes.

Redwan Ahmed, Head of Investor Relations at Dubai-based ports operator DP World, said he has witnessed the growth of sustainable finance first-hand in his day-to-day job. Six years ago, during investor meetings, almost the entire time would be spent talking about strategy and numbers, and perhaps five minutes at the end about ESG factors. “Two weeks ago, we spent a whole hour talking about ESGs. The questions they were asking were di�erent. They were talking about gender ratios, equal pay, worker rights, and

how we manage that in Asia and the Middle East. The discussions have evolved so quickly. Investors have realised that one of the ways to enact change is to have it from the top and to only invest in companies that care about ESGs.”

DP World is familiar with building long-term sustainable projects – the average concessional life for its projects is 37 years. Furthermore, the company takes sustainability seriously. For example, when it built London Gateway, a deep-sea port and logistics park, it had to provide new habitat for around 300,000 birds. In 2018, DP World became the first company in the Middle East to receive financing linked to sustainability performance that has both an Islamic and a conventional facility. Today, the ports operator has about $11 billion worth of bonds which it has not necessarily labelled as sustainable or green bonds, although it may do so in the future.

Commenting on DP World’s $2 billion green loan facility, Ahmed said the company has an active relationship with the capital markets and always look at where liquidity resides. “We know there’s a lot of liquidity in this space. We’ve been well prepared. DP World is the only company in the region to qualify for the Dow Jones Sustainability Index. Also, the lending rates for this green revolver, which is a borrowing facility, can potentially go down depending on our CO2 emission targets. If our CO2 emissions go down, our cost of borrowing goes down.”

DP World has identified around seven projects that could qualify for a green sukuk or bond, and the next stage is to finance those projects. That said, Ahmed cautioned that whenever there is a new product or service, one has to be careful. “The reason we did a sukuk recently instead of a green bond was because we were comfortable with the sukuk market; we understood it and knew we would execute well. Whereas with green bonds, we don’t know whether it will go wrong, or what the cost of funding will be. From an education perspective, we’re preparing ourselves better. We want to get ourselves comfortable with the process before we execute.”

Majid Al Futtaim, on the other hand, has been making many sustainability investments, integrating energy e�ciency in their buildings and setting renewable energy targets for itself. While the company could have raised the recent financing with a regular sukuk, it chose to do so with a green sukuk for several reasons, according to Makhmalbaf. “One was to showcase what they were doing and bring attention to their

Panel Discussion

sustainability investments. Second, when you issue a green sukuk or bond, you get to tap into this new liquidity pool of green investors who are looking for something to invest in. As bankers who care about sustainable finance, we want to push this agenda forward so companies start to feel the need to demonstrate their commitment to sustainability to investors.”

POLICY DRIVEN

As a global trend, sustainable finance has been lagging in the Middle East, but thanks to international treaties and local initiatives, it is rapidly gaining traction. Samir Safar-Aly, Supervising Associate in the Financial Markets team at international law firm Simmons & Simmons, explained: “We’re now seeing global initiatives being manifested locally in the UAE and other countries in the region. The Global Green Finance Index which looks at di�erent financial centres and ranks them in terms of how innovative they are, stated that regulatory intervention was very important in changing behaviour. At a macro scale, we’re seeing the soft law, or international treaties, come into place to facilitate change of behaviour. We’re also seeing local initiatives from governments such as the UAE’s. And in other countries, we’re seeing micro developments whether it’s on financial regulations, energy regulations, or building regulations.”

The GCC region’s oil-based economies could be why sustainable finance did not gain acceptance in this region as fast as it did in Asia, Europe and the United States. Nevertheless, things are changing. For instance, Dubai now has clean energy targets, energy e�ciency targets, green building regulations, and tourism sustainability regulations. Indeed, the UAE government is doing a great deal in this regard, which is crucial because the industry needs direction from the top.

Malaysia is a great example when it comes to regulatory initiatives. The country’s financial services regulator Bank Negara Malaysia amended its sukuk regulations to facilitate Socially Responsible Investment (SRI) sukuk, and the proceeds are allocated to various types of projects, including green projects but also agriculture, housing, and schooling. Khazanah, the sovereign wealth fund of Malaysia, issued the first SRI sukuk under this framework, which was for a schooling project. Malaysia’s success also spurred neighbouring Indonesia to issue a green bonds programme.

Even without regulations, regional companies must do better and use sustainable finance to invest in projects, advised Makhmalbaf. They must benchmark themselves globally and look at what their international peers are doing, because these entities are under more stringent regulations and so will sometimes be more innovative.

Franck Nowak, Vice President, MENA Fixed Income and Global Sukuk at Franklin Templeton, one of the world’s largest asset managers with around USD 700 billion under management, highlighted that although GCC countries are diversifying their economies away from oil, the reality is that in a decade or two the region’s economies will still be dominated by oil and people will be still living in the desert. This does not mean sustainable finance should matter less or that it is di�cult to do; it should matter more.

“Policy formation and definition is key. There are lots of international standards and best practices that can be adopted. It’s a matter of the authorities making up their mind and putting a strategy in place for that ecosystem to take shape. More important than policy-making is implementation. I’ve been living in Dubai for 10 years. One thing the city is good at is implementation; just look at how DP World has evolved over the last two decades. For further progress, there needs to be recognition of the strengths and weaknesses. Many entities in the region can do better with transparency, acknowledging the challenges and engaging with investors,” said Nowak.

Sustainable finance can also draw on Islamic ethics such as ‘tayyeb’, (meaning pure, ethical, and wholesome), and ‘hisba’ (accountability). Safar-Aly elaborated: “The money you have, you hold it as a trust, and therefore you will be accountable for the utilisation of your capital. There are lots of beautiful lessons from seventh-century Islam on how to utilise this thinking.” He explained that the financial sector was already talking about fintech 2.0, beyond crypto assets and cryptocurrencies; moving to digital securities, blockchain, and Internet of Things (IoT). Equally, there could be an Islamic finance 2.0 which goes over and above the negative screen mechanism of what not to invest in, and more so on what is investible.

Given that Islamic law is the basis of the UAE’s legal system, many of these concepts can be tapped into, especially as Dubai moves to become a hub for sustainable finance, and as it works on becoming the city with the world’s smallest carbon footprint by 2050.

42 43Breakout Session 1Breakout Session 1

BREAKOUTSESSION 2Impact of technology on the green economy

Two key factors define the success of a new technological innovation – first it has to be supported by the community to whom it is addressing, and second, it should have su�cient capital to grow.

Blockchain can be beneficial to the green economy in many ways. For example, it can ensure financial aid is secure and give trust to donors; it can provide a digital identity for refugees and migrants so they can access basics such as food, water and medicine; and it can enhance traceability and transparency in financial transactions.

Data is an enabler of sustainability, helping us understand the demand side of things, be it in energy or food, as the global population continues to grow.

While governments are increasingly investing in new technologies and mindsets are changing, the speed at which this is happening is still slow.

Agenda

Overcoming today’s sustainability challenges largely depends on the technological advancements we make, be it in the water, energy, food, manufacturing, or the IT sector. Technology can help make energy use more e�cient, minimize water consumption, reduce wastage, and increase food production. It can also enable the development of new raw material inputs and processes so that environmentally-friendly alternatives are used. Yet as compelling as the opportunities may be, the rapid development of technology can also result in negative consequences, posing economic, societal, ethical and security-related risks. How do we get this balance correct? How can we ensure that technological solutions are not just quick fixes but also address the cause of problems, without creating other complications? How do we scale green innovations across industries and markets? Should governments legislate more to make some industries change their ways?

Summary Points

Investors typically expect high returns in a short period of time. They should start investing for the longer term and not expect the same results they were getting 20 years ago.

Large corporations must realise they cannot solve climate change alone, and as such, they need to invest bigger amounts in promising technology startups to help them to develop solutions.

Frontier markets in sub-Saharan Africa and Asia have a population of nearly 3.5 billion people. These people are emerging as the next middle class, and if they repeat the mistakes their predecessors did, it would spell the end of the planet. Therefore, businesses must invest in this population and encourage them to shift a more sustainable lifestyle.

A potential solution to the lack of funding for startups is to combine di�erent sources of financing, including private capital, impact capital, philanthropic capital, ROI-driven capital, governmental subsidies and crowdfunding.

Recommendations

Susannah StreeterAnchor for the World Business Report on the BBC World Service and BBC World TV, UK

MODERATORAndreas SpiessCo-Founder and Chairman,Solarkiosk, Germany

Francisco BeneditoCo-Founder, ClimateBlockchain, Spain

Kris BarberFounder, DGrade, UAE

Richard DibHead of Data Science Activation,Smart Dubai, UAE

SPEAKERS

WGES 2019 - DAY ONE

44 45Breakout Session 2 Breakout Session 2

Technology has the power to make sustainable practices more a�ordable and accessible. Around the world, technological innovations are contributing to sustainability. Some have received global recognition, and some have won awards. But receiving awards is not what makes or breaks an innovation, according to Andreas Spiess, Co-founder and Chairman of Solarkiosk. What defines the success of a new technological solution are two factors. First, it has to be supported by the people whom it is addressing. The company behind it should also have the community’s support and ensure it isn’t seen as an NGO or government entity but rather, as a private organisation that is doing inclusive business for a win-win situation.

Solarkiosk has managed to do that. The German company has been connecting rural, o�-grid areas in developing countries with renewable energy since 2011. Today, it has completed 250 projects in 15 countries in Sub-Saharan Africa and Southeast Asia, bringing electricity to almost five million people. “We connect people who don’t have access to electricity with renewable energy, not only for consumption such as lighting and charging mobile phones, but also for productive use. This is where innovation comes in. Because only the productive use of energy enables people to increase their income, and only an improvement in (their) economic situation enables transformation into a new society,” explained Spiess.

The second factor that defines success is capital. Spiess highlights the significant lack of capital for last-mile electricity distribution in frontier markets, which combined have a population of nearly 3.5 billion. These are the people who will become the next middle class, and if they repeat the mistakes of their predecessors, it would spell the end of the planet. Therefore, businesses must invest in this populace and encourage them to shift a more sustainable lifestyle.

OFFERING SOLUTIONS

Francisco Benedito, Co-founder of Spain’s Climate Blockchain Initiatives, is using blockchain technology to help address the lack of access to finance . He said that investors always look for high returns in a short period of time. However, these return periods need to be extended because it’s about the survival of the planet.

“We’ve developed a platform for citizens, corporations and governments - a blended finance centre where people can put in money for projects that can save the world. For that, we use blockchain because we need to bring transparency and traceability to transactions. This technology can show you where the money is, and when it has arrived at your destination.”

According to Richard Dib, Head of Data Science Activation at Smart Dubai, there are many applications where blockchain can be beneficial to the green economy. For example, it can secure aid donations and so give assurance to donors, and it can provide a digital identity for refugees and migrants so they can access basics such as food, water and medicine. Smart Dubai is deploying blockchain and has already achieved some remarkable performance improvements; government transactions that used to take almost 40 days to complete are now instantaneous thanks to blockchain.

Meanwhile, Kris Barber, Founder of UAE-based DGrade, introduced his company, which specialises in recycling plastic bottles into textiles and clothing. This requires obtaining su�cient plastic waste to maintain production levels, which is a challenge. To solve this problem, DGrade is looking at developing a barcode or QR code system. This would be placed on plastic bottles so that when a consumer buys a bottle, they can visit the app and it would tell them, through geofencing, where the nearest recycling bin is. They can then redeem points and be rewarded for recycling their plastic.

Barber explained: “We have a tangible solution for plastic pollution. We can show people that if you do take the time to recycle your plastic, then there are great products that can be made from it. We have developed more than 200 di�erent fabrics so far. We promote the closed loop model – we engage with businesses, get them to collect the plastic, and we turn it into products they would normally buy, such as uniforms or bags.”

DATA SCIENCE

If there is one element fuelling all the innovation in the sustainability sector, it’s data. According to Dib, data is helping governments build better environmental regulations and enabling businesses to optimise the use of their resources

Panel Discussion

as well as understand the environmental impact of their operations.

In other words, data is an enabler of sustainability, helping us understand the demand side of things, be it in energy or food, as the global population continues to grow and as climate patterns continue to change. Specifically, artificial intelligence and Internet of Things (IoT) are helping cities monitor air pollution in real time. Smart Dubai is pushing this application a step further by connecting tra�c lights to an artificial intelligence (AI) component and optimising tra�c flow to help reduce pollution levels in the city.

Spiess agreed on the importance of data, noting that without it, his company would not be able to operate in its target markets. Using an app, he can find out how many kilograms of maizemeal his company has sold on a given day in the Masaai Mara in Kenya, a region 500 kilometres from the capital, Nairobi. Without data tracking, he would not have been able to build a sustainable and profitable business, because this app enables him to cut logistic expenses and makes the process much more e�cient.

RAISING CAPITAL

The speakers agreed that the biggest challenge facing technology startups today is access to finance. A potential solution to this is to combine di�erent sources of financing – such as private capital, impact capital, philanthropic capital, return-on-investment driven capital - which are capitalistic and demand high yields and returns, along with governmental subsidies, and an element of societal funding or crowdfunding. If this is done along with data-driven verification it would propel numerous innovations.

Traditional financing institutions must also act faster. As Spiess advised: “Don’t take years doing due diligence. Don’t waste hundreds of thousands of dollars on hiring auditors to scrutinise books of companies that are only three years old. That’s a waste of resources. We don’t have this time. We need to move quicker. Technology companies like ours are moving at such high pace, we’re quadrupling revenues each year, so we need capital that moves alongside and adapts to our needs.”

DGrade has also struggled to raise capital. Just to get investors to understand the company’s business model has been tough. “If I wanted to build a hotel, I’m sure I could’ve built several by now. Investors are generally nervous about new and small businesses. They’re also apprehensive of what the future holds for sustainable businesses because technology is moving quickly. They don’t want to be investing in an out-of-date capital expenditure model if there’s a new technology coming out,” explained Spiess. However, it’s not a quick fix in the sustainability world, he noted. One has to invest for the longer term and not expect the same returns that were achievable 20 years ago from building houses, for example.

For Benedito, the biggest challenge when starting up Climate Blockchain three years ago was to find a market that supported the technology. Back then, there were only two options - Singapore and Switzerland. Today, more countries are supporting blockchain, including the UAE and Luxembourg.

But while governments are increasingly investing in new technology, and mindsets are changing, the pace of progress remains slow. As Benedito explains: “Today, the challenge is not the environment to develop your product, but the speed at which this is happening. For example, in Europe there is a program called Horizon 2020 by the European Union, which o�ers 2.5 million euros if you have a technological project, but you need to spend about five months preparing the documents they’re asking for. So, do you forget about your business for those five months? You have to pay someone to help but you also have to stay involved. It’s a real problem, because you don’t have time to do everything, and when you’re a start-up you’re also fighting for your survival.”

He added that one of the most important elements is support from big corporations, which usually have a lot of money. Despite that, when launching an innovation program, corporations typically give startups small amounts – sometimes as little as $1,500 – to establish their product before they decide whether they want to work with them. In some cases, they copy the idea and make millions, Benedito warned, adding that this is a worldwide problem that must change. The planet is su�ering, and corporations must realise that they cannot solve the climate change problem alone.

46 47Breakout Session 2Breakout Session 2

YOUTHCIRCLEYouth contribution to localising the SDGsand harnessing technologies to achieve them

It is vital for all those represented in today’s world to speak and to have their voices be included in future decision-making processes.

The 2030 Agenda for Sustainable Development is transformative and aspirational, but the role of youth should go beyond experiencing the results of that to being key agents.

Arab youth are concerned about the quality of education; they feel that the education system is not preparing them for the job market and for what society needs.

Youth are fundamental to taking climate action and achieving the SDGs because it’s about their future. For this reason, it is crucial to get them involved.

Agenda

The SDG Summit, which was held in New York in September 2019, concluded that all stakeholders were falling behind in terms of achieving the SDGs by 2030, and that greater urgency was needed. During the forum, scientists cautioned that the world was going backwards on inequality, climate change, preventing biodiversity loss and humans’ ecological footprint. In response, countries renewed their commitment to implement the 2030 Agenda and businesses promised to double down on sustainability initiatives. The Young Leaders are 17 global citizens who were selected from more than 18,000 hopefuls to work with the UN to engage young people in realising the goals, and they pledged to mobilize people for a year of “super activism”. With all stakeholders committing to making the coming decade one of action and delivery, how can we engage young people to catalyse a more impactful phase?

Summary Points

We need to encourage youth to volunteer, visit villages to build schools and bring sanitation, build wells to provide water, and visit countries that face climate-change problems – this will make them feel more empowered and empathetic.

By using new technologies, whether its cloud computing, virtual reality or AI, we can analyse the skills that we need for the future and ensure youth are trained in them. We can bring down the cost of educational programs because virtual and augmented classrooms can deliver learning to the masses.

In terms of localization, youth can add a local touch to the SDGs and turn them into action by making the most of platforms such as the UAE Youth Advisory Council on SDGs.

Recommendations

H.E. Saeed Mohammad Ahmad Al TayerManaging Director and CEO of Dubai Electricity & Water Authority; Vice Chairman of the Dubai Supreme Council of Energy; and Chairman of WGES

H.E. Dr. Thani bin Ahmed Al ZeyoudiCabinet Member and Minister of Climate Change and Environment, UAE

H.E. Jorge ChediekDirector, The United Nations O�ce for South-South Cooperation, Argentina

Aysha Mohammad AlRemeithiDEWA Youth Council, President - Sustainability Engineer at DEWA, UAE

Tatiana Antonelli AbellaFounder and Managing Director, Goumbook, UAE

Session Participants

WGES 2019 - DAY ONE

51Youth Circle 4948 Youth Circle

Young climate activists have become valuable proponents of climate change solutions and catalysts for action, participants of the youth circle noted. The session provided a platform for young people to discuss their role in climate action and invited policymakers to share their thoughts on youth engagement.

During the session, His Excellency Saeed Al Tayer, Managing Director and CEO of Dubai Electricity & Water Authority, Vice Chairman of the Dubai Supreme Council of Energy, and Chairman of WGES, said: “We believe in the youth’s ability to make fundamental positive changes in sustainable development and achieve the goals of the green economy with their strong capabilities and creative ideas.”

In his keynote, His Excellency Jorge Chediek, Director of the United Nations O�ce for South-South Cooperation, said that one of the problems of world leaders today is that they talk too much and listen too little, and it is while listening that we learn. “It is vital for all those represented in today’s world to speak and to have their voices be part of the decision-making processes that will come forward. I’m quite enthusiastic about the leadership and dynamism of the youth movement from climate action.”

Speaking on the role of the youth in taking climate action, His Excellency Dr Thani bin Ahmed Al Zeyoudi, UAE Minister of Climate Change and Environment, said that the UAE has always held its youth in the highest regard, because the country believes young people are the greatest change agents. In order to facilitate youth engagement in sustainable development, the UAE government has launched dedicated strategies, such as the UAE Youth Global Initiative and the Emirates Youth Climate Strategy.

LOCALIZING THE SDGs

The UN’s ambitious 2030 Agenda requires coordinated e�orts locally and internationally by all actors, including the youth. Athbeh Hamdan Al Shehhi, a member of the UAE Youth Advisory Council on SDGs, said that the 2030 Agenda for Sustainable Development is transformative and aspirational, but the role of youth should go beyond experiencing the results of that to being key agents. “When we talk about localization, it is for us to add a local touch to those aspirations and turn the goals into actions. A lot of action is already being done. There are many platforms to raise awareness, and we as a council are creating a platform so that the youth can engage and discuss ideas with each other. The potential of youth is massive: they are influencers and change agents.”

According to Aysha AlRemeithi, President of DEWA Youth Council and Sustainability Engineer at DEWA, the UAE Youth Advisory Council on SDGs was established in February 2019 to accelerate young peoples’ involvement in achieving the SDGs. The council’s strategy is based on five themes to meet the requirements of youth: values and national identity, continuing education, professional development, innovation, and sustainability.

Eng. Mohamed Elimam, another member of the UAE Youth Advisory Council on SDGs, said that there is evidence there will be two key transformations in the next 30-50 years: sustainable development and digital transformation. “At present, we have an inspirational agenda – the 2030 agenda. For the first time we have the right tools; we have AI, Internet of Things, and other technologies.”

Elimam said that Arab youth are concerned about the quality of education; they feel that

Panel Discussion

the education system is not preparing them in the right way for the job market and for what society needs. He said that by using new technologies, whether it’s cloud computing, virtual reality or AI, we can analyse the skills that we need for the future and train young people in those skills. We then can reduce the cost of educational programs thanks to the availability of virtual and augmented classrooms to deliver these programs en masse in di�erent locations. Youth must utilize new technologies to prepare themselves for the future.

EMPATHY FOR OTHERS

According to Abdullah Al Banna, a DEWA employee, a number of SDGs have already been achieved in the UAE, such as SDG 1 which aims to eradicate poverty and SDG 2, which seeks to ensure the availability of water and sanitation for all.

Al Banna explained: “In the UAE, most of the SDGs have been achieved. If you look at the first 10 goals, they are very basic. As a UAE citizen, I have these things, so I could have never imagined what it’s like to need them until I went to the United Nations. One of the positive outcomes was to feel empathy toward peers and youth my age, from countries around the world. I realized that some people don’t have clean water, and that they face issues we don’t face as UAE citizens. When I saw how they talked and heard the urgency in their voices, I felt what they felt. I understood that even though we don’t have certain problems in our country, they still exist around us. If we don’t do something about them now, one day they will reach us because we live on the same planet.”

Meanwhile, Tatiana Abella, Founder and Managing Director of Goumbook, a UAE-based social enterprise that raises awareness about sustainability and green

living, noted that youth are fundamental to taking action to limit climate change and achieving the SDGs because it’s about their future. For this reason, it is crucial to get them involved and make them understand it’s not about us. As an older generation, we are here to collaborate and help them solve today’s problems.

Abella added that young people need to see first-hand what the problems are, such as hunger, poverty, lack of water accessibility. While we can teach them about it, we can also provide field trips and experiences so they can become more engaged. It’s also important for them to volunteer, visit villages to build schools and bring sanitation, build wells to provide water, and visit countries that face these problems – this will make them feel empowered. At the end of the day, sustainability is about people, the planet and profit.

50 51Youth Circle Youth Circle

DAYTWO

2 0 t h O c t o b e r 2 0 1 9

W G E S 2 0 1 9

Dubai SustainableFinance WorkingGroup Launch

Shyrose OsmanChair of the Dubai Sustainable Finance Working Group, and Vice President and Head of Corporate Communications at Dubai Financial Market

PRESENTER

SUMMARY

The Dubai Financial Market (DFM) and Dubai International Financial Centre (DIFC) launched the Dubai Sustainable Finance Working Group in July 2019. The group focuses on four areas: developing green financial instruments, promoting responsible investing, growing sustainable finance, and increasing diversity and inclusion.

As a multi-stakeholder entity, Dubai Sustainable Finance Working Group brings together representatives from leading international and regional banks, financial institutions, and sustainability leaders at public and private companies in Dubai in order to orchestrate the e�orts to embed Environmental Social Governance (ESG) into the financial services sector, and to transform Dubai into the most sustainable financial hub in the region.

Besides DFM and DIFC, the other 10 founding members of the group are Nasdaq Dubai, Hawkamah Institute of Corporate Governance, Dubai Electricity and Water Authority (DEWA), Dubai Islamic Development Centre, Aramex, DP World, HSBC, Emirates NBD, Dubai Islamic Bank, and Societe Generale.

Shyrose Osman, Chair of the Dubai Sustainable Finance Working Group, and Vice President

and Head of Corporate Communications at DFM, launched the group’s new framework during WGES 2019. She said that for the past three months, working group members have been busy identifying strategic initiatives that will help place Dubai on the global map for sustainable finance.

According to Osman, nearly $58.8 billion in social and sustainability bonds were issued in 2018. Investors are increasingly using the United Nations’ Sustainable Development Goals (SDGs) as a benchmark for impact investing, which is creating more demand for sustainability-related bonds. In this context, the Dubai Sustainable Finance Working Group is mandated to work towards achieving the UAE’s nationally determined contributions to the UN’s SDGs and the strategic objectives of Dubai Plan 2021.

The group is also working to develop Dubai’s financial services sector and make it the region’s sustainable financial hub, focused on environmental, social, and governance integration, as well as cultivating green companies and green financial instruments such as green sukuk, and finally, encouraging long-term responsible investment for a sustainable future.

WGES 2019 - DAY TWO

54 55Dubai Sustainable Finance Working Group Dubai Sustainable Finance Working Group

One on OneConversation Julia Gillard, Former Prime Minister of Australia

Julia GillardFormer Prime Minister of Australia

SPEAKERMr. Roy SheppardFormer BBC News Anchor, Specialist Conference Moderator, Interviewer & Author, UK

Moderator

The Global Partnership for Education, of which the UAE is a contributor and Julia Gillard is chair of the board, has changed the lives of more than 70 million children in 67 countries worldwide.

Climate change remains controversial in Australian politics and the country is failing to meet its international commitments on climate change.

Education for women is closely related to sustainability – research indicates that were every girl worldwide today to complete secondary school, the peak global population would be two billion lower than current projections and humanity’s carbon footprint would in turn be vastly smaller.

Summary Points

The single most cost-e�ective investment to limit climate change is to educate girls because the longer that girls remain in education, the later they marry and the fewer children they tend to have.

There is no better way to put values into action than politics and leadership of communities, societies and nations. Individuals with a sense of purpose can unite to change the world.

Arguments for taking action to limit climate change must be taken to the people - even though there is still resistance in society to change, thoughtful engagement and arguments can win hearts and minds.

Recommendations

WGES 2019 - DAY TWO

Agenda

Julia Gillard has played a significant role in promoting sustainability and addressing the e�ects of climate change. As a former prime minister of Australia and the first woman to hold this o�ce, she bravely proposed putting a price on carbon emissions, encouraged the use of clean energy, advanced women’s rights and reformed the education sector.

One of the most important policy initiatives of the Gillard Government was the Clean Energy Bill 2011, a mechanism that supported the development of an e�ective global response to climate change. Today, Australia is on track for renewable energy sources to provide 50 percent of Australia’s electricity needs by 2030.

Recently, Gillard established the Global Institute for Women’s Leadership at King’s College London with the aim of addressing the causes of women's underrepresentation in leadership positions. She also serves as chairwoman of the Global Partnership for Education, an organisation focused on getting all children into school in the world's poorest countries. In this one-on-one conversation, Gillard shared her experiences in furthering green policies and education reform, and her hopes and solutions for a sustainable future.


Don't lose heart, even when it feels wearying. That was the message former Australia Prime Minister Julia Gillard had for policy makers and others who have been working on climate change for a long time.

In a one-on-one conversation with former BBC news anchor Roy Sheppard, Gillard said she believes the new wave of youth activism is “going to take us to a di�erent place”.

“Even though there is still resistance in society to change, thoughtful engagements and arguments can win hearts and minds,” she said.

Gillard, who bravely proposed putting a price on carbon emissions and encouraged the use of clean energy, noted that it is “not irrational for people to be anxious about the future” and that arguments need to be taken to the public.

“We have to make sure we reach out to them and make them understand the challenges the world is facing and work together to make this world a sustainable place,” she said.

One of the most important policy initiatives of Gillard’s government was the 2011 Clean Energy Bill, a mechanism that supported the development of an e�ective global response to climate change and obliged about 500 of the biggest polluters to pay for each tonne of carbon dioxide they emit.

Carbon emissions in Australia dropped following introduction of a carbon tax while Gillard was in o�ce. The tax was later repealed.

“Carbon emissions did go down [after the tax was introduced] but are rising back again,” she said.

“Climate change politics is still unfortunately live in Australia,” Gillard said. “We are not on track to meet our international commitments.”With cheap access to coal, Australia is still a carbon intensive economy, Gillard said. The country has one of the highest per-capita carbon emissions in the world.

“This is a race you don't want to win,” she said. “Now with emissions going back up, Australia has to sort out how it's going to control its

carbon emissions. Unfortunately, climate change is such a profound challenge that if we all sit there saying I'm not going to do anything, it's a recipe for most people not acting. We have to take the perspective that this is urgent. It's an emergency.”

YOUTH INJECTION AND FINDING PURPOSE

The former politician said the current youth generation gives her hope for the future.

Making reference to the recent movement of youth-led climate strikes across the world and the voice of Swedish teenage environmental activist Greta Thunberg, Gillard called this generation the most politically active and mobilised group of its time.

“They are going to change society,” Gillard said. “But the truth stands that we can’t wait for these 16-year olds to turn into adults and make the change. We have to act now.”

The former Aussie premier added that she strongly believes in the idea of getting involved in politics and leadership of local communities and societies. “I'm a big advocate for people going into politics. I am a big believer that there is no better way to put values into action,” she said. “I think we all realize we're living in a truly globalized world. How well we go as a whole humanity depends not just on what happens in Australia.”

Looking back at her journey into government, Gillard said she believes she had a “very lucky start” because she found her purpose early in life. She recalled: “When I look back at my life... I went to the local government schools, my parents had ordinary jobs. None of my parents had finished secondary school. My parents taught my sister and I to believe in education because my father - because of poverty - and my mother, because of ill health, had missed [getting an education].”

Considering her family’s financial background, Gillard continued, she felt extremely privileged to go to university. “In my second year [at university], I was a part of a campaign that

Panel Discussion

successfully changed the government’s policies in certain areas. From that moment, I was very clear what I wanted my life to be about.”

She added that she wanted to get into politics for an opportunity to be able to give equal education to all.

“In my course as PM, I wrote down the 'sense of purpose' of what I wanted in the government,” Gillard said, adding that she carried that sheet of paper with her even when she was prime minister, valuing it most in moments of confusion when she wasn't sure what to do next. “I think that's energising. I do recommend to people to now try and unplug and think deeply about what is the sense of purpose in your life. If we all have that sense of what's our own inner purpose, then all of us coming together will make the world a better place.”

By finding her sense of purpose, Gillard realised that she wanted to be part of Australian national politics and put her values into action, but it took close to a decade for that dream to come true. “I put myself forward for elections three times and failed,” she said. “These years of struggle taught me the di�erence between aspiring to do something and achieving it. I believe resilience is a muscle – you need to work it to make it stronger. It will hurt but it will make you stronger for the next time.”

ROLE OF WOMEN IN SUSTAINABILITY

Since leaving o�ce, Gillard, Australia’s first female prime minister, has established the Global Institute for Women’s Leadership at King’s College London with the aim of addressing the causes of women's underrepresentation in leadership positions. She also serves as chairwoman of the Global Partnership for Education, an organisation focused on getting all children into school in the world's poorest countries.

Commenting on the significance of being the first female prime minister in Australia, Gillard said Australia is still in a “time when women aren't always treated equally and it is still quite unusual for women to come through for

leadership in all fields including politics, business, law, media and technology.”

If a woman does make it to leadership though, she said, the “role modeling e�ect” has profound implications for the generations that follow. “If you can't see it, you can't be it, so unless young women and girls can't see women in leadership role models, it's much harder for them to imagine being one.”

Gillard said education for women plays a huge part in the road to sustainability.

“Education for women has got everything to do with sustainability – statistics say, if every girl in the world today got a secondary school education, (the) peak global population would be two billion less than we are projecting and carbon footprint would be less,” she explained. “I believe the most e�ective investment to change our climate is to educate girls because educated girls will tend to marry later, have fewer children, will educate their kids, get them vaccinated and so on. This shows an uproot cycle towards sustainability.”

The work at the Global Partnership for Education, of which the UAE is a contributor, has changed the lives of more than 70 million children in 67 countries worldwide by providing access to quality learning and changing their life path, Gillard said.

Ultimately, Gillard added, no one nation can tackle climate change on its own.

“We live in a truly globalized society and even if you are doing your best to put values into action in your nation, how well we go as a humanity depends not just on what happens in Australia or what happens in the US, or in any single country, it depends on what we're prepared to do together.”


There is strong investor appetite for ethical businesses in the Middle East. When Majid Al Futtaim launched the region’s first green sukuk, it was oversubscribed by six times.

Although Islamic finance developed after conventional finance, it has proven its transparency and ability to generate high returns.

Today, investors can use di�ering sustainability rating and benchmarking tools. One of those is the Global Real Estate Sustainability Benchmarks (GRESB), which measures the sustainability performance of real estate portfolios globally.

In the next three to five years, banks and investors will increasingly ask about environmental, social and governance (ESG) factors, but in five years all investments could by default be ESG-related, so the private sector should be prepared for that.

Agenda

Traditionally, businesses have focused on the financial outcome of their operations and set social responsibility goals mainly because they felt compelled to do so. But this is changing as companies realise that sustainability e�orts lead to commercial opportunities and the chance to reinvent their business models. As of April 2019, more than 9,500 companies had joined the UN Global Compact, the world’s largest corporate sustainability initiative, voluntarily pledging to adopt sustainable practices and to report on their implementation. That said, there is still a need to improve the quality of sustainability reporting. In addition, investors and companies must gain a better understanding of what constitutes a green project and how to incorporate sustainability into their corporate structures and strategies. This session looked at what must be done to mobilise the private sector in support of the Sustainable Development Goals (SDGs). It also shed light on the opportunities that exist for businesses in addressing the SDGs.

Summary Points

To encourage sustainability in the private sector, governments must update outdated regulations, For example, increasing the landfill tax, given that more waste is being produced.

To meet demand from ethical and ESG-conscious investors in the Middle East, companies should start to consider green sukuk.

The next step for governments should be to translate emissions into money via carbon pricing. A carbon tax would pave the way for innovative technology solutions and speed up development by encouraging companies to take a more holistic approach.

Recommendations

Sustainability in the private sector

Roy SheppardFormer BBC News anchor, specialist conference moderator, interviewer and author, UK

MODERATORManuel KuehnSenior Vice Presidentat Siemens, UAE

Ibrahim N. Al-Zu’biChief Sustainability O�cer, Majid Al Futtaim Holding, UAE

Maha MaisariSVP and Head of Corporate Governance and Sustainability, Noor Bank, UAE

SPEAKERS

WGES 2019 - DAY TWO

PLENARYSESSION 3


Sustainability is being increasingly linked to trust as more investors and customers prioritise environmentally, socially and ethically responsible businesses. UAE retail and real estate group Majid Al Futtaim has recognised this, embedding sustainability in its new business model. The privately-owned conglomerate, which holds the Carrefour franchise in 37 countries, issued the Middle East's first green sukuk in May 2019. Valued at $600 million and with a tenor of 10 years, the investment will be used to finance and refinance MAF’s green projects, including green buildings, renewable energy, sustainable water management, and energy e�ciency.

COMBINING DEBT INSTRUMENTS

According to Ibrahim N. Al-Zu’bi, Chief Sustainability O�cer at Majid Al Futtaim, from a shareholders’ perspective, the company’s first choice is always for sharia compliance, for religious and cultural reasons, but also for a better return on investment. Although Islamic finance evolved after conventional finance, it has proven its transparency and ability to generate high returns and has gained credibility worldwide. To meet the expectations of its investors, Majid Al Futtaim combined Islamic finance with green finance, creating a hybrid.

“My experience from a sustainability perspective when we launched the world’s first green sukuk is that it was much easier for us internally with (our) shareholders and even externally with our investors whether in London or Paris, and there was an appetite for a combination of sukuk and green sukuk, so we went for it. We use either or, but shariah compliance is our first choice. It is most of the time a better deal,” explained Al-Zu’bi.

He highlighted the importance of maintaining transparency with investors, not only through sustainability reporting, but also by reporting back to stakeholders on failures, successes and future targets, and being clear on how the company intends to achieve its targets. Moreover, there are di�erent sustainability rating and benchmarking tools that investors can use. One of them is the Global Real Estate Sustainability Benchmarks, (GRESB), which measures the sustainability performance of real estate portfolios globally through surveys.

For the last eight years, Majid Al Futtaim has been the only Middle East company to receive the ‘Green Star’ rating by GRESB for its sustainable practices and initiatives. Al-Zu’bi elaborated: “To achieve such a rating, you must have clean audited data assured by a third party. So, we have the know-how, and there is a demand. Ethical business is booming. When we launched the green sukuk, we were aiming for $600 million but were oversubscribed by six times. So, there is an appetite, and this is what customers want. Customers do care, and we make sure that in every discussion with our customers, we embed sustainability. Almost 50 percent of this region’s population are under 30.”

ISLAMIC ADVANTAGE

Even in the banking sector, customers want their money to be lent to entities that are applying responsible practices. Islamic banks especially have an advantage, according to Maha Maisari, SVP and Head of Corporate Governance and Sustainability at UAE-based Noor Bank. As a sharia-compliant bank, Noor has been automatically applying the principles of sustainability.

Maisari said there was a misperception that unless an entity formally announces that it is embarking on a journey towards sustainability, then it is not doing anything. However, in the case of Noor Bank, the lender has conducted ethical banking from its inception. It was also the first Islamic bank to launch a sharia-compliant sustainable equities index linked to European equities, in 2016, for its wealthy customers. “We were under pressure from our institutional investors, especially those in the western world, to explain what our sustainable practices were. We launched at a time when it wasn’t driven by investors so much, but today it is. However, we still don’t have governments pushing sustainability via regulations so there’s an opportunity to be a change driver.”

UPDATED REGULATIONS

According to Al-Zu’bi, from a risk and compliance point of view, if companies do not embed sustainability in their business then their business model may no longer exist in three to four years. “As businesses we don’t wait for

Panel Discussion

regulations to happen, we push for them. Internally within our organisation, and we are in 17 countries, we make regulations – we must build green whether we are in Kenya or Georgia. What we need from government and stakeholders is to take this partnership to the next level. We need to update outdated regulations. For example, the landfill tax should be $15 instead of $5 because the lifestyle is changing, and we produce more waste.”

Updated regulations would encourage business, he a�rms. For example, Majid Al Futtaim is committed to be net positive in carbon and water by 2040 and is on track to achieve these targets having invested in energy e�ciency and onsite and o�site renewable generation. However, it will be impossible for the group to be net positive in carbon and water because of the existing regulations in most countries in which it operates. For instance, some countries have weak electric grids, some don’t have regulations on recycling water, among other issues. Therefore, regulations must be updated so that private-sector companies can achieve their sustainability targets.

The private sector needs more supportive regulations and innovations to achieve the SDGs given that all countries are committed to achieving their SDGs by 2030 and the private industry cannot do this on its own. Yet e�orts remain scattered. Moreover, ministers of climate change and environment should have a bigger say, for example in setting countries’ budgets.

The next step should be to translate emissions into money through carbon pricing. In addition to lowering harmful emissions, carbon pricing will unlock a completely di�erent dimension of business discussions. While in the short term, a carbon tax would hit everybody and alter the business models of companies, in the medium to long term, it will allow them to do things that today there is no business case for. Moreover, a carbon tax would pave the way for innovative technology solutions and accelerate development by encouraging companies to factor in a more holistic approach.

Al-Zu’bi also supported the idea of carbon pricing, which proved to be e�ective in markets such as Canada. He suggested countries

consider a carbon tax from their own perspective and weigh the options on whether they should make it mandatory or voluntary.

THE BUSINESS CASE

Ultimately, customers may like a company because it’s sustainable, but will only buy from it if it makes economic sense to them, said Manuel Kuehn, Senior Vice President at Siemens UAE. As a technology company, Siemen’s task is to translate what technology does and its e�ects on sustainability into economic sense.

Kuehn pointed to the business case in being sustainable, saying that the discussion on energy e�ciency is easily translated into euros and dollars. For example, when looking at standard gas turbine technology, some units currently in use are 20-30 years old. If one of those is replaced by a cutting-edge alternative, e�ciency will increase by 10-20 percent; which is a massive amount of carbon and money saved.

This, he said, is a standard OPEX versus CAPEX discussion. “If you look at the lifetime cost of a building, around 80 percent of that total cost is related to energy and OPEX. And nearly 50 percent of this is wasted. Even in brownfield it’s possible to bring costs down. We’ve done a great project in execution with Etihad ESCO; they are refurbishing 150 mosques, and we brought the energy consumption down by 50 percent without digging into concrete. It’s all about the automation system, doing correct measurements, and matching the supply and demand for cooling.”

Al-Zu’bi concluded that in the next three to five years, banks and investors will increasingly ask about environmental, social and governance factors, but after five years, all investments will be by default ESG-related, so the private sector should be prepared for that.


The growth of the green economy is driving the expansion of green finance. Over the past three years, global green financing has grown 34 percent and is now worth $31 trillion.

Between now and 2050, climate change targets will require about $3.5 trillion per year in investment. This implies there are attractive opportunities and institutional investors are waking up to that.

There is a strong link and many similarities between Environmental, social and governance (ESG) and sharia-based investments. Both aim to drive economic sustainability and maintain a healthy planet for future generations.

Several innovative sustainable finance schemes have been announced in recent years, including the world’s first blue bond that was issued by Seychelles, the world's first Indian green Masala bond that was issued by India’s HDFC, and micro-financing schemes in several African markets to pay for solar-powered homes.

Agenda

Green finance o�ers lucrative opportunities, providing issuers with a more diversified investor base and helping create more sustainable societies. Businesses stand to gain at least $12 trillion a year in market opportunities by adopting sustainable practices and contributing to achieving the United Nations’ Sustainable Development Goals (SDGs), according to the Business & Sustainable Development Commission. However, there are several factors hampering e�orts to expand green financing, such as the fact that many projects are not properly structured, the misperception of risk by lenders, and a limited investor base due to a lack of awareness about green investments’ viability and attractive returns. What could help broaden this investor base? What would make it easier for businesses to secure more financing for green projects? And what financial instruments can they use to raise money for sustainability initiatives?

Summary Points

Sustainability projects must make sense to banks and be profitable. Waste management for example can be highly profitable, and savings can be made on both energy and costs. Similarly, there are enormous opportunities in the areas of water conservation, energy e�ciency, and green buildings.

To continue accelerating sustainable finance, businesses must focus on raising awareness among future generations. Governments must issue supportive regulations and laws that can drive transformative change among consumers and industries.

Asset management companies must explain to investors what they are compromising in terms of returns in order to make a positive impact. When screening investment opportunities, they should focus first on the likely returns, then ESG criteria as the second layer.

Recommendations

Green banking and investments

Shyrose OsmanVice President, Head of Corporate Communications, Dubai Financial Market, UAE

MODERATORDr. Erich BeckerManaging Partner, Exergy Capital Management LLP, UK

Hitesh AsarpotaManaging Director, Head of Debt Capital Markets, Emirates NBD, UAE

Hasan Al JabriCEO, SEDCO Holding Group, Saudi Arabia

Eklavya SareenManaging Director | Head of Advisory, MENAT, HSBC Middle East, UAE

PANELLISTS

WGES 2019 - DAY TWO

PLENARYSESSION 4


The panel discussed green financing and how it can support the green economy, particularly emerging markets. It also explored the link between ESG and sharia considerations, which share common principles and o�er untapped opportunities for regional businesses and investors.

Globally, the United Nations, financial regulators and the financial sector have been working together to align the economic system to the 2030 agenda by which time the SDGs should have been achieved. This has seen various initiatives such as the Task Force on Climate-related Financial Disclosures, the EU taxonomy regulation proposed in Europe, the Sustainable Finance Standards under development, and the Climate Bonds Initiative.

According to Shyrose Osman, Vice President and Head of Corporate Communications at Dubai Financial Market, the growth of the green economy is driving the emergence of green finance. In the last three years, global green financing has grown 34 percent and is now worth $31 trillion, which is a third of the $92 trillion worth of global assets under management. In 2018, about $250 billion of financing went into sustainable projects. Central banks have been a key influence, calling for action from businesses. For example, Mark Carney, Bank of England governor, recently warned that investors will punish companies and industries failing to move towards zero carbon emissions .

Hitesh Asarpota, Managing Director and Head of Debt Capital Markets at the Dubai bank Emirates NBD, said there has been an exponential growth of assets under management that can be used for sustainable financing and investing, and that this growth has come from government policies, shareholder pressure, employee engagement and customer feedback. These developments have enabled entities to use this alternative financing to meet their objectives.

For HSBC, sustainable finance has become a core plank of its strategy. In November 2017, the bank made a commitment to raise $100 billion for sustainable finance by 2025, targeting carbon emissions and the broader agenda that addresses the SDGs. Two years on, HSBC has helped to raise almost $37 billion under this

strategic initiative, according to Eklavya Sareen, Managing Director and Head of Advisory, MENAT at HSBC Middle East.

STAYING PROFITABLE

From an investment fund perspective, Dr. Erich Becker, Managing Partner at UK-based Exergy Capital Management, said his company was focused on the global energy transition, on lowering carbon emissions, and decarbonising the way energy is generated and consumed. When structuring its green fund, the company was driven by the possibility of generating attractive returns given that it manages money on behalf of institutional investors. However, the company soon started to take an Environmental, Social and Governance (ESG) approach to investing.

Dr Becker explained: “It is our strong view that if we invest today in a company or asset that fares highly in terms of ESG criteria, the probability of this investment being attractive in the long run is much higher than that of an investment that doesn’t have a high ESG ranking. In order to combine these ESG considerations with strong financial returns, we also want to commit ourselves to documenting it, to show investors the impact every dollar is making.” He said that his firm has had to explain to investors that it is not compromising on returns in order to make a positive impact. In terms of screening any investment opportunities, is return-driven, with ESG in the next layer. If disciplined in this, you will outperform other asset classes, he said.

As private equity investors, Exergy Capital Management is attracted to the sheer size of opportunities available. Between now and 2050, climate change targets will require about $3.5 trillion in annual investments to limit global warming to 2 degrees Celsius. This implies there are attractive opportunities in this space, and institutional investors are waking up to this potential.

Hasan Al Jabri, CEO of Saudi Arabia’s SEDCO Holding Group, said sustainability projects must make sense to banks and be profitable. Waste management for example can be quite profitable, and savings can be made on energy and costs. A World Economic Forum study showed that in five years, waste management could generate about $1 trillion of business and

Panel Discussion

100,000 jobs. Similarly, there are many opportunities in the areas of water conservation and energy e�ciency.

Furthermore, when companies in the real estate sector pay attention to new and future codes of construction, whether in the use of building materials or in the construction of environmentally-friendly and energy-e�cient homes, they will find that those products are much more marketable, which means banks will be more willing to support these projects and investors will understand them more.

INNOVATIVE GREEN FINANCE

Given that 70 percent of the earth is covered by water, marine conservation has become a top priority for many governments and businesses. In 2018, the Republic of Seychelles launched the world’s first sovereign blue bond, a pioneering financial instrument designed to support sustainable marine and fisheries projects.

Another innovative example of financing was a green masala bond issued by India’s Housing Development Finance Corporation Limited. The financial services company raised 3,000 crore rupees ($419.5 million) from these bonds, becoming the first Indian company to issue masala bonds. Moreover, the fact that an emerging-market corporate could issue a green bond in local currency to international investors shows that there is an appetite for more innovative funding.

It is also worth looking at how solar power is financed in emerging markets such as Ghana, Kenya, Uganda and Tanzania. Payments are usually made on a daily basis through M-Pesa, a mobile phone-based money transfer service. Customers typically pay a deposit of $35 and get a solar-powered home, making payments of about $0.50 each day.

LINK BETWEEN ESG AND SHARIA

When it comes to the link between ESG and sharia-based investments, the speakers agreed that there is a strong correlation. Al Jabri noted that his company discovered these similarities while looking at the UN’s principles of responsible investing which were created by Kofi Annan in 1986. They saw that the six principles in the UN’s Principles for Responsible

Investment (PRI) were the same as sharia principles and that both sets of principles aimed to drive economic sustainability and maintain a healthy planet for future generations.

Al Jabri elaborated: “We started matching the practices and looking at the similarities. We found that we were investing in the same way except for a couple of di�erences. On the sharia side, we avoid excessive leverage. We like asset-based financing; we like to understand the structures and see the cashflows. On the PRI side, they want your involvement in the business, to be able to go and discuss your views on climate change and sustainability and the companies you’re investing in, and positively exercise your influence through your investments and social circle. We looked at our listed equity portfolios which were done on a sharia basis, but without the Socially Responsible Investment (SRI) or ESG parameters. When we applied them, we found the overlap was almost 99 percent. So out of an investable universe of 500 companies in our portfolio, we had to knock out only three companies because of the SRI and ESG criteria.”

Dr. Becker shared a similar viewpoint, saying that when a company applies ESG standards to any investment, it will have a good overlap with sharia principles. This is because it will be excluding almost the same sectors from its investments, and it will be trying to become responsible in how it goes about its investments.

To continue accelerating sustainable finance, businesses must focus on raising awareness among future generations, while governments should put more e�ort into creating supportive regulations that can drive transformative change among consumers and industries. For instance, in many countries where buildings are quite energy e�cient, this was initially driven by regulation. With respect to transport, which is a major contributor to carbon emissions, there is a need to make public transport more e�cient and to move towards electrification of transport or alternative fuels. In conclusion, there are many ways that governments can be supportive without necessarily having to pay for it, simply by putting the right laws in place.


Before countries embark on a green economy transition, they should not forget there is an existing global economy based on intense competition. As such, the transition needs courage and strength.

Developing green economies requires new technologies, operational skills and employment patterns, as well as reorienting educational curriculum to equip the youth with the right skills, knowledge and attitude for a more inclusive and sustainable future.

Although the Middle East and the CIS regions are geographically distant, when it comes to fighting global change, they face similar challenges.

Agenda

In June-July 2019, the World Green Economy Organization (WGEO), in close cooperation with the United Nations O�ce for South-South Cooperation and a number of other key stakeholders at the global and regional levels, organized a series of regional ministerial conferences for Asia-Pacific, Africa, Americas, MENA, and the Europe/CIS regions. The conferences were designed as an extension to the annual World Green Economy Summit (WGES) and were conducted as a response to the call by WGES partners for the organization to bring the green economy discourse closer to the regions’ home contexts. Each conference aimed to raise regional awareness by showcasing the impact of successful evidence-based green economy solutions that have been crafted and tested by countries within the respective regions in addressing sustainable development challenges. The three thematic focus areas that each regional ministerial conference focused on included improving regulatory and policy frameworks for a green economy, promoting innovative green investment through public-private partnerships, and advancing national-level capacity development for holistic green action. The purpose of this session was to highlight the key conclusions and calls for action derived from the first round of regional ministerial conferences.

Summary Points

The Pacific nations are among the most vulnerable to climate change. In response to their plight, New Zealand has ringfenced half of its climate change international funding for the Pacific region, while Australia has announced an AUD 500 million climate-change funding package, while India and other countries made similar pledges.

Governments must invest more in transformative innovation. For example, New Zealand is financially supporting research on a native seaweed that could potentially reduce methane emissions from cattle by 80 percent if placed in stock feed.

Countries must encourage creativity among children on how to create a better future. For example, Algeria holds regular workshops for the youth and has published a climate change guide for children to help nurture tomorrow’s adult citizens and change behaviour for the better.

Recommendations

WGEO Going Global

Edem BakhshishGlobal Director, World Green Economy Organization, UAE

MODERATORH.E. Jonathan YoungGlobal Director, World Green Economy Organization,New Zealand

Dr. The Hon. Nicolette Odella HenryMinister of Education, Guyana

H.E. Fatma Zouhra ZerouatiMinister of Environment and Renewable Energy, Algeria

H.E. Karol GalekChair, Commission on Technological Development and Innovation, National Council, Slovak Republic

SPEAKERS

WGES 2019 - DAY TWO

PLENARYSESSION 5


Since the United Arab Emirates launched the World Green Economy Organization (WGEO) at the Conference of the Parties (COP 22) in Marrakech, Morocco, in November 2016, WGEO has organised a series of regional ministerial conferences for Asia-Pacific, Africa, Americas, MENA, and the Europe/CIS regions. These conferences were WGEO’s response to a call by stakeholders to bring the discourse on the green economy closer to the needs of the di�erent regions. This session brought together representatives from the four regions, with the fifth being the host region, the Middle East and North Africa.

AFRICA

Her Excellency Fatma Zouhra Zerouati, Minister of Environment and Renewable Energy in Algeria, said that before countries transition to a green economy, they should not forget that there is an existing economy based on intense competition. As such, the transformation towards a green economy requires courage and strength.

The current economy needs bigger guarantees and a reinforcement of trust to ensure a better future for the coming generations. In this context, the green economy could drive major change if it can become a societal issue, one that encourages the participation of youth and women. Additionally, the green economy must take into consideration the protection of the existing environmental systems and investment into these systems, because every year we are losing earth’s natural assets, and more and more animal species are becoming endangered.

She said that talking about the educational curriculum was very important to this discussion. In Algeria, one of the first things that the Ministry of Environment and Renewable Energy did was to sign an agreement with the Ministry of National Education to equip 1,500 schools to prepare younger generations for the green economy. In addition, the Ministry of Environment and Renewable Energy holds regular workshops to encourage creativity among children on how to create a better future and has published a climate change guide for children, to help build tomorrow’s citizens and change behaviour for the better.

AMERICAS

Countries also have to look at implementing regulatory frameworks for green economies.

These frameworks must be country-specific and based on the local context, national policy, political will and leadership of government in every country, according to Dr. The Hon. Nicolette Odella Henry, Minister of Education, Guyana.

Speaking on Guyana’s experience and on the need for human capacity development and green skills, Henry said that developing green economies requires new technologies, operational skills and even employment patterns. This should be accompanied by a reorientation of the education curriculum to equip the populace with the right skills, knowledge, and attitude to achieve an inclusive and sustainable future. This is very important to Guyana’s education sector as the country works to build its human capacity and prepare globally competent citizens that understand the issues of sustainability.

“In Guyana, we have recently concluded our Green State Development Strategy: Vision 2040, which is our 20-year national development plan. That policy reflects the guiding vision and principles of a green state. The emphasis is on creating a socially cohesive and prosperous Guyana that provides a good quality of life for all its citizens based on sound education and social protection, low-carbon and resilient development, as well as new economic opportunities, justice and political empowerment. Our priorities can be categorised into three areas: managing national resources, supporting economic resilience, and building human capital. We recognise that to achieve these priorities, multiple strategic actions are needed to strengthen fiscal and monetary policy, to be able to manage our land resources, and to increase economic competitiveness and resilience.”

ASIA-PACIFIC

His Excellency Jonathan Young, National Party Member of the New Zealand House of Representatives for New Plymouth, said that the Asia-Pacific regional conference held in Bangkok in early June 2019 was an excellent meeting of minds and sharing of ideas. New Zealand is a small and remote country with a population of just under five million. In its remoteness, it has had to become resilient and resourceful. The country has good relationships with its Pacific neighbours who given their environmental vulnerability, have a serious plight and the greatest concern regarding their wellbeing. At the Asia-Pacific conference, there was a strong representation by the Pacific nations.

Panel Discussion

“From New Zealand’s perspective, in many regards we are very connected and committed to the Pacific region and we have a close relationship with them over many generations. Alongside the WGEO conference, there were several other regional meetings that enabled this connection and discussion to take place – the Asia Pacific Parliamentary Forum is one example. But it was the WGEO conference that focused strongly on how we can build a sustainable future together and that had a strong economic base to enable that to happen. The other forums covered wide aspects of life in the Asia Pacific region.”

Shortly after the WGEO conference in Bangkok was the 50th Pacific Islands Forum, where 18 nations which have met over many decades responded to the deep concerns the Pacific nations had. Out of that forum came the Kainaki II Declaration for Urgent Climate Action, which is essentially a huge outreach and a cry from the Pacific nations to the nations of the world to respond to their situation, particularly around rising sea levels.

For the Pacific nations, the populations are so small, one cannot conceive that these alone are the causes of climate change, yet one can see that they are the ones that would be the most catastrophically a�ected. For urgent action, they declared a climate change crisis, highlighting the consequences of the inaction for the forum members. Following that, nations responded. New Zealand ringfenced half of its climate change international funding for the Pacific region. Australia also announced an AUD -500 million climate-change funding package for the Pacific countries. India also responded, as did many other countries. Thus, there were positive outcomes from the interactions that took place in both the forum and the ministerial conference in Bangkok.

Speaking on New Zealand’s sustainability initiatives, H.E. Young said that the country is considered as one of the world’s most e�cient dairy producers, despite having only 10 million head of cattle compared to India for example, which has 300 million, and Venezuela which has 270 million. Yet almost 35 percent of New Zealand’s emissions are methane from cattle and sheep. Therefore, the government has been investing in research on a native seaweed that if it were to constitute 1 percent of stock feed, it could reduce methane emissions by 80 percent. New Zealand is financially supporting this company to

continue its research and understand how this mechanism can be developed and deployed. If successful, the country would make a massive global contribution to reducing methane emissions. Additionally, 83 percent of New Zealand’s electricity comes from renewables and the country is considered a global leader in geothermal electricity generation. New Zealand is now working with other nations to further develop this resource.

EUROPE/CIS

H.E. Karol Galek, Chair of the Commission on Technological Development and Innovation, National Council in the Slovak Republic, said the geographic focus of the regional conference in Tashkent, Uzbekistan was on the CIS region and Europe. The conference highlighted the impact of successful green economy projects and initiatives that were created and tested by European countries. Commenting on WGES 2019, Galek said many of the issues discussed during the conference were the same as those they were facing in Europe/CIS region.

“Although we are geographically very distant when it comes to fighting global change we are on the same boat, because we are on the same planet,” said Galek. “The saying ‘think locally but act globally’ is now more important than ever before. While di�erent stakeholders might have varying needs, there is a need for high productivity and e�ciency, stronger resilience and innovation. The green economy o�ers vast opportunities in fighting poverty and sustaining economic growth, which is particularly a concern for the countries in the Global South. It also o�ers opportunities for enhancing social inclusion, improving human welfare, creating employment and decent work for all, while maintaining the healthy functioning of the earth’s ecosystem.”

Galek said that countries should continue to exchange their experiences, suggestions and plans, and that every contribution counts regardless of its size. Starting with small steps and with oneself can lead us all to a bigger success.


One on OneConversation Juan Manuel Santos, Former President of Colombia

Juan Manuel SantosFormer president of Colombia

SPEAKERSusannah StreeterAnchor, BBC, UK

Moderator

Ten years ago, nobody thought that peace was possible in Colombia, but the country succeeded through perseverance and patience as well as creating the necessary conditions and alliances for its long-running internal conflict to end. It was a multi-pronged e�ort.

Technology is changing fast. For the older generation to adapt is more di�cult than for younger generations because the latter has a greater capacity to change.

Politics often becomes an obstacle to reform. It takes strong leadership and willpower to overcome political challenges.

Agenda

Colombia made substantial progress towards sustainability during Juan Manuel Santos’ presidency from 2010 to 2018. A bold leader with transformative ideas, Santos expanded his country’s protected areas from 12% to 27% of national territory, e�ectively protecting the forests against the encroachment of agriculture. He also increased marine-protected areas from 1.2 million to 12.8 million hectares and stopped mining in several strategic Colombian ecosystems such as mangroves and coral reefs. Today, Colombia, the second most biodiverse country in the world, is working on an ambitious green growth plan for 2030. This roadmap will see it double its forest GDP to reach 2% of the total, expand the installed capacity of renewable energies to 15% of the country’s total electricity production, enlarge its fleet of electric vehicles to 600,000 (from 1,695 today), and double the recycling rate from the current 8.6%, among other targets. In this inspiring dialogue, former president of Colombia Juan Manuel Santos, who was awarded the Nobel Peace Prize in 2016, reflected on his influential environmental policies and achievements and the challenges he encountered during his presidency.

Summary Points

Governments must involve local communities and educate them as to why it is important to stop deforestation. Most communities cut down trees because it has long been common practice. But governments worldwide, including in countries such Brazil and Indonesia, need to better explain the destructive e�ect this has on rainforests.

If governments can make renewable energy profitable, attract investment, introduce the right policies, and educate people on why this is important, then the future will be much better and more sustainable.

If countries can make their food production more e�cient, they won’t need to continue to destroy their forests because more land won’t be required for agriculture.

Recommendations

WGES 2019 - DAY TWO


Before his inauguration in 2010, former president of Colombia Juan Manuel Santos recalled how he asked the country’s indigenous communities for their permission to become president. “They welcomed me and said this was the first time a Colombian president suggested this. They said they only wanted one thing from me: to make peace with mother nature.” A week after the inauguration, the worst La Niña [severe rains] and flooding] phenomenon hit Colombia and it was the biggest natural disaster the nation had ever seen. For two years, the country had to deal with the e�ects of the flooding. This made Santos much more aware of the need to protect the environment and fight climate change, because La Niña is a consequence of climate change.

The indigenous communities had su�ered greatly during Colombia’s decades-long civil war. By staying with them for a couple of days, talking to them and observing their culture and way of thinking, Mr Santos saw how the environment was their top priority. He then realised how urgently he needed to protect these indigenous communities. Columbia has 65 indigenous communities and the ones he had visited were among the oldest.

Furthermore, he highlighted how the younger generation has developed more empathy for nature than their predecessors. “I had an incredible experience with the minister of defence; we went to a small town that was completely disconnected - no mobiles, no television - it was a town taken over by the guerrillas 40 years ago and we brought some computers to see what e�ect they would have. We took 300 computers and installed them, and people started to work with these computers. I went three months later, and it was an incredible situation. The kids had taken over the town and the parents were behind them asking questions. The kids were between 10 and 15 years old.”

Santos added that technology is changing very fast. For the older generation to adapt is

more di�cult than it is for younger people, who have a greater capacity to change. “The peace that we had to build in the country was peace with mother nature and environment, because the war was also destroying the environment. So, they weren’t di�erent objectives; they complemented each other – making peace with the guerrillas and in that way making peace with the environment.”

Furthermore, he said that it was very important to understand that to achieve objectives such as the Sustainable Development Goals (SDGs), countries will always encounter obstacles. But if they persevere, then they will succeed. “Ten years ago, nobody in Columbia or Latin America thought that peace was possible, but we made it, through perseverance and patience as well as creating the necessary conditions and alliances. It was a multi-pronged e�ort”.

“International cooperation helped a lot and peace allowed us to advance in this direction. You have to combine the will of the government, involve local communities and educate them with respect to why it is so important to stop deforestation. They simply do it because it’s a tradition – they burn forests and expand agriculture, it’s a natural thing for them to do. You have to say ‘no, not anymore because you’re destroying your future’. This is very important work that needs to be done in all the rainforests – not just in Colombia but also in other countries like Brazil and Indonesia.”

Short-term profit seems to drive many of the most destructive practices whether in agriculture, or the exploitation of hydrocarbons and minerals. Santos recalled how he faced sti� opposition from mining companies. Furthermore, there are special ecosystems that are only present in the Andes. Colombia has 50 percent of these ecosystems, which are wetlands that supply almost 70 percent of the country’s rivers. Santos decided to identify these wetlands and protect them. But many mining companies already had the rights to mine in those areas, so it was a di�cult legal battle.

Panel Discussion

However, the former president won the battle because his government established a policy that made mining illegal in those areas. “We also protected millions of hectares in the rainforests and the marine areas. We faced di�culties from the local landowners who wanted to expand the agricultural frontier. We told them ‘no, we have enough land; if we make our food production more e�cient, we won’t need more land’. Because if we expand our agricultural frontier, we will destroy our rainforests.”

According to Santos, politics often becomes an obstacle. For example, in some parts of Colombia, small-scale goldminers have political influence. Thus, to go there and tell them they cannot continue to mine was politically challenging. It takes willpower to overcome such hurdles. He added that what Dubai has done in terms of lowering the price of alternative energy was incredible. “If you make renewable energy a profitable investment, introduce the right policies, and educate people on why this is important, then the future will be much better.”


Secretary General of the Dubai Supreme Council of Energy

SUMMARY

During his keynote speech, H.E. Ahmad Al Muhairbi, Secretary General of the Dubai Supreme Council of Energy, said the world is increasingly transitioning towards using more diverse fuel sources, while a new era of alternative clean energy is emerging in the Middle East – a region historically known for its hydrocarbon economy. Despite abundant energy resources, the transformation toward clean energy and sustainable government has become a top regional priority.

Today the terms ‘green’, ‘e�cient’ and ‘low carbon’ are trending in the business world and the communities in which we live, and stem from an increased awareness of the importance of energy e�ciency and sustainability. A structured approach that addresses energy e�ciency, energy demand, and diversification of fuel sources is high on national agendas in order to foster sustainable development. Locally, the UAE government has recognised the necessity of taking an aggressive approach towards enabling a green economy. The country has pursued a clear policy driven to build momentum in alignment with local and international stakeholders.

To achieve its sustainable energy goals, Dubai has established progressive policies and frameworks and employed a Public-Private Partnerships model to push market participation in key projects, such as the Mohammed bin Rashid Al Maktoum Solar Park. This helped spark a new trend in the region, where government policies focused on attracting global players to infrastructure projects for sustainable economic growth. Dubai continues to attract top global project developers. Recently, the emirate achieved another milestone by securing a $1.69 cent per KWh for DEWA’s 900 MW solar PV project, which represents a new global record low.

“As we plan for the future of energy and in line with the UAE vision for green economy for sustainable development, championed by His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai, the Dubai Supreme Council has advanced its strategies where opportunities and innovations can meet the challenges,” said Al

Muhairbi. “Although the UAE and the region have in the past focused primarily on hydrocarbons for their energy needs, a recent shift has focused on the optimisation and integration of e�ciency to achieve sustainable sources of energy for generations to come”.

“We also believe that the sustainability model must integrate energy as an essential element of our plan (for) economic development. Therefore, we have developed a roadmap reflecting the priorities for energy supply and demand abatement measures. Our roadmap and programs are in line with the Smart Dubai vision, where the diversification of energy and optimisation of resources support the objectives of e�ciency”.

“I am proud to say that the UAE has put renewable energy at the top of its green agenda to diversify energy sources and contribute to carbon reduction. Hosting the Expo 2020 will demonstrate and showcase the vision of the UAE to the world. The energy transformation journey has delivered energy e�ciency and sustainability, but we anticipate more to come in the coming years. We have seen strong interest and engagement in our projects, which reflects our commitment to PPPs (Public-Private Partnerships) as the successful model (for) funding and risk sharing. As we go through the energy transition, I invite all stakeholders to experience a new era of collaboration, because together we can empower energy management, sustainability, and green growth.”

WGES 2019 - DAY TWO

We also believe that the sustainability model must integrate energy as an essential element of our plan (for) economic development

H.E. Ahmad Al MuhairbiSecretary General of the Dubai Supreme Council of Energy


KEYNOTEADDRESSH.E. AhmadAl Muhairbi

DubaiDeclaration

SUMMARY

H.E. Saeed Mohammed Al Tayer, Vice Chairman of the Dubai Supreme Council of Energy, Managing Director & CEO of DEWA, and Chairman of WGES, announced the Dubai Declaration 2019 on the second day of WGES 2019, expressing his gratitude to His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Prime Minister of the UAE and Ruler of Dubai, for his patronage of the Summit. He also thanked Sheikh Hamdan Bin Rashid Al Maktoum, Deputy Ruler of Dubai, Minister of Finance and President of DEWA, for his presence at the opening ceremony.

Al Tayer said: “While we are concerned by the e�ects of climate change, we are optimistic that together we can accelerate the engine of green economy transformation. This summit is a testament of this. It focused on the progress made to realise the Sustainable Development Goals 2030. In the UAE, several initiatives have accelerated the pace of its green economy. Transformational projects such as the creation of solar power plants, adoption of electric cars, digitisation and supporting infrastructure as well as the construction of sustainable, low-carbon urban communities across the UAE demonstrate that the country can continue to achieve progress and lead its initiative to be a global capital of the green economy.”

Every year, new initiatives in the UAE are launched to support the transition towards a greener economy. The creation of the Dubai Green Fund was one of these achievements. This year, WGES witnessed the introduction of the Dubai Sustainable Finance Working Group, which will align the environmental initiatives of Dubai’s financial sector with local and regional markets. The summit has also highlighted the importance of international cooperation in addressing global challenges and promoting sustainable development worldwide.

The establishment of the Regional Cooperation Centre for Middle East and North Africa, as well as the World Green Economy Organization’s Regional Ministerial Conferences, which aims to enhance inter-country cooperation are testament to our determination to achieve a sustainable future.

Al Tayer said the summit has shown the necessity of adopting green innovative solutions and to find ways to spur innovation for sustainable development and economic growth. The UAE is a global leader in adopting innovative solutions, and as far as Dubai’s endeavours in innovation are considered, the launch of Hatta’s pumped-storage hydroelectric power station – the first of its kind in the Middle East and North Africa - is an exemplary model of how innovation can power the green economy.

Additionally, the fourth phase of the Mohammad Bin Rashid Al Maktoum Solar Park represents the world’s largest single-site investment in Concentrated Solar Power (CSP) and will include the world’s tallest solar tower, standing 260 metres tall. The project also achieved the lowest cost for solar electricity at $2.4 cents per kilowatt hour (kWh) for the 250 MW photovoltaic solar project and $7.3 cents per kWh for the 700 MW CSP plant project, the lowest worldwide.

WGES 2019 - DAY TWO

Vice Chairman of the Dubai Supreme Council of Energy, Managing Director & CEO of Dubai Electricity and Water Authority (DEWA), and Chairman of World Green Economy Summit (WGES)

78 79Dubai Declaration Dubai Declaration

H.E. Saeed Mohammed Al Tayer

Every year, new initiatives in the UAE are launched to support the transition towards a greener economyH.E. Saeed Mohammed Al TayerVice Chairman of the Dubai Supreme Council of Energy, Managing Director & CEO of DEWA, and Chairman of WGES

BREAKOUTSESSION 3

WGES 2019 - DAY TWO

Challenges and solutions for green energy

Middle East countries have gone from being observers of renewable energy and learning from other markets, to leading the way with state-of-the-art, utility-scale projects that have significantly reduced tari�s.

Despite being a major oil producer, Abu Dhabi is investing heavily in renewables. The 1,177 megawatt (MW) Sweihan solar project that began operations in 2019 is an example, as is the newly tendered 2 gigawatt (GW) Al Dhafra solar project.

The sustainable aviation fuel industry is in its infancy, but prices have plunged over the past 10 years. Today the cost of renewable jet fuel ranges from near-parity to around twice the price of traditional jet fuel, having previously cost 400 times as much.

Agenda

Countries all around the world are committing to broad action to reduce greenhouse gas emissions and decarbonize local energy systems. In 2018, global renewable energy production capacity reached a third of the total installed electricity capacity. This amounts to 2,351 gigawatts, up 8 percent versus 12 months earlier, according to IRENA’s Renewable Capacity Statistics 2019 report. O�-grid capacity grew by 5 percent to 8.8 gigawatts. While any increase in installed renewable energy capacity is positive, there is room for further growth, especially with technological advancements and the fall in production costs in recent years. This session looked at the challenges hampering a greater increase in green electricity production and the potential solutions that could accelerate deployment.

Summary Points

Investing in tools such as energy storage and demand response can help cities handle issues related to solar intermittency and the impact of dust on solar electricity production.

Algae is a possible source of renewable aviation fuel that is not well-developed in the UAE but has considerable potential because the country has plenty of sunlight and seawater.

In the sustainable aviation fuel sector, SMEs can enter the market by producing biofuels and selling them to refiners.

In the UAE’s renewable energy sector, there is room for SMEs to participate more, such as in the aggregators market.

Recommendations

Matt KennedyHead of Strategy and Business, International Energy Research Centre, Ireland

MODERATORDr Alejandro Rios GalvanDirector, Sustainable Bioenergy Research Consortium, UAE

Ramiz Hamdan AlailehSustainability and Energy E�ciency Director, Department of Energy – Abu Dhabi, UAE

Tim ArmsbyPartner, Pinsent Masons, UAE

SPEAKERS

80 81Breakout Session 3

Moderated by Matt Kennedy, Head of Strategy and Business at the International Energy Research Centre in Ireland, the panel discussed the challenges and solutions for the deployment of clean energy and the importance of di�erent technologies for the global energy transition.

SUSTAINABLE AVIATION FUEL

While currently minimal, the use of sustainable aviation fuel is on the increase worldwide and its deployment could significantly reduce CO2 emissions. The Sustainable Bioenergy Research Consortium (SBRC) in Abu Dhabi was established in 2011 to research this field. Founded by the Masdar Institute of Science and Technology, Etihad Airways, Boeing, and Honeywell-UOP, along with Safran, GE, and the Abu Dhabi Oil Refining Company (Takreer) and Bauer, the consortium focuses on developing technology to produce a clean, alternative fuel supply for the aviation industry.

According to Dr Alejandro Rios Galvan, Director of the SBRC and Professor of Practice at Khalifa University of Science and Technology, the United States is the leader in developing alternative aviation fuel and is where most of the necessary infrastructure is being built. Although the sustainable aviation fuel industry remains in its infancy, prices have plunged over the past decade. Ten years ago, producing a litre of renewable jet fuel cost 400 times as much as producing a litre of fossil-fuel based jet fuel. Today that cost is at parity or 1.5-2 times that of a litre of traditional jet fuel.

In the UAE, there are five potential sources of renewable aviation fuels, including halophyte plants and municipal solid waste. Potentially, an area that is not well-developed yet but worth looking into is algae, because the country has plenty of sunlight and seawater. Abu Dhabi’s government has identified this as one of its priorities in terms of research.

In the future, Dr Galvan expects a number of

technologies to emerge that can convert di�erent types of feedstocks into aviation fuel. “We’ve seen a lot of improvement in the technology to refine these products and in the feedstock development. This is the work we’re doing here in the UAE. In terms of being able to produce and having access to these types of fuels, the next decade is going to see a significant increment. The aviation sector is the last sector that will depend on liquid hydrocarbon fuel and there are only two ways of producing those fuels. One is through crude petroleum and the other is through emerging technologies that use vegetable oils, fermented gas and other types of alternative feedstocks.”

FROM OBSERVER TO LEADER

Moving on to the lessons that can be taken from other countries in their deployment of renewable energy, Tim Armsby, Partner at UAE-based Pinsent Masons, an international law firm with 25 o�ces globally, said that when he left Europe 15 years ago, many countries were beginning their metaphorical journey into renewable energy. Today, several European countries often produce 50 percent of their energy from renewable sources, either for a sustained period or during certain points in the day.

The Middle East has benefitted from being a late entrant in that technology scale has driven down costs. This is evident in the record-low solar electricity tari�s that have been achieved in the region, noted Armsby, who has been advising on transactions in the Middle East for two decades. Moreover, many countries in the Middle East have moved from being observers to industry leaders.

Ramiz Hamdan Alaileh, Sustainability and Energy E�ciency Director at Abu Dhabi’s Department of Energy –, said the emirate exponentially increased its renewable energy capacity with the launch of commercial operations at the 1,177 MW Sweihan solar power plant in June 2019

Panel Discussion

taking the emirate’s installed capacity from 110 MW in 2018 to around than 1,290 MW today. Despite being a major oil producer, Abu Dhabi is investing heavily in renewables and aims to generate 7 percent of its electricity from clean sources by 2020. The emirate has also announced the 2 GW Al Dhafra solar project.

“We have already invested in the energy transition with the launch of the first battery solar system in the region, with a 108 MW capacity that can last for up to six hours, in January 2019. This is probably the largest virtual battery plant in the world, and it will enable us to integrate solar more seamlessly into our energy sector. This in turn will enable us to handle issues related to intermittency and the impact of dust when it comes to production. Additionally, we have a demand response program as part of the approved strategy for Abu Dhabi for demand side management. And this program is looking at developing commercial and industrial specific loads and enabling load aggregators to enter the market,” explained Alaileh.

ROOM FOR SMES

Commenting on the Middle East’s renewable energy sector , Armsby noted that there was room for greater involvement by small and medium businesses. “That’s one area where the position is quite weak in the Middle East, because the uptake of renewables so far has been government initiated. Also, with the increase in scale, where we’re now talking of utility projects in gigawatt sizes, this has meant that there is a smaller and smaller market for the private sector. The latest project in DEWA phase five, the 900 MW solar PV plant, had two bidders.

“There’s clearly a role for smaller and local companies to be involved in the delivery of renewable energy but because of the scale, that’s being inhibited. This is one area where regulation could play a role. For example, there have been regulations to encourage the uptake of rooftop solar in Abu Dhabi and

Dubai. But because that’s a net metering model, it’s principally large warehouses that can do that.”

In the alternative fuel sector, Dr Galvan believes there is room for SMEs to enter the biofuels market, for instance. “In the type of project that I’m leading here, you could have a farm to produce an oil seed and that oil can be sold o� to a refiner. There are some spaces where SMEs have the chance to participate in producing the supply chain to be able to produce those fuels at scale.”

Alaileh also sees an opportunity for SMEs to contribute, especially when it comes to renewable energy aggregators market. Demand aggregation can also be done not only for industrial and commercial customers but also residential. Abu Dhabi’s Department of Energy - is developing a market for aggregators, given that the right policy landscape reduces risks and enables more entities to participate.


BREAKOUTSESSION 4

WGES 2019 - DAY 2

Sustainable agriculture

To address food and water security challenges, agritech firms are developing new mechanisms that do not require large amounts of land or irrigation water, such as indoor farming and liquid nanoclay technology.

A fourth agricultural revolution is taking place today, one that involves integrating technologies, and which takes into consideration the quality of produce.

In the food supply chain, waste is generated from two areas. The first is from the way farmers handle their produce – they either harvest at a sub-optimum time or use the wrong type of equipment to harvest. The second is at the consumer end.

Many big corporations are thinking more about their environmental impact and financing sustainability initiatives. They want to be climate proactive and show o� in their annual reports how many of the SDGs they now meet, because it is of value to them.

Agenda

The term “sustainable agriculture” has provided a sense of urgency that sparked much innovative thinking in the farming world. The concept, which embraces concepts such as organic, low-input, and free-range, aims to promote soil health, minimize water use and lower pollution levels on farms. In the UAE for example, farmers save up to 70 percent of water and avoid using harmful chemicals by deploying hydroponic technology. Ultimately, sustainable agriculture aims to achieve a healthy environment, economic profitability, and social equity. This session discussed how the sector can sustainably boost food production and raise yields to meet global demand.

Summary Points

Agriculture companies must see challenges as opportunities, capitalising on gaps in the supply chain, repurposing produce, and supporting the livelihood of local farmers.

Indoor farming is part of a wider portfolio that the industry should collaborate on if they want to bring about transformative change.

Regional farming companies must improve water management and choose the right crops to grow in this climate.

Managing waste in the food supply chain and reducing emissions associated with agriculture requires greater e�ciency in the production cycle.

The agricultural sector must better manage land, whether by stabilizing soil and preventing wind and water erosion, or improving air quality, which is linked to soil degradation.

Recommendations

Matt KennedyHead of Strategy and Business, International Energy Research Centre, Ireland

MODERATORAbdulaziz AlmullaCo-founder & CEO, Madar Farms, UAE

Atle IdlandGeneral Manager, Desert Control Middle East, UAE

Lina F. YousefCo-founder, De L’Arta LLC, UAE

SPEAKERS


In this session, three agritech experts talked about their experience in desert farming and how they are helping to build resilience food systems in the Arabian Gulf region, where more than 90 percent of food is imported.

Abdulaziz Almulla, Co-founder and CEO of Madar Farms, a UAE-based company that specialises in indoor farming, said that getting access to food, ensuring it is high quality, and is obtained in a sustainable manner are the main challenges relating to regional food security. While the agriculture sector has been trying to overcome these challenges, local production has been insu�cient and is also causing damage to the environment.

To address food and water security challenges, Madar Farms has been growing crops indoors in fully enclosed environments. Instead of sunlight, they rely on LED lights to optimize plant growth, and through hydroponics, a soilless growing method, plants acquire the nutrients they need from the water in which they are rooted.

Madar Farms’ approach removes the need to use wastewater for irrigating soil, reducing water consumption by more than 95 percent compared to traditional agriculture. Moreover, the soil-free system eliminates the need for chemicals such as pesticides and fertilizers, resulting in healthier produce. The approach allows Madar Farms to grow crops almost anywhere in the country.

WATER CONSERVATION

Desert Control, a Norwegian agritech company, has spent 12 years carrying out research and development into agricultural solutions. In 2018, the company received a grant from Dubai Expo 2020 to continue its research into the UAE’s grass.

According to Atle Idland, General Manager at Desert Control Middle East, about 71 percent of water consumed in the UAE is used in agriculture, forestry and landscaping. Using liquid nanoclay technology, the company can cut the amount of water needed to irrigate

grass in the UAE by 50 percent. Liquid nanoclay is a mixture of water and clay that attaches itself to sand particles after it is sprayed on the ground, preventing water and nutrients from running through the soil. The technology is particularly e�ective in dry, salty and sandy conditions and can result in greater yields and larger crops.

Idland explained: “When we treat an area of dry land or desert, we use about 50 percent less water for outdoor agriculture and we retain the nutrients, so the fertility of the soil becomes much more alive versus the high-salinity, desert-sand soil in the UAE. The second driver is desertification. Every year, more than 12 million hectares of fertile agricultural land are de-graded by desertification. By 2025, more than 1.8 billion people will be living in these areas”.

Lina F. Yousef, Co-founder of UAE-based startup De L’Arta, said that her company aims to unlock the potential of local resources through soil regeneration, drawing inspiration from desert plants which can show us how to develop sustainable food systems.

In two months, the startup will launch its first product – a skincare range that uses natural ingredients from desert plants homegrown in the UAE. “It took us two years to bring it from lab to marketplace. We’re the first to register the name of these plants as a cosmetic ingredient. We’re also part of an accelerator known as Catalyst, a joint venture between Masdar and British Petroleum (BP). They invest in renewables and sustainable technologies. They saw us, believed in us and gave us funding to begin our work. R&D is the only way for innovation to take place.”

Yousef said that regional farming companies must manage water properly and choose the right crops to grow in this climate. She added that De L’Arta is developing an integrated approach – one that combines technologies and practices to make degraded soil more fertile. While producing food indoors is important because it will help feed populations, we cannot completely disconnect

Panel Discussion

from the land, Yousef noted. We still need to manage this resource, whether by stabilizing soil and preventing wind and water erosion, or improving air quality, which is directly linked to soil degradation.

According to Almulla, a fourth agricultural revolution is taking place today. In the past, the focus was on the mass production of crops and few people thought about the quality of that produce or the environmental impact of intensive farming. What’s happening now is that companies are integrating technologies. But the core technologies for water and nutrient measurement aren’t new and have been around for decades.

Almulla said: “We already have a farm in Abu Dhabi, and we’re now building a large-scale commercial farm. There are things that have much longer R&D time cycles. This is something we can invest in now, but the return won’t be until much later. We have to balance those priorities. Indoor farming is one portion of a broader portfolio that the industry as a whole should come together to work on if we want to bring about transformative change.”

WASTE MANAGEMENT

Besides water conservation, one of the biggest challenges in the agriculture sector is waste, which is generated across the supply chain. Managing this waste and reducing the emissions associated with agriculture requires a more e�cient production cycle.

Yousef noted that her company looks to maximize the use of products that enter the UAE and re-use that waste. “Some people see waste as waste; others see it as an opportunity. We’ve been repurposing some of the organic waste produced locally into high-quality compost that we use on our farm. We have a small-scale farm, in kind provided through Masdar City so we can do our research. We have a composting facility there and we’ve been collecting waste and using scientific methods to develop compost to meet the requirements of the land.”

In the food supply chain, waste is generated mostly from two areas. The first is from the way farmers handle their produce – they either harvest at a sub-optimum time or use the wrong type of mechanical equipment to harvest. The second is at the consumer end – how we consume and dispose of food.

Yousef said that the industry needs to understand the interlinkages between these processes and adopt the right approach so that there is a change in behavior and innovation. A good example of how a challenge can become an opportunity comes from Kenya. The country is a major producer of mango, but 50 percent of the produce is wasted, either because it goes bad in transition to the marketplace or because it is not handled properly by farmers. A startup called Azure Health saw this as an opportunity and decided to act. They now dehydrate this damaged produce, preserve it and sell it as dried food products. This was achieved through cooperation and support from international partners. Almost 50 percent of the waste is now being repurposed and resold. At the same time, the startup has supported the livelihood of 600 farmers.

According to Idland, the waste problem represents a huge paradox. On one hand, we have a growing global population that needs more food. On the other, one-third of the food being produced is going to waste. More e�ort must be made to find a solution. More positively, big corporations are starting to change. If we look at their annual reports, they’re thinking more about their environmental impact and the SDGs, and they’re financing sustainability initiatives. In the last five years, there has been an enormous change in behavior among big corporations. They want to be sustainable, climate proactive and demonstrate in their annual reports how many of the SDGs they now meet, because it is of value to them.


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