Free zones to become carbon neutral

Vesela Todorova

• Last Updated: June 05. 2008 12:25AM UAE / June 4. 2008 8:25PM GMT

DUBAI // Nine free economic zones across Dubai will be made carbon neutral.

According to Tecom Investments, the environmental advisory company EcoVentures will calculate the greenhouse gas emissions of the free zones, with the tally expected in a month’s time.

The programme would cover Tecom-operated free zones, which occupied 24,000 square feet of commercial space, said Ali bin Towaih, the director of the sustainable energy and environment division.

The announcement came as the United Nations put carbon dioxide (CO2) in the spotlight on World Environment Day, which is celebrated across the globe today.

The UN’s Environment Programme encourages countries to kick the CO2 habit and to work towards a low-carbon economy. EcoVentures would examine several key areas to reduce Tecom’s ecological footprint, including water and energy consumption, waste, and emissions generated through business travel, commuting and deliveries, said Shezan Amiji, EcoVentures’ director.

“From then on, Tecom can decide on the necessary measures and over what period they want to become carbon neutral,” said Mr Amiji.

Tecom is a subsidiary of Dubai Holding, which is owned by the Dubai Government.

Reducing a company’s footprint made good business sense, said Mr Amiji, a former media entrepreneur and banker with Goldman Sachs and Standard Chartered. He was inspired to open his consultancy business after watching Al Gore’s Academy Award-winning documentary film An Inconvenient Truth.

“Managing your business responsibly makes you an efficient prod-ucer,” he said.

But ecological efficiency alone will not take Tecom to a carbon-neutral position, which is where carbon credit trading comes into play.

The scheme sees carbon-producing companies purchase credits from projects that reduce emissions, including the United Nations’ Clean Development Mechanism.

By charging carbon emitters, these programmes in effect finance “green” projects. A key requirement is that the funding goes to projects that would have not been otherwise profitable.

Carbon trading crosses international borders. Typically, emitters in the West finance projects in developing countries.

Mr Amiji, whose company is affiliated with the UK-based The CarbonNeutral Company, one of the world’s leading offset businesses, said he could give clients worldwide investment options.

But EcoVentures is looking to finance environmentally friendly start-up businesses in the UAE.

“We are trying to source credits in the region and trade them in the region,” he said. “This will be our differentiation.”

Tecom was also keen to encourage green businesses in Dubai, said Mr Towaih, who is also the director of the company’s energy and environment park free zone (Enpark).

“We are not doing all this just for the sake of being carbon neutral, but to encourage industry and projects to come forward,” he said.

While the size and content of Tecom’s future carbon credit portfolio had yet to be determined, Mr Towaih said he hoped some of the carbon credits would be purchased from clean projects in the emirate.

The UAE currently has no projects able to sell carbon credits.

Five projects in the oil and gas sector developed by Masdar, the Abu Dhabi Government’s sustainability initiative, are expecting UN approval. It is not yet clear when approval will be granted.

Masdar previously announced that it was developing a portfolio of CDM projects with asset owners such as the Abu Dhabi National Oil Company, Abu Dhabi Water and Electricity Authority and Dubai Aluminum. The projects include energy efficiency, industrial process improvement, flare gas recovery and power plant upgrades.

The free zones that will participate in Tecom’s carbon neutral scheme are Dubai Biotechnology and Research Park, Dubai Internet City, Dubai Knowledge Village, Dubai Media City, Dubai Outsource Zone, Dubai Studio City, Dubai International Academic City, International Media Production Zone and Enpark.

The audit will cover only the operational activities of the free zones and not the companies registered there.

vtodorova@thenational.ae