Nation sees renewable energy as an opportunity

The UAE's successful bid to host the International Renewable Energy Agency (Irena) headquarters underscores the point that the country sees renewable energy as an opportunity. This was exemplified by the commitment to fund the agency with $136 million (Dh499m) until 2015, said a top official. Sultan Al Jaber, Chief Executive Officer of Abu Dhabi's state-owned green energy initiative Masdar, said: "Oil exporting countries can either see renewable energy as a threat or as an opportunity and we know that this is the future so that's why we are committed to Irena." Reem Al Hashemi, UAE Minister of State, said earlier that the UAE bidding process was "not easy" but the country had the backing of all Arab states and some European countries. The other two competing countries – Austria and Germany – pulled out from the bidding before the UAE was declared winner. Al Hashemi said the UAE has every right to host the Irena headquarters even though critics say that per capita it has the largest carbon footprint in the world. "Many see that there is a contradiction between us being one of the largest oil exporters in the world and our seeking to house the agency. [But] the UAE is committed to environmental issues in the first place," said Al Hashemi. She added "We state there are problems and that matters won't change overnight... but we have proven that we want to change the mentality in the UAE and the rest of the Gulf countries that heavily rely on fossil fuels to boost their economies." Al Jaber said attitudes toward the environment were changing in the UAE. "People have become more concerned about the environment. We have even been involved in adding sustainable energy chapters to the education curriculums of students." He said Abu Dhabi would also establish a fund of up to $50m per year for Irena-approved renewable energy projects in developing nations. The next funding programme would be reviewed after the first five years, he said. The funds were already in place and were not contingent on Abu Dhabi raising more debt, he added The Irena headquarters, which would be ready by 2011, will be located in Masdar City, a project under way to build a carbon-neutral town in Abu Dhabi. The UAE wants to place itself at the forefront of developments that may shape the future energy industry and hosting Irena is part of that plan, said officials. The Gulf oil-exporting countries are among the highest per capita carbon dioxide emitters in the world, according to statistics from the United Nations Development Programme. The UAE is third on the list, after Qatar and Kuwait. As it looks to cut emissions and encourage renewables and position itself for a lower carbon future, Abu Dhabi has committed $16bn to the Masdar initiative. The UAE has set a target to produce seven per cent of its power from renewables by 2020. Founded in January, Irena has 120 members. Keep up with the latest business news from the region with the daily Emirates Business 24|7 newsletter. To subscribe to the newsletter, please click here .