Carbon Market in the Middle East

green-middle-eastMiddle East is highly susceptible to climate change, on account of its water scarcity, high dependence on climate-sensitive agriculture, concentration of population and economic activity in urban coastal zones, and the presence of conflict-affected areas. Moreover, the region is one of the biggest contributors to greenhouse gas emissions on account of its thriving oil and gas industry.

The world’s dependence on Middle East energy resources has caused the region to have some of the largest carbon footprints per capita worldwide. Not surprisingly, the carbon emissions from UAE are approximately 55 tons per capita, which is more than double the US per capita footprint of 22 tons per year. The MENA region is now gearing up to meet the challenge of global warming, as with the rapid growth of the carbon market. During the last few years, many MENA countries, like UAE, Qatar, Egypt and Saudi Arabia have unveiled multi-billion dollar investment plans in the cleantech sector to portray a ‘green’ image.

There is an urgent need to foster sustainable energy systems, diversify energy sources, and implement energy efficiency measures. The clean development mechanism (CDM), under the Kyoto Protocol, is one of the most important tools to support renewable energy and energy efficiency initiatives in the MENA countries. Some MENA countries have already launched ambitious sustainable energy programs while others are beginning to recognize the need to adopt improved standards of energy efficiency.

The UAE, cognizant of its role as a major contributor to climate change, has launched several ambitious governmental initiatives aimed at reducing emissions by approximately 40 percent. Masdar, a $15 billion future energy company, will leverage the funds to produce a clean energy portfolio, which will then invest in clean energy technology across the Middle East and North African region. Egypt is the regional CDM leader with twelve projects in the UNFCCC pipeline and many more in the conceptualization phase.

Middle East is an attractive carbon market as it is rich in renewable energy resources and has a robust oil and gas industry. Surprisingly, very few CDM projects are taking place in MENA countries with only 22 CDM projects have been registered to date. The region accounts for only 1.5 percent of global CDM projects and only two percent of emission reduction credits. The two main challenges facing many of these projects are: weak capacity in most MENA countries for identifying, developing and implementing carbon finance projects and securing underlying finance. Currently, there are several CDM projects in progress in Egypt, Jordan, Bahrain, Morocco, Syria and Tunisia. Many companies and consulting firms have begun to explore this now fast-developing field.

The Al-Shaheen project is the first of its kind in the region and third CDM project in the petroleum industry worldwide. The Al-Shaheen oilfield has flared the associated gas since the oilfield began operations in 1994. Prior to the project activity, the facilities used 125 tons per day (tpd) of associated gas for power and heat generation, and the remaining 4,100 tpd was flared. Under the current project, total gas production after the completion of the project activity is 5,000 tpd with 2,800-3,400 tpd to be exported to Qatar Petroleum (QP); 680 tpd for on-site consumption, and only 900 tpd still to be flared. The project activity will reduce GHG emissions by approximately 2.5 million tCO2 per year and approximately 17 million tCO2 during the initial seven-year crediting period.

Potential CDM projects that can be implemented in the region may come from varied areas like sustainable energy, energy efficiency, waste management, landfill gas capture, industrial processes, biogas technology and carbon flaring. For example, the energy efficiency CDM projects in the oil and gas industry, can save millions of dollars and reduce tons of CO2 emissions. In addition, renewable energy, particularly solar and wind, holds great potential for the region, similar to biomass in Asia.

The Eco Revolution in Property Investment

Many of us are now making more eco-friendly and environmentally conscious decisions every day. Whether it’s taking our own carrier bags to the shops, having a reusable water bottle or recycling your tin cans – little changes are making a big impact. When it comes to property, the eco revolution has increasingly been making waves. From solar panels to energy efficient lightbulbs, our properties are becoming better for the planet. These priorities are also affecting property investment, with an increasing number of tenants looking for eco-friendly essentials in their property.

Eco-friendly homes are becoming increasingly popular with a new environmentally conscious generation starting to look for rental properties. Young professionals who are living in the city are less likely to buy a home than ever before, so are looking for a rental property that meets their exacting requirements. With many of them choosing to make environmentally friendly choices, like going plastic free or cutting down on how much meat they eat, accordingly they are looking for eco-friendly homes too.

Environmental impact is increasingly on the agenda of consumers in every aspect of their lives. Many are also willing to pay a premium for eco-friendly purchases. Research has shown that UK consumers would pay an average 10% more if they were buying something they thought had a positive impact on society. Property investors would be wise to bear this in mind when looking for new property investments. In an increasingly competitive rental market, the ability to raise prices because of eco credentials is a lucrative option for investors.

Furthermore, 40% of consumers think that sustainability is important when they are making a purchase. The impact of this can be seen in the growing number of brands and businesses that are making their environmental commitments obvious to consumers. It is clear that savvy property investors can be both environmentally friendly and business smart when looking to purchase new properties.

In another study, 80% of tenants believed that their landlords should be considering the environment more, and suggested measures like double-glazing, insulation and eco-modifications. These simple measures can make a large impact on the appeal of a property to prospective tenants. Increasing energy prices are another concern for occupants. In addition, 55% of renters asked said they would prefer a rental property with a smart meter if it was the same price. Energy efficient measures are both good for tenant’s monthly costs and for the environment so buy to let property investors can be at an advantage if their property offers these.

As of April 2018, buy to let landlords are legally required to have an EPC rating of E or above in their properties. This means that property investors are increasingly looking at new build properties which are already energy efficient and don’t require costly renovations. Tenants can also legally request that a landlord makes property improvements if the EPC rating is F or G.

Developers are increasingly taking sustainability and environmental impact into consideration when building new properties. Properties with energy efficient specifications, like many by RW Invest  are providing investors with lucrative returns and high tenant demand. Recent changes to regulation mean that new build properties need to be energy efficient and this is making a huge impact on the buy to let market.

The trend towards environmentally conscious properties looks set to continue, with eco-friendly qualities high on the agenda of both potential tenants and investors.

Ideas That Could Reshape How Companies Use Energy

Recent projections show that the world’s energy demands are about to increase by close to 25% between now and 2030. Population and wealth growth are the leading factors behind the increased need for energy. Additionally, issues related to pollution and climate change are compelling companies and investors alike with respect to how they produce and use energy.

Grs a global resource solutions company offers a plethora of services that could help industries reshape and streamline their energy consumption.

Energy efficiency is playing a vital role in helping the world achieve its power needs and progress.

Increase in Fuel Prices

The prices of energy have kept rising over the years even when oil prices have dropped as was the case in 2014-2015.Such sudden fluctuations can be difficult for businesses to deal with. Also, declines in energy prices have called into question whether the efforts in energy conservation and efficiency are worth it.

According to various financial analyses, energy costs form a considerable chunk of operating expenses. Worldwide, cement, chemical, mining and metal companies, for instance, spend almost 30% of their operating budget on energy. Additionally, the percent of the budget spent on energy is higher in developing nations due to the cheap cost of labor.

Energy Efficiency

Statistics and research show that operational upgrades can cut energy consumption by approximately 20%. Nonetheless, investment in energy efficiency technologies can reduce energy usage by even 50%.

The reports and findings show that it is not a pipe dream for manufacturing entities, which account for almost half of the world’s energy usage, to meet energy requirements in a way that is environmentally friendly and economical as well. Advanced technology could substantially reduce energy usage and save companies more than six hundred billion dollars per year.

There are technologies currently in place that can help industries reduce energy use. The ideas cover a range of manufacturing and production groups like cement, mining, oil refining and chemicals. Nonetheless, firms are facing the challenge of how to put energy efficiency technology in place how to renew the technology so that it stays relevant year in and year out.

Think Circular

Consider your product to be a future source that can be used many times. In other words, when developing a product, strive to move away from the traditional linear supply chain. Take, for example, a data services provider. Put in place the think circular standard by using an analytics system to develop a facility that restructures energy to its core function. This results in more capacity and less operational expenses.

Profit Per Hour

Whenever making any changes, remember to create a comprehensive review of the full profit equation. During the study, evaluate aspects such as yield, throughput and energy. Nonetheless, profit should be of the highest priority before effecting any changes.

Think Lean

It is vital for an organization to create a resource productivity plan. Lean thinking and green thinking are based on similar principles and will blend in together well.

Think Holistic

When making changes, ensure that they not only focus on a specific aspect. Instead, you should also focus on the management system, behavior and mindsets.

NatHERS – A Tool To Maximize Sustainability of Your Future Home

Short for the Nationwide House Energy Rating Scheme, NatHERS uses a 10-star rating system which is able to easily access the thermal performance of buildings within Australia. Though a NatHERS certification is required for all new developments with multiple dwellings, it is essential for all residents to obtain an assessment to be able to easily evaluate the thermal assessment of their development.

At Certified Energy, our years of experience distinguishes us from our competitors. We work with each client separately, to ensure that each individual project thrives in terms of cost, efficiency and the preservation of design concepts.

We strive to minimize your costs whilst maximizing the sustainability of your future home.

Why is NatHERS assessment required?

NatHERS as outlined above is the Nationwide House Energy Rating Scheme which is able to evaluate the thermal performance of any dwelling. Though this may seem irrelevant and unnecessary when outlining the overall performance of the building, it is a necessity to get a NatHERS assessment in order to ensure a sustainable future for our environment.

Not only this, but NatHERS is essential when obtaining a BASIX assessment. BASIX is a NSW Government initiative striving to improve the environmental sustainability. It comprises of three factors: water, thermal and energy. The thermal component of BASIX can be easily completed through a NatHERS assessment with its thorough, accurate and flexible approach to addressing thermal performance.

Thus, a NatHERS assessment is required not only to contribute towards a sustainable future for the environment but also as a necessity under the BASIX initiative led by the NSW Government.

What does a NatHERS assessment include?

A NatHERS assessment can be obtained by a specialised company that has NatHERS Accredited Software which can be used to determine the thermal efficiency of your home. Within the assessment, each resident will be provided a copy of the key design features and the building materials and the scope used to generate the dwelling’s star rating.

The star rating, also known as the Energy or Thermal Efficiency star rating, is an accurate indicator of the level of heating or cooling your building requires to not only make you feel comfortable, but to ensure that it doesn’t have a detrimental impact on the environment. By following the recommendations and guidelines that will be included in your report, you will also be on the path of having lower energy expenses, by using the appropriate amount of electricity.

How does Certified Energy do it differently?

At Certified Energy, there are two main certification solutions that will help you achieve the lowest cost with the highest efficiency rating. These include the essential solutions (House Energy Rating Scheme, Elemental Provision) or alternative solutions (Verification Using a Reference Building and State Specific Energy Protocols).

In order to give you the best catered advice as per your personal needs, Certified Energy will guide you through the various approval pathways that will help your project achieve energy efficiency and environmental sustainability.