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.

Bioenergy Resources in MENA Countries

The Middle East and North Africa (MENA) region offers almost 45 percent of the world’s total energy potential from all renewable sources that can generate more than three times the world’s total power demand. Apart from solar and wind, MENA also has abundant biomass energy resources which have remained unexplored to a great extent.

According to conservative estimates, the potential of biomass energy in the Euro Mediterranean region is about 400TWh per year. Around the region, pollution of the air and water from municipal, industrial and agricultural operations continues to grow.  The technological advancements in the biomass energy industry, coupled with the tremendous regional potential, promises to usher in a new era of energy as well as environmental security for the region.

The major biomass producing countries are Egypt, Yemen, Iraq, Syria and Jordan. Traditionally, biomass energy has been widely used in rural areas for domestic purposes in the MENA region, especially in Egypt, Yemen and Jordan. Since most of the region is arid or semi-arid, the biomass energy potential is mainly contributed by municipal solid wastes, agricultural residues and industrial wastes.

Municipal solid wastes represent the best source of biomass in Middle East countries. Bahrain, Saudi Arabia, UAE, Qatar and Kuwait rank in the top-ten worldwide in terms of per capita solid waste generation. The gross urban waste generation quantity from Middle East countries is estimated at more than 150 million tons annually. Food waste is the third-largest component of generated waste by weight which mostly ends up rotting in landfill and releasing greenhouse gases into the atmosphere. The mushrooming of hotels, restaurants, fast-food joints and cafeterias in the region has resulted in the generation of huge quantities of food wastes.

In Middle East countries, huge quantity of sewage sludge is produced on daily basis which presents a serious problem due to its high treatment costs and risk to environment and human health. On an average, the rate of wastewater generation is 80-200 litres per person each day and sewage output is rising by 25 percent every year. According to estimates from the Drainage and Irrigation Department of Dubai Municipality, sewage generation in the Dubai increased from 50,000 m3 per day in 1981 to 400,000 m3 per day in 2006.

The food processing industry in MENA produces a large number of organic residues and by-products that can be used as biomass energy sources. In recent decades, the fast-growing food and beverage processing industry has remarkably increased in importance in major countries of the region. Since the early 1990s, the increased agricultural output stimulated an increase in fruit and vegetable canning as well as juice, beverage, and oil processing in countries like Egypt, Syria, Lebanon and Saudi Arabia.

The MENA countries have strong animal population. The livestock sector, in particular sheep, goats and camels, plays an important role in the national economy of respective countries. Many millions of live ruminants are imported each year from around the world. In addition, the region has witnessed very rapid growth in the poultry sector. The biogas potential of animal manure can be harnessed both at small- and community-scale.

Agricultural Wastes in the Middle East

Agriculture plays an important role in the economies of most of the countries in the Middle East.  The contribution of the agricultural sector to the overall economy varies significantly among countries in the region, ranging, for example, from about 3.2 percent in Saudi Arabia to 13.4 percent in Egypt.  Large scale irrigation is expanding, enabling intensive production of high value cash and export crops, including fruits, vegetables, cereals, and sugar.

The term ‘crop residues’ covers the whole range of biomass produced as by-products from growing and processing crops. Crop residues encompasses all agricultural wastes such as bagasse, straw, stem, stalk, leaves, husk, shell, peel, pulp, stubble, etc. Wheat and barley are the major staple crops grown in the Middle East region. In addition, significant quantities of rice, maize, lentils, chickpeas, vegetables and fruits are produced throughout the region, mainly in Egypt, Syria, Saudi Arabia and Jordan.

Date palm is one of the principal agricultural products in the arid and semi-arid region of the world, especially Middle East and North Africa (MENA) region. The Arab world has more than 84 million date palm trees with the majority in Egypt, Iraq, Saudi Arabia, Iran, Algeria, Morocco, Tunisia and United Arab Emirates. Date palm trees produce huge amount of agricultural wastes in the form of dry leaves, stems, pits, seeds etc. A typical date tree can generate as much as 20 kilograms of dry leaves per annum while date pits account for almost 10 percent of date fruits. Some studies have reported that Saudi Arabia alone generates more than 200,000 tons of date palm biomass each year.

In Egypt, crop residues are considered to be the most important and traditional source of domestic fuel in rural areas. These crop residues are by-products of common crops such as cotton, wheat, maize and rice. The total amount of residues reaches about 16 million tons of dry matter per year. Cotton residues represent about 9% of the total amount of residues. These are materials comprising mainly cotton stalks, which present a disposal problem. The area of cotton crop cultivation accounts for about 5% of the cultivated area in Egypt.

A cotton field in Egypt

Large quantities of crop residues are produced annually in the Middle East, and are vastly underutilised. Current farming practice is usually to plough these residues back into the soil, or they are burnt, left to decompose, or grazed by cattle. These residues could be processed into liquid fuels or thermochemical processed to produce electricity and heat in rural areas. Energy crops, such as Jatropha, can be successfully grown in arid regions for biodiesel production. Infact, Jatropha is already grown at limited scale in some Middle East countries and tremendous potential exists for its commercial exploitation.

A wide range of thermal and biochemical technologies exists to convert the energy stored in agricultural wastes into useful forms of energy. Thermochemical conversion technologies like combustion, gasification and pyrolysis can yield steam, syngas, bio oil etc. On the other hand, the high volatile solids content in agro wastes can be transformed into biogas in anaerobic digestion plants, possibly by codigestion with MSW, sewage sludge, animal wastes and/and food wastes. The cellulosic content in agricultural residues can be transformed into biofuel (bioethanol) by making use of the fermentation process. In addition, the highly organic nature of agricultural wastes makes it highly suitable for compost production which can be used to replace chemical fertilizers in agricultural farms. Thus, abundance of agro residues in the Middle East can catalyze the development of biomass energy sector in the region.

Biomass Wastes to Energy for MENA

The high volatility in oil prices in the recent past and the resulting turbulence in energy markets has compelled many MENA countries, especially the non-oil producers, to look for alternate sources of energy, for both economic and environmental reasons. The significance of renewable energy has been increasing rapidly worldwide due to its potential to mitigate climate change, to foster sustainable development in poor communities, and augment energy security and supply.

The Middle East is well-poised for waste-to-energy development, with its rich feedstock base in the form of municipal solid wastes, crop residues and agro-industrial wastes. The high rate of population growth, urbanization and economic expansion in the Middle East is not only accelerating consumption rates but also accelerating the generation of a wide variety of waste. Bahrain, Saudi Arabia, UAE, Qatar and Kuwait rank in the top-ten worldwide in terms of per capita waste generation. The gross urban waste generation quantity from Arab countries is estimated at more than 80 million tons annually. Open dumping is the most prevalent mode of municipal solid waste disposal in most countries.

Waste-to-energy technologies hold the potential to create renewable energy from waste matter, including municipal solid waste, industrial waste, agricultural waste, and industrial byproducts. Besides recovery of substantial energy, these technologies can lead to a substantial reduction in the overall waste quantities requiring final disposal, which can be better managed for safe disposal in a controlled manner. Waste-to-energy systems can contribute substantially to GHG mitigation through both reductions of fossil carbon emissions and long-term storage of carbon in biomass wastes.

Modern waste-to-energy systems options offer significant, cost-effective and perpetual opportunities for greenhouse gas emission reductions. Additional benefits offered are employment creation in rural areas, reduction of a country’s dependency on imported energy carriers (and the related improvement of the balance of trade), better waste control, and potentially benign effects with regard to biodiversity, desertification, recreational value, etc. In summary, waste-to-energy can significantly contribute to sustainable development both in developed and less developed countries. Waste-to-energy is not only a solution to reduce the volume of waste that is and provide a supplemental energy source, but also yields a number of social benefits that cannot easily be quantified.

Biomass wastes can be efficiently converted into energy and fuels by biochemical and thermal conversion technologies, such as anaerobic digestion, gasification and pyrolysis. Waste-to-energy technologies hold the potential to create renewable energy from waste matter.  The implementation of waste-to-energy technologies as a method for safe disposal of solid and liquid biomass wastes, and as an attractive option to generate heat, power and fuels, can significantly reduce environmental impacts of wastes. In fact, energy recovery from MSW is rapidly gaining worldwide recognition as the fourth ‘R’ in sustainable waste management system – Reuse, Reduce, Recycle and Recover. A transition from conventional waste management system to one based on sustainable practices is necessary to address environmental concerns and to foster sustainable development in the region.

Waste Management in Olive Oil Industry

olive-oil-wastesThe olive oil industry offers valuable opportunities to farmers in terms of seasonal employment as well as significant employment to the off-farm milling and processing industry.  While this industry has significant economic benefits in regards to profit and jobs; the downside is it leads to severe environmental harm and degradation. In 2012, an estimated 2,903,676 tons of olive oil was produced worldwide, the largest olive oil producers being Spain, Italy, and Greece followed by Turkey and Tunisia and to a lesser extent Portugal, Morocco and Algeria. Within the European Union’s olive sector alone, there are roughly 2.5 million producers, who make up roughly one-third of all EU farmers.

Types of Wastes

Currently, there are two processes that are used for the extraction of olive oil, the three-phase and the two-phase. Both systems generate large amounts of byproducts.  The two byproducts  produced by the three-phase system are a solid residue known as olive press cake (OPC) and large amounts of aqueous liquid known as olive-mill wastewater (OMW).  The three-phase process usually yields 20% olive oil, 30% OPC waste, and 50% OMW.  This equates to 80% more waste being produced than actual product.

Regardless of system used, the effluents produced from olive oil production exhibit highly phytotoxic and antimicrobial properties, mainly due to phenols.  Phenols are a poisonous caustic crystalline compound.  These effluents unless disposed of properly can result in serious environmental damage.  There is no general policy for waste management in the olive oil producing nations around the world.  This results in inconsistent monitoring and non-uniform application of guidelines across these regions.

State of Affairs

Around 30 million m3 of olive mill wastewater is produced annually in the Mediterranean area.  This wastewater cannot be sent to ordinary wastewater treatment systems, thus, safe disposal of this waste is of serious environmental concern.  Moreover, due to its complex compounds, olive processing waste (OPW) is not easily biodegradable and needs to be detoxified before it can properly be used in agricultural and other industrial processes.

This poses a serious problem when the sophisticated treatment and detoxification solutions needed are too expensive for developing countries in North Africa, such as Morocco, Algeria and Tunisia, where it is common for OMW to be dumped into rivers and lakes or used for farming irrigation.  This results in the contamination of ground water and eutrophication of lakes, rivers and canals.  Eutrophication results in reductions in aquatic plants, fish and other animal populations as it promotes excessive growth of algae. As the algae die and decompose, high levels of organic matter and the decomposing organisms deplete the water of oxygen, causing aquatic populations to plummet.

Another common tactic for disposal of olive mill wastewater is to collect and retain it in large evaporation basins or ponds.  It is then dried to a semi-solid fraction. In less developed countries where olive processing wastes is disposed of, this waste, as well as olive processing cake and SOR waste is commonly unloaded and spread across the surrounding lands where it sits building up throughout the olive oil production season.  Over time these toxic compounds accumulate in the soil, saturating it, and are often transported by rain water to other nearby areas, causing serious hazardous runoff. Because these effluents are generally untreated it leads to land degradation, soil contamination as well as contamination of groundwater and of the water table itself.

Even a small quantity of olive wastewater in contact with groundwater has the potential to cause significant pollution to drinking water sources. The problem is more serious where chlorine is used to disinfect drinking water. Chlorine in contact with phenol reacts to form chlorophenol which is even more dangerous to human health than phenol alone.

Remedial Measures

The problems associated with olive processing wastes have been extensively studied for the past 50 years.  Unfortunately, research has continued to fall short on discovering a technologically feasible, economically viable, and socially acceptable solution to OPW.  The most common solutions to date have been strategies of detoxification, production system modification, and recycling and recovery of valuable components.  Because the latter results in reductions in the pollution and transformation of OPW into valuable products, it has gained popularity over the past decade. Weed control is a common example of reusing OPW; due to its plant inhibiting characteristics OPW once properly treated can be used as an alternative to chemical weed control.

Research has also been done on using the semisolid waste generated from olive oil production to absorb oil from hazardous oil spills.  Finally, in terms of health, studies are suggesting that due to OPW containing high amounts of phenolic compounds, which have high in antioxidant rates, OPW may be an affordable source of natural antioxidants. Still, none of these techniques on an individual basis solve the problem of disposal of OMW to a complete and exhaustive extent.

At the present state of olive mill wastewater treatment technology, industry has shown little interest in supporting any traditional process (physical, chemical, thermal or biological) on a wide scale.This is because of the high investment and operational costs, the short duration of the production period (3-5 months) and the small size of the olive mills.


Overall, the problems associated with olive processing wastes are further exemplified by lack of common policy among the olive oil producing regions, funding and infrastructure for proper treatment and disposal, and a general lack of education on the environmental and health effects caused by olive processing wastes.   While some progress has been made with regards to methods of treatment and detoxification of OPW there is still significant scope for further research.  Given the severity of environmental impact of olive processing wastes, it is imperative on policy-makers and industry leaders to undertake more concrete initiatives to develop a sustainable framework to tackle the problem of olive oil waste disposal.