The United Arab Emirates is to be the headquarters of the International Renewable Energy Agency (IRENA), paving the way for the country to become the hub of development for future renewable technologies.
It will be based in Abu Dhabi’s Masdar project, a British-designed zero-emission city currently under construction.
Despite having the largest per capita carbon footprint in the world, the UAE was chosen after Germany and Austria withdrew their bids to host IRENA during the meeting of 129 member countries of the agency held in Sharm Al Shaikh, Egypt.
According to Egyptian state news agency MENA, the UAE had seven ministers to lobby its case. However, UAE state minister Reem al-Hashemi defended the UAE as the host country for IRENA.
The organisation was established in Bonn, Germany, in January this year to lead the global transition from fossil fuel to renewable energies.
While the decision to locate IRENA’s HQ in the Middle East is a slap in the face for Europe – which has , in many respects, led the global push towards a more sustainable energy future – the German ministry of environment said Bonn would host the organisation’s “innovations” branch and Vienna would host IRENA’s office for liaison with the United Nations and other international energy organisations.
Indeed, German environment minister Sigmar Gabriel welcomed the three-way solution as a “fair and appropriate compromise”, adding that this had avoided future difficulties emerging between the candidate cities.
“Such a confrontation would have had left the terrible impression of an artificially charged north-south division,” Gabriel said.
The delegation from the UAE was “very satisfied” with the decision, a spokeswoman said – which is hardly surprising.
Abu Dhabi had offered to cover the costs for the headquarters and launched a major publicity blitz, even arranging for a video promoting its bid to be shown on televisions in hotel rooms used by conference delegates.
It has already invested some $22billion in its Masdar project, which was set up “to establish an entirely new economic sector dedicated to alternative and sustainable energy”.
In parallel with the IRENA agreement, Masdar has been signed up to a framework agreement with Bahrain’s National Oil and Gas Authority (NOGA) to develop carbon emission reduction projects and monetise the carbon reductions under the Kyoto Protocol’s Clean Development Mechanism (CDM) in Bahrain.
The partnership is designed to provide a framework for co-operation under which Masdar will work alongside NOGA to identify, study and develop CDM projects within the oil&gas sector in Bahrain.
CDM is a framework under the Kyoto Protocol which allows companies in developing countries to realise revenues by turning emission reductions into tradable assets or carbon credits through a mechanism governed and audited by the UN. As a result, CDM is playing an increasingly prominent role in assisting developing countries to achieve sustainable development and face the challenges of climate change.
The agreement mainly focuses on carbon emission reductions derived from energy-efficiency projects in the upstream, transportation and downstream parts of the industry, as well as a close collaboration on research and information exchange related to clean energy and sustainable technologies.