The term green economy is not just a buzzword; it signifies a profound transformation in how we approach economic growth and environmental stewardship. The UN defines it as ‘low carbon, resource efficient and socially inclusive’ and it could create up to 24 million jobs worldwide by 2030.
The concept has been gaining substantial traction worldwide, encompassing a number of industries and initiatives that prioritise sustainability, environmental responsibility, and a harmonious coexistence between economic development and the well-being of the planet.
The core principle of the green economy is this intersection of sustainability and economic growth. And it’s an initiative that needs everyone’s help – achieving it requires cooperation from governments, investors, and entrepreneurs. The UAE is playing a pivotal role in this as we’ll see.
In this article, we’ll look at the green economy globally, the position of the UAE, the key industries as well as the varied opportunities that it will provide for entrepreneurs.
The green economy in the global context
The green economy is not just a niche segment; it is an increasingly substantial part of the world economy. It’s a rapidly growing sector, with renewable energy, green construction, and sustainable agriculture playing key parts.
A number of nations are demonstrating how targeted investments in renewable energy, eco-friendly construction, and sustainable agriculture can result in both economic growth and environmental sustainability.
Some of the key models to follow include:
Denmark: Green production plays a substantial role in bolstering Denmark’s economic landscape. Back in 2014, Denmark actively engaged in the production of environmentally friendly goods and services, amassing a total value of DKK174 billion. Notably, a substantial portion of these green products and services, amounting to DKK72 billion, found their way into international markets, constituting approximately 7 percent of Denmark’s overall export volume.
Germany: The country is currently poised to achieve a significant milestone this year with projections indicating that over 50 percent of its electricity will be derived from renewable sources. However, the ambition doesn’t end there. The country is steadfast in its commitment to raise the bar even higher, with a target of making renewable energy constitute a substantial 80 percent of its power generation by 2030.
Netherlands: Despite its modest size, the Netherlands stands as the No.1 agriculture exporter within the EU and the second largest in the world. This success can be attributed to innovative practices, including precision farming, the utilisation of geothermal energy for greenhouse heating, and the recycling of CO2 emissions from local power plants to enhance greenhouse conditions.
Thinking local: The UAE and the green economy
In the UAE, the investments in renewable energy and sustainable technologies are contributing significantly to the growth of the green economy sector. As part of the Green Economy for Sustainable Development initiative, the UAE is dedicated to establishing itself as a prominent global hub and exemplar of the emerging green economy. The country’s aspirations include becoming a key player in the global arena, while also serving as a pivotal hub for the export and re-export of eco-friendly products and cutting-edge technologies.
The UAE Vision 2021 National Agenda places a significant emphasis on enhancing air quality, safeguarding water resources, expanding the role of clean energy, and executing strategies for sustainable green growth. This has been further enhanced by the UAE’s Green Agenda 2030. These governmental efforts are instrumental in driving the country towards a green and sustainable future. This commitment is exemplified by the UAE’s ambitious goals around clean energy.
Specific green economy industries in the UAE:
Renewable energy: The UAE is making significant strides in the renewable energy sector with projects such as the Noor Abu Dhabi solar plant, one of the world’s largest solar farms. This year, the country revised its National Energy Strategy to add new objectives including the generation of 50,000 new green jobs and the tripling of renewable energy capacity by 2030. By 2031, the UAE aims to raise the percentage of clean energy within the overall energy blend to 30 percent.
Green construction: The UAE’s green building initiatives, exemplified by the Sustainable City in Dubai, demonstrate a commitment to eco-friendly construction practices and sustainable urban development. In a forward-thinking move, in 2010 the UAE government approved the Green Building and Sustainable Building standards, an initiative expected to save AED10 billion by 2030 and reduce carbon emissions by 30 percent.
Sustainable agriculture: Given the challenges of desert agriculture, the UAE has invested in innovative technologies such as vertical farming and hydroponics to ensure a sustainable food supply while minimising water usage and environmental impact. As a country that imports a large amount of its food, it makes sense that as far back as 2019 the government approved AED1 billion to create a global agtech centre.
Meanwhile, the UAE Sustainable Agriculture System aims to create an annual 5 percent boost in self-sufficiency, a 10 percent annual increase in average farm income, and a 5 percent yearly expansion of the agricultural workforce – as well as a 15 percent annual reduction in water usage.
Opportunities for entrepreneurs in the UAE green economy
So, let’s look at some of these areas and where there are opportunities for startups and entrepreneurs.
Renewable energy: As discussed, the UAE is investing heavily in renewable energy sources, including solar and wind power. Entrepreneurs can tap into this market by developing and providing innovative solar technologies, energy storage solutions, and wind energy projects.
Sustainable construction: With a growing emphasis on sustainable infrastructure, startups can focus on sustainable architecture, green construction materials, and energy-efficient building solutions.
Water management: The UAE faces water scarcity challenges, making water conservation and efficient water management critical. Entrepreneurs can explore opportunities in water desalination, wastewater treatment, and water-efficient technologies.
Electric vehicles (EVs): The UAE government is actively promoting electric vehicles as part of its sustainable transportation initiative. Startups can develop EV charging infrastructure, electric vehicle technology, and related services.
Waste management and recycling: Waste reduction and recycling are priorities in the UAE. Entrepreneurs can explore opportunities in waste-to-energy projects, recycling technologies, and sustainable waste management solutions.
Green tech innovations: Startups can focus on developing innovative technologies and solutions that reduce carbon emissions, enhance energy efficiency, and promote environmental sustainability.
Agtech: As noted, agriculture in the UAE faces challenges due to its arid climate. Startups can explore opportunities in agtech, such as vertical farming, hydroponics, and sustainable agriculture practices.
Green finance: Sustainable finance and green investment opportunities are growing in the UAE. Entrepreneurs can establish green investment platforms, sustainable banking solutions, or ESG advisory services.
Smart cities: The UAE is actively working on smart city projects. Entrepreneurs can participate by offering smart city solutions, including IoT technologies, data analytics, and urban planning tools.
Research and development: Collaborating with local research institutions and universities can lead to opportunities in developing green technologies and solutions, as well as accessing government grants and incentives.
Green certification and consultancy: There is a growing demand for green certifications like Leadership in Energy and Environmental Design (LEED) and Building Research Establishment Environmental Assessment Methodology (BREEAM). Startups can provide consultancy services to businesses seeking to make their operations more environmentally friendly.
Eco-tourism: The UAE’s tourism sector is evolving to include eco-tourism, and startups can explore opportunities in sustainable and eco-friendly travel experiences.
Conclusion
The green economy in the UAE offers a wealth of opportunities for entrepreneurs, investors, and business people. By capitalising on the country’s commitment to sustainability, learning from global models, and focusing on industries like renewable energy, green construction, and sustainable agriculture, individuals and businesses can not only contribute to the local and global green economy but also reap the significant economic benefits it offers. The UAE’s green journey is a remarkable example of how sustainability can drive economic growth and it should inspire entrepreneurs to consider how they can play a part.
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