United Arab Emirates approves oil and gas projects under the Kyoto Protocol's CDM

The approval was given on during the meeting of the DNA's Higher Committee chaired by H.E. Mohammed bin Dha'en Al-Hameli, the UAE Minister of Energy.

The CDM part of the Kyoto Protocol encourages companies in developing countries to reduce their greenhouse gas - mainly Carbon Dioxide - emissions by offering them a tradable Certified Emission Reduction (CER) or 'carbon credit' against every ton of carbon dioxide equivalent reduced.

In order to realize CERs, a company must develop a CDM project consisting of various steps including GHG emission analysis, regulatory documentation, approval by the host country and registration at the United Nations.

The Designated National Authority for CDM in the UAE is mandated to approve CDM projects prior to their registration at the United Nations, by ensuring that the projects help achieve sustainable development and lead to the transfer of environmentally safe and sound technology. The Environment Agency - Abu Dhabi (EAD) was nominated in 2005 as the DNA for the UAE.

Masdar, the landmark initiative by the Abu Dhabi Government to promote advanced energy and sustainability, has worked with EAD for the past six months to build the DNA's technical capacity. Criteria for sustainable development and approval of projects have been developed according to best international practices. The UAE's DNA is one of the first in the GCC to become operational under a comprehensive institutional framework.

"We have worked with Masdar to build a comprehensive model for CDM which aims at promoting sustainability in line with our national development goals and socio-economic priorities, and we are willing to share our experience with other countries in the region" said Majid Al Mansouri, Secretary General of EAD and Chairman of the CDM Executive Committee.

The approved CDM projects have been developed by Masdar. These projects, which will be implemented by various companies of the Abu Dhabi National Oil Company (ADNOC) group, represent the first CDM projects in the oil and gas industry in the UAE. They involve CO2 recovery and utilization in urea production at Ruwais Fertilizer Industries (FERTIL) as well as gas flaring reduction at Abu Dhabi Gas Liquefaction Limited (ADGAS), Abu Dhabi Oil Refining Company (TAKREER) and TOTAL ABK.

Masdar CEO, Dr Sultan Ahmed Al Jaber, described these projects as a demonstration of ADNOC's commitment to reduce the environmental impact of the oil and gas industry in Abu Dhabi. "These projects mark the first milestone in our cooperation with ADNOC to develop the CDM potential across its various operating companies," added Dr Al Jaber.

Masdar is currently developing a portfolio of CDM projects with major asset owners in the UAE and the Middle East, including Abu Dhabi National Oil Company (ADNOC), Abu Dhabi Water and Electricity Authority (ADWEA) and Dubai Aluminum (DUBAL). Projects include energy efficiency, industrial process improvement, flare gas recovery and power plant upgrades.