In a recent interview at Henkel’s office in Dubai, ESG MENA engaged in a thoughtful conversation with Ulla Hueppe, Head of Sustainability at Henkel Adhesive Technologies. They discussed how Henkel, as a family business, has been promoting sustainability for decades and explained their commitment to achieving 0% emissions by 2045.
Abu Dhabi Islamic Bank (ADIB) has published its first comprehensive Net Zero report, outlining the bank’s journey towards reducing carbon emissions across its operations and financed emissions. The report makes ADIB the first commercial Islamic bank in the region to set sector-specific decarbonisation targets for 2030.
In line with both the UAE’s Net Zero by 2050 strategic initiative and global standards, ADIB’s report outlines the bank’s strategies, progress and plans to achieve carbon reduction of 49 per cent in its operational emissions by 2030 compared to the bank’s 2022 baseline emissions.
The report also outlines specific emission-reduction pathways for six high-impact sectors within its financing portfolio, including home finance, auto finance, real estate, air transport, utilities, and petroleum manufacturing. These sectors account for 40 per cent of the bank’s UAE financed emissions.
“We recognise the urgent need for the financial industry to play a pivotal role in tackling climate change and we are fully committed to leading the way in sustainable Islamic banking, and supporting the UAE’s national goals for a sustainable future”, said Mohammed Abdelbary, ADIB’s Group CEO.
“Our first Net Zero report demonstrates ADIB’s proactive efforts to asses and reduce emissions, underscoring our commitment to transparency, accountability and ongoing progress. This report does not only highlight the bank’s readiness to tackle future environmental challenges, but also reaffirms our dedication to playing a key role in the UAE’s transition to a low-carbon economy.”
The report includes a breakdown of ADIB’s decarbonisation methodology, including baseline data based on the Partnership for Carbon Accounting Financials (PCAF) for financed emissions and the GHG Protocol for operational emissions.
“While we acknowledge that the journey to Net Zero will be an evolving process,” Mohammed Abdelbary added, “we are engaging with our customers and partners in their transition plans to address the need for decarbonisation by tackling financial barriers to the transition, including mobilising more green and transition finance.”
This week, the Science Based Targets initiative (SBTi) launched its decarbonisation framework for a net-zero building sector.
The criteria takes a “whole building approach” and calls for an end to fossil fuel installations, a reduction in in-use operational emissions and upfront embodied emissions, and the retrofitting of inefficient buildings.
Indeed, the built environment is resource-, energy- and emissions-intensive, already responsible for over a quarter of energy-related emissions, 40 per cent of materials use and 39 per cent of global emissions.
But looking ahead, global floor area is set to grow further, by around 15 per cent by 2030, with nearly 80 per cent of that growth in developing countries.
Against this backdrop, the SBTi says decarbonisation efforts must now ramp up.
Indeed, according to the International Energy Agency (IEA), emissions must fall by 9 per cent on average each year until 2030, more than halving by the end of the decade to get the world on track with the NZE scenario.
“Decarbonizing both old and new buildings is paramount to tackling climate change. We call on these businesses to lead the net-zero transformation,” said Alberto Carrillo Pineda, Chief Technical Officer of the SBTi, in a statement this week.
The framework—which was developed in consultation with an independent Expert Advisory Group (EAG) of companies, financial institutions, and non-profit and multilateral organisations—outlines that companies must set a target to reduce their upfront embodied emissions derived from raw materials, manufacturing, transportation of materials and the like.
Meanwhile, for in-use operational emissions—those related to building energy consumption—it collaborated with the Carbon Risk Real Estate Monitor (CRREM) to develop region-specific pathways that reflect local variations in power grids and building usage, included in the Buildings Target-Setting Tool.
The SBTi also outlines that, from 2030 at the latest, companies should make a public commitment to halting the installation of new fossil fuel-based installations, from heating and cooking, to power generation and hot water equipment.
Moreover, with 80 per cent of current building stock set to remain standing until 2050, the framework underlines the importance of retrofitting inefficient buildings, with companies committing to implementing energy efficiency improvements.
Estimates put the average energy retrofit rates in buildings at less than 1 per cent in most major markets.
Here, the SBTi spotlights the IEA’s Net Zero by 2050 Scenario, which shows that retrofitting needs to more than double by 2030.
Peter Heymann Andersen, COO at Ramboll said the the guidance “demystifies” ‘Paris-aligned’ for the sector.
SBTi worked in collaboration with the global engineering, architecture and consultancy company to develop the 1.5°C global embodied emissions decarbonisation pathways.
“[It] also fortifies our discourse with partners and clients, steering us toward a sustainable future in unison,” added Andersen.
Patrick Ho, Head of Sustainable Development at Swire Properties, echoed this, arguing that the “whole building approach” employed within the framework “enhances accountability” for emissions reduction and encourages collaboration between landlords and tenants in decarbonisation efforts.
However, while progress is being made within the building sector, experts warn that this progress is not happening fast enough.
Indeed, as outlined by UNEP’s recent global status report on buildings and construction, while energy intensity must drop 37 per cent from 2015 levels by 2030, in 2022, it remained 15 per cent above the target trajectory.
Finance isn’t accelerating at the speed required, either. The UNEP report outlined that recent investment in decarbonising buildings has fallen short of the net-zero targets for 2030 and 2050 and likely declined in 2023.
More broadly, CO2 emissions from building operations and construction reached new highs in 2022.
In a statement on the report earlier this year, Inger Andersen, UNEP Executive Director, noted that half of the buildings that will exist by 2050 have not yet been built, calling this a “major opportunity” for the sector to “reimagine the buildings of the future.” These buildings, Andersen said, must prioritise resilience, renovation and reuse, renewable energy generation and low-carbon construction, “all while addressing social inequalities.”
“There is no credible path to address climate change without a fundamental shift in the building and construction sector,” UNEP’s Andersen noted.
Commenting on the launch of the framework this week, the SBTi’s Chief Technical Officer said: “This sector now has the tools to build towards net-zero – companies and financial institutions must take immediate action.”
The organisation noted it will be hosting two global webinars in October, during which SBTi’s experts will explain the criteria further and answer questions from stakeholders.
By Madaline Dunn, Editor, ESG Mena.
World Resources Institute (WRI), a global research non-profit, has found that, despite growth in the number of banks with net-zero commitments, they are not on track to achieve their goals.
The non-profit built an online tracker to analyse how a sample of 25 banks—including some of the largest by total assets and smaller firms “playing a prominent role on net zero”—are progressing in implementing their commitments.
It found that these banks are off-track to meet net-zero targets, and many of their pledges are “less ambitious than they seem at face value.”
The tracker tool assessed 17 different indicators of these banks’ current climate commitments, with the results indicating that their strategies omit “key elements” that are crucial to an effective strategy. Indeed, the research revealed that when it comes to high-emitting sectors, many have no or weak targets.
It notes that banks should disclose emissions on both an absolute and physical intensity basis to provide a “fuller picture” of how real-world emissions are being reduced.
Alongside this, it found for most sectors, banks, on average, have not aligned their emissions reduction efforts to 1.5-degrees-C pathways and do not expect to do so by 2030.
“Banks often provide little explanation on how they plan to address these emissions gaps and achieve net zero on time,” the Insititute said, adding that banks must avoid “paper decarbonisation,” where, through portfolio reshuffling or market volatility, emissions are reduced on paper.
Green financing also remains too low, it said.
Despite their “headline-grabbing goals” and reported progress, the banks that WRI analysed have averaged a 1.3-to-1 ratio of green to fossil fuel finance since they began reporting their green finance numbers.
Other studies, it said, have found similarly low ratios.
This scale is still far below the 10-to-1 ratio needed.
The research also outlined that while around 70 per cent of those analysed have introduced relevant sustainable finance metrics in the compensation packages of senior leadership, similar incentives are needed throughout the organization to effect change.
“Banks need to reverse course and double down on their net-zero commitments — not only to meet their own climate goals, but also to profit from the new business opportunities tied to the climate transition. Leaning into sustainable finance can also help protect banks against growing climate-related financial risks,” the report noted.
The International Organization for Standardization (ISO) has announced that it has begun work on its first international standard on net zero.
According to the organisation, it is being designed to provide a global solution to guide organisations as they pursue their net zero transition.
It aims to provide clarity on the net zero transition, robust requirements, and enable independently verified and comprehensive climate action.
The international standard on net zero is geared up to launch next year at COP30 in November 2025 as an evolution of the ISO Net Zero Guidelines, launched at COP27.
The British Standards Institution (BSI), the UK National Standards Body, is convening the process in collaboration with ICONTEC, Colombia’s National Standards Body.
Thousands of experts are expected to collaborate through national standards bodies across more than 170 countries, with a public consultation expected to open later in 2025.
Noelia Garcia Nebra, Head of Sustainability at ISO, commented: “ISO takes our role in supporting a net zero transition seriously. As part of our Climate Commitment, we look forward to delivering an international standard the market has been asking for, and importantly, suitable for organizations of all sizes, sectors and geographies.”
Since the European Green Deal was introduced in 2019, European Commission President Ursula von der Leyen has touted it as the European Union’s new economic-growth agenda. After all, while the strategy’s core objective is climate-related – to reduce the EU’s greenhouse-gas emissions to net-zero by 2050 – it aims to achieve that by modernizing the economy and fostering innovation. But not everyone is convinced.
In recent months, European drivers have complained about the EU’s looming ban on the production and sale of cars with internal combustion engines, households have resisted plans to phase out gas boilers, and farmers have revolted against environmental regulations they view as overbearing. With the approach of next month’s European Parliament elections, far-right parties are jostling to establish themselves as the official standard-bearers of this growing discontent and preparing to use any power they win to sabotage the green agenda.
The protesters make some legitimate points. The radical transformation that the European Green Deal entails raises difficult questions about who should bear the costs of climate action, both within and among countries. If those costs end up falling disproportionately on ordinary workers – let alone the poorest and most vulnerable communities – the transformation will exacerbate inequality, with potentially serious social and political knock-on effects. Fortunately, properly designed climate policies can avert that outcome and actually lead to greater social equality.
The European Green Deal has accounted for climate-justice considerations since the beginning. Advocates always knew that they would need to secure the political support of coal-intensive Poland, and they had not forgotten the “yellow vest” revolt that erupted in France in 2018, after President Emmanuel Macron attempted to introduce a carbon tax in road transport.
It is no coincidence that the first flagship initiative under the European Green Deal was the Just Transition Fund, which will dedicate €20 billion ($21.6 billion) in 2021-27 to support the “economic diversification and reconversion” of the territories expected to be the most negatively affected by the green transition. Nor is it a coincidence that, while creating the first-ever carbon market for buildings and road transport, the European Commission established the Social Climate Fund, which is expected to mobilize at least €86.7 billion between 2026 and 2032 to compensate the most vulnerable groups for higher energy prices.
These policy initiatives reflect the advice one would find in the economic literature on carbon dividends. But they will prove insufficient to offset the profound distributional effects of climate policy, particularly as decarbonization accelerates and includes sectors that directly affect ordinary people’s daily lives, such as buildings and transport. That is why Europe also needs a new green social contract, which focuses primarily on these sectors.
To this end, the EU should streamline and simplify existing funding instruments to deliver even more decisive support for the transformation of coal and carbon-intensive regions. It should also take steps to ensure that EU countries make better, more targeted use of carbon-market revenues to support the uptake of green alternatives, from electric vehicles to home heating systems. And it should push for a “Rural Green Deal” that supports small farmers while requiring the agri-food industry to transform its systems. While such EU-level action would not eliminate the distributional consequences of climate policy, it would help significantly.
The EU must also turn decarbonization into a real economic opportunity by developing a solid green industrial policy. This will require, first and foremost, revitalizing the “boring” EU single-market agenda, in order to leverage the bloc’s greatest asset – a huge shared market for goods, financial services, energy, workers, and ideas – to incentivize new investments in clean tech.
Interventions in specific technology areas will also be needed. Rather than mimic the broad-based US Inflation Reduction Act, the EU should make the most of its limited resources by delivering targeted support in areas where it already has a solid comparative advantage on which to build. While some incumbent industries might need support as they decarbonize, supporting breakthrough innovations should be the primary goal.
The European Green Deal has come a long way since it was conceived five years ago. But if the EU is to achieve its 2030 climate goals and achieve net-zero emissions by 2050, it must act now to ensure that it can weather the inevitable political headwinds. A new green social contract and industrial policy can make all the difference.
Simone Tagliapietra, a senior fellow at the Brussels-based think tank Bruegel, is an adjunct professor at the Johns Hopkins University School of Advanced International Studies, Bologna.
© Project Syndicate 1995–2024
For more op-eds, head here.
Emirates has announced that it has become an industrial partner of the Aviation Impact Accelerator (AIA), based at the University of Cambridge.
It was shared that the partnership aims to foster collaboration, providing evidence for a number of the AIA’s climate impact tools; it will also support their data modelling work advancements and see the company actively engage in future projects dedicated to cutting global aviation emissions.
The new partnership marks Emirates’ first USD $200 million Sustainability Fund investment for research and development (R&D) projects focussed on reducing the impact of fossil fuels in commercial aviation, it was shared.
The AIA initiative is an international group of multi-disciplinary experts developing evidence-based systems, modelling capability, visualisations, and specialised tools to support policymakers, the aviation industry and the wider public with the insights necessary to map, understand and accelerate pathways towards sustainable aviation.
It is co-led by the University of Cambridge’s Whittle Laboratory and the Institute for Sustainability Leadership (CISL).
Further, the modelling capability of the AIA is a collaboration between the Bennett Innovation Lab (a new innovation laboratory set up as part of the New Whittle Laboratory) and CISL, to look for ways to accelerate net zero aviation.
Boeing, Rolls-Royce, The Royal Air Force, IATA, 4Air, and Flexjet are also industrial partners.
Sir Tim Clark, President Emirates Airline commented: “Emirates is proud to support the Aviation Impact Accelerator as the first project under our Sustainability Fund. As an industrial partner, we have a unique opportunity to play an active role in constructively sharing our knowledge and insights, broadening the AIA’s reach across geographies and supporting the development of tools that address a spectrum of new aviation technologies and their critical gaps if implemented in the future. The work being undertaken by the Aviation Impact Accelerator provides the potential blueprint for the changes and solutions underway to reduce the long-term climate impact of commercial aviation.”
Professor Rob Miller FREng, Director of the Whittle Laboratory, University of Cambridge and AIA lead, added: “We are thrilled to announce our partnership with Emirates, which will support us in our mission to accelerate the world towards net-zero aviation. Airlines will play a crucial role in the sector’s transition, and we are delighted that Emirates is demonstrating this leadership. We believe that the Sustainability Fund will be pivotal in unlocking actions in the sector.”
A consortium between global investor Actis and Fortescue, a global integrated green energy, metals and technology company, has been awarded the rights to develop, build, own and operate a large green hydrogen project in Oman, it has been announced.
The project is currently in the feasibility stage and is expected to involve the construction of up to c.4.5GW of wind and solar renewable energy resources to power electrolysers.
It was noted that the project has the potential to produce up to 200,000 tonnes of green hydrogen per year.
Hydrogen Oman SPC (Hydrom), an independent entity founded by the Omani government to orchestrate and deliver the nation’s green hydrogen strategy, announced the selection, which provides the consortium with exclusive rights to a site allocated to the development of a future project.
Under the current plan, the green hydrogen is to be sold to local industrial offtakers as well as processed into derivatives (such as green ammonia) for export via the existing port of Salalah.
Moataz Kandil, MENA President at Fortescue, said that the strategic partnership between Hydrom, Actis and Fortescue will help to drive the development of a large-scale green hydrogen project in Oman, and also “lead the way for others around the world to follow,” cementing Oman as a “powerhouse in green molecules. ”
James Mittell, Director, Energy Infrastructure at Actis, added: “Green hydrogen represents an important sector in the Energy Transition – no green hydrogen, no net zero. We have been following the sector closely for a number of years; we have a well-defined strategy focused on finding opportunities with characteristics that fit the attributes of an Actis investment, including closely aligning with our sustainability agenda.”
“With Governments across the world creating frameworks and standards for green hydrogen and derivatives, Oman is one of the most attractive opportunities for low-cost green ammonia due to its land availability, strong solar and wind resources, port infrastructure and regulatory support. Winning this bid with Fortescue is a testament to Actis’ leading position in the global renewables space, at the forefront of the energy transition. We look forward to continuing our collaboration with Fortescue, the Omani government and local community on this project,” said Mittell.
The International Air Transport Association (IATA) has released its Aviation Net Zero CO2 Transition Pathways Comparative Review.
The report aims to provide a “one-stop shop” for airlines, policymakers and aviation stakeholders to better understand the key similarities and differences between the various roadmaps and their various plans for net zero carbon emissions by 2050.
The review, published together with the Air Transportation Systems Laboratory at University College London (UCL), the Air Transport Action Group (ATAG), the International Council on Clean Transportation (ICCT) and the Mission Possible Partnership (MPP), is the first to compare 14 leading net zero CO2 transition roadmaps for aviation, it shared.
Specifically, the report compares the selected roadmaps in terms of their:
The report found that possible pathways to net zero CO2 emissions by 2050 differ significantly depending on the authors’ key assumptions regarding how decarbonisation technologies and solutions may evolve.
Depending on these assumptions, the resulting role of particular levers in aviation’s decarbonisation will be more or less important.
Further, all roadmaps assume that Sustainable Aviation Fuels (SAF) will be responsible for the greatest amount of CO2 reductions by 2050.
However, the role of SAF varies widely from 24 per cent-70 per cent (with a median value of 53%), which it said reflects the uncertainties regarding potential supportive government action, the level of investments, cost of production, and profit potential, as well as access to feedstocks.
Technology and operational efficiency improvements are expected to have a similar role in the net zero transition across the roadmaps, together contributing to about 30 per cent of the emissions reduction in 2050 in all scenarios.
The estimated emissions savings by hydrogen and battery-powered aircraft vary greatly across the roadmaps.
This depends on whether a strong pro-hydrogen policy is adopted, and whether there is a rapid decline in renewable energy prices.
Finally, the report found that almost all the global roadmaps suggest that the aviation sector will need help from market-based measures and carbon removals to address the residual emissions in 2050, to achieve net zero CO2 emissions in 2050.
To read the full report, head here.
3D printing construction technologies company 3DXB Group recently participated in the third Energy & Sustainability Summit, held at the Habtoor Grand Resort in Dubai.
The Energy & Sustainability Summit gathered industry leaders, government officials, and stakeholders to collaborate on advancing sustainability efforts post COP28.
Endorsed by the Dubai Supreme Council of Energy, this year’s summit underlined the urgent need for the construction and energy sectors to accelerate decarbonisation initiatives and achieve net zero goals.
Bassel Khaled, Technical & Factory Manager at 3DXB, shared insights in the discussion on ‘Sustainable Materials and Decarbonizing Construction Sites.’
The panel explored topics such as reducing embodied carbon, identifying alternative materials, and exploring innovative technologies like 3D printing for sustainable development.
“Dubai has issued decree regulating the use of 3D printing in the construction sector in the emirate. The decree intends to promote Dubai as a regional and international hub for 3D printing technology. The legislation aims to improve efficiencies in construction projects, increase the competitiveness of the local industry, reduce waste and attract leading companies in the sector to Dubai as part of a larger plan to spur economic growth and promote the adoption of advanced technologies in the emirate. Our participation in such events go in line with contributing in implementing this decree,” said Badar Rashid AlBlooshi, Chairman of 3DXB Group.
Khaled also discussed the potential of 3D printing and modular construction technologies in advancing sustainable development, highlighting their efficiency gains and resource savings.
“Technologies like 3D printing offer opportunities to streamline processes and minimize waste. These innovations hold the key to unlocking sustainable development globally, and 3DXB is at the forefront of their implementation.”
