How the UAE's net-zero buildings are helping the country reach its sustainability goals


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As the UAE marches towards its national goal to achieve net-zero emissions by 2050, several buildings across the Emirates are already operating at zero energy.

But the SEE Institute, a hub for sustainable education and research in Dubai's Sustainable City, claims to be the region's first operational net-zero emissions building, producing 300 per cent of its own energy needs.

“Several buildings and projects are adopting ambitious sustainability measures. However, SEE Institute is proud to be the region’s first operational net-zero emissions building,” said Dr Fadi Al Faris, chief executive of SEE Enviro, part of SEE Holding, the developer of the SEE Institute.

“We consider the building a proof-of-concept and an inspiration to bring net-zero targets forward. Our work creates a ripple effect that extends far beyond our building, inspiring real change and making a lasting impact.”

What is a net-zero building?

There are differences between zero energy and zero carbon buildings, as well as what it really means to be “net zero”.

“In a net-zero energy building, all the energy consumed over a year is produced through on-site renewables, resulting in a zero annual energy bill,” explained Khaled Bushnaq, chairman of the Emirates Green Building Council.

“A nearly zero energy building just falls short of producing enough renewable energy to offset 100 per cent of the energy.”

Dr Al Faris said it's also important to distinguish between achieving net-zero energy and net-zero emissions.

A breakdown of how the SEE Institute in Dubai achieves net-zero emissions. Photo: SEE Institute
A breakdown of how the SEE Institute in Dubai achieves net-zero emissions. Photo: SEE Institute

“While reaching net-zero energy can be relatively straightforward – by ensuring that a building produces as much renewable energy as it consumes – achieving net-zero emissions is far more complex. The most challenging part is offsetting the carbon emissions associated with the building's construction, or the upstream embodied carbon.

“This requires a clear roadmap and an actionable plan to offset all these emissions effectively.”

Inside the SEE Institute

While the SEE Institute has been operating at zero emissions since day one, and currently produces twice the amount of energy it needs – with the surplus going back into the electricity grid – it won't actually meet its net-zero target until 2030. That is because it is still offsetting the carbon emissions generated during the construction phase.

“Achieving net-zero emissions at SEE Institute has been a comprehensive and deliberate process, focused on sustainability from the ground up,” said Dr Al Faris.

The SEE Institute in Dubai's Sustainable City produces its own energy through solar power. Photo: SEE Institute
The SEE Institute in Dubai's Sustainable City produces its own energy through solar power. Photo: SEE Institute

“We began by conducting a full life cycle assessment, which allowed us to measure and minimise both embodied and operational emissions. This approach ensured that the building was designed and constructed to meet strict environmental goals, starting with locally sourced, prefabricated structural elements, low-emitting concrete, and recycled steel to reduce emissions from material production and transportation.”

Bifacial solar panels have been installed on the roof and in the parking areas, which allow it to produce so much of its own energy.

There is also a smart building management system to optimise energy use and the building recycles 100 per cent of its water. It also uses humidity harvesting technology that effectively turns air into drinking water.

“What’s often overlooked about operating a net-zero building is that it’s not just about the advanced technologies or the efficient design – it’s equally about the people who use the space and the choices they make every day,” said Dr Al Faris.

“A net-zero building provides the infrastructure to achieve sustainability, but the key to maximising its potential lies in education and fostering sustainable practices among its occupants.”

Other net-zero projects in the UAE

There is no specific data available on how many buildings in the UAE operate at net-zero energy, said Mr Bushnaq, but he confirmed there are “several”, including many that are under construction.

In Masdar City, the sustainable business and technology hub in Abu Dhabi, the region's first net-zero energy commercial building was completed in November.

Called NZ1, it has solar panels that generate 101 per cent of the building's annual energy needs, with any excess fed back into the capital's electric grid.

Masdar City in Abu Dhabi announced its first net-zero energy mosque last December. Photo: Wam
Masdar City in Abu Dhabi announced its first net-zero energy mosque last December. Photo: Wam

It uses an architectural technique called passive design, which means it works with the local environment to minimise need for electric heating and cooling. This includes elements such as using window angling and shading to allow natural light to filter through, without sitting in direct sunlight, which would create heat.

The building was also constructed with locally sourced, sustainable materials where possible, and about 90 per cent of construction waste was diverted from landfills, according to Wam.

It is only the first of several net zero energy projects under way in Masdar City alone.

Another major project on the horizon is Forbes International Tower, planned for construction in the UAE, Saudi Arabia and Egypt, which aims to be the world's first net-zero carbon tower.

Last month, it became the first tower to register for the US-based International Living Future Institute Zero Carbon Certification, which is a third-party, industry-recognised standard that verifies the operational and embodied carbon emissions of a built project.

Other international green building certifications include the US Green Building Council's LEED rating system, as well as Abu Dhabi's local rating system by Estidama, plus WELL Gold, which emphasises the well-being of building occupants.

Hopes for a new standard

Mr Bushnaq said there are several misconceptions surrounding implementing net-zero strategies in buildings, not least of all the costs behind it.

“People are under the impression that if they want to go sustainable, or if they want to have a green building, or to get to net zero, there is a huge cost that will be associated with that,” he said. “This is not true at all. If the building is designed properly, there will be little or no extra cost to become sustainable and net zero.”

It begins with carrying out an energy audit and implementing retrofits so energy consumption can be reduced. A building can then increase or install on-site renewable energy generation technology to achieve net zero, said Mr Bushnaq.

“I hope to see net-zero energy buildings become the standard for all new construction projects, while retrofitting existing buildings to meet net-zero standards would further reinforce the commitment to sustainability based on the impressive progress the UAE has made in a short time,” he added.

Dr Al Faris advised anybody taking this route to focus on a holistic approach, starting with setting clear and measurable goals.

Retrofitting existing buildings to meet net-zero standards would further reinforce the commitment to sustainability
Khaled Bushnaq,
chairman, Emirates Green Building Council

“Achieving net zero is not a short-term endeavour – it requires long-term planning and a deep commitment to integrating sustainability into every phase of the building’s life cycle, from design and construction to operation and maintenance.”

Collaboration is also essential, he added. “Sharing knowledge and exploring new innovations across industries can provide invaluable insights and solutions that can be tailored to each journey.”

It will soon become the norm for buildings to be net zero, concluded Mr Bushnaq.

“It may even be mandated,” he added.

“I'm optimistic that zero energy buildings will become a reality well before the target of 2050.”

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

Profile

Co-founders of the company: Vilhelm Hedberg and Ravi Bhusari

Launch year: In 2016 ekar launched and signed an agreement with Etihad Airways in Abu Dhabi. In January 2017 ekar launched in Dubai in a partnership with the RTA.

Number of employees: Over 50

Financing stage: Series B currently being finalised

Investors: Series A - Audacia Capital 

Sector of operation: Transport

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Updated: September 25, 2024, 7:37 AM