Civil engineer Sergiy Kovalenkov worked on construction projects all over the world until one day he realised he was part of the problem.
He abandoned his career and now makes houses out of hemp.
The 35-year-old Ukrainian is one of 100 owners of environmentally friendly start-ups who were flown to the UAE and offered the opportunity to rub shoulders with millionaire investors, ministers and heads of multinational companies at the World Energy Congress.
Also among the green innovators, who were allocated their own section of the exhibition, is a company making a firewood alternative out of sugar cane waste in Kenya, and an entrepreneur bringing solar power to some of the most isolated communities on the Thailand-Myanmar border.
Elsewhere, there is a company developing a self-driving electric lorry and the maker of solar-powered fridges, which can keep vaccines cool in the most remote parts of Africa.
“The construction industry is like a dinosaur,” Mr Kovalenkov said.
"Buildings are being built with the same old materials, still emitting tonnes of carbon into the atmosphere. I realised I was part of the problem, because I never questioned the materials and how they were produced in the traditional construction industry. From part of the problem, I became a headache for traditional insulation materials."
Hempire makes a natural insulation material out of hemp waste materials, which continues to absorb carbon dioxide from the environment after it is installed.
The process means the product, made out of hemp, water and a natural lime-based binding agent, is carbon negative, meaning it takes more carbon dioxide from the atmosphere than making it creates.
The business started in Ukraine but recently opened an office in California. The material is an excellent regulator of humidity and keeps homes cool, Mr Kovalenkov said. He now has an eye to expanding into the Middle East.
“This material doesn’t burn, is not afraid of moisture, it repels pests and has a list of advantages which means it can compete at the highest levels with traditional insulation materials,” he said.
Elsewhere, Elana Laichena promotes her business, Acacia Innovations. Her Kuni Safi briquettes not only help the environment but are also improving the health of people in Kenya, where they are sold as an alternative to firewood. Made from an otherwise useless by-product of the sugar manufacturing process and used mostly for cooking, they emit far less smoke than wood, burn longer, and save trees that would otherwise be cut down for fuel.
Ms Laichena, 29, said: "
It burns similarly to firewood but with almost no smoke, so it’s much healthier for the cooks.”
At the Congress opening ceremony, hundreds of delegates were encouraged to visit the 100 environmentally friendly start-ups, who were given the exhibition space free of charge.
During the four-day event, they will hold pitching sessions, where they will attempt to catch the eye of a potential investor or major customer.
They were selected by organisers because, this year, they made a 100-strong shortlist for the Start Up Energy Transition Awards, a global initiative designed to encourage pioneers who develop green energy solutions.
One such businesswoman is Salinee Hurley, whose company, Sun Sawang, sells affordable solar-powered energy units and lanterns to communities along parts of the Thailand and Myanmar border who are cut off from the energy grid. She develops payment plans which allow customers to spread the cost over five years, making the products affordable compared to the kerosene lamps, candles and generators which many otherwise use for lighting and power.
As well as home systems, with prices starting at the equivalent of $11, she also sells larger units which can power community buildings such as clinics and schools, while local people gain an income after being trained as sales people or technicians. So far, Sun Sawang has installed 300 home systems and sold 2,000 lanterns.
“The candles or kerosene lamps can be dangerous, especially when the houses are made of natural material like bamboo or leaves,” Ms Hurley, 41, said. “It’s not convenient for houses with small kids, who cannot study at night once they start to go to school because of the lack of electricity. And of course, using the solar power instead of diesel generators is good for the environment.”
JAPANESE GRAND PRIX INFO
Schedule (All times UAE)
First practice: Friday, 5-6.30am
Second practice: Friday, 9-10.30am
Third practice: Saturday, 7-8am
Qualifying: Saturday, 10-11am
Race: Sunday, 9am-midday
Race venue: Suzuka International Racing Course
Circuit Length: 5.807km
Number of Laps: 53
Watch live: beIN Sports HD
Command%20Z
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PSG's line up
GK: Alphonse Areola (youth academy)
Defence - RB: Dani Alves (free transfer); CB: Marquinhos (€31.4 million); CB: Thiago Silva (€42m); LB: Layvin Kurzawa (€23m)
Midfield - Angel di Maria (€47m); Adrien Rabiot (youth academy); Marco Verratti (€12m)
Forwards - Neymar (€222m); Edinson Cavani (€63m); Kylian Mbappe (initial: loan; to buy: €180m)
Total cost: €440.4m (€620.4m if Mbappe makes permanent move)
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.”
World record transfers
1. Kylian Mbappe - to Real Madrid in 2017/18 - €180 million (Dh770.4m - if a deal goes through)
2. Paul Pogba - to Manchester United in 2016/17 - €105m
3. Gareth Bale - to Real Madrid in 2013/14 - €101m
4. Cristiano Ronaldo - to Real Madrid in 2009/10 - €94m
5. Gonzalo Higuain - to Juventus in 2016/17 - €90m
6. Neymar - to Barcelona in 2013/14 - €88.2m
7. Romelu Lukaku - to Manchester United in 2017/18 - €84.7m
8. Luis Suarez - to Barcelona in 2014/15 - €81.72m
9. Angel di Maria - to Manchester United in 2014/15 - €75m
10. James Rodriguez - to Real Madrid in 2014/15 - €75m
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UAE currency: the story behind the money in your pockets
UAE currency: the story behind the money in your pockets