GREENOVATION

GREENING GLOBAL COMPETITIVENESS THROUGH INNOVATION

Global Green Growth
Passing fad or smartest path to a competitive future?

SolutionS beyond oil

Does green mean gold?

GoinG nuclear
Why GCC states must take a long-term view on nuclear energy

Welcome LETTER
GREENOVATION ||| WINTER 2011

10

table of
H.E. Amr Al-Dabbagh
Governor of SAGIA

welcome
To the premier issue of Greenovation magazine. This new publication is issued in concert with the Global Competitiveness Forum (GCF), founded in 2006 by the Saudi Arabian General Investment Authority (SAGIA) as a think tank where global businessmen and women, government officials, political leaders, environmentalists and journalists can discuss issues and reach new understandings on how best to compete in a changing and environmentally-challenged world. The GCF program seeks to evaluate both the practical tools available including how to attract foreign direct investment and the underlying theory and practice with regard to achieving sustainable economic growth. In this spirit, the magazine addresses the synergies to be found between Green Growth, Sustainable Development, Clear and Effective Regulations, and Global Competitiveness in a range of industries and services, from banking and information technologies to the redesign of transportation and architecture. We hope you find much to stimulate your own thinking in these pages as you engage with colleagues from around the world during this, the Fifth Annual Global Competitiveness Forum.
Greenovation 2011. All Rights Reserved.

26

30

32

PaGe 4

COMPETITIVENESS AT THE SPEED OF LIGHT Saudi Arabias

dramatic rise in global economic stature

PaGe 10 GLOBAL GREEN GROwTH Examining the smartest path to a

competitive future

PaGe 14 THE wAy OF THE FuTuRE Eco-transportation and its

economical benefits

PaGe 18 SEEKING SuSTAINING POLyMERS The modern-day alchemy

of green manufacturing

PaGe 22 SOLuTIONS BEyOND OIL Do green technologies mean gold?

Editorial opinions expressed in this magazine are not necessarily those of National Geographic, SAGIA or Onward Publishing and the companies do not accept responsibility for advertising content. The Publishers cannot accept any responsibility for errors or omissions. If you have any questions relating to this magazine email: editor@green2compete.com This magazine is not intended for sale.

14

18

22

GREENOVATION

The Birth of

contentS
Dr. Khaled AlBulaihed
Editor in Chief
Welcome to Greenovation, the cornerstone of the Green2Compete initiative. This magazine explores the latest solutions for using clean technology in business and industry. This first edition highlights the movement thats bringing green technologies into the mainstream for diverse businesses and industries particularly in the developing world.
34 36 38

PaGe 26 BANKING SuSTAINABLy Shifting investments to clean technology PaGe 30 THE BuILT ENVIRONMENT Pioneering sustainable
development strategies

PaGe 32 THE NEw ERA OF COMMuNICATIONS A place for information

technology to blossom

We would like to thank those who advised us, helping to provide readers with independent opinions about the solutions that make the most environmental and economic sense to the world. This includes discussing the latest renewable energy technologies with global supply-side companies, and matching those products with the complex needs of governmental and non-profit organizations. Its necessary to discover what people really want, and its people that drive decision-making at companies and organizations. Today, demand for Cleantech is found in developed as well as developing countries mostly driven by governmental policies intended to protect the environment. In the future, Cleantech will simply be smart business. Nothing is impossible: with sustained effort from the business community, support from consumers around the world and a little optimism, a cleaner future supported by Cleantech innovation is within our reach.

PaGe 34 THE MOST PRECIOuS RESOuRCE Developing more efficient

ways to use water

PaGe 36 SuSTAINABLE FARMING Producing solutions for a hungry planet PaGe 38 GOING NuCLEAR An overview of a powerful future energy source

Produced by Onward Publishing, Inc. +1 (631) 757 8300 Printed in the uSA

Publisher Research Director Editorial Director Art Director Project Director Designer

Jeffrey Barasch Usman A. Fateh Wendy Murphy Bruce McGowin Bret Barasch Lisanne Schnell

www.green2compete.com

coMPetitiVeneSS

at theSPEEDof

LIGHT

StAturE. but In ItS drIvE to bEComE A lEAdEr In InvEStmEnt opportunItIES And buSInESS dEvElopmEnt, thE KInGdom of SAudI ArAbIA drAmAtICAlly ImprovEd ItS rAnKInG In thE World bAnKS AnnuAl DOING BUSINESS rEport from numbEr 131 to 11 In only 10 yEArS.

The latest report evaluates the business climate and economies of 183 countries from the period of June 2009 to May 2010, discussing the ease of doing business in nine categories in the latest annual edition, which focuses on the period June 2009 to May 2010. Saudia Arabias increasing openness to international investment is also reflected in the most recent World Investment Report, where it ranked in the top 20 destinations for foreign direct investment (FDI), leading the MENA (Middle East and North Africa) region. This growth in FDI inflows is especially impressive in light of the global economic downturn. To develop these competitive advantages so quickly, Saudia Arabia has been transforming itself as an economic and business powerhouse through a multi-faceted reform strategy. Everyone is aware of the countrys unmatchable supplies of oil and gas (as well as petrochemicals), but the Kingdom adds to this foundation as a transport and logistical hub between East and West (a geographical launch pad to a vast regional market) including roads, railways and air links that create a potential consumer base of more than 250 million. And the Kingdom is developing its knowledge-based industries, including healthcare, life sciences, education and IT all crucial drivers of long-term, sustainable change.

His Majesty King Abdullah has been instrumental in this effort to modernize the Saudi business infrastucture by enacting new foreign investment laws, establishing the Saudi Arabian General Investment Authority (SAGIA), privatizing government-owned companies, and achieving membership in the World Trade Organization. The Governor of SAGIA, Amr Al-Dabbagh, has since institutionalized efforts to improve the competitiveness of the Saudi Arabian economy with the creation in 2004 of the National Competitiveness Center (NCC) and the 10 x 10 initiative (see page 6). Government ministries, private companies, investors and the Saudi public have collaborated extensively to help realize this vision, explains Al-Dabbagh. This strategy is expected to draw investments worth SR300 billion (approximately $80 billion). We are building a nation of sustainable prosperity with a different kind of future a future thats more inclusive, expansive, and integrated on both economic and social levels; a future that revolves around investment, he adds. 5

GREENOVATION ||| WINTER 2011

Its dIffIcult to ImagIne A fAStEr rISE In GlobAl EConomIC

GREENOVATION ||| WINTER 2011

In its evaluation of its rankings, the World Bank praised several of Saudi Arabias recent reforms, which reduced the required complexity, time and cost to start a business and to obtain construction permits in the Kingdom. As a result of these and other measures, the countrys Doing Business rankings in just the last five years have gone from 67th in 2004, to 38th in 2006, 16th in 2007 to this years (2009-2010) ranking of 11th. The Doing Business report is a vital reference for governments, international development agencies and the private sector to assess the regulatory framework and competitiveness of nations.

According to the reports overview, As in previous years, the countrys macroeconomic stability, ranked 9th, remains its main strength. Since its first inclusion in the GCR in 2006, Saudi Arabia has made continuous progress in improving its competitive position in the framework of the ambitious 10 x 10 program. Forty eight major reforms in the area of the investment climate, education, health, the financial sector and the judiciary are under way or envisaged, and are being registered in the countrys performance in the GCI. Saudi Arabia has in particular made progress with respect to upgrading its public institutions, ranked 28th this year. The protection of property rights has been improved, corruption has been reduced, and the judiciary has made gains in independence. The country has also made great strides in improving the competitive environment for firms.

Setting the context

Four years ago, Saudi Arabia identified several obstacles to achieving long-term growth and economic sustainability. Despite a robust energy sector, the nation was hindered by low levels of economic diversification and labor force participation. Rapid growth in the youth population (43% are under age 15) was also expected to place additional pressure on the public service sector. It was recognized that a diversified, non-oil-based private sector would be essential to providing the jobs to ensure prosperity for the next generation. In 2006, under the patronage of King Abdullah, the government inaugurated the 10 x 10 initiative with two main goals: to enact reforms and promote targeted investments aimed at developing the Kingdoms private sector, and to position Saudi Arabia among the worlds Top 10 most competitive economies by 2010. Since then, far-reaching reforms to simplify business regulations and develop institutions have been implemented. In addition to the reduction of red tape procedures, time and costs involved in starting a business and dealing with licenses the Kingdoms effort to strengthen investors rights to disclosure and shareholder lawsuits substantially improved Saudi Arabias ranking for protecting investors, a key element of the evaluations.

Recommendations and Next Steps

While Saudi Arabias progress in competitive indices validates the reforms and investments being made, the reports also clearly indicate areas where more work is needed. Among the indicators tracked by the Doing Business report, Saudi Arabia has the greatest room for improvement in dealing with construction permits, employing workers, getting credit, enforcing contracts and closing a business. Simplifying and consolidating permitting in a central location and working with utility authorities to reduce installation fees will help to make the Kingdom an internationally competitive location for commercial construction, adds the reports authors.

Promoting Entrepreneurship and Social Responsibility

Meanwhile, the Saudi Fast Growth 100 a national program to promote entrepreneurship and innovation in Saudi Arabia ranks the fastest-growing emerging companies, reflecting a growing entrepreneurship that will serve the country well in the decades ahead. The list was created by SAGIAs National Competitiveness Center with joint founding partners Al-Watan newspaper and AllWorld Network. Joining the initiative as Strategic Partners are the National Commercial Bank, Sukoon International and Siraj Capital.

Global Competitiveness Report

6 In another indication of the countrys rapid progress, the 2010 Global Competitiveness Report ranked Saudi Arabia 28th. Despite the fact that this is one point lower than last year, Saudi Arabia saw increased scores in numerous categories, including infrastructure, market efficiency, financial market sophistication, technological readiness, market size and business sophistication.

The Saudi Fast Growth 100 brings to light Saudi companies whose energy and innovation are building a more competitive and dynamic economy. The program also recognizes start-ups, women-owned companies and those owned by young entrepreneurs. By showcasing an emerging and vibrant entrepreneurial base in Saudi Arabia, the Saudi Fast Growth 100 listing is providing revealing new data:
35,000 jobs have been created by the winning companies, of which 15,000 started up in the last five years.

It shows we are creating a critical mass of responsible and successful companies in the Kingdom. This will underpin the productivity of local firms and establish a strong and competitive society, explained Amr Al-Dabbagh, Governor of SAGIA.
GREENOVATION ||| WINTER 2011

the winning companies have grown an average of 43% a year.

over 70% of the ceos have founded other companies of which 90% are still in business.

2010 winners National Commercial Bank, National Petrochemical Industrial Company and Marafiq stand out among this years entrants for bold leadership, effective management systems and creative teamwork. Other noteworthy examples include: ACWA Power International, Al Rahji Bank, Dr. Soliman Faqeeh Hospital, KPMG Al-Fozan and Al-Sadhan, Jamjoon Pharmaceuticals, Mathaher El-Tatweer Construction and the Middle Eastern Paper Company all recognized for their contributions to sustainable competitiveness in the Kingdom. Companies in all sectors across the Kingdom now see the competitive benefits of responsible business. This is a pivotal moment for Saudi businesses of all sizes and ownership types. Scaling up innovative social and green programs at the heart of the business model creates huge opportunities, local jobs and national prosperity, says Managing Director Alex MacGivray of AccountAbility, the global research institute. Saudi brands emerging on the domestic and international stage are recognizing that they need to comply with international expectations for responsible business practices, as a range of energetic small businesses in areas like healthcare, transportation and electronics are expanding and helping to diversify the Saudi economy. zx

in the next two years, most of the ceos have plans to start another business and nearly a quarter plan to do an initial Public offering.

the ceos are, on average, 30-33 years old when they form their companies.

among the 30 winning companies, 15 different industries are represented with high-tech and telecommunications accounting for eight of them.

The Saudi Responsible Competitiveness Index is another way to analyze how Saudi companies are building competitive advantage, but in this case through their social and environmental impacts. The Saudi Responsible Competitiveness Index, led by SAGIA and the King Khalid Foundation, looks beyond community projects and corporate responsibility programs to understand how firms are attracting and retaining employees, meeting health, safety and customer service concerns, implementing strong environmental policies that enhance efficiencies and working with suppliers. Responsible competitiveness strategies integrated into core management decisions are enabling companies to manage risks, enhance productivity, build brand value and unlock new sources of innovation in order to remain internationally competitive.

10
GREENOVATION ||| WINTER 2011

Global

GREEN GROwTH
PaSSinG fad or SMARTEST PATH to A
coMPetitiVe future?

Saudi arabia, alonGSide SucceSSful econoMieS worldwide, MuSt now look ahead and aSk how do we Grow aS Part of the Global econoMy?
Looking ahead and thinking globally will be the overarching imperatives of the 21st century, an era fraught with local and regional challenges: climate change, overpopulation, and food and water shortage, for starters. As we embrace the information age, a new economic geography will replace the old maps of the industrialized world. Our ways of navigating these new landscapes must change accordingly. Globalization allows us to transcend the old borders, but also demands a collective responsibility for global action. The reach of the recent financial crisis left no economy untouched, and demonstrated our need for mutual security and sustainable growth. We know the worlds oil reserves are fast being depleted: the International Energy Agency (IEA) estimates that output from the worlds mature oil fields decreases by 6.7% annually. We know that global population is approaching 7 billion, and energy demands are soaring accordingly. The IEA estimates that demand could increase nearly 50% by 2030, meaning more greenhouse gas emissions and accelerated climate change. Economic growth in the modern world must address these problems: growth must be global, and its long-term aims must acknowledge the Earths limited resources and the growing demands made on them. We must carry forward the benefits of the industrial, technological and informational revolutions; but the next revolution will be Green. How we meet the challenge of feeding, sheltering and providing jobs for a growing global population in a world with more limited resources clearly depends on our search for sustainable economic growth. Staying competitive will mean that economies will need to think globally and act locally, grafting their own growth onto the organic Green Growth movement worldwide. Green Growth is a strategy for sustainable development now adapted by many economies. Based on the Ecological Efficiency paradigm, Green Growth advocates increasing GDP levels only when environmental quality is maintained and human needs are met. The movement has five main elements:

1. green tax and budget reform 2. sustainable consumption and production 3. green businesses 4. demand-side management 5. sustainable infrastructure

GREENOVATION ||| WINTER 2011

This approach aims to harmonize economic growth and environmental sustainability by promoting fundamental changes in the way societies produce and consume. Green Growth demands coherent, long-term decision-making by governments; it demands a commitment to work across national, political and social divides; and it requires all countries private and public sectors set mutually compatible goals. Its long-term success depends on a coordinated national and international vision. The Asia-Pacific region, with its rapidly rising population and contracting resources, illustrates the need to substitute the old paradigm of grow first, clean up later with economic growth that facilitates and reinforces environmental sustainability. The Seoul Initiative of 2005 set ambitious goals for Green Growth in Asia and the Pacific. The Regional Implementation Plan for Sustainable Development targeted environmental sustainability, enhanced environmental performance, and the promotion of the environment for economic growth. The regions policymakers signed up for an array of Green Growth projects. Korea itself leads the way, adapting Low Carbon, Green Growth as the national ideal, with a strategy working towards targets for 2050, via a series of five-year plans. In 2009, the government vowed to inject a total of

This synergy of public and private sector interests is vital to the success of further Green Growth. Producers of goods and services must be rewarded for greening their businesses: Costa Ricas successful eco-tourism industry has been driven by the governments innovative PES (Payments for Ecosystem Services) scheme, which has also resulted in extensive reforestation. Green Growth must work across borders to solve local problems globally. The Desertec project exemplifies this: 20 major European companies are jointly pursuing a 400 billion investment into solar energy production in Northern Africa, with the aim of meeting up to 15% of the EUs energy demand by 2050. The financial sector also plays its part by developing green financial products and helping fund green businesses: The Development Bank of the Philippines initiated a Greening the Countryside Project, partnering with social groups, state universities and local governments to reforest denuded land. It initiated projects covering around 4,000 hectares from a start-up fund of US$1 million. The Development Bank of Japans CO2 Reduction Loan helps honor the countrys Kyoto Protocol commitment with favorable loans to carbonconscious applicants, such as public transport companies.

12

Perhaps no country has integrated sustainable development into its national DNA more than Thailand, where King Green Growth iS not a Matter of choice, but Bhumibol Adulyadej famously a requireMent that we MuSt fulfill by all offered solace to the victims MeanS for our future SurViVal. what MatterS of the mid-90s economic iS whether we can take the lead baSed on our crisis with his vision of the own oriGinal technoloGy, or whether we haVe Sufficiency Economy. Green Growth has long been a key to laG behind other countrieS. guide to Thai government lEE myunG-bAK, prESIdEnt, South KorEA decision-making. Sufficiency means we have enough to US$83.8 billion, about 2% of GDP, into the Green support ourselves, said the King. His vision offers a clue to Growth sector each year for the next five years. the traditional values inherent in Global Green Growth and an insight into why this economic philosophy will not be a At ground level, eco-investment has become a policy priority. passing fad. It has at its heart a sustainable imperative that Old industries have been retooled; the Mapo Resource is aligned to the balance of nature itself, where demand is in Recovery Plant in Seoul has been transformed into a harmony with supply. Consider, for example, that in any given model recycling facility, a testament to the long-term hour, more energy from the sun reaches Earth than is used ecological vision of the citys Metropolitan Government. by the whole human population in a year. Looked at this way, The country has also realized economic growth by the 21st century energy crisis can be read as a direct challenge propagating its green expertise abroad: Koreas for mankinds R&D brain trust. Environmental Industry & Technology Institute has According to UN General Secretary Ban Ki-Moon, Green initiated projects such as constructing sewage systems Growth puts us all on the verge of a revolution that will as far afield as Tan An City, Vietnam and Pirshagiin, change how the world works: Handled correctly, a transition Azerbaijan. Korean experts have supported feasibility to green economics could be extremely lucrative. Green studies for tap water treatment plants, wind power projects Growth will create new jobs, as global investment in and soil remediation in developing countries from Algeria zero-greenhouse gas energy surges to US$1.9 trillion by to Angola, Mozambique to Tanzania. The Korean private 2020, based on UN estimates. These investments are the seed sector also benefits from this export of brainpower: money for a wholesale reconfiguration of global industry. zx Hyundai Engineering has brought treated water to homes in Equatorial New Guinea in a project worth nearly 19M.

eco eco Transportation eco eco

and its economical benefits
continued heavy reliance on nonrenewable fossil fuels to transport people and goods around the planet is not a sustainable strategy. there is a finite supply of oil, coal, and natural gas within the earth and burning these fuels releases heat-trapping greenhouse gases into the atmosphere, making it imperative that cleaner technologies using renewable resources be applied to all forms of transportation as quickly as they become economically viable.
Because the transportation sector is second only to the industrial sector in total end-use energy consumption, the potential for meaningful improvement in how we design and use our vehicles of the future is enormous. According to the Intergovernmental Panel on Climate Change, levels of CO2, a major contributor to greenhouse gases, remained little changed for thousands of years until the Industrial Revolution, after which they grew at ever accelerating rates, with the combustion of liquid fuels accounting for more than a third of the rise. Companies like Tesla, Toyota, Nissan, Mercedes-Benz, and Mitsubishi are working to completely redesign todays car by reconfiguring and integrating three key

the way of the future

elements that could save at least 70 to 80% of the fuel it currently requires. The first is to make the vehicle ultra light, at least half that of a traditional steel car. One notable effort in this regard was seen at a recent Hanover Trade Fair in Germany in BASFs BioConcept Car whose bumpers, hood, hatches, doors and fenders are made of lightweight biofibers impregnated with a liquid bioplastic. Swedens Volvo is also leading the way to improved environmental compatibility by incorporating various types of plastics and natural fibers into their automobile components. The second change is to make the vehicle more aerodynamic, with ultra-low drag, allowing it to move more easily through the air and along the road. By achieving these advances, the horsepower needed to move the vehicle is also dramatically reduced, leading to the third change, which is to make the propulsion system electric or hybrid-electric or hydrogen-fueled and to develop more advanced

battery systems capable of extending the range of such cars. Sporty, sleek cars, like the electric Tesla Roadster 2.5 are now capable of traveling from zero to 60 miles per hour in 3.7 seconds without producing any emissions at all. By plugging into any standard 110-volt or 220-volt power outlet, the Teslas can charge overnight and have a driving range of 245 miles the next morning. Electric vehicles (EVs) have captured the imagination of the driving public. But some of the most promising recent developments in EVs have come on two wheels. MotoCzysz, a small company from Oregon, USA has developed an electric motorcycle, the E1pc, which recently placed first in the TT Zero race on the Isle of Man. This is not only a first for an electric bike, but the first time an American-made motorcycle has won in nearly 100 years. The most newsworthy feature is the heart of the motorcycle what is now known as the D1g1tal Dr1ve.

The D1g1tal Dr1ve takes the proprietary and advanced liquid cooled, motor/inverter from the E1pc and adds a gear reduction, differential and heat exchange along with all necessary high voltage components aside from the battery. The result? A plug-and-play electric drivetrain that can be adapted to any chassis, and a major leap forward in the advancement of EVs. While some may argue that electric vehicles simply replace petroleum emissions with those from coal (which provides 41% of the worlds electric power) nations around the globe have committed to reducing levels of carbon emissions. The European Union has mandated that renewable energy account for 20% of energy consumption by 2020, and the United States has pledged to reduce greenhouse gas output by 28% by 2020. The gradual shift from fossil fuels to renewable generation technologies will account for much of the reduction in carbon emissions, but new technologies that can clean up the output from legacy plants will help to bridge the gap. Dihar United, an environmental solutions company in Saudi Arabia, is actively engaged in the development of advanced enzymes that actively capture highly concentrated carbon dioxide from operational sources before it is released to the atmosphere. This high-concentration carbon dioxide gas
GREENOVATION ||| WINTER 2011

can then be converted to economically-viable commodity chemicals. Systems like this are, by design, much more viable at a single-source emitter like a power plant than the tailpipe of an automobile. As major metropolises continue to grow, governments everywhere are also concerned with eco-transportation to curb air pollution, traffic, and noise. Light rail systems, low-carbon fleets of taxis and buses, and smarter urban design that introduces convenient, human-scale settlements and replaces the inefficiencies of unplanned urban sprawl. Saudi Arabias Economic Cities and Science and Technology Parks are examples of this kind of innovative thinking. Even advanced militaries across the world are embracing eco-transportation. In April 2010, the U.S. Navy flew an F/A-18 Super Hornet fighter jet powered by 50% conventional jet fuel and 50% camelina aviation biofuel made from pressed mustard seeds. The plane flew smoothly at Mach 1.2 without a hitch. The inspiration for engineering this new breed of environmentally-friendly vehicles will not come from regulatory mandates, taxes, or government subsidies, but rather from unleashing advanced, clean technologies and from the demands of an intelligent and eco-conscious customer base. Competition and entrepreneurship will take care of the rest. zx
QarmaQ is a Technology Demonstration Vehicle by Hyundai & SABIC.

16

GREENOVATION ||| WINTER 2011

SEEKING SuSTAINING PolyMerS

the Search for Greener ManufacturinG MaterialS iS Modern-day alcheMy.

We think of alchemy as the ancient practice of changing base metals into gold. We also recall alchemistsquest for the elixir of longevityand the key to ultimate wisdom. In fact, alchemy (from the Arabic word al-kimia), is the science of deconstructing and reconstructing matter all matter.
Our modern-day alchemy the creation of plastics with composite polymers has yielded a host of everyday products that we take for granted, but whose base materials could determine our own longevity as a species. Finding new and sustaining biodegradable materials for everyday items like plastic bottles, plastic wrap and even cars, now tests the limits of innovation in the 21st century. Since the early 1900s, such products were made from oil-based polymers: in this century, due to depleting oil stocks and environmental stress, the future of polymers must be green. Natural and synthetic polymers find everyday use as plastics, rubbers, adhesives, composites, textiles and coatings. Now biopolymers are working in ever-smarter ways to lessen the environmental footprint of products such as clothes dyes and cosmetics.

Biopolymers are renewable plastics, made from nonfood agricultural crops that can be grown sustainably. Biodegradable plastics also require less energy to produce, are easier to break down and are non-toxic. Additionally, they may help cut carbon emissions, as some of the CO2 released during degredation is reabsorbed by the next round of crops grown. Green businesses worldwide are increasingly looking through natures garbage for the next generation of biopolymers: Rodenburg BioPolymers, a Dutch company, makes plastic from potato waste. In the U.S., the Boston-based Metabolix has grown a natural form of polyester inside genetically modified E. coli bacteria. And a Delaware company, Cara Plastics, has worked on mass-producing a soy-based resin as well as a plastic that is a composite of soybeans and chicken feathers.

in air transport too, the future of biopolymers has already arrived. a polymer called Polyamide 46 has helped airbus develop the quietest airplane ever.

18

utilizing local feedstocks and focusing on innovative technologies and systems, Sabic has evolved into a global enterprise capable of sustainable growth while providing beneficial products to millions of people around the world
H.E. Mohamed Al-Mady, Vice Chairman & CEO, SABIC
An increasing number of scientists and engineers are now dedicated to minimizing the environmental impact of polymer production and consumption. Life-cycle assessment is given paramount importance at every stage of a products life, from initial synthesis through to final disposal. The search for green polymers is becoming ever more urgent as scientists and industrialists realize that a safe, profitable society needs environmentally sustainable materials and processing methods. Clearly, the alchemy of the future will produce polymers that are natural and sustainable: this centurys elixir of longevity will not be distilled from gold, but from the new bioplastics that allow us to breathe easier about the future of life on Earth. zx

The automobile industry is seeing a manufacturing revolution with sustaining polymers replacing the corrodible metals and petro-based plastics of 20th-century cars. In late 2010, Nissan launched the Infiniti FX30D, a luxury car with a self-healing paint: the top layer is an invisible covering of melting polymer that slowly fills in any small scratches or dents. The potential applications of this and more advanced self-repairing polymers offer infinite possibilities: airplanes that can land safely even if damaged, bridges capable of withstanding earthquakes, boats that stay afloat despite damage, and storm-proof oil rigs and pipelines. Self-sustaining biotechnology may be largely at the research stage, but green polymers are here to stay. Japanese car-manufacturer Toyota not only uses bioplastics like PLA in their vehicles, but it has also started to produce them. In air transport too, the future of biopolymers has already arrived. A polymer called Polyamide 46 has helped Airbus develop the quietest airplane ever. Boeing believes its new 787 Dreamliner jet, built mostly of plastic composites, could remold the industry: the entire airframe is constructed from a carbon fiber-reinforced plastic, a wafer-thin yet granite-tough material capable of resisting huge changes in temperature and pressure. American aviation researchers are also developing smart polymers with dynamic memory properties that change shape to increase aerodynamic efficiency.

19

GREENOVATION ||| WINTER 2011

Total Petrochemicals, a global industry leader, is committed to producing greener polymers for its plastic products. The company has pioneered polymers derived from lactic acid, produced by fermenting sugar (from either sugar beet or cane) or starch (from wheat or maize). Since 2007, Total Petrochemicals has developed the technology to produce 1,500 tons of polylactic acid (PLA) polymers derived from lactic acid, to meet the growing demand for bioplastics. Today, PLA is mainly used to make food packaging and textile products, but the dazzling range of future applications for this and other polymers is becoming evident.

These developments in sustaining polymers will change how we live in other ways. MIT researchers in Cambridge, MA recently worked on a glue-coated biopolymer that may be used to repair human skin and organs, holding things together to avoid leakage or splitting. The technology could replace surgical sutures someday.

SolutionS
doeS Green Mean Gold?
like Many countrieS
all oVer the world, the Six MeMber StateS of the Gulf cooPeration council (Gcc) Saudi arabia, bahrain, kuwait, oMan, qatar and the united arab eMirateS are raPidly deVeloPinG cleantech initiatiVeS to helP SteM the tide of cliMate chanGe. but in a reGion known for itS abundance of oil, the Green MoVeMent iS creatinG buSineSS oPPortunitieS that could alSo helP the Middle eaSt becoMe a Global leader in renewable enerGy, the larGeSt SeGMent of cleantech inVeStMentS.

BEyONDoil

the reaSonS are clear.

Across the globe, the growing demand for power, fluctuating hydrocarbon prices and governments desire for energy efficiency combined with environmental concerns, are rapidly driving the adoption of renewable energy technologies in solar, wind and energy-storage devices. Because of this emerging opportunity, the Gulf Cooperation Council (GCC) is starting to build a critical mass of investment and research activity. And the countries in the Middle East, with abundant hydrocarbon and alternative resources, are in an excellent position to benefit greatly. This is why Riyada Ventures, a leading regional venture capital firm in the Middle East and North Africa, launched two years ago its investment initiative focusing on cleantech, with emphasis on renewable energy, water and sustainable construction. This past October, Masdar, Abu Dhabis renewable energy initiative, and Siemens, the German engineering and energy conglomerate, announced a long-term strategic partnership including the establishment of Siemens Middle East headquarters in the under-construction Masdar City. Siemens will implement an innovative power grid combined with advanced building technologies in the first phase of Masdar City, which will serve as an energy-efficient power solution and a living R&D platform. The partnership will also collaborate on carbon capture and storage (CCS), which will involve research and development with the Masdar Institute. Meanwhile the United Arab Emirates announced plans to establish the Gulf Nuclear Energy Infrastructure Institute in Abu Dhabi, an educational institution that will provide civilian nuclear energy programs in the Gulf region with local nuclear energy professionals.

The announcement to create the new city came six months after the official opening of the King Abdullah University of Science and Technology (KAUST), a multi-billion dollar research center with core research activities in energy and the environment. Saudi Arabia's renewable energy plans like those of other member states of the GCC focus on solar and nuclear energy. The council is currently preparing a regional nuclear power and desalination program in cooperation with the IAEA.

Not a Threat, An Opportunity

The creation of these new institutions devoted to renewable energy illustrates profound changes among the oil-producing nations of the Middle East. Today, leaders understand that sustainability and climate change are key national and international issues and are no longer viewed as a threat to economic growth, but as opportunities for those countries willing to make the investment. In fact, the phrase alternative energy is increasingly becoming a misnomer. Across the globe, growing demand, tight hydrocarbon supplies, high prices and a burgeoning environmental consciousness are rapidly driving solar, wind, biofuels, geothermal and nuclear technology into the energy mainstream. The opportunity for the GCC couldnt be greater. Although programs like KACARE in Saudia Arabia and Abu Dhabis Masdar initiative are already under way, there is still room for a wider, more systematic approach in the GCC. The challenge both political and technical is to identify where to focus resources, since solar, wind, certain biofuels and nuclear energy can all play a role in GCC energy generation. To accelerate the development of these technologies, governments working with the private sector including private equity and venture capital investors must identify and finance opportunities. That said, they must also bring existing knowledge and technology into the GCC to develop key competencies and platforms that will support home grown research and innovation.

Saudi Cleantech Industry up and Running

Saudi Arabia is also establishing a renewable energy city to meet the country's growing energy needs and reduce its dependence on fossil fuels. King Abdullah issued a royal decree in early 2010 for the creation of the King Abdullah City for Atomic and Renewable Energy (KACARE), based in Riyadh, with offshoots across the country. KACARE is expected to contribute to sustainable development by using atomic energy for peaceful means in areas such as agriculture, desalination, medicine and mining. Its work will support scientific research and development,

23

GREENOVATION ||| WINTER 2011

training programs and conferences and co-ordination of the country's renewable energy centers. KACARE will also be responsible for drafting a national policy on nuclear energy development supervising all commercial uses of nuclear power and the management of radioactive waste. Internationally, KACARE will represent Saudi Arabia at organizations such as the International Atomic Energy Agency (IAEA).

GREENOVATION ||| WINTER 2011

MotoCzysz, a small company from Oregon, uSA has developed an electric motorcycle, the E1pc. The most newsworthy feature is the heart of the motorcycle what is now known as the D1g1tal Dr1ve.

At the same time, to drive technology adoption and demonstrate commitment to renewable energy, GCC members must also reduce hydrocarbon usage through creative and flexible policies and create incentives and binding targets to implement them. With a perfect climate in the Middle East for solar and wind, the solar-power and wind energy markets offer perhaps the greatest opportunities among its clean-tech peers. The worldwide solar market is growing by 30% to 50% per year, as existing photovoltaic and newer thin-film and concentrating solar photovoltaic (CSP) technologies are being leveraged in the solar market. Wind energy has been expanding rapidly since the mid-1990s. From 1995 to 2006, global cumulative installed wind-power capacity expanded fifteen-fold. If handled effectively, the move to renewable energy can be dramatic over the next few decades. The Desertec Initiative, a consortium dedicated to generating clean power from deserts, is aimed at meeting 15% of Europes energy needs and a substantial part of the demand in Northern Africa and the Middle East via CSP and other renewable sources of energy by 2050. 24 The latest energy report from Greenpeace anticipates that, given political support and well-designed policies, by 2050, 95% of the electricity produced in the Middle East (not counting North Africa) could come from renewable energy sources, with new renewables mainly wind, solar thermal energy and photovoltaics (PV) growing to contribute about 90% of electricity generation. Renewables by then could also meet 83% of the regions demand for heating and cooling.

The worlds Best Known Cleantech Economies

This comprehensive approach to development is not a new idea. Countries considered leaders in cleantech have maintained a high standard of cleantech deployment in the public and private sectors for quite some time. Switzerland, a prime example, consistently ranks as one of the world's most energy-efficient economies, thanks largely to advances in renewable energy, green buildings, waste management and sustainable transportation. Switzerland was recently ranked second on the 2010 Environmental Performance Index and was nominated for recognition as Europes most innovative country in 2009. What makes Switzerland a leader in cleantech? For one thing, the Swiss are true pioneers in sustainable and cleantech investing, having developed more than 20 years ago asset management mandates defined by ecological criteria. Theyve also been at the forefront of sustainable investing for the last 10 years. Whether investing in public companies with climate mitigation strategies or a private venture with innovative solar technology, the Swiss have a wide range of investment firms that are international leaders in cleantech financing. The Swiss also have a long history of living within their environmental and economic means. The Swiss have one of the highest recycling rates in the world, with recycling, energy efficiency and stewardship integrated into their daily lives. Hydroelectric power accounts for about 58% of its electricity production followed by nuclear and thermal.

Another 10% of electric power is generated by recycling programs. In short, Switzerland does not use fossil fuel for electricity production anymore. More recently, the Swiss leadership has made cleantech a top priority of the countrys economic recovery. A significant portion of the Swiss governments stimulus package is targeted toward energy efficiency, renewable energy and the environment. As a result of such heavy investment and friendly government regulation, the clean technology sector is expected to continue growing, reaching a volume of 3 trillion Swiss francs worldwide by 2020, which is double its current size. The Swiss also seize opportunities, like getting their own neighborhood in Masdar City. Called the Swiss Village, it has been described by Rolf Jeker, president of the Swiss Village steering committee, as an unparalleled opportunity to be a part of a truly historic effort to make sustainable living a reality. The new center for Swiss companies, large and small, offers one of the most attractive company locations in the Gulf for companies wanting to be at a major hub of Middle East business and industry. Swiss firms can act as a community, strengthening each other with shared knowledge and joint ventures.

cleantech haS to Make econoMic SenSe. r&d ManaGeMent haS to adoPt a breakthrouGh aPProach, focuSinG on enhancinG exiStinG Market oPtionS to Make theM More enVironMentally friendly.
vInod KhoSlA foundEr, KhoSlA vEnturES

A Partnership Approach
Clearly, entrepreneurial spirit, drive and innovation will play a vital role in meeting global environmental challenges. Corporate social responsibility is no longer the only driving force for utilizing cleantech platforms, since environmental excellence can increasingly deliver bottom-line growth. Technology leaders worldwide are beginning to recognize the potential inherent in cleantech. Vinod Khosla, co-founder of Sun Microsystems has been recognized by Forbes Magazine at the top of the list of Green Billionaires for his investments in advanced biofuels, solar power and sustainable building materials. His approach is one with a sound business foundation invest in revolutionary technologies that promise to transform industries. Khosla feels these black swan breakthroughs are necessary to make cleantech economically feasible. Government policy can also have significant impact by stimulating markets for clean energy products through subsidies, mandates and procurement programs, and by providing the right signals and flexibility to support the movement of capital from older to newer industries. What will matter to competitiveness over the long term is investment in the basic infrastructure of innovation successful policy intervention in areas such as education and worker training. These research hubs are also becoming a magnet for talent from all over the world, providing access to specialized equipment and expertise for students, researchers and professionals from firms, universities, government agencies and international institutions. With these growing centers, supported by government, business and academia, the promise of renewable energy for the Gulf region will be realized more quickly. zx

25

GREENOVATION ||| WINTER 2011

The emergence of technology clusters, science parks, incubators and competitive centers also are playing a significant role in developing innovative technologies that will foster economic growth. These hubs, where universities, industry and government agencies pool their intellectual and financial resources, are creating living laboratories or test beds for emerging technologies that accelerate innovation and eventually generate business opportunities.

BankIng

with changing social demands and the impact of lending policies, banks are feeling the pressure to include environmental sustainability in their business management and practices.
Since all banks play an intermediary role in the economy, their contribution to sustainable development, both symbolically and substantively, is potentially profound. And with extensive credit approval systems that provide knowledge on various markets and the ability to weigh and value risk, banks can play a role in evaluating sustainability. They can, for example, raise interest rates or apply tariffs on loans given to clients with high environmental risks. Through their intermediary role, therefore, banks may be able to support sustainability as a whole by adopting a carrot-and-stick approach with environmental front-runners paying less interest than the market price for borrowing capital, while those companies that ignore or put off environmental responsibilities pay much higher rates. Banks can also develop more sustainable products, such as environmental, social, or ethical investment funds, which could promote socially/environmentally focused companies. Top investment banks have all pledged to do their part to be sensitive to the environment. Citigroup, Bank of America, JPMorgan Chase and Wachovia are all signatories to the Equator Principles, a set of guidelines aimed at minimizing the adverse environmental and social impacts of major loans for oil and gas projects, mines, power plants, etc. in the developing world. But living up to such principles is not easy. Morgan Stanley, Citigroup and Merrill Lynch, for example, have prominently noted their sensitivity to environmental issues, but they are also underwriting plans to build new coal-fired power plants. These plants have been criticized by nearly all major environmental groups. We want banks to shift their investments away from dirty and dangerous technologies and towards funding the future, says Dana Clark, a global finance campaigner for the Rainforest Action Network, a San Francisco-based activist group. Goldman Sachs is calling for governments to set a markets-based policy to curb greenhouse gas emissions. Voluntary action alone cannot solve the climate change problem, the company says. At the same time, global investment in clean technology has been steady. Clean tech investments in 2009 which include solar power, a smart electric grid controlled by computers for greater efficiency, electric cars, biofuels and green building materials rose to $1.9 billion in 112 deals, according to Greentech Media. More than half the clean tech investment in the third quarter went into two areas solar and a combined category of biofuels, gasification and cleaner coal. On the philanthropic front, many environmentally conscious banks have programs designed to contribute to organizations that have positive environmental impacts either in the local community or in developing countries. In one example, bank mortgages include carbon-offset features, so that every year that a customer holds a mortgage the bank offsets a fifth of the carbon dioxide emissions arising from a typical household's energy consumption. In one case, offset monies were used for reforestation in Uganda, a Bangladesh project that trains local people to build energy-efficient stoves and a Bulgarian project supporting micro-hydro electricity generation. In other instances, green banks allow their customers to choose between a variety of VISA cards that benefit certain environmental organizations. The bank would then donate, say, $0.10 to the non-profit initiative every time their VISA card is used. Many banks have also lower interest rate loans for low-emission cars.

27

GREENOVATION ||| WINTER 2011

SuSTAINABLy

Green Like Me
Most Wall Street firms have promised to reduce their own emission of greenhouse gases. Merrill Lynch, for instance, says it will seek to reduce emissions by 2% a year. Bank of America has gone further. It is pledging not just to reduce its own emissions but also to cut back on the greenhouse gas emissions from its investments and loans to energy and utility companies by 7%. In a recent Fortune magazine article, Anne Finucane, who chairs Bank of Americas environmental council, says that climate change and atmospheric pollution represent a risk to the ultimate stability and sustainability of our way of life. Several banks have won accolades for their green initiatives. Most of these efforts were focused on data centers and large buildings. The Canada-based TD Bank has a long-term goal of cutting its carbon footprint by 5%. And it recently launched a green-certified branch in New York, which it is touting as a big step toward being a green bank overall. TDs new 3,800 square-foot prototype was designed to cut energy consumption 50%, with nearly 20% of the branchs energy being produced onsite through solar panels and solar drivethrough canopies. The new branch also features wood from sustainable managed forests; products that emit little-to-no volatile organic compounds (VOCs); mats and filters that trap particles of dirt, dust and pollen for improved indoor air quality; insulated glass with a coating to help keep a balanced, temperate environment; and sensors to control lighting. In addition, the branch will be maintained with green cleaning products and will recycle everything it can, including disposable batteries.

Meanwhile, Discover Financial Services has launched what it calls the only biodegradable credit card in the market. The card is made of a substance that allows 99% of the card to be safely absorbed when exposed to landfill conditions. It will fully break down in soil, water, compost or wherever microorganisms are present within five years.

GREENOVATION ||| WINTER 2011

Financial Products For Environmental Care

A good number of banks have specific environmental loans in their portfolio of services. Such products are particularly popular in Europe and North America. Dutch banks, for example, offer green funds, which are supported by governmental fiscal facilities and best-in-class investment funds. Environmental leases are offered by European banks, and North American banks offer environmental and social credit cards. Whats more, many banks around the world now offer environmental advisory services to industrial customers. Some give their customers the option of taking out an insurance policy for environmental damage that they have either suffered or caused, or they provide innovative financial products related to international climate policy, as well as venture capital products for environmental innovations. As sustainability requires innovation, these venture capital products are expected be very promising for the development of new tools that fight climate change. Though the banking sector has been slow to pick up the challenge of sustainability, change is underway. Nevertheless, a large group of banks still do not see the role they can play or should play towards a sustainable development. The business case still needs to be proven to these banks. zx

AT THE NATIONAL COMMERCIAL BANK

the balanced integration of the economy, Society and environment at Saudi arabias premier bank.
28

sustaInaBIlIty

we do not view sustainability as a one-dimensional issue and we are committed to continuing to raise the bar, for ourselves and for those who take their cue from NCBs leadership.
abdulkareem a. abu alnasr Chief Executive Officer, National Commercial Bank, Kingdom of Saudi Arabia

People NCBs success comes from a commitment using the expertise, creativity and skill of their people to compete successfully. NCB also applies these principles to their relationships with customers, business partners, and the community; always treating them fairly and with respect. Planet Although NCB has only a modest environmental footprint, responsible stewardship is integral to the corporate culture. The bank aims to minimize the corporate footprint by cutting waste, adopting recycling and using scarce resources such as water and power more efficiently. By exercising environmental prudence, NCB has a key role to play in setting an example, sharing knowledge, and educating their people and partners so that they adopt similar behavior at home and in the wider community. Profit Sustainability is also about profit: a business will not exist without value creation leading to earnings and shareholder return. But, short-term gain is valueless if it is outweighed by the long-term human and environmental costs of its achievement. This holistic approach was key to NCBs internationally acclaimed sustainability report, which was first published in 2008. That effort helped NCB to become the first company in Saudi Arabia to win the King Khalid Award for Sustainability and Business Excellence in 2008 and subsequently in 2009. All NCB businesses now include specific sustainability approaches in their annual operating plans which encapsulate the collaboration of the three interlinked areas. For example, in Consumer Finance, NCB adopted a Responsible Lender Policy, which involves prudent lending and risk-management practices that promote responsible borrowing backed by affordability models that will generate high-quality and predictable revenues over the economic cycle. NCB aims to provide the right products to customers at a price that is manageable as a part of their monthly budget. By employing a responsible lending approach, NCB contributes to a stable community where individuals can improve their standard of living in a sustainable manner. It also enhances the

branches in Saudi arabia: 282 atMS: 1,489 total assets at year-end 2009: uS$68.6 billion return on average shareholders equity for fiscal year 2009: 14.59%.
Sustainability is now integral to NCBs corporate philosophy, as is evident in the adoption of several ambitious projects that will bring significant changes, deep within the organization. This new function will help improve knowledge and understanding and act as a catalyst to encourage engagement at every level and in every team.

a reflection of

OUR SOCIETY
NCB has built a strong bond with customers as an integral part and reflection of society. By embracing values and concepts that have stood the test of time, NCBs skill and flexibility have made a meaningful contribution to peoples lives and the economy as a whole. The bank provides a responsive and efficient service, leading the way in customer-focused innovation. Some of the milestones at NCB include Saudi Arabias first: Credit cards ATMs Student saving plans Mutual funds Dedicated ladies branches The bank has also pioneered many Shariah-compliant financial solutions from Mudharabah-based investment products to Ijara or Murabaha-based leasing or lending, as well as Takaful insurance and savings schemes. NCB is totally committed to playing a central role in supporting future generations, continuing our tradition of trust and innovation. NCBs engagement with the community is deep and longstanding. The bank focuses on helping disadvantaged people, addressing social problems, encouraging staff to undertake voluntary work, and fostering the development of micro and small businesses. we design and manage programs that address critical needs in our society in the fields of job creation, education, health, and social issues.

29

GREENOVATION ||| WINTER 2011

The National Commercial Bank firmly believes that building a culture of sustainability impacts the economy, society, people and environment. The bank, founded in 1953, has become the largest bank in Saudi Arabia, largely due to sound business practices and a comprehensive sustainability strategy a holistic process that embraces a model of three interdependent Ps: People, Profit and the Planet. A focus on these three important pillars includes:

customer experience and promotes long-lasting relationships with NCB.

by the nuMberS:
founded: 1953 employees: 5,400 (88.8% Saudi)

the built
at the MoSt recent un conference on cliMate chanGe in cancun, Mexico, 40 enVironMental and buSineSS orGanizationS joined forceS to urGe GoVernMentS to Prioritize reducinG GreenhouSe GaS eMiSSionS froM the built enVironMent. currently buildinGS are reSPonSible for aPProxiMately 40% of the worldS enerGy uSe and 33% of Global GreenhouSe GaS eMiSSionS.

ENVIRONMENT

SABICs Plastics Application Development Center (SPADC) in Riyadh Techno Valley (RTV), King Saud university

Many countries are already on board. The Kingdom of Saudi Arabia is a notable example, having set itself the goal of building six integrated economic cities of the future in the next two decades. These private-sector ventures, which are in the early stages of design and construction now, present a unique opportunity to embark on sustainable community development strategies from the beginning. They also provide their leadership the option of dispersing population and economic activity to regions of the country that are rich in resources but as yet relatively unpopulated. KSAs Economic Cities offer investors an unparalleled, business-friendly environment within a framework that emphasizes resource-efficient architecture in which to live, work and play. Each Economic City will incorporate in its overall design energy saving technology, renewable energy generation, waste reduction systems, watersaving and grey-water recycling technologies and green building materials, on sites that promote natural habitat preservation and restoration. Similar strategies are being pursued in many other parts of the Middle East and in Asia as second world countries transform themselves at unprecedented rates into economic powerhouses.

MiniMuM diSturbance of Site conditionS uSe of recycled and enVironMentally-friendly non-toxic buildinG MaterialS efficient uSe of water and water recyclinG uSe of enerGy-efficient and eco-friendly uSe of renewable enerGy indoor air quality for huMan Safety and coMfort effectiVe SMart controlS and buildinG ManaGeMent SySteMS
one billion square feet. Australia has its alternative Green Star Environmental Rating Method; Korea its Green Building System; Japan its Comprehensive Assessment System for Building Environmental Efficiency (CASBEE); and Singapore its Energy Smart Office Scheme. A green building may cost more up front but in the long run it tends to save money through greater efficiencies. And Certification by any of the green organizations carries with it considerable prestige. It is said to have been a factor in Qatars winning bid for the 2022 FIFA World Cup: their ability to demonstrate the very advanced LEED-certified solar-powered carbon-neutral cooling systems in Dohas Sports City arena put their entry in a class by itself. Worker productivity in green buildings is also measurably greater in many instances. zx

PlayinG by the ruleS

Another indicator of how design of the built environment is evolving is the emergence of new sets of regulatory practices, measurements, priorities and educational programs by which governments can incentivize green architecture suitable to their regional climate. In Jordan, to cite one example, a consortium of government and academic agencies has set up a Center for the Study of Architecture in the Arab Region. Dubai, UAE, has the Middle East Centre for Sustainable Development (MECSD), an international affiliate of the non-profit Leadership in Energy & Environmental Design (LEED). LEED, which was developed by the U.S. Green Building Council more than a decade ago, provides a clear road map for implementing practical and measurable green building design, awarding coveted LEED certification to buildings that achieve a high level of compliance. In 2010 the total footprint of commercial projects certified worldwide by LEED and LEED International surpassed

31

GREENOVATION ||| WINTER 2011

what MakeS a buildinG Green?

THE NEW ERA OF COMMUNICATIONS

GREENOVATION ||| WINTER 2011

A PLACE FOR INFORMATION TECHNOLOGY TO BLOSSOM

KSA is by far the largest emerging market for IT

in the Middle East, with more than 27 million consumers, many of them young professionals with rising personal wealth. A growing number of multinational companies see great potential in the governments 20-year plan to support widespread technology and telecommunications adoption across all Saudi Arabian households and enterprises. Saudi Arabias ultra-modern Economic Cities and Science and Technology Parks offer an appealing location to set up operations. As a result ICT spending has grown more than ten percent per year since 2001 and is projected to reach $32 billion by 2012, yet even with this rapid-growth trajectory Saudi Arabia remains a substantially underdeveloped market. Still, the ICT industry has many positive drivers. At the top is KSAs Yesser eGovernment Program and its partnership with IBM. Together they have put in place a fully instrumented, interconnected and intelligent IT infrastructure, operating from eight geographically distributed sites. This in turn will help SA host the high volume of transactions associated with the large-scale delivery of online services to citizens and enterprises, enabling access to government services in minutes and hours rather than the days or weeks once required.

Another public-private partnership is between the Saudi Arabian General Investment Authority (SAGIA) and Intel Capital, in which Intel will act as a liason between the government and foreign investors to grow the ICT industry in the region with an anticipated fund of US$100 million. At the same time Saudi-multinational capital consortiums are fostering the growth of the telecommunications industry, attracting new GSM networks and landline operators. So how exactly does information technology and communications play a major role in encouraging worldwide environmental sustainability and competitiveness? Primarily, the industry facilitates globalization by bringing people closer together, sharing ideas swiftly and efficiently in real time from every corner of the earth, even providing tools to overcome linguistic barriers. Email, texting, phone and video conferencing have strengthened a global community where questions and answers are relayed almost instantaneously. Broadband, fiber optics, and satellites carry the signals at the speed of light. Countries everywhere now have the opportunity to work together, sharing sustainable concepts and designs that will benefit the environment and enhance economic growth. zx

32

the MOST
GREENOVATION ||| WINTER 2011

EQUITABLY SHARING AND CONSERVING EARTHS SCARCE WATER RESERVES

Of all the earths resources, none is of greater concern these days than water. How can we adapt our habits and marshal scientific know-how to make better use of this precious resource for generations to come? Though water covers much of our world, more than 97% is salty, another 2% is locked away in snow and ice. That leaves the remaining 1% of our water to sustain the worlds growing population and its water-based economies agriculture, industrial production, recreation not to mention household use. And this crisis is developing in a time when the challenges of global climate change are making water purity and availability in some regions more uncertain than ever. Based on a recent global study of water supplies, one authority predicts that by 2030 global demand for water will outstrip supply by 40% and that about half the worlds population will live in water scare areas. Clearly, every nation wanting to survive in a competitive world must put its best minds to work finding ways to protect and plan for more responsible water use. Costly but effective solutions are coming on line with each passing year but financing them and changing local behaviors still pose challenges in the near term.

Desalination
Recent reports indicate that around 12,500 industrial-scale desalination plants are now operating worldwide. Spain was the first European country to install a viable plant on the water-starved Canary Islands in 1964 and now has over 700 plants nationwide. Australia is also increasingly dependent on desalination for its larger cities. And Saudi Arabia, even before todays booming economy and growing population, has been working to solve its water shortages. At one time an estimated 90% of its water was drawn from non-renewable fossil water lying deep in ancient aquifers. To resolve this unsustainable drain, the Saudi royal family

34

Precious Resource
undertook to build a series of coastal plants, coupled with miles of distribution pipelines; by 2000, 27 desalination plants, many of them dual-purpose and generating electricity, were supplying enough fresh water daily to provide more than 70% of the nations water needs. Another plant, Shoaiba III, has since been opened on the shores of the Persian Gulf, boasting a capacity of 232 million gallons per day.

Irrigation
Agriculture consumes about 70% of all water withdrawals and the water traditionally required to yield an average persons diet is about 1,000 times the quantity that person drinks. Consequently much effort is focused on developing advanced systems of irrigation globally. Drip irrigation systems, first developed in the 1960s, can decrease water use substantially. Micro-irrigation which supplies water to plant roots via buried tubing represents a further improvement. But even as these technologies are introduced population growth from 4.4 billion in 1980 to 6.4 billion in 2005 threatens to erase gains through demands for greater agricultural production. According to UNESCO, production of food crops in developing countries will increase 67% between 2000 and 2030, putting additional new strains on water. And as incomes rise in many parts of the world many farmers are choosing to raise higher value more water-thirsty vegetables and livestock over less thirsty grains. To remain competitive, governments will need to engage water supply and demand at every level. zx

water Conservation
Much attention is also focused on water-saving technologies, including water recycling or reuse systems, rainwater and stormwater harvesting and various methods of increasing the efficiency of end-use consumer equipment such as toilets and showerheads. In 2009 the WCT market reached over $88 billion worldwide and continues apace. Water recycling and reuse alone are forecast to increase by as much as 91% by 2015. Water recycling uses highly effective filtration systems to purify water that has previously been contaminated in sanitation facilities, industrial plants and other kinds of processing operations, reusing it for a host of purposes.

35

GREENOVATION ||| WINTER 2011

Sustainable

oVer the yearS, aGriculture haS chanGed draMatically due to new technoloGieS, Mechanization, increaSed cheMical uSe, eMPhaSiS on SPecialization and aGribuSineSS. Monoculture haS tended to driVe out More diVerSe farMinG, and GoVernMent PolicieS haVe often encouraGed thiS trend aS a loGical MeanS of caPturinG Market Share and foSterinG econoMic Growth. but theSe iMProVeMentS haVe coMe at a heaVy coSt in terMS of toPSoil dePletion, deSertification, deforeStation and Groundwater contaMination.
GREENOVATION ||| WINTER 2011

farmIng
Seeking Solutions for a Hungry Planet
alterations in habitat including the drying up of
water resources in some regions, and the disintegration of economic and social conditions that once made rural subsistence farming communities the rule in many places, are the consequence.

now a new best-of-both-worlds approach to restoring the viability of smaller-scale

farming is taking shape. Called sustainable agriculture, it seeks to enhance the ability of a farm or a region to produce food and fiber crops indefinitely, without causing irreversible damage to ecosystems. To achieve this goal farming practices must meet the following criteria: it does not use renewable resources water, soil nutrients, organic matter, topsoil faster than Nature can regenerate them, nor generate pollution or waste products faster than Earths ability to absorb or disperse them. And it maintains a people-to-land ratio adequate to ensure continuous sound management for future generations.

to do this green farmers have at their

disposal a broad range of tools by which to achieve maximum productivity with minimal environmental impact. At the top are

agricultural institutes and extension services to develop and train farmers in better methods of raising and marketing their crops. Other tools include crop rotation, the use of water-conserving irrigation methods, and the implementation of natural forms of integrated pest management rather than pesticides to control infestations. Also important to modern sustainable agriculture is the preservation of genetic resources, including the conservation of regional and local plant biodiversity, through seed banks. (One controversial offshoot of the goal of biodiversity is the recent development of genetically modified (GM) crops that are disease-, drought- or temperature-resistant. In 2007, the most recent year for which statistics are currently available, 23 countries have as a measurable percentage of their agricultural production some GM or biotech crops, with soybean, corn, cotton and canola representing by far the largest share.) Aquaculture or fish farming is also becoming an important supplement to diminishing stocks of wild-caught fish in many economies, though it has taken a generation or more to see aquacultural practices evolve into sustainable aquatic ecosystems. zx

37

GREENOVATION ||| WINTER 2011

GOING Nuclear:
Why gcc states must take a long-term vIeW on nuclear energy
Mention the word nuclear and PaSSionS run hiGh. GoinG nuclear haS becoMe SynonyMouS with extreMe reactionS. but what Saudi arabia and other Gcc StateS need now, aS they Seek future SourceS of enerGy, iS a calM, rational debate about the ProS and conS of nuclear Power in the reGion.

We all recognize the need to transition away from fossil fuels and their carbon emissions, toward sustainable energy sources. Nuclear energy is viewed by many as a long-term alternative, although serious concerns remain about its cost, safety and environmental impact. In April 2010, Saudi Arabia announced that a section of Riyadh would be powered solely by nuclear energy; a joint venture between a Japanese company, Toshiba, and two American companies, the Shaw Group and Exelon, was formed to build and run two nuclear plants. Kuwait, the UAE and Qatar have all initiated research into nuclear programs. Some have questioned why the Gulf states should choose to move away from the oil that brought such prosperity. The answer is that going nuclear would allow GCC states to export more oil and gas in the short term, while building expertise and facilities for a more sustainable, long-term source of energy. The use of atomic energy is an inevitable choice in the development of Arab countries, Abdelmajid Mahjoub, chairman of the Arab Atomic Energy Agency, has observed. However, reactors cost billions of dollars to build, and foreign expertise is needed to operate them, at least initially. A lack of local nuclear expertise is one obstacle on the path to going nuclear, and clearly Gulf states must learn from the experience of others. The worldwide nuclear industry currently suffers a shortage of trained technicians and scientists; this may represent an opportunity for GCC states to attract such expertise with incentives.

gathering of experts and regional policy-makers. The following is simply a list of pros and cons, with the purpose of pushing the discourse further into the public realm.

NUCLEAR ENERGY: THE PROS

While sustainable sources like solar and wind power will provide clean electricity, they will not provide sufficient amounts to meet the rising demand in the Gulf. nuclear energy production is virtually limitless in capacity and the nuclear option is already hugely productive: in 2009, 13-14% of the worlds electricity came from nuclear power. Advocates argue that the production of nuclear energy is a safer, more environmentally friendly source of electricity. It produces no pollutants or greenhouse gasses and has no impact on respiratory health. nuclear energy can replace fossil fuels and significantly reduce the carbon emissions that contribute to climate change. In 1973, france relied heavily on oil for 39% of its electric generation; today it relies on nuclear power for about 80% of its electricity. france now enjoys the cleanest air of any industrialized country, and the cheapest electricity in Europe. the wide availability of uranium in the Earth and the life-cycle of enriched fuel rods makes nuclear power reasonably sustainable. While advocates concede that uranium is itself a non-renewable resource, they argue that stocks are large enough to meet foreseeable demand, and that by reprocessing spent fuel, these stocks could be made to last for centuries. furthermore, fast-breeder reactor technology could eventually produce even more fuel. for GCC countries, the wide availability of uranium in phosphate deposits provides a sustainable source of raw materials for the production of nuclear power. because cooperation is needed to implement the technology, global security can be enhanced through a process of technological exchange tied to political agreements and conditions. With the proper regulation by government, nuclear energy can lead a green, sustainable energy revolution.

We believe the nuclear option should be retained, precisely because it is an important carbonfree source of power.

The establishment of the King Abdullah City for Nuclear and Renewable Energy is a positive step towards developing Arab expertise and educating the public on issues of safety and responsibility. The organization will manage future energy sources and should also prove a conduit for the implementation and monitoring of government standards and regulations as the industry grows. Perhaps the most important aspect of nuclear development in the region is increasing public awareness and gaining public trust for decisions that will affect all citizens for decades. This can only be attained with real transparency in all aspects of public energy policy. The people of the Gulf are demanding more electricity; a well-monitored, well-regulated nuclear industry could supply it safely, and must do so with the full confidence of consumers. It would be disingenuous to try to examine all the issues of nuclear power at a glance; the place for such debate is at a

NUCLEAR ENERGY: THE CONS

nuclear power may entail risks to workers and to the public due to low-level radiation from plants, and a wider health risk to the public in case of accidents. radiation exposure must be safeguarded against through education and strict regulation. nuclear energy is not yet competitive economically with other fuels and will only become so when carbon emissions are considered as an inherent cost of coal and oil. Government regulations could calculate this cost through a system of carbon emission credits, giving nuclear energy a cost advantage in the long term. Alternatively, nuclear energy would compete both economically and environmentally if policy makers put a price on carbon emissions and coal plants were forced to implement carbon dioxide sequestration and storage.

39

GREENOVATION ||| WINTER 2011

GREENOVATION ||| WINTER 2011

the problems of nuclear waste production, transport and lack of any long-term storage plans for radioactive waste remains unsolved. the least damaging current option for radioactive waste is to store it aboveground, in dry storage at the site of origin. the potential misuse of nuclear expertise and production facilities to convert enriched uranium into nuclear weapons represents a threat to regional and global security; however enriching uranium from reactor-grade to weapon-grade material requires advanced expertise. to mitigate such threats, the united nations International Atomic Energy Agency (IAEA) closely monitors the reactors of all its member states. depleted uranium presents a major health hazard to populations if exposure occurs in transportation and long-term storage.

conditionS SuGGeSted by the aSPen inStitute analySiS diScuSSion: what role Should nuclear enerGy Play in the worldS enerGy future?
StrinGent Safety StandardS MuSt be iMPoSed. hiGhly Skilled ManPower MuSt be uSed froM initial enGineerinG throuGh decoMMiSSioninG. indePendent nuclear reGulatory bodieS MuSt be eStabliShed worldwide. ProcedureS for ProPer Site Selection MuSt be eStabliShed. indePendent hazard analySiS and reMediation PlanS are needed in caSe of accidental releaSeS of radiation. Strict MeaSureS MuSt be Put in Place to PreVent theft of nuclear MaterialS. Strict MonitorinG and inSPectionS MuSt be conducted by indePendent inVeStiGatorS.

Nuclear power has many hazards, and demands constant government oversight through the implementation and strict enforcement of safety guidelines and responsible management. Its inescapable advantage is environmental cleanliness and a long-term promise of a similar kind of energy to that produced by the sun. Our task, having chosen this energy, is to harness it safely, to treat this force of nature with the caution it demands. 40 Arab peoples, with their long nomadic traditions, have always been attuned to natures ways. Before the riches of oil, our forefathers lived each day under the intense power of the sun, heard which way the wind blew, and listened to whispering sands; they learned where water lay hidden, how to access it, and how to husband the deserts scarce resources. Now, as the resources of the industrial age slowly run dry, we need to produce a cleaner, safer energy that will allow us to keep coming back to natures well. zx