World Bank and DSCE to build green framework
Partnership to design strategy for Dubai’s Green Investment Program
Dubai Supreme Council of Energy has signed an advisory services agreement with the World Bank for the establishment of an International Bank of Reconstruction and Development (IBRD).
“This MoU (memorandum of understanding) is targeted to launch a green fund and we are seeking the bank as an advisory – to give us an advisory of how to go about building a framework,” said Ahmed Al Muhairbi, secretary general of the DSCE.
“The World Bank has hundreds of years of experience in different areas and definitely have a lot of experience in raising and structuring framework and giving the correct advice to the institution.”
The agreement will result in a strategy for Dubai’s Green Investment program that aims to reduce energy consumption by 30% by 2030.
“From the demand side, we need to drop the energy demand by 30% by 2030. To do that, we need to spend up to AED50bn ($13.6bn) on a lot of projects. We want to raise a mechanism, to find out how we go about spending,” Al Muhairbi explained.
Al Muhairbi says that the objective finally is to raise a green fund which will be targeting green projects, such as retrofitting existing structures, district cooling and street light efficiency.
“We have the ability to raise huge amounts of money, but we are not targeting that. We are targeting to raise the framework and the tools to help us establish the fund.”
The advisory services agreement was signed by Al Muhairbi and Michael Bennett, head of structured finance and derivatives at the World Bank at the World Green Economy Summit (WGES).