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Dubai Carbon Center of Excellence (DCCE)
Executive Summary
October 2010
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Table of Contents
Dubai Carbon Center of Excellence (DCCE)
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DCCE Charter & Activities
DCCE Vision, Mission & Objectives
DCCE Business Model
DCCE Set-Up & Structure
DCCE Value Proposition
DCCE Statement
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DCCE Charter and Activities
Introduction
1. Dubai understands that its standing in the international community can be further
enhanced by creating an environmentally friendly and sustainable economic policy ,
in which the leveraging of the potential for carbon credits will be an important
contributor.
2. To embrace the strategic vision of the Emirate and focus on a knowledge-based
economy , Dubai will leverage its carbon potential through the Clean Development
Mechanism in cooperation with the UNDP, for both technology and competence
transfer into the Emirate , thus the Dubai Carbon Center of Excellence (DCCE) was
conceived under the directives of the Supreme Council of Energy.
3. The DCCE will have the task of focusing on carbon-project opportunities, but will
simultaneously act as the Dubai-based stimulant to develop a Carbon Efficient
Economy, whilst developing carbon incentives for the Emirate’s key stakeholders.
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DCCE Vision, Mission and Objectives
VISION
Dubai to be the Lowest-Carbon Economy in the Region
MISSION
OBJECTIVES
• Become a respected leader in the
provision of total carbon solutions
• Create the regions leading knowledge
repository on Carbon matters, accessible to
all.
• Establish a Climate Change fund to provide
capital and incentives to attract global
leading technology companies to Dubai.
• Create a portfolio of Dubai-based
Environmental credits, structuring, investing
and advising emission reduction projects, to
meet the needs of Dubai institutions and
achieve “Carbon-Neutrality”
• Achieve recognition as a key force in
the creation of Dubai’s knowledge
economy, enabling transfer of “green”
technologies, jobs and investments.
•Proactively respond to Dubai’s global
responsibilities in the fight against
climate change.
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DCCE Business Model – 4 lines of Business
1. Advisory Business (enable companies to act on climate
change)
2. Carbon Asset Development
3. Trading & Sourcing of Credits
4. Asset Management
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DCCE Business Model – 4 lines of Business
1. Advisory Business (enable companies to act on climate change)
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Carbon Workshops: Training and capacity building across all levels of the organisation,
embedding carbon-thinking into investment decision making processes and financial
implications of Climate Change.
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Carbon / GHG Assessment: Understanding baseline emissions of a product or organisation and
creation of a prioritised list of measures for emissions reductions. Other activities include
Carbon foot-printing, energy labelling carbon risk assessment in M&A activity etc...
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Emissions Management: technical assistance for carbon asset projects, through project
identification to document creation in the CDM/JI/Voluntary Market process. Also, new
methodology development, securitization, and carbon credit structures.
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Project Investment Appraisal and Finance: Investment appraisal for Renewable Energy and
Energy Efficiency projects. Technical and financial/commercial due diligence Project Finance for
carbon projects.
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Policy Development: development of inclusive policy papers and protocols for emission
reduction initiatives and identifying/lobbying for regulatory changes.
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DCCE Business Model
2. Carbon Asset Development
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Offsetting: Provision of offsets to stimulate behaviour change – principally targeted
at SMEs and general public . Generation of offsets from small scale voluntary market
projects, including energy efficiency.
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Project Development: Full service offering including carbon audits, project
identification and eligibility, project accreditation, M&V plans and monetization of
environmental credits.
3. Trading and Sourcing of Credits
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Trading and Sourcing of Credits: Acts as a broker for its own book of credits (proptrading) and as broker of clients’ credits to DCCE’s network of institutional buyers
internationally, including Government Funds, Utilities and large corporations in
compliance markets
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DCCE Business Model
4. Asset Management
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Clean Tech Fund. The DCCE will focus on identification of disruptive new clean
technologies, promoting migration towards low-carbon economy with key sectors:
Clean Power, Clean Transport, Energy Efficiency, Waste Recovery, Water treatment,
replacement refrigerants. Target technology transfer to region.
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Project Finance Fund: Provision of finance to carbon-asset projects with exceptional
returns – direct equity based investments (majority), debt (minority).
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DCCE Business Case
Example:
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For compliance purposes, flying into the European Community as of 2012, Emirates
Airlines needs to offset its carbon levels that are imposed on their European routes.
Emirates Airlines needs to buy these credits, and would normally go to the global
trading market and purchase from brokers, funds, banks etc.
Dubai companies, such as DEWA, Dubal, etc. are generating these same credits and
selling them to these same traders whom are charging significant margins. However
with the DCCE in place DEWA, Dubal, etc. will sell these carbon credits to the DCCE
Emirates Airlines can then buy these carbon credits from DCCE at attractive rates
Advantages:
• Building competence and business volume for the DCCE
• Significantly better pricing for Emirates Airlines
• Money flows stay in the country
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DCCE Set-Up
DCCE Set Up and Structure
• Public/Private Joint Stock Company – PJSC (Paid up Capital
AED 10.0 million)
• DCCE Founding Shareholders:
• DEWA
• DUBAL
• Istidama
• ENOC
• Emirates Airlines
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DCCE – Value Proposition….Why the DCCE….
• UNDP Partnership – ability to fast track projects (technical DD capability through
global network) and resource, prioritize project opportunities quickly.
• UNDP Relationship - DCCE, creating access to CDM Global Data enabling us to
offer clients the most comprehensive knowledge repository for both the region
and globally.
• The DCCE can offer “Economies of scale” through its client project pipelines,
ensuring a time/cost/competence combination that is the best-of-breed.
• “Dubai projects for Dubai Entities “–DCCE’s primary strategy is to create
competence and sustainable economic development for Dubai , rather than
profits for foreign entities.
• DCCE has niche competency in Carbon/Environment Credits and low-carbon
technologies. We are focused on provision of unique and valuable strategies to
our clients exclusively in these business areas.
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DCCE Statement
“reduce GHG emissions and make
Dubai the Lowest Carbon Economy in
the region….”
we look forward to making you part of
the success story
Thank you…
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