Finance World Magazine| Edition: April 2024

In a monumental stride towards
sustainability, the United Arab Emirates
(UAE) has unveiled its National
Policy on Biofuels, marking a pivotal
moment in the nation’s energy landscape.
Developed by the Ministry of Energy and
Infrastructure (MoEI) in partnership with
key stakeholders from the public and
private sectors, the policy endeavours to
offer sustainable fuel alternatives, driving
economic growth and environmental
stewardship.
Advancing Decarbonization Goals:
The National Policy on Biofuels
underscores the UAE’s dedication to
decarbonisation, aiming to reduce
carbon emissions by increasing biodiesel
consumption by 20 per cent by 2050. By
prioritising the adoption of sustainable
fuel alternatives, the policy supports
the nation’s environmental objectives
while simultaneously enhancing energy
security and resilience.
Suhail bin Mohammed Al Mazrouei,
Minister of Energy and Infrastructure,
applauded the policy and stated, “The
National Policy on Biofuels will help achieve
the objectives of the UAE Energy Strategy
2050. It will enhance the implementation
of circular economy principles in various
sectors, such as infrastructure, mobility,
and manufacturing, and drive economic
growth by using waste as input for
production.”
Diversification of Energy Sources:
The UAE’s policy actively works to
diversify its energy mix by promoting the
production and utilisation of biofuels,
thus reducing dependence on traditional
fossil fuels. This strategic shift towards
renewable energy sources aligns with
the UAE’s broader strategy of net zero
by 2050 and reinforces the objectives
outlined in the country’s biofuel policy.
By prioritising sustainable practices and
embracing renewable energy solutions,
the UAE is forging towards a greener and
more resilient future while minimising
environmental impact and fostering
economic growth.
Driving Economic Growth:
Moreover, the National Policy on
Biofuels is a catalyst for environmental
sustainability and a driver of economic
growth. By leveraging waste materials as
inputs for biofuel production, the policy
promotes the implementation of circular
economy principles, spurring innovation
and investment across various sectors.
The development of a local biofuel
market creates opportunities for job
creation and encourages the growth of
related industries such as agricultural
and waste management sectors, which
play crucial roles in biofuel production.
By promoting the development of these
sectors, the policy lays the foundation for
a more resilient and dynamic economy,
equipped to adapt to changing environmental
and economic landscapes.
Regulatory Framework and Oversight:
Central to the successful implementation
of the biofuels policy is the establishment
of strong regulatory frameworks and
oversight mechanisms. The Ministry
of Energy and Infrastructure (MoEI)
The successful
implementation
of the National
Policy on Biofuels
will decrease
the country’s
carbon footprint
and reliance on a
new, sustainable
source.”
collaborates with industry stakeholders
to develop regulations governing biofuel
distribution, production standards, and
sustainability criteria. Through stringent
controls and mandates, the UAE ensures
the responsible and sustainable growth
of the biofuels industry.
Industry Collaboration and Innovation:
The adoption of biofuels in the UAE
catalyses collaboration and innovation
within the energy sector. Leading entities
such as the Emirates General Petroleum
Corporation (Emarat), ENOC Group, and
ADNOC Distribution are pioneering the
deployment of biofuels across various
sectors, including transportation and
aviation. By leveraging their expertise
and resources, these organisations
drive technological advancements
and operational excellence in biofuel
production and distribution.
According to Saif Humaid Al Falasi, CEO
of ENOC Group, the company launched
biofuel in the UAE in 2017, which is one
of the advanced alternative fuel products.
It has also expanded the application of
this biofuel to reach various sectors,
including operating Marine Abras and
some of our assets such as ENOC Link
trucks.
Environmental Stewardship and
Climate Action:
At its core, the National Policy on
Biofuels reaffirms the UAE’s commitment
to environmental stewardship and climate
action. By reducing greenhouse gas
emissions and mitigating environmental
impacts, biofuels play a crucial role in
the nation’s transition to a low-carbon
economy. One such example is the
Lootah Biofuels, which has developed a
forward-thinking policy that recognises
the multifaceted potential of biofuels. The
policy reaffirms the UAE’s environmental
stewardship and supports the country’s
goal of producing 700 million litres of
sustainable aviation fuel annually and
reaching net zero by 2050.
The introduction of the National
Policy on Biofuels heralds a new era of
sustainable energy in the UAE, underscoring
the nation’s unwavering commitment to
environmental preservation and economic
prosperity. By embracing biofuels as a
key component of its energy strategy, the
UAE paves the way for a greener, more
resilient future, setting a precedent for
sustainable development and climate
action worldwide.
April 2024 www.thefinanceworld.com 49