30 May 2010
MUSCAT -- Oman represents a potentially attractive market for investment in energy efficient initiatives that fall within the scope of the Kyoto Protocol's Clean Development Mechanism (CDM), according to an expert representing one of world's largest providers of climate change services.
Dr Inderjeet Singh, Senior Manager at global professional services firm PricewaterhouseCoopers (PwC), sees promising CDM opportunities in a number of clean energy initiatives being pursued by the Sultanate and the wider Gulf region.
"Oman and the GCC are sitting on a pile of potential CDM opportunities, the range and extent of which are yet to be recognised by authorities in this region," the expert said in comments to the Observer.
Dr Singh, who has been associated with various capacity building programmes related to the promotion of greenhouse gas emission (GHG) reduction, renewable energy technologies and efficient building design, was in Muscat recently to offer PwC's vast expertise encompassing the broad spectrum of climate change services.
"The visit was an opportunity for me to touch base with fellow professionals here, share our understanding of the global carbon market, as well as to tell them what we can offer in terms of capacity building in Oman. In fact, we did receive a very positive response not only from the government organisations that we had approached, but from the private sector as well. We are now looking forward to working with them in developing candidate CDM projects," Dr Singh stated.
As a key member of PwC's Sustainability Team, Dr Singh has advised on a number of CDM projects, primarily in the oil and gas sectors in India. He was also invited by a Middle Eastern petroleum corporation to advise on capacity building and the development of candidate CDM opportunities in the host country's hydrocarbon sector.
In Oman, Dr Singh envisions candidate CDM projects taking off at a significant rate once the establishment of a Designated National Authority (DNA) is formalised. The Sultanate, which ratified the Kyoto Protocol in 2005, is in the process of setting up the DNA, which must certify all candidate CDM projects before they are considered for registration as CDM initiatives under the UN Framework Convention on Climate Change.
Approved CDM projects earn certified emission reduction (CER) credits that have since spawned the growth of a multibillion dollar carbon market. These CERs can be traded and sold, and used by industrialised countries to meet a part of their emission reduction targets under the Kyoto Protocol.
"The formalisation of the DNA will pave the way for various Omani entrepreneurs, as well as oil and gas operators, to come forward and develop candidate CDM opportunities," Dr Singh said. "We are already in touch with many of the sectoral players who want to take things forward as soon as the DNA is established. For our part, we are working to put our best foot forward in helping Oman build capacity in this field, as well as provide technical support in developing candidate CDM opportunities."
The PwC executive sees significant CDM related opportunities linked to the Gulf region's pursuit of energy efficient hydrocarbon, industrial and infrastructure initiatives.
"CDMs can be a principal driver for investors to develop energy efficient projects, especially in the context of the Gulf region's current efforts to diversify their economies away from oil into manufacturing facilities, such as cement plants, steel mills, process industries, and so on. In the oil and gas sector, gas flaring reduction represents a lucrative candidate CDM opportunity. Likewise, in the infrastructure sector, the continuing emphasis on LEED certified buildings is bound to open up CDM opportunities in the future."
Equally promising is the potential created by the Sultanate's pursuit of renewable and alternative energy resources, says Dr Singh. "Oman has already identified opportunities in solar and wind energy. If these sources are tapped, you will not only be looking at long-term energy security, but also giving rise to candidate CDM opportunities."
It is carbon capture and storage (CCS) that perhaps represents a goldmine in potential CDM opportunities, says Dr Singh. "CCS, which represents a huge opportunity, and when it is eventually taken up as a possible CDM opportunity, I think this region can generate a third of all global CER credits."
Significantly, PwC was recently awarded the world's first CCS project by India's Oil and Natural Gas Commission (ONGC). PwC plans to begin providing CDM advisory services on this project once CCS is adopted as a CDM initiative.
PwC has more than 400 sustainability professionals from across 20 different countries working together to provide climate change services to governments and public sector organisations. In the Middle East, and with a dedicated sustainability team, PwC distinguishes itself in its offerings in climate change and carbon management projects, that lies in helping organisations comply with environmental, health and safety laws, regulators and corporate policies.
MUSCAT -- Oman represents a potentially attractive market for investment in energy efficient initiatives that fall within the scope of the Kyoto Protocol's Clean Development Mechanism (CDM), according to an expert representing one of world's largest providers of climate change services.
Dr Inderjeet Singh, Senior Manager at global professional services firm PricewaterhouseCoopers (PwC), sees promising CDM opportunities in a number of clean energy initiatives being pursued by the Sultanate and the wider Gulf region.
"Oman and the GCC are sitting on a pile of potential CDM opportunities, the range and extent of which are yet to be recognised by authorities in this region," the expert said in comments to the Observer.
Dr Singh, who has been associated with various capacity building programmes related to the promotion of greenhouse gas emission (GHG) reduction, renewable energy technologies and efficient building design, was in Muscat recently to offer PwC's vast expertise encompassing the broad spectrum of climate change services.
"The visit was an opportunity for me to touch base with fellow professionals here, share our understanding of the global carbon market, as well as to tell them what we can offer in terms of capacity building in Oman. In fact, we did receive a very positive response not only from the government organisations that we had approached, but from the private sector as well. We are now looking forward to working with them in developing candidate CDM projects," Dr Singh stated.
As a key member of PwC's Sustainability Team, Dr Singh has advised on a number of CDM projects, primarily in the oil and gas sectors in India. He was also invited by a Middle Eastern petroleum corporation to advise on capacity building and the development of candidate CDM opportunities in the host country's hydrocarbon sector.
In Oman, Dr Singh envisions candidate CDM projects taking off at a significant rate once the establishment of a Designated National Authority (DNA) is formalised. The Sultanate, which ratified the Kyoto Protocol in 2005, is in the process of setting up the DNA, which must certify all candidate CDM projects before they are considered for registration as CDM initiatives under the UN Framework Convention on Climate Change.
Approved CDM projects earn certified emission reduction (CER) credits that have since spawned the growth of a multibillion dollar carbon market. These CERs can be traded and sold, and used by industrialised countries to meet a part of their emission reduction targets under the Kyoto Protocol.
"The formalisation of the DNA will pave the way for various Omani entrepreneurs, as well as oil and gas operators, to come forward and develop candidate CDM opportunities," Dr Singh said. "We are already in touch with many of the sectoral players who want to take things forward as soon as the DNA is established. For our part, we are working to put our best foot forward in helping Oman build capacity in this field, as well as provide technical support in developing candidate CDM opportunities."
The PwC executive sees significant CDM related opportunities linked to the Gulf region's pursuit of energy efficient hydrocarbon, industrial and infrastructure initiatives.
"CDMs can be a principal driver for investors to develop energy efficient projects, especially in the context of the Gulf region's current efforts to diversify their economies away from oil into manufacturing facilities, such as cement plants, steel mills, process industries, and so on. In the oil and gas sector, gas flaring reduction represents a lucrative candidate CDM opportunity. Likewise, in the infrastructure sector, the continuing emphasis on LEED certified buildings is bound to open up CDM opportunities in the future."
Equally promising is the potential created by the Sultanate's pursuit of renewable and alternative energy resources, says Dr Singh. "Oman has already identified opportunities in solar and wind energy. If these sources are tapped, you will not only be looking at long-term energy security, but also giving rise to candidate CDM opportunities."
It is carbon capture and storage (CCS) that perhaps represents a goldmine in potential CDM opportunities, says Dr Singh. "CCS, which represents a huge opportunity, and when it is eventually taken up as a possible CDM opportunity, I think this region can generate a third of all global CER credits."
Significantly, PwC was recently awarded the world's first CCS project by India's Oil and Natural Gas Commission (ONGC). PwC plans to begin providing CDM advisory services on this project once CCS is adopted as a CDM initiative.
PwC has more than 400 sustainability professionals from across 20 different countries working together to provide climate change services to governments and public sector organisations. In the Middle East, and with a dedicated sustainability team, PwC distinguishes itself in its offerings in climate change and carbon management projects, that lies in helping organisations comply with environmental, health and safety laws, regulators and corporate policies.
By Conrad Prabhu
© Oman Daily Observer 2010
