Dubai Carbon Center of Excellence (DCCE) Executive Summary 1 October 2010

Dubai Carbon Center of Excellence (DCCE) DCCE Charter & Activities DCCE Vision, Mission & Objectives DCCE Business Model DCCE Set-Up & Structure DCCE Value Proposition DCCE Statement Dubai Carbon Center of Excellence (DCCE) DCCE Charter & Activities DCCE Vision, Mission & Objectives DCCE Business Model DCCE Set-Up & Structure DCCE Value Proposition DCCE Statement 2 Table of Contents

3 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. 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.

4 DCCE Vision, Mission and Objectives Dubai to be the Lowest-Carbon Economy in the Region Become a respected leader in the provision of total carbon solutions 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. VISION 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” MISSION OBJECTIVES

5 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 1.Advisory Business (enable companies to act on climate change) 2.Carbon Asset Development 3.Trading & Sourcing of Credits 4.Asset Management

6 DCCE Business Model – 4 lines of Business 1. Advisory Business (enable companies to act on climate change) 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. 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... 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. 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. Policy Development: development of inclusive policy papers and protocols for emission reduction initiatives and identifying/lobbying for regulatory changes. 1. Advisory Business (enable companies to act on climate change) 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. 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... 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. 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. Policy Development: development of inclusive policy papers and protocols for emission reduction initiatives and identifying/lobbying for regulatory changes.

7 DCCE Business Model 2. Carbon Asset Development 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. 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 Trading and Sourcing of Credits: Acts as a broker for its own book of credits (prop- trading) and as broker of clients’ credits to DCCE’s network of institutional buyers internationally, including Government Funds, Utilities and large corporations in compliance markets 2. Carbon Asset Development 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. 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 Trading and Sourcing of Credits: Acts as a broker for its own book of credits (prop- trading) and as broker of clients’ credits to DCCE’s network of institutional buyers internationally, including Government Funds, Utilities and large corporations in compliance markets

8 DCCE Business Model 4. Asset Management 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. Project Finance Fund: Provision of finance to carbon-asset projects with exceptional returns – direct equity based investments (majority), debt (minority). 4. Asset Management 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. Project Finance Fund: Provision of finance to carbon-asset projects with exceptional returns – direct equity based investments (majority), debt (minority).

9 DCCE Business Case Example: 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 Example: 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

DCCE Set-Up 10 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

11 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. 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.

12 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… “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…