UAE Approves 22 Policies to Expedite Transition to Circular Economy

UAE Approves 22 Policies to Expedite Transition to Circular Economy
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UAE Approves 22 Policies to Expedite Transition to Circular Economy

UAE Approves 22 Policies to Expedite Transition to Circular Economy

The United Arab Emirates approved on Sunday 22 policies aimed at expediting the country’s transition to a circular economy.

The Circular Economy Council approved the policies proposed by its subsidiary, the Circular Economy Policies Committee, that focus on accelerating the implementation of the circular economy model in four main sectors – manufacturing, food, infrastructure, and transport.

The Council also identified at least 16 circular economy activities that open a wealth of opportunities for businesses, such as upcycling textile waste into new products, developing automated Artificial Intelligence-enabled waste management solutions, and remanufacturing electronic waste.

It convened its second meeting of 2022, presided over by Mariam bint Mohammed Almheiri, Minister of Climate Change and the Environment.

Almheiri cited the cabinet’s approval of the UAE Circular Economy Policy in January 2021.

“Since then, we have embarked on an ambitious and important mission to shift from a linear model to a circular economy approach.”

“Our current linear economy consumes valuable materials and resources without being able to benefit from them after use, which represents waste in the modern concept of sustainability,” she explained, noting that her ministry seeks to protect the environment and ensure the long-term economic and social prosperity of the UAE.

She affirmed that many key stakeholders in the UAE have already started to embrace circular economy principles.

Almheiri noted that her ministry, along with the Ministry of Economy, have been engaging with them and others to gain valuable information and insights about ways to facilitate the transition to a circular economy.

She pointed out that 45% of global greenhouse gas (GHG) emissions result from producing cars, clothes, food, and other products used every day.

This demonstrates the great potential that lays in circular economy, which can complement the emission reduction and mitigate the current climate crisis.

For his part, Minister Abdullah al-Marri, who also heads the Council’s Circular Economy Policies Committee, noted that the Committee recently held intensive workshops and meetings with the government and private sectors, as well as international partners.

The workshops were designed to support the implementation of the UAE Circular Economy Policy in four key sectors – manufacturing, green infrastructure, transportation, and food production and consumption – as well as the 22 new policies issued to drive the UAE’s overall transition to a circular economy.

He said these policies will contribute to addressing all challenges the private sector is facing in its shift to a circular economy and support the country’s green development drive.

The initiatives come in line with the directives of the UAE’s wise leadership to fast-track the country’s transition to a circular economy as one of the sustainability, flexibility, and growth drivers of the new economic model as per the Principles of the 50.

Approved in January 2021, the UAE Circular Economy Policy identifies the optimal approach to the country’s transition to a circular economy.

Its objectives include building a sustainable economy, promoting efficient use of natural resources, encouraging the private sector to shift to cleaner industrial production methods that involve the use of artificial intelligence and other Fourth Industrial Revolution (4IR) technologies, and adopting sustainable consumption and production patterns that reduce environmental stress while meeting the basic needs of the population.



Urgent Financial Tasks Await Lebanon’s Emerging Government

Lebanese President Joseph Aoun stands between Speaker of Parliament Nabih Berri and caretaker Prime Minister Najib Mikati (dpa)
Lebanese President Joseph Aoun stands between Speaker of Parliament Nabih Berri and caretaker Prime Minister Najib Mikati (dpa)
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Urgent Financial Tasks Await Lebanon’s Emerging Government

Lebanese President Joseph Aoun stands between Speaker of Parliament Nabih Berri and caretaker Prime Minister Najib Mikati (dpa)
Lebanese President Joseph Aoun stands between Speaker of Parliament Nabih Berri and caretaker Prime Minister Najib Mikati (dpa)

A broad internal consensus, encompassing both political and economic dimensions, is taking shape to adopt the principles outlined in the presidential inauguration address as the foundation of the new government’s program and ministerial statement. This approach aims to sustain Lebanon’s immediate and strong positive momentum, which is reinforced by widespread support on both Arab and international levels.

Economic bodies and professional unions representing business sectors have openly expressed their relief and full support for the strategic directions set by President Joseph Aoun following his election. However, they have made it clear that maintaining this positive momentum depends on the formation of a reform-oriented rescue government, composed of competent, experienced, and honest ministers. This government must also collaborate constructively with the president.

According to a senior financial official, the rescue mission will be challenging due to years of governmental inaction and constitutional voids, which led to a deterioration in public sector operations and the accumulation of economic, financial, and monetary crises over the past five years. These challenges were further compounded by a devastating war, which inflicted severe human and financial losses estimated at approximately $10 billion, thereby worsening the country’s financial gap, now estimated at $72 billion.

Economic and banking circles are looking to the new government to swiftly capitalize on extensive international support by restoring trust and reestablishing financial channels between Lebanon and its regional and international partners. Key to this effort are explicit and transparent commitments to combating illegal economic activities, corruption, smuggling, money laundering, and drug trafficking. In parallel, the government must prioritize strengthening judicial independence and implementing strict controls over land, sea, and air borders.

The national consensus evident in the presidential election, according to Mohammad Choucair, head of Lebanon’s economic associations, paves the way for constructive collaboration among political factions. This collaboration is crucial for addressing challenges, rebuilding the state, and benefiting from renewed international and Arab—particularly Gulf and Saudi—interest in Lebanon. Choucair emphasized the importance of normalizing relations with Gulf nations, supporting Lebanon’s recovery, and providing resources for reconstruction efforts.

One of the urgent tasks for the new government, according to the financial official, is revisiting the draft 2024 state budget, which was previously submitted to parliament. Adjustments are necessary to address fundamental discrepancies in expenditure and revenue projections, taking into account significant changes brought about by the Israeli war.

Ibrahim Kanaan, chairman of the Parliamentary Finance Committee, described the budget as “unrealistic, if not entirely fictitious,” particularly in its revenue estimates. He pointed out that revenue increases were based on income and capital taxes, internal duties, and trade-related fees, all of which have been severely impacted by the war.

Reassuring depositors, both domestic and expatriate, who have suffered massive losses over recent years, is another pressing issue. These losses were exacerbated by the inability of successive governments to implement a comprehensive rescue plan addressing the $72 billion financial gap fairly. The situation was worsened by mismanagement in the electricity sector and the squandering of over $20 billion in central bank reserves following the onset of the financial crisis.

In response to Aoun’s commitment to a fair resolution for depositors, the Association of Banks in Lebanon welcomed his emphasis on safeguarding deposits. It also expressed its readiness to collaborate with the central bank and the government to protect depositors’ rights, citing a recent State Council ruling that prohibits any financial recovery plans from including measures that would erode depositors’ funds.

In its final session, the caretaker government addressed long-standing creditor issues by unanimously agreeing to suspend Lebanon’s right to invoke statutes of limitations on claims by foreign bondholders under New York law. This suspension, effective until March 9, 2028, aims to facilitate future negotiations.

With this decision, the caretaker government tacitly acknowledged Lebanon’s pending debt obligations, including over $10 billion in suspended interest payments on Eurobonds and approximately $30 billion in principal debt. The resolution now awaits direct negotiations under the new administration, which faces the challenge of resolving a nearly five-year-old crisis triggered by the previous government’s uncoordinated decision to halt payments on all Eurobond obligations through 2037.

Caretaker Finance Minister Youssef Khalil emphasized that despite the difficult circumstances, “Lebanon remains committed to reaching a fair and consensual resolution regarding the restructuring of Eurobond debt.”