Public-Private Partnerships: The Path Towards Decarbonising Water in MENA

Water scarcity has been a concern for the MENA region, thanks to the region’s notoriously arid climate. Currently, the MENA region only has access to 1% of the global renewable freshwater resources, estimated to be reduced by 40% by 2030.

Nations across the Middle East have benefitted greatly from water-focussed developments such as underground harvesting infrastructure, irrigation systems and wastewater-reuse technologies.

Still, the combined effect of factors like population growth, urbanisation and climate change is once again pushing water scarcity to the forefront of the region's agenda.

The discourse at the last COP28 in late 2023 has placed a renewed focus on innovative solutions for water security, more specifically, on decarbonising water. At the forefront of this charge, and recognising its importance, the UAE has made significant strides in pushing this agenda further up the chain of command.

The country has also heavily invested in water production processes such as Reverse Osmosis and advanced desalination programmes that are less energy intensive and environment friendly.

Even so, government initiatives alone will not be sufficient to alleviate water security in the Middle East. Our critical water scarcity situation demands action, innovation, and a collective will to change. With this in mind, public-private partnerships (PPPs) emerge as a clear call to action, offering a pathway for addressing water scarcity and decarbonisation.

Understanding the Barriers

The barriers to addressing water scarcity are as diverse as they are significant. Each country has formulated its regulations within the MENA region, creating a complex patchwork of rules. This regulatory fragmentation poses significant obstacles, particularly as each jurisdiction within every country has its own distinct set of regulations and frameworks.

This fragmentation presents challenges for innovators and investors, as they must navigate a maze of national and regional regulations that differ greatly, creating a daunting environment for those seeking to invest or implement solutions in the region.

Apart from fragmented regulations, many countries also lack supportive frameworks that encourage and reward innovation in addressing water scarcity. Without adequate policies to stimulate innovation, the development of new water technologies can be stifled, inhibiting progress toward sustainable solutions.

Bureaucracy can also play a role in this complex equation. Administrative hurdles, from licensing to the execution of water projects, can extend timelines and inflate costs, discouraging the kind of agile response required to address water scarcity effectively.

Charting the Path Forward with PPPs

PPPs offer a dynamic shift in this landscape. By combining the private sector's pursuit of efficiency with the public sector's stewardship of the common good, we unlock new potential. In the UAE, such collaborations are laying the groundwork for significant advancements in water management technology.

For instance, the UAE's commitment to building mega-reservoirs, holding two days' worth of water supply for Abu Dhabi, exemplifies innovative solutions by PPPs. Such collaborations ensure that the public sector can leverage the private sector's expertise and resources to deliver high-quality services to the public for a water-secure future.

By incentivising innovation, governments can ensure that the brightest minds and the most capable organisations are motivated to dedicate their attention to tackling the water crisis.

The Mohamed bin Zayed Water Initiative is an excellent example of such incentives addressing the immediate concern of water scarcity while accelerating technological innovation for sustainable solutions.

Another key example of how PPPs operate in reality is in our work with municipalities. In 2019, Grundfos signed an MoU with the Ras Al Khaimah (RAK) Municipality in which we were to provide an energy audit for HVAC, irrigation, water supply and disinfection pumping systems across 50 buildings and operational facilities in the emirate, including large-scale sewage plants.

As a result, Grundfos supported the municipality in the implementation of new pumping solutions and system infrastructure. This led to the municipality saving 20% on energy and 12% on operational costs in their wastewater pumping system.

Not only does this benefit the municipality; it has a ripple effect on the communities that the municipality is serving, and in turn, has a positive impact on the environment.

Innovative Risk Sharing and Investment

Risk sharing is vital for innovation and the benefit of this can be seen throughout the UAE's push for sustainable city projects, like Masdar City, which shows how risk sharing can result in breakthroughs in water purification and desalination technologies.

By leveraging the strengths of both sectors, we're seeing accelerated deployment of digital technologies to manage water more efficiently.

Apart from sustainable city projects, the UAE government has also introduced a variety of other initiatives to bolster private sector engagement. These include establishing renewable energy targets, offering subsidies and incentives for clean energy companies, and implementing green building codes to promote sustainable construction.

Creating a favourable investment environment encourages more private sector participation in sustainable development projects, leading to long-term economic and environmental benefits. These investments ensure that innovation isn't just a buzzword; it's a tangible reality improving lives.

Advocating for Regulatory Standards

Through strategic PPPs, the UAE has not only advocated for stringent standards but has also successfully implemented them, setting a commendable benchmark within the MENA region. Initiatives such as Abu Dhabi’s Estidama Pearl Rating System and Dubai’s Green Building Regulations have mandated the integration of water-saving technologies in construction, fundamentally altering the industry's approach to resource efficiency. The DEWA's tariff structures disincentive excessive water use, fostering a culture of conservation.

Fostering Cross-Sector Collaboration

Water security concerns cannot be siloed into a single sector; they're cross-disciplinary and far-reaching. Grundfos is deeply motivated by this challenge, working alongside local governments and regulatory bodies to align with the MENA region's sustainability goals.

We understand that the true value of PPPs lies in their ability to harness each party's unique strengths—whether it be our technological innovations or our partners' policymaking prowess.

As we look to the future, we see a landscape where PPPs are the norm, not the exception. The initiatives led by the UAE, from developing cutting-edge desalination technologies to implementing the world’s largest solar-powered water desalination plant, provide us with a blueprint for success.

In a region defined by its desert landscape, we anticipate a future where water flows abundantly, powered by the combined efforts of public and private sectors dedicated to a sustainable, decarbonised future.