Answer ... (a) What environmental regulations or requirements must renewables generators in your jurisdiction observe on an ongoing basis (from pre-development to decommissioning)?
A number of environmental protective regulations impact the way in which renewables projects are pre-developed, constructed, commissioned, operated and decommissioned. Federal Law 24/1999 on the Protection and Development of the Environment is the overall umbrella law for environmental protection, including:
- conserving the quality and natural balance of the environment; and
- avoiding harmful effects resulting from development projects.
It has blanket application and compliance is required w by all, including renewables generators.
There is also a series of other legislative provisions regarding environmental protection – for example, in relation to the development of aquatic resources and the use of radioactive substances. Each emirate and various free zones within the individual emirates have an additional set of local laws on various environmental issues specific to that emirate or free zone. If an entity wishes to undertake a project in the United Arab Emirates which may have an impact on the environment, it must apply for a licence from the Federal Environmental Agency or other relevant competent local authority, depending on the area in which the entity is proposing to undertake the project. The application process involves an environmental impact assessment.
Other relevant environmental regulations include:
- Federal Law 20/2006 on the Use of Radioactive Materials (which amended Federal Law 1/2002);
- Federal Law 12/2018 on Integrated Waste Management, which applies to waste from production to recycling, treatment and disposal, including industrial, agricultural, marine and oil waste, but excluding radioactive waste; and
- Ministerial Decree 37/2001 on the Handling of Hazardous Materials, Hazardous Waste and Medical Waste.
(b) What are the potential consequences of breach of these requirements – both for the renewables generator and for its directors, managers and employees?
Federal Law 20/2006 sets out a number of penalties for non-compliance with the environmental provisions within the United Arab Emirates in general. Penalties include fines from AED 1,000 to AED 10 million and life imprisonment.
Supplementary regulations or decrees issued by specific emirates set out their own penalties, which can complement or differ from those specified within the federal law. It is thus important that an entity is fully aware of the specific regulations governing the area in which it proposes to carry out an activity.
Typically, contracts for the construction, operation or decommissioning of renewable generators include a number of contractual provisions in respect of the environment, which may result in the imposition of contractual remedies if breached by the licensed entity, its directors, managers or employees. Other environmental terms set out in respective licences may potentially lead to revocation of the licence as a penalty applied by the authority granting the licence, if such terms are breached by the licensee.
(c) Which national and regional regulatory bodies are responsible for the enforcement of environmental obligations, and what is their general approach in regulating the renewables industry?
A number of federal and local regulatory agencies oversee compliance with environmental obligations, including the following:
- The Federal Ministry of Climate Change and Environment regulates the environmental industry by managing emissions and drafting flexible programmes and plans to enhance the capabilities of diverse sectors to adapt to climate change. It defines targets and indicators, such as increasing the share of clean energy in the total domestic energy mix to 50% by 2050.
- The Abu Dhabi Environment Agency regulates and enforces Abu Dhabi’s environmental laws to protect biodiversity and preserve the quality of life. It carries out thousands of compliance inspections and assesses and characterises risks to develop a better understanding of environmental threats in the emirate.
- The Ras Al Khaimah Environment Protection and Development Authority regulates the renewable industry by developing plans and policies for the protection of natural resources and the climate.
- The Dubai Municipality is engaged in developing infrastructure that enhances Dubai’s attractiveness for investments in clean energy projects and is responsible for enforcing the United Arab Emirates’ national objectives in the field of environmental sustainability. Notably, the ministry regulates the emirate of Dubai’s waste to energy programme, including the landmark Dubai Waste Management Centre.