Mideast PLC fails green test

Less than ten percent of Middle East companies are monitoring their carbon impact, placing the region at the bottom of the class globally, according to an Economist Intelligence Unit report.

Despite the Middle East being at the forefront of a potential climate change catastrophe according to Christian Aid, just 8% of the region’s organisations are monitoring their carbon impact, a figure rising only marginally to 10% for the global average.

Despite the downbeat topline figure the EIU notes positive “signs of action” from companies around the world. Nearly one in five firms it surveyed have a scheme in place to reduce some of their carbon impact, and another 28% expect to have one up and running by 2010, although less than half - 45% - have no plans at all.

That figure of inactivity rises to 51% in the Middle East.

More encouragingly while only 8% of Middle East businesses surveyed by the EIU have switched to renewable energy suppliers, a figure well below average, 24% plan to do so.

There are other signs that businesses are becoming more aware of climate change issues. Globally 35% of respondents' firms either have already reduced their air travel, or plan to do so, although more than half - 54% - are resistant to that point. Similarly, while only 18% of respondents said their firms use low-emission vehicles today, another 26% plan to introduce them within three years.

The survey also highlights the central role of government regulation in shaping businesses' response to carbon issues. Compliance with existing rules is the biggest single factor influencing carbon reduction strategies in Europe, where nearly three-quarters of respondents envisage a significant impact from appropriate tax incentives.

While no Middle East country has yet to outline a comprehensive set of policies on climate change its governments are increasingly aware of the issue. Earlier this month Abu Dhabi, which sits on one of the largest oil reserves in the world, announced its model for the future - the planet’s “greenest city” - which will add no carbon pollution to the atmosphere and generate no waste.

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